IRS Takes a Closer Look at Rove’s Dark-Money Group

Image of Karl Rove by <a href="http://www.flickr.com/photos/33876038@N00/2824584419/">chicagopublicmedia</a>/Flickr

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.


As they dominate the airwaves with political ads, dark-money nonprofits are coming under increased scrutiny. At issue is the charge that they’re running afoul of their tax-exempt status by focusing on partisan political activity. Earlier this week, New York Attorney General Eric Schneiderman sent subpoenas to a nonprofit affiliated with the Chamber of Commerce to see if millions of dollars had been improperly funneled to the Chamber (a 501(c)(6) nonprofit) for political purposes.

Now, the Wall Street Journal reports, the Internal Revenue Service has begun a process of determining whether Karl Rove’s Crossroads GPS should have to give up its nonprofit 501(c)(4) status and disclose its donors. Democrats and campaign-finance watchdogs have been urging regulators to crack down on groups like Crossroads GPS; last week the Obama campaign’s top lawyer sent a snarky letter to Rove saying he was filing a complaint with the FEC “laying out the case—obvious to all—that Crossroads is a political committee subject to federal reporting requirements.”

If the IRS revokes Crossroads GPS’ or other 501s’ nonprofit status, the Journal explains, “the organizations could be held liable for large tax bills for the millions of dollars they have received tax-free.” However, reaching such a determination will likely take months. Which means that dark-money groups can keep spending freely on ads and promising anonymity to their donors through the November election.

For more, check out our interactive dark-money universe map, which tracks Crossroads GPS and 17 other 501 groups.

More MotherJones reporting on Dark Money

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate