Senator asks IRS to investigate tax-exempt groups’ political spending

A senior Democratic senator asked the IRS Wednesday to investigate third-party groups he says are manipulating tax-exempt status for political gain.

Since the Supreme Court’s ruling on Citizens United vs. the FEC, political spending by such outside groups has exploded. Democrats have long said that because such spending has favored Republican candidates, the party’s advantage in fundraising over Republican counterparts has been neutralized.

Wednesday’s move by Max Baucus (D-Mont.), chairman of the Senate Finance Committee, is the most overt step yet taken by a Democrat aimed at countering their influence. In a letter to IRS Commissioner Doug Shulman, he asks the body to investigate whether the tax code is being used to “eliminate transparency in the funding of our elections,” and if tax benefits of 501(c)(4), (c)(5) or (c)(6) groups “are being used to advance private interests.”

“When political campaigns and individuals manipulate tax-exempt organizations to advance their own political agenda, they are able to raise and spend money without disclosing a dime, deceive the public and manipulate the entire political system,” Baucus said in a statement.

Baucus’ letter mentions no specific group by name, but cites media reports that focus on entities such as Americans for Job Security and Crossroads GPS. The latter has spent millions on an ad campaign targeting Democratic candidates for U.S. Senate on the issue of healthcare.

The groups have maintained that they abide by all relevant law.

mmemoli@tribune.com

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