More Headaches Ahead for Tax-Exempt Groups?

The 990 forms do not list the names of big donors but have nonetheless triggered several eye-opening investigations that illuminate just how such “dark money” groups operate. ProPublica detailed how Crossroads GPS spent at least $85.7 million on politics, despite having reported a far smaller sum to the IRS — $74 million. The difference is largely explained by an $11.2 million Crossroads grant to Americans for Tax Reform, which spent the money on campaigns, the report found. The Center for Responsive Politics continued its “Shadow Money Trail” series with several updates showing, among other findings, that one in four “dark money” dollars went to groups with links to billionaire conservatives Charles and David Koch. The CRP also examined the Crossroads GPS grant. Citizens for Responsibility and Ethics in Washington recently complained to the IRS and the Department of Justice that ATR spent more than half its money on politics, not social welfare, and that the group provided false information to the tax agency. ATR organizers call the allegations baseless and say they have complied with the law.

More Headaches Ahead for Tax-Exempt Groups? | Beltway Insiders