IRS Complaint Filed Against Rove Group

IRS Complaint Filed Against Rove Group April 19, 2012

The Campaign Legal Center, a group founded by former McCain campaign counsel Trevor Potter, has sent a letter to the IRS asking them to investigate Karl Rove’s Crossroads GPS for alleged violations of the IRS rules regarding political activities by 501(c)(4) organizations. In a press release, the group says:

In a letter sent to the IRS today, Democracy 21 and the Campaign Legal Center again called on the agency to investigate and take appropriate enforcement action against Crossroads GPS for its apparent misuse of a privileged tax status. The letter specifically calls attention to a secret $10 million dollar contribution to the 501(c)(4) group to run attack ads that The Washington Post recently brought to light.

Political operatives are increasingly turning to the 501(c)(4) tax status to hide their donors from the public despite the fact that they are not “social welfare” organizations but are primarily dedicated to supporting and opposing candidates and are poised to spend hundreds of millions of dollars on election advertising this year.

“The continued refusal by the IRS to reign in scofflaws abusing a privileged tax status has only encouraged even more blatant disregard for the law by these groups and their anonymous funders,” said J. Gerald Hebert, Executive Director of the Campaign Legal Center. “A secret ten million dollar contribution to run attack ads shows pure contempt for the law, the agency’s willingness to enforce it, and the public’s right to know who is funding our elections. The IRS must do its job and enforce the law even in the face of political pressure to let the scofflaws continue.”

“It is essential that the IRS act to stop the farce that Crossroads GPS is a ‘social welfare’ organization,” said Fred Wertheimer, Democracy 21 President. “Karl Rove and Crossroads GPS are thumbing their nose at the American people. They are injecting secret, million dollar and multi-million dollar contributions into federal elections in direct conflict with the basic right of citizens to know the donors financing campaign expenditures to influence their votes. This cannot be allowed to continue. The IRS must take action against all groups not entitled to 501(c)(4) tax-exempt status.”

In addition to calls to investigate Crossroads GPS, the brainchild of long-time Republican party operative Karl Rove, the letter called on the IRS to enforce the same laws with regard to Priorities USA, American Action Network and Americans Elect, other organizations in apparent violation of their 501(c)(4) tax status.

Priorities USA is a group that backs President Obama’s re-election, American Action Network is a group founded by former U.S. Senator Norm Coleman that supports Republican candidates, and Americans Elect is a group that has gained ballot access as a political party in numerous states to run a candidate for president. These groups also claim status as tax-exempt “social welfare” organizations.

You can read the full letter here.

Rove has two groups: American Crossroads, which is registered as a 527, and Crossroads GPS, which is a 501(c)(4).

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  • Jordan Genso

    And for those that don’t know, Trevor Potter is the same attorney who has been assisting Stephen Colbert and his Super PAC, exposing the lunacy of the campaign finance rules (or lack thereof).

  • And the “G” in Crossroads GPS stands for “grassroots”, just in case you haven’t been getting enough irony lately.

  • I think if we ever knew the full story about all of the dirty money in politics it would be shocking…what is not shocking to me is that Rove is somehow involved in a part of it. Between stuff like this and the Citizens United ruling, we are in for a long period of buying elections….it’s really sad.

  • Why hasn’t the IRS gone after all the churches that played politics around Prop 8? Oh. Right.