Legal News

Tax-exempt Political Groups in New York are Not Exempt from Inquiry
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

As reported earlier by New York Times, New York Attorney General Eric Schneiderman is in the process of expanding his inquiry into the finances of tax exempt political groups who are spending millions of dollars in the 2012 election. A US Supreme Court ruling in 2010 paved the way for spending in political campaigns by Super PACs. However, Super PACs need to file monthly disclosures, and this discourages corporations many of who direct cash toward nonprofits.

The New York Attorney General is requesting tax returns and other financial documents from roughly two dozen nonprofit groups including both conservative and liberal groups. Sources close to the inquiry reported that letters had been sent to four Republican organizations including Crossroads GPS, Americans for Tax Reform Foundation, American Action Network, and American Future Fund.

Crossroads GPS is run by a former aide of George W. Bush, Karl Rove. Former Senator Norm Coleman runs American Action Network, Republican Grover Norquist runs Americans for Tax Reform Foundation and American Future Fund is run by Iowa based strategist Nick Ryan.

  
What
Where


Four liberal groups also received letters from the Attorney General including Priorities USA Action, American Bridge 21st Century Foundation, Patriot Majority USA, and America Votes. Two former aides to President Barack Obama founded Priorities USA Action.

The inquiry made by the Attorney General shows increasing scrutiny of nonprofits which qualify under the US tax code as social welfare organizations. Their status allows them to raise millions of dollars while keeping their donors secret as long as most of the money they spend do not directly support or oppose a political candidate. Such “issue advocacy ads” cannot use the name or likeness of a political candidate and are expected to educate the public on broad issues.

However, many nonprofits have political action committees affiliated with them and such political action committees can raise unlimited funds.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




In New York, the state law requires charities doing business in the state to file annual reports with the charities bureau of the Attorney General, and also provide an Internal Revenue Service form if the solicited amount exceeds $ 25,000 or more in contributions. The Attorney General has the power to subpoena the documents if the charities bureau does not receive the requested information.





 

RELEVANT JOBS

Attorney

USA-ME-Portland

The Bennett Law Firm, a regional law firm with a practice focusing on representing management in lab...

Apply now

Civil Lawyer for NY & NJ - Attorney

USA-NY-New York City

Wanted: In-house attorney must be knowledgable and experienced in elder law, medical malpractice, wr...

Apply now

Junior Paralegal / Legal Assistant

USA-CO-Littleton

Established Littleton Law firm is seeking a Legal Assistant / Junior Paralegal with 1 plus years par...

Apply now

Associate Attorney

USA-NY-New York City

Applicant must have a JD from an accredited law school and be admitted to practice and in good stand...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Family Law Associate Attorney

USA-TX-Austin

Austin office of our client seeks family law associate attorney with 3+ years of courtroom experienc...

Apply Now

Civil Litigation Associate Attorney

USA-TX-Austin

Austin office of our client seeks associate attorney with 5+ years of civil litigation experience. T...

Apply Now

Family Law Associate Attorney

USA-CO-Greenwood Village

Greenwood Village office of a BCG Attorney Search Top Ranked Law Firm seeks family law associate att...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top