This ad is sponsored by an arm of the Koch brothers operation that is organized as a 501(c)(3) charitable organization, meaning that the donations that went to pay for this advocacy are tax deductible. So all of us taxpayers are subsidizing this electioneering. The Wisconsin Democracy Campaign filed a complaint with the Internal Revenue Service in 2012 asking the IRS to investigate apparent violations of the tax-exempt status of Americans for Prosperity Foundation and two other 501(c)(3) charities. (wisdc.org/pr031312.php) The IRS replied with a letter dated March 22, 2012 saying the agency has an ongoing examination program to ensure that exempt organizations comply with the applicable provisions of the Internal Revenue Code. The information you submitted will be considered for this program. The letter went on to say we cannot disclose the status of any investigation. Thats the last weve heard. Given that AFPF is doing more of the kind of advertising that prompted our 2012 complaint, one has to assume the IRS has blessed this activity. IRS rules governing 501(c)(3) tax-exempt status – meant for charitable and educational organizations to promote the “social welfare” – prohibit such groups from using any resources to participate or intervene in political campaigns. The rules also say such groups cannot use a substantial amount of their time or resources on issue advocacy to influence legislation. Evidently the IRS does not believe this is a political ad. Follow the link, watch the ad, and judge for yourself. Do you think the IRS is correct?
Posted on: Wed, 28 May 2014 14:37:20 +0000