By Zachary Newkirk on May 11, 2011
The Internal Revenue Service is beginning to enforce taxes on gifts to 501(c)(4) organizations, a move that could significantly affect the world of money in politics.
Various 501(c)(4) nonprofit groups such as the the American Action Network and Crossroads Grassroots Policy Strategies have poured millions of dollars into federal election campaigns, even though they are not, by law, supposed to have a primary purpose of engaging in political activity.
Donors to these groups are anonymous, and gifts to political groups are typically not taxable. But the IRS has begun taking a closer look at taxing these donors, according to Ben Smith of Politico. Continue reading »
