Watchdog Says the Koch Brothers' Dark Money Fund Is Bending the Tax Code

[applegrove]

Watchdog Says the Koch Brothers' Dark Money Fund Is Bending the Tax Code

by Alex Setz-Wald at the National Journal

http://www.theatlanticwire.com/politics/2013/11/watchdog-says-koch-brothers-dark-money-fund-bending-tax-code/71277/

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Citizens for Responsibility and Ethics in Washington, the campaign finance watchdog, is calling on the IRS to investigate Freedom Partners, a fund tied to the Koch Brothers that quietly doled out $235 million in grants to conservative groups last year.

As we reported in September, when news of the group's existence first broke, Freedom Partners made fairly novel use of a section of the tax code—501(c)(6)—reserved for trade associations, like the National Beer Wholesalers Association, or chambers of commerce. Freedom Partners calls itself a chamber of commerce, but it seems to be driven by political ideology rather a common business interest.

"I haven't seen a situation like this, and we watch that area pretty closely," Jim Clarke, the senior vice president of public policy at the Society of Association Executives, a sort of trade association of trade associations, told National Journal at the time. Most "dark money" political groups are organized as "social welfare" organizations under Section 501(c)(4) of the tax code, but 501(c)(6) status makes it easier for businesses to write off donations and may insulate groups from regulatory pressure.

Now, CREW is calling on the IRS to look into the Koch-backed group's use of this tax designation, writing in a complaint to the tax agency that "it is clear the organization's activities do not meet [the] criteria" of a 501(c)(6) organization. Freedom Partners' only activity last year was to distribute money to other groups. "How does operating as a pass-through for anonymous sources to influence our elections mesh with the concept of a business league?" CREW Executive Director Melanie Sloan asked in a statement.




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[hollysmom]

1. can you imagine if they gave the to charity?

what a waste - talking about the brothers here

[SalviaBlue]

2. K & R