Thursday, July 12, 2012

New York Times Editorial Board Calls for I.R.S. Investigation of ALEC

I must say, I couldn't agree more!
For all its right-wing political muscle, ALEC has long enjoyed tax-exempt status as a nonpartisan charity under section 501(c )(3) of the tax code, which is supposed to bar it from influencing legislation as a substantial part of its activities. And because it is a charity, its donors are allowed to deduct contributions from income taxes. 
This outrageous situation has to be reversed. Marcus Owens, the former chief of the I.R.S. division in charge of tax exemptions, has recently filed a complaint with the I.R.S. charging ALEC with illegal lobbying and partisan violations that should lead to revocation of its tax exemption. We agree. “ALEC has deliberately and repeatedly failed to comply with some of the most fundamental federal tax requirements applicable to public charities,” Mr. Owens said in the complaint.
The complaint contains some very juicy information about how ALEC flaunted the tax exemption laws.
The complaint, filed on behalf of Clergy Voice, a group of Christian clergy in Ohio, notes that ALEC denied engaging in lobbying activity in its federal tax filings covering the years 2008 and 2009. At the same time, two of its lawyers were registered to lobby in at least one state, North Dakota. False reporting on these forms has been found to be a criminal offense considered perjury in at least four recent cases, Owens said.

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