Top Former Tax Code Enforcer Files Letter Asking IRS To Strip ALEC’s Non-Profit Status
The American Legislative Exchange Council, a right-wing group responsible for state voter suppression laws, “stand your ground” laws and other far right initiatives, is a 501(c)(3) organization — meaning that it does not pay taxes and that its donors can deduct any donations they make to the organization from their taxable income. Thus, we the taxpayers essentially subsidize ALEC’s right-wing lobbying because the amount of money in the public treasury is reduced in order to pay for ALEC’s activities.
According to a letter by Marcus Owens, a former chief enforcer of federal tax law governing non-profits, however, ALEC does not deserve to have the taxpayers subsidize its activities. The letter lists several ways ALEC allegedly violated the requirements to maintain its tax exempt status — including by engaging in too much lobbying and by filing false disclosure forms — but the most interesting claim in Owens’ letter is an argument that ALEC should lose its preferred status because it violates a rule against “generating business or providing pecuniary support” for for-profit businesses:
http://thinkprogress.org/justice/2012/07/02/509534/top-former-tax-code-enforcer-files-letter-asking-irs-to-strip-alecs-non-profit-status/
