I see Karl Rove is up to his old tricks:
http://www.washingtonpost.com/wp-dyn/content/article/2010/10/05/AR2010100501790.html

Campaign watchdogs accuse top conservative group of violating tax laws
By Dan Eggen
Washington Post Staff Writer
Tuesday, October 5, 2010; 12:37 PM

Two campaign-finance watchdogs asked the Internal Revenue Service on
Tuesday to investigate Crossroads GPS, the big-spending conservative
group supported by Republican guru Karl Rove, for allegedly violating
U.S. tax laws limiting the political activities of nonprofit groups.

In a complaint filed with the IRS, Democracy 21 and the Campaign Legal
Center say the group - an arm of the American Crossroads political
committee - is using its nonprofit status to shield the identities of
its wealthy donors.

The complaint says "the group was organized to participate and
intervene in the 2010 congressional races while providing donors to
the organization with a safe haven for hiding their role."

Jonathan Collegio, spokesman for American Crossroads and Crossroads
GPS, said the GPS group "carefully follows all laws" governing
nonprofit organizations.

"This is a baseless complaint, filed by a partisan group that files
baseless complaints for its living," Collegio said.

The dispute signals an early volley in the looming legal battle over
election and campaign-finance rules for 2012, even as independent
interest groups set new records for spending on the November midterms.
Critics say a shifting legal landscape has made it even more
attractive for politically minded interest groups to cloak their
spending in the shelter of nonprofit organizations.

The allegations also underscore the increasing pressure on the IRS to
broker such disputes amid gridlock at the Federal Election Commission,
which has seen its powers eroded by the courts and is hobbled by
partisan differences. A labor coalition filed a separate IRS complaint
last month alleging tax violations by the nonprofit Chamber of
Commerce.

"We're living in a new world now, and the IRS can't just stand on the
sidelines anymore," said Fred Wertheimer of Democracy 21, who co-wrote
the IRS complaint with Campaign Legal Center executive director J.
Gerald Hebert. "You have groups basically using their nonprofit status
to keep their donors secret."

The IRS, which in general does not publicly discuss such complaints,
had no immediate comment on the letter.

Crossroads GPS - short for Grassroots Policy Strategies - is organized
as a nonprofit "social welfare" organization under section 501(c)(4)
of the federal tax code, which effectively means the group can raise
and spend as much as it wants with minimal public disclosure.

But U.S. tax laws also say the primary purpose of such nonprofit
groups cannot be political, including the "participation or
intervention in political campaigns."

Hebert and Wertheimer argue that Crossroads GPS has made a mockery of
that requirement, bragging about its plans to target Democrats and
extolling the virtues of anonymity to donors.

Collegio accused Wertheimer and other campaign-finance activists of
looking the other way when liberal groups, including nonprofits, spend
big on elections.

"Liberal groups spent more than $400 million in undisclosed campaign
money in 2008 alone, with nary a peep from liberal lobbyist Fred
Wertheimer or any of his groups," Collegio said.

FEC records show the two Crossroads groups together have spent nearly
$10 million so far in support of Republican candidates, part of a
stated goal of more than $50 million by the midterm elections. The
groups reported raising a total of $32 million as of late last month.
The money was about evenly divided between the two.

Unlike Crossroads GPS, American Crossroads is organized as a so-called
"super PAC," which can raise and spend as much as it wants on direct
advocacy but must reveal donors. Records show that a handful of
billionaires and their companies have contributed nearly all of
American Crossroads' money, including Texas oilman Trevor Reese-Jones,
Public Storage founder B. Wayne Hughes, and longtime Republican
fundraiser Carl Lindner of American Financial Group.

A $400,000 contribution from the latter company would not have been
possible before this year's landmark Supreme Court ruling in Citizens
United v. Federal Election Commission, which found that corporations
can spend as much as they want for or against political candidates.

That decision and others have helped unleash a frenzy of spending by
groups outside the party system this year, most of it by donors who do
not have to be publicly identified.

-- 
Larry C. Lyons
web: http://www.lyonsmorris.com/lyons
LinkedIn: http://www.linkedin.com/in/larryclyons
--
People need to realize that the plural of anecdote is not data.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~|
Order the Adobe Coldfusion Anthology now!
http://www.amazon.com/Adobe-Coldfusion-Anthology-Michael-Dinowitz/dp/1430272155/?tag=houseoffusion
Archive: 
http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:328706
Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm
Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm

Reply via email to