October 18, 2004

19 Oct 2004 // Washington, DC, -- Earlier today, Citizens for Responsibility and Ethics in Washington (CREW) filed a complaint with the Internal Revenue Service regarding four conservative political organizations, Americans for Job Security ("AJS"), Americans for Jobs and Growth ("AJG"), Citizens United ("CU") and Let Freedom Ring ("LFR"), claiming that they illegally file as tax exempt organizations when, in fact, they are political organizations whose primary purpose is the reelection of President Bush.

Because the IRS does not afford tax-exempt status to organizations whose primary purpose is influencing elections, CREW argues that the four groups do not qualify for § 501(c) status. In addition, because none of the entities sponsors a § 527 organization in order to conduct political activities, they are avoiding the tax and disclosure requirements generally applicable to political organizations.ÊBased on these violations, the complaint requests that the IRS withdraw the tax exempt status of each organization and assess back taxes, interest and penalties on each.

CREW's executive director Melanie Sloan stated "these organizations, which are in business primarily to assist President Bush's reelection effort" should be forced to reveal the identities of their donors in the same way that other political organizations must. They cannot evade filing requirements by claiming to operate under some other section of the tax code when, in fact, they are operating like 527s."

Sloan continued, "the IRS has recently indicated that it plans to take a closer look at many 501(c) organizations; this would be an excellent place for the agency to start."

A copy of the complaint can be found on the web at www.citizensforethics.org