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GOP Senators Press IRS on Rule Changes

WASHINGTON – A group of Republican senators is pressing the Internal Revenue Service for more information on its plans to consider changing regulations of politically active non-profit groups like Karl Rove’s Crossroads GPS, which have been accused of misusing their tax-exempt status to influence elections.

The letter from Sen. Orrin Hatch (R., Utah), the top Republican on the Senate Finance Committee, and nine other Republican Senators is the latest in a battle that involves tax-exempt groups like Crossroads GPS, which has been trying to boost Republican presidential candidate Mitt Romney. The group, known as a 501c(4) after the section of the tax code under which it operates, has spent more than $50 million on television ads in the last three months alone, either to attack U.S. President Barack Obama or promote Mr. Romney.

The money has drawn the attention of groups like Democracy 21, which has asked the IRS to investigate Crossroads GPS and to tightly define which groups can qualify for 501c(4) status, which allows the groups to keep the identity of their donors a secret. The IRS wrote last month that it would “consider proposed changes in this area.”

“We believe these petitions have less to do with concerns about the sanctity of the tax code and more about setting the tone for the upcoming presidential election, and we urge you to resist allowing the IRS rulemaking process to be subverted to achieve partisan political gains,” wrote the Republican senators. “Your letter seems to suggest that outside political pressure is actually what is triggering your agency’s considering of changes to the law.”

Fred Wertheimer, the president of Democracy 21, said in an interview that “I just view this as harassment and efforts to intimidate the IRS.” He said that Crossroads GPS doesn’t qualify as a 501c(4) and “therefore they should not be allowed to get away with using that as cover for hiding their donors.”

“The only thing missing from the Republicans’ letter is the ‘or else’,” said Sen. Charles Schumer (D., N.Y.) in a statement. “This unsubtle threat is clearly designed to put a chilling effect on the agency’s enforcement of the law. The IRS should not be bullied into looking the other way when blatantly political groups are claiming non-profit status.”

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    • Richard Right is right so far as what might happen to minorities, such as what happened previously (thank you IBM etc.), when they become so easily identifiable and their whereabouts easily determined. Privacy as a right, seems to be a human right, nowadays I question any shrill demand over categorical minuitia, built to threaten and coerce citizens or public assemblies by name. Maybe it is also time to take back the right of religious and political assembly without having to file papers, and have to sweat over whether or not this or that is in political fashion.

      It is obvious that the left would benefit most from an all open system frankly, they are the organizers who’ve shown up in neighborhoods with loud protesters, or who’ve motivated the anti capitalist protesters down on Wall Street. Once they’ve got the open system, it will not be long before some wise guy sorts it for the express purpose of a targeting the priority challegers.

      So it is not going to become either or, since we’d never have seen any pattern in the failed green industry either, or any of the money laundering that finances apocalytic death cults.

      It is not a black or white option of all or nothing. You’ll drive yourself mad with too few options. But sixteen are far too many for most citizens to understand, and, low and behold you’ll likely need legal expertise to start up. But being able to criticize politics and policy makers anonymously is a vital matter for a healthy society.

    • This is appropriate if applied across the Board. Here, where I live, there is a Christian Service group which supports everything Obama does and recommends members support Obama, his policies, and oppose Republicans . They maintain their tax avoidance status while engaging in politics, they’ll likely be reviewed sometime ,if ever, after Nov. 7

    • Wretch Wretched, Our pres can’t get his internet bill through Congress. Watch, the executive order is coming.

    • Let’s not forget how the left treated people in California who dared…dared….dared to say no to the gays special rights. Up and down the west coast, we heard how ‘politically incorrect’ donors were harrassed. Look no further than Cathy’s establishment being targeted by evil doers lately. Those who cry they cannot expose donor’s names have evil intentions! This is precisely why the internet’s apparent anonymity outrages a select few as well. What is Soros doing? He’s underwriting “swatting” efforts by a ex-con jail house lawyer parading around as a not for profit in Virgina. We’d LOVE to see who else contributes to that kind of not for profit. No?

    • Chicago politics say, payback your supporters, destroy your enemies and take as many payoffs as you can get. If you don’t like chicago politics in the White House make sure you vote Republican

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