Van Hollen Statement on IRS Granting Tax-exempt Status to Karl Rove's Crossroads GPS

Statement

Today Maryland Congressman Chris Van Hollen released the following statement after the Internal Revenue Service (IRS) granted Crossroads GPS tax-exempt status as a "social welfare" organization:

"I was stunned to learn that the IRS has approved Crossroads GPS for nonprofit status. After the Supreme Court decision in Citizens United authorized corporations to make campaign expenditures, Karl Rove set up this organization as a conduit for campaign donors to anonymously influence elections.

"The tax exempt status of 501(c)(4) organizations was designed to promote "social welfare' -- not for the purpose of funneling secret, special interest money into campaigns. In August of 2013, in conjunction with campaign finance reform groups, I filed a complaint in Federal District Court to compel the Treasury Department to amend its Regulations to protect against the misuse of tax-exempt status. We withdrew that complaint based on assurances from the IRS that it intended to address this problem.

"Needless to say, it is shocking to learn from the Center for Responsive Politics that rather than prohibiting this flagrant misuse of tax law that governs nonprofit organizations, the IRS has decided to help Crossroads GPS conceal the identity of outside groups that seek to influence our elections anonymously."

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