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IRS probe ignored most influential groups


Posted: May 18, 2013

"...advocates of reform worry that, in light of the IRS disclosure of targeting small groups, government regulators will be less likely to scrutinize the tax-exempt status of the bigger, more powerful groups out of fear that they will appear to be targeting groups for political reasons." "Rep. Chris Van Hollen, D-Md., urged the House Ways and Means Committee not to ignore the influx of groups that may be abusing the tax code as part of its upcoming IRS probe, saying: ‘I hope we can remove the incentive for any group, regardless of its political orientation, to seek 501(c)(4) tax-exempt status to engage in significant political campaign activities while hiding their donors.'" http://www.boston.com/news/nation/washington/2013/05/18/irs-probe-ignored-most-influential-groups/2MuUP3G05CJnrJgAvtdrMN/story.html;

IRS Scrutiny of Political Nonprofits.... - Truthhurts

[ In Reply To ..]
This article was posted on March 7, 2012 in the NY Times. A couple paragraphs here because the full article is quite long, but the below paragraphs stood out near the end. Posting those paragraphs because I know not everyone will read the full article.

I had been looking for proof that Chuck Schumer and Al Franken were the instigators of the IRS doing the targeting of Tea Party groups like they are being accused of doing by some articles. Their letter did not show that unless you read between the lines, but still is a little vague on who, if anyone, they were specifically targeting.

I
“I think the story here is that we have a system in which we think this is happening, and there’s absolutely no way we can find out legally,” Professor Hill said.

The Democratic group Priorities USA uses a blanket disclaimer on its Web site that says, “Contributions to Priorities USA are not deductible for federal income tax purposes.” American Crossroads leaves unaddressed the business tax deductibility issue, stating, “Contributions to American Crossroads are not deductible as charitable contributions for federal income tax purposes.”

Officials at the organization say they tell their donors, including companies and individuals, that they should contact their financial advisers and tax counsels to determine the ramifications of their contributions.

Democrats, whose 501(c)(4)s have been outraised significantly by their Republican counterparts, have been pressing the I.R.S. for a response on the tax questions, and the agency responded earlier this year. The I.R.S. noted that under existing tax law, new 501(c)(4)s simply declare themselves to be social welfare organizations, but they are supposed to justify that status each year with their tax returns’ Form 990s. The agency promised that it “will review organizations to ensure that they have classified themselves correctly and that they are complying with applicable rules.”

http://www.nytimes.com/2012/03/07/us/politics/irs-scrutiny-of-political-groups-stirs-harassment-claim.html?pagewanted=all&_r=1&

Good article. Thanks. - sm

[ In Reply To ..]
It seems wrong in so many ways that anonymous donors can contribute to "social welfare" organizations, whose real cause is not for social welfare but to promote a political agenda. If these donors want to enhance social welfare, why do they feel it necessary to be anonymous? Shouldn't that be something to be proud of?

To me, a simple solution would be to change the wording of qualification for social welfare organizations back to "exclusively" for social welfare rather than "primarily." It was "exclusively" before 1959.

If that ever happens, it will be interesting to see how many wealthy anonymous donors continue to donate to social welfare groups.

The Koch Brothers and Karl Rove's "social - sm

[ In Reply To ..]
welfare" groups certainly should be investigated, given the millions and millions of dollars they gave to conservative candidates.

I think SCOTUS should reverse their decision on Citizens United - Truthhurts

[ In Reply To ..]
This is what started the whole scandal. I'm curious if anyone has appealed their decision?

Investigating Rove and the Koch Brothers is definitely targeting conservatives. If you're going to investigate them, you have to investigate George Soros' Media Matters and the other publications/501(c) groups he donates heavily to, don't 'cha think? Or is it okay because those groups are liberal?

Can't have it both ways.

As a liberal, I agree with you 100% - sm
[ In Reply To ..]
But they will never admit to being wrong. They are a "conservative" court.

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