New IRS Policy Enables Certain Tax Exempt Groups to Veil Donors



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WASHINGTON – The Trump Administration eliminates the requirements that some tax-exempt groups disclose the identity of their donors to the federal tax authorities.

The change benefits groups that spend millions of dollars on political ads, such as the American Chamber of Commerce and an organization linked to billionaire brothers Koch.

Republicans accused the IRS during President Barack Obama's presidency of liberal bias and unfair targeting of conservative tax-exempt groups. Now these groups are among the organizations allowed to retain the names of their donors according to the new IRS policy announced Monday.

Treasury Department officials described these changes as protections of freedom of expression and privacy. But critics believe that easing disclosure requirements opens the door to more gloomy money in political campaigns.

"Americans should not be forced to send IRS information that they do not need to effectively enforce our tax laws." IRS simply does not need tax returns with names. and addresses from donors to do its work in this area, "said Finance Minister Steven Mnuchin in a statement

Mnuchin said the same information on tax-exempt groups that was previously available to the public critics said the action would undermine the opening of political campaigns and allow hidden and unscrupulous donors to inject money into the system

. Transparency and for the dark – barely his promised swamp drainage, "said Norman Eisen, the leading ethics attorney in the Obama administration who is a scholarship recipient of governance at the Brookings Institution 9659013] Eisen said the current required disclosures also allow the IRS to monitor illegal foreign contributions.

News of the IRS policy change came the same day federal prosecutors have accused a gun rights activist living in Washington intelligence about US officials and political organizations.The court documents show that the activist's activities, Maria Butina, included efforts to use contacts with the National Rifle Association to develop relations with US politicians during the 2016 campaign. The NRA is one of the groups that will benefit from the new policy of the IRS.

Sen. Ron Wyden of Oregon, the senior Democrat of the Senate Finance Committee, said on Tuesday that he would vote against Donald Trump's presidential candidate at the head of the IRS, Charles Rettig, unless Rettig is committed to reinstating the disclosure requirement.

The Trump Treasure Department facilitated the sending of dark money to non-profit organizations by anonymous foreign donors on the same day that a Russian national linked to the NRA was arrested for attempting to d & rsquo; To influence our elections, "said Mr. Wyden." This is the latest attempt by Secretary Mnuchin and Donald Trump to eliminate transparency and prevent officials and legislators from following the money. "[19659015] Nancy Pelosi, Democrat House Leader, denounced President Trump's move.Under the new policy of the IRS, charities receiving mainly tax-deductible contributions and organizations politicians will still have to provide in their annual reports the names and addresses of their donors giving at least $ 5,000. But the so-called social welfare organizations, commercial leagues and unions will be It was unloaded from a requirement that the Treasury Department said Congress never imposed.

The IRS "does not systematically use" the information provided by these groups. The government said, and if information is needed for an audit, the IRS can ask the group directly for verification.

The Chamber of Commerce praised the new policy

"This action will help ensure that sensitive information about donors will not fall into the hands of those who wish to remove the First Amendment's right to freedom of expression." expression, "spokesman Blair Holmes said in a statement. "The US House of Representatives strongly supports the right of all organizations – regardless of their ideological or political persuasion – to participate actively in the important political conversations of our country."

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