Blog — Internal Revenue Service
On Tax Day, Everyone Should Play by the Rules
Today, millions of hardworking Americans will pay their taxes. Some will put their tax forms in the mail believing they are paying too much; others will submit them online recalling their frustration as they tried to figure out the complexity of a Form 1040. But almost all of us will play by the rules and pay what we owe.
The same can’t be said for several groups abusing their tax-exempt status to subsidize partisan political activity.
Tax-exempt organizations are required to tell the IRS how much they spend on political activities. This information is critical to establishing whether such organizations are complying with their charitable status. Reporting inaccurate information can result in civil penalties and criminal prosecution.
CREW has asked the IRS to investigate several cases:
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Americans for Tax Reform
ATR, founded by anti-tax zealot Grover Norquist, reported wildly disparate spending on political activities in 2010 to two different federal agencies. Norquist told the Federal Election Commission (FEC) that ATR spent more than $4.2 million on such activity. But the figure he gave the IRS, on a form Mr. Norquist signed under penalty of perjury, was less than half that amount. Norquist is welcome to crusade against taxes as much as he wants. But as long as the tax laws are on the books, he has to follow them just like everybody else. -
The Commission on Hope, Growth and Opportunity
CHGO is another outfit that can’t seem to keep its stories straight. In its application for tax-exempt status, submitted in 2010 under penalty of perjury, CHGO claimed it had no plans to spend any money on elections. But just a few weeks after winning tax-exempt status, CHGO started running millions of dollars worth of ads advocating the defeat of Democratic members of the House of Representatives. It appears CHGO has done little or nothing else, a flagrant violation of tax law. CHGO also didn’t bother to report its ad spending to the FEC. That, too, is illegal. -
Americans for Job Security
AJS claims tax exemption under a section of the law that applies to “business leagues, chambers of commerce…” and similar organizations. To be exempt from taxes, the group’s primary purpose cannot be political activity. But in 2010, AJS spent 72 percent of its funds on such activities. Surely -- under any interpretation of “primary purpose” – a group that spends nearly ¾ of its budget on political ads is violating the law.
As the rest of us pay our fair share and abide by our nation’s tax laws, CREW will keep pressing the IRS to make sure these organizations and others like them do the same.
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