More than half of the 192 nonprofit organizations with tax-exempt 501(c)(3) bonds outstanding that responded to an Internal Revenue Service questionnaire were unable to describe their procedures for complying with the tax laws and rules pertaining to their bond issues, the IRS said in a report issued yesterday.

"Ineffective post-issuance compliance and record-retention programs may result in qualified 501(c)(3) bonds forfeiting their tax-exempt status," the IRS warned in a summary of the report's findings.

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