While the IRS finally agreed to reevaluate regulations concerning politically minded 501(c)(4)s, the NY Attorney General isn’t happy just sitting around and waiting. Instead, NY AG Eric Schneiderman recently sent letters to over 20 politically motivated 501(c)(4) organizations, asking for tax and other financial records.
Democratic and republican organizations alike are receiving these requests, including Priorities USA Action, founded by former aides to President Obama, and Crossroads GPS, founded by political strategist Karl Rove.
Schneiderman is acting under NY law, which gives the AG the authority to investigate tax-exempt organizations doing business or raising substantial funds in NY. Watchdog groups that have been pushing for additional scrutiny of these organizations are welcoming this development.
It will be interesting to see whether Attorneys General in other states elect to pursue similar inquiries. We’ll keep you posted.