Seems like some exempt organizations have been taking a real gamble with their tax status.

IRS is auditing more than 800 nonprofits that appear to have failed to report income they received from “casino nights” and similar events. The events are generally used as fundraisers for the groups.

The Service believes many of the groups owe tax on unrelated business income and/or payroll taxes generated during the events.

Too soon to say how much missed revenue the audits could turn up, but if it’s significant, expect IRS to roll the audit program out on a larger scale — especially as other sources of tax revenue are drying up.

Tags: Audits, Tax compliance, Tax-exempt organizations