Here is an issue we discuss here regularly — challenging the tax-exempt status of certain political groups. BTW, “Tea Party Patriots, Inc. operates as a social welfare organization organized under section 501(c)(4) of the Internal Revenue Code. Contributions to Tea Party Patriots, Inc. are not deductible as charitable contributions for income tax purposes,” as the group notes on its website:
“A campaign finance reform organization has sent a letter to the Internal Revenue Service challenging the tax-exempt status of four high-profile political committees, including one that recently made headlines in California,” according to California Watch.
“The challenge is the latest, and likely not the last, attack on a new regime of campaign finance rules that came into focus after a series of court decisions last year. Under the new rules, corporations and interest groups have the power to spend unlimited amounts in support of their favored candidates.
“Last week, the Washington D.C.-based campaign reform group Democracy 21 sent a letter to the IRS arguing that the political activities of four committees should disqualify their tax-exempt status.
“Each of the committees has been a prominent player in the run-up to the 2012 elections: Crossroads GPS, an organization founded by conservative strategist Karl Rove; Priorities USA Action, which was founded by former aides to President Barack Obama; American Action Network, which bills itself as a center-right advocacy group; and Americans Elect, which aims to have voters nominate a third-party candidate directly and recently submitted 1.6 million signatures to qualify for the ballot in California.
“The organizations are incorporated under a section of the tax code that allows them to engage in political activities as long as they do not constitute the organization’s ‘primary activity.’
“Under that designation, known as 501(c)(4), the groups are supposed to be formed with the purpose of serving ‘social welfare.’ Such groups can raise unlimited amounts of money and do not have to disclose their donors.”
The rest of the article is here.
Filed under: Uncategorized | 1 Comment »