32 House Dems Called For IRS To Investigate Conservative Groups In 2012

May 15, 2013

By now, most Americans are aware of the IRS unfairly targeting conservative groups for investigation. What’s not widely known is that in March 2012, 32 House Democrats wrote then-IRS Commissioner Doug Shulman asking him to investigate 501 (c) (4) groups.

(Read the full letter HERE or see below)

The group led by Vermont Congressman Peter Welch “urge[d] the Internal Revenue Service (IRS) to investigate whether any groups qualifying as social welfare organizations under section 501(c)(4) of the federal tax code are improperly engaged in political campaign activity.” They go on to specify the conservative SuperPAC Crossroads GPS.

While reports show that the IRS began improperly investigating conservative groups well before the letter was sent, it’s certainly telling that these 32 members of Congress wanted special scrutiny on these mostly conservative groups.

This letter raises questions as to what these members of Congress knew. Did they ever speak with Commissioner Shulman directly about this? If so, did he tell them they were in the process of investigating such groups? Did they ever speak with Lois Lerner, the senior IRS official whose division was implicated in the recent scandal.

The American people deserve a full accounting of the IRS’s unconscionable behavior. That includes these 32 House Democrats coming clean and detailing any further contact with the IRS on this matter.

 

The Honorable Douglas Shulman,

Commissioner

Internal Revenue Service

1111 Constitution Avenue, N.W.

Washington, D.C. 20224

Dear Commissioner Shulman:

We write to urge the Internal Revenue Service (IRS) to investigate whether any groups qualifying as social welfare organizations under section 501(c)(4) of the federal tax code are improperly engaged in political campaign activity.

Congress created a tax break for nonprofit social welfare organizations because communities across our country benefit greatly from their important work.  The purpose of 501 (c)(4) organizations is to increase civic engagement and foster social improvements.

IRS regulations state that an organization is operated for the promotion of social welfare “if it is primarily engaged in promoting in some way the common good and general welfare of the people of a community.”  The regulations further state that the “promotion of social welfare does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office.”  In other words, activities that promote social welfare do not include political campaign activities.  Thus, as stated in IRS training materials, “an organization exempt under section 501(c)(4) may engage in political campaign activities if those activities are not the organization’s primary activity.”

In light of recent reports about the political activities of certain social welfare organizations, we respectfully request that the IRS review these organizations and take appropriate actions to ensure that they are in full compliance with all federal tax laws.  We urge you to investigate and stop any abuse of the federal tax laws by groups whose primary activity and true mission are to influence the outcome of federal elections.

Sincerely,

PETER WELCH
Member of Congress

Members signing include: Peter Welch (D-Vt.), Bruce Braley (D-Iowa), Joe Courtney (D-Conn.), Ted Deutch (D-Fla.), Lloyd Doggett (D-Texas), Anna Eshoo (D-Calif.), Sam Farr (D-Calif.), Luis Gutierrez (D-Ill.), Nydia Velazquez (D-N.Y.), Gary Ackerman (D-N.Y.), Earl Blumenauer (D-Ore.), Michael Capuano (D-Mass.), Steve Cohen (D-Tenn.), John Conyers (D-Mich.), Donna Edwards (D-Md.), Keith Ellison (D-Minn.), Bob Filner (D-Calif.), George Miller (D-Calif.), Raul Grijalva (D-Ariz.), Alcee Hastings (D-Fla.), Maurice Hinchey (D-N.Y.), Jesse Jackson Jr. (D-Ill.), Hank Johnson (D-Ga.), Eleanor Holmes Norton (D-D.C.), John Olver (D-Mass.), Jared Polis (D-Colo.), Charles Rangel (D-N.Y.), John Sarbanes (D-Md.), Jan Shakowsky (D-Ill.), Louise Slaughter (D-N.Y.), Chris Van Hollen (D-Md.) and John Yarmuth (D-Ky.).