| New York extends probe into tax-exempt political groups |
NEW YORK New York Attorney General Eric Schneiderman is expanding his inquiry into the finances of tax-exempt political groups that are wielding hefty power in the 2012 election by spending millions of dollars raised from undisclosed donors.
Schneiderman is requesting tax returns and other financial documents from roughly two dozen prominent non-profit groups, both conservative and liberal-leaning, said a source familiar with the inquiries.
The groups include four influential Republican organisations: Crossroads GPS, run by former George W. Bush aide Karl Rove; Americans for Tax Reform Foundation, run by a powerful anti-tax Republican Grover Norquist; American Action Network, chaired by former Senator Norm Coleman; and American Future Fund, founded by Iowa-based strategist Nick Ryan.
Earlier this year Ryan ran the “Super PAC” backing Republican presidential candidate Rick Santorum who has since withdrawn from the race.
Letters also went out to four liberal groups: Priorities USA Action, founded by two former aides to President Barack Obama; American Bridge 21st Century Foundation, which focuses on opposition research; Patriot Majority USA, run by veteran Democratic consultant Craig Varoga; and America Votes group founded by several prominent Democratic operatives.
The probe reflects the increasing scrutiny that authorities are giving such tax-exempt groups, which qualify under US tax code as “social welfare” non-profit organisations. That status allows them to rake in millions of dollars while keeping their donors secret as long a most of their money buys “issue advocacy ads” that do not directly support or oppose a political candidate.
Unlike regular political ads, such “advocacy” ads cannot use a candidate’s name or likeness and are supposed to be used to educate the public on broad issues or positions.
The amount spent by these groups as well as some of the ads that have pushed “issue advocacy” boundaries has piqued interest in the well-guarded identities of the group’s donors. Many non-profits have affiliated “Super PACs,” or political action committees, which also can raise unlimited funds and have no limits on how much of their cash buys political advertising but have to disclose all donors.
Agencies
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