Forum Post: The faux IRS scandal & the real IRS scandal:

[Fixing this will shut down one of the 1%’s most powerful loopholes.]

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Internal Revenue Code 501(c)(4) LAW
provides for exemption of:
“Civic leagues or organizations not organized for profit but operated
exclusively for the promotion of social welfare.
Local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality and the net earnings of which are devoted
exclusively to charitable, educational, or recreational urposes”.

From 1959-1962, various IRS leaders changed the law {a totally illegal act } into:
…..organizations not organized for profit but operated
PRIMARILY for the promotion of social welfare…...

Since “primarily” was not defined, 501C4s have been allowed to spend as much as 60% of their anonymous money directly on POLITICS.

THIS IS THE REAL IRS SCANDAL
For decades, the IRS has allowed hundreds of 501C4s to break the law.

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May 14, 2013 CREW Statement on Increasing Scrutiny of IRS

Melanie Sloan - Washington, D.C. — In response to the news that the IRS improperly targeted 501(c)(4) groups in the lead-up to the 2012 election — and in light of forthcoming congressional investigations into this matter — CREW Executive Director Melanie Sloan issued the following statement:

“What happened at the IRS, promulgated under the Bush IRS Commissioner, was wrong, but let’s not be sidetracked. The real problem is that phony 501(c)(4) groups are exploiting the tax laws to protect donors who don’t want to be held accountable for vicious, deceitful political ads. Hopefully this scandal will put these obscure but politically significant groups on the public’s radar.

“During the congressional hearings this week, members should question all aspects of 501(c)(4) enforcement, including why an IRS altered “regulations” allows these groups to work
‘primarily’
for the social welfare when the statute requires them to engage in such activities
‘exclusively,’
as well as why the IRS has allowed some groups to violate even the lax primary purpose standard without consequences.”

Citizens for Responsibility and Ethics in Washington (CREW) is a non-profit legal watchdog group dedicated to holding public officials accountable for their actions. For more information, please visit www.citizensforethics.org or contact David Merchant at 202.408.5565 or dmerchant@citizensforethics.org

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.Those who can't - rant
...Those who can - DO
.
.If you really want to DO something about 501C4 fraud-
...let your senators and congresspeople
...know what you want done.
.
.Even if you do not know their names
...you can call them at 202-224-3121
.
.write to your congressperson:
...US House , Washington DC 20515
. .write to your senator
...US Senate , Washington DC 20510
.
.each member has their own website for email
.

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.The White House
...http://www.whitehouse.gov/contact/submit-questions-and-comments
...The White House, 1600 Pennsylvania Avenue NW.Washington, DC 20500
...Comments: 202-456-1111 Switchboard: 202-456-1414

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