Skip to content

Get Judicial Watch Updates!


Judicial Watch • IRS Pages from May 2015 5440-5442

IRS Pages from May 2015 5440-5442

IRS Pages from May 2015 5440-5442

Page 1: IRS Pages from May 2015 5440-5442

Category:Obtained Document

Number of Pages:3

Date Created:July 22, 2015

Date Uploaded to the Library:July 22, 2015

Tags:Shulman, IRS

File Scanned for Malware

Donate now to keep these documents public!

See Generated Text   ∨

Autogenerated text from PDF

n.;..s....,.,.... .n...... ...t..w....~ ll I4iA Wm. IMA u..o... mt...w. 0... ... MVt >t.L4uu Dlt(~KIt7;O 0... ... MIMI
in-on .1... unsuuuuvls ...
....c.... ....m.. ...... ..:.
nun rvo1- amen
mam u...,m,m..m. suntunw u.: .;a~ >4! gs.
...... r..M:. ........m~
......w.... mun __,_ :3, COMMllY mama: M... ...
WAsHtNGYDN, 20510-5200
mm. $o. mm...
tum nuutticm cluvonuctou tnonm i.-wwsti
September 28, zoia
The Honorable Douglas Shulman
Comrnissioncr 3.,
internal Revenue Service ...a- ~~- Rm. Constitution Avenue, NW.
Washington. 20224 SE? 1919
Via Electronic Transmission
Dear Commissioner Shulman:
The Senate Finance Committee hasjurtsdiction over revenue matters. and the
Committee responsible for conducting oversight ofthe administration the federal tax
system. including matters involving tax-exempt organiutions, The Committee has
focused extensively over the past decade whether tax exempt groups have been used
for lohhying other nancial political gain.
The central question examined the Committee has been whether certain
charitable social welfare organizations quality for the tax-exempt status provided
under the lntemal Revenue Code.
Recent media reports various 50] (c)(4) organizations engaged political
activity have raised serious questions about whether such organizations are operating
compliance with the internal Revenue Code.
The law requires that political campaign activity 50l(c)(4), (c)(5) (c)(6)
entity must not the primary purpose the organization.
ifit determined the primary purpose the 501(c)(4), (exit) and (c)(6)
organization political campaign activity the tax exemption for that nonpro can
Even political campaign activity not the primary purpose ofa SOI (c)(-6).
(c)(S). and (c)(6) organization, must notify its members ofthc portion ofducs paid due political activity pay proxy tax under Section 6033(e).
IRS JW-220-005470
Also. Lax-exempt organizations and their donors must not engage private
inurement excess bene transactions. These mles prevent private individuals
groups from using tax-exempt organizations benefit their private interests profit
from the tax-exempt organization activities. September New York Times article entitled Hidden Under Tax empt
Cloak, Private Dollars Flow described the act the organiz ion Ame for
Job Security. Alaska Public omce Commission investigation revealed that MS,
organized entity promote social welfare under 50! (c)(6), fought development
Alaska the behe local nancier who paid for most the referendum
campaign. The Commission report said that Americans for Job Security has other
purpose other than cover money trails all over the country. The article also noted that
membership dues and assessments plunged zero before rising 2.2 million for
the presidential race. September Time Magazine article examined the act Washington
DC. based 50l(c)(4) groups planning $300 million spending blitz the ZOI
elections. The article describes group transforming itself into nonpro under
501 (c)(4) the tax code, ensuring that they would not have publically disclose any
information about its donors.
These media reports raise basic question: the tax code being used eliminate
transparency the funding our elections elections that are the constitutional bedrock our democracy? They also raise concerns about whether the tax bene nonpro
are being used advance private interests.
With hundreds millions dollars being spent election contests tax-
exempt entities. time take fresh look current practices how the comport
with the lntemal Revenue Codes rules for nonprofits. request that you and your agency sun najor 50l (c}(4). (c)(5) and (c)(6)
organizations involved political campaign activity examine whether they are
operated for the organization intended tax exempt purpose and ensure that political
campaign activity not the organizatiotfs primary activity. Speci cally you should
examine these political act reach primary purpose level the standard imposed the federal tax code and they not. whether the organization complying with
the notice proxy tax requirements Section 6033(e). also request that you your
agency survey major l(c)(4), (e)(5), and (c)(6) organizations detenninc whether they
are acting conduits for major donors advancing their own private interests regarding
legislation political campaigns, are providing major donors with excess bene ts.
Possible violation oftax laws should identi you conduct this study.
Please report back the Finance Committee soon possible with your
ndings and recommended actions regarding this matter.
Based your repon plan ask tha Cnmrniltee open its own investigation
and/or lake appmprialc legislative aclion.
Max Baucus