IRS To Take On Karl Rove?

[kpete]

IRS To Take On Karl Rove? Tax Laws Could Take A Bite Out Of Secret Political Spending

First Posted: 05/25/11 06:04 AM ET Updated: 05/26/11 04:17 PM ET

Karl Rove's political groups claim to be in compliance with the IRS.

(BUT).............contrary to popular belief, Rove's group has not formally attained 501(c)(4) status. The group's application, requesting the IRS to classify it as a "social welfare" group, is still pending.

(The Huffington Post said the IRS could well deny Crossroads GPS's application)

WASHINGTON -- Top Republican political strategist Karl Rove's method of secretly funneling unlimited contributions from big donors was so hugely successful in the 2010 campaign that Democrats are now trying to copy it. But his model may yet end up backfiring spectacularly.

In one scenario, groups like Rove's Crossroads Grassroots Political Strategies could find themselves subject to massive fines, ranging as high as 35 to 70 percent of the money they received in secret donations.
In another scenario, their deep-pocket donors could be hit by a 35 percent tax on their contributions.

..............




MORE:
http://www.huffingtonpost.com/2011/05/25/irs-karl-rove-crossroads-tax-law-donor-disclosure_n_866428.html

[Jackpine Radical]

1. It would be cool if something like that actually happened.

In today's environment ai'm not holding my breath.

[Sonoman]

2. I normally don't allow myself to get my hopes too high.

But this one is different.

I hope Rove jumps off the Congress Street Bridge.

Sonoman

[Drale]

3. Take the bastard down the same way they took Al Capone down

Maybe he'll get an STD and die just like Capone.

[Turbineguy]

4. Then he'll need help!

http://www.ronideutch.com/

[TimLighter]

5. A few weeks ago it was going to be Koch and Soros

Big donors like David H. Koch and George Soros could owe taxes on their millions of dollars in contributions to nonprofit advocacy groups that are playing an increasing role in American politics.
Invoking a provision that had rarely, if ever, been enforced, the Internal Revenue Service said it had sent letters to five donors, who were not identified, informing them that their contributions may be subject to gift taxes depending on whether the donations exceeded limits under the tax laws.

http://www.msnbc.msn.com/id/43016229/ns/politics-the_new_york_times/t/irs-may-tax-gifts-groups-active-politics/

[former9thward]

6. Not sure the purpose of the bold in the OP

The IRS allows groups applying for 501(c)3 or (c)4 status to operate and accept contributions while an application is pending. If at some point the IRS denies the application then the contributions could be taxed. Of course the denial can be appealed to Tax court.

[no_hypocrisy]

7. Al Capone went to jail for tax evasion, not racketeering.

[WhiteTara]

8. Your keyboard to the god/dess' ears! n/t

[UTUSN]

9. A wistfully wishful K&R #15!1 n/t

[Historic NY]

10. social Welfare my ass....I hope they have to give up all the previous spending info.