NonProfits May Have IRS Tax Exempt Status Revoked?

Last month the Internal Revenue Service (IRS) revoked the tax exempt status for Emerge America, which is a San Francisco based, nonprofit organization that trained Democratic women as candidates. This move by the IRS may be the precursor of investigations into groups such as Crossroads GPS and Priorities USA that spend millions on the current presidential election.

Both Barack Obama and Mitt Romney profit from these type of nonprofit organizations.

It appears that the IRS’ decision was convey a message that it may give serious attention to many nonprofit organizations after this year’s election in November. According to Marcus Owens, a lawyer and former IRS director who oversaw nonprofits, “The message is groups like Crossroads need to be prepared to explain to the IRS why they’re entitled to tax-exempt status.”

The IRS sent a letter to Emerge America claiming,

“You are not operated primarily to promote social welfare because your activities are conducted primarily for the benefit of a political party and a private group of individuals, rather than the community as a whole.”