501(c)(4) groups and the IRS scandal

Posted on: Fri, 05/24/2013 - 11:17 By: Tom Swiss

There's no question that the IRS fscked up big time, but there is also a real issue with 501(c)(4) being used to hide the strings pulling our poltics.

Five 501(c)(4) Groups That Might Have Broken the Law | The Nation

The real scandal has been the blatant abuse of 501(c)(4) status by dozens of lobbyists and operatives who have set up such tax-exempt organizations as political slush funds to conceal money in political campaigns. Since the Citizens United decision, 501(c)(4) groups, have operated as Super PACs—raising and spending tens of millions in corporate funds—without disclosing a dime of their contributors. IRS rules state that the primary activity of such groups cannot relate to political advocacy, yet examples abound of 501(c)(4) groups spending well over 50 percent of their funds on attack ads, political action committees and other clearly political expenses. These potential violations of the law have gone on for several years now, with very little interest from the Beltway media or Capitol Hill Republicans, many of whom owe their election to spending by bogus 501(c)(4) organizations.