Skip to comments.Taxpayer watchdog calls on IRS to probe re-branded Texas ACORN branch
Posted on 07/19/2012 4:41:28 PM PDT by Hunton Peck
The former Texas ACORN chapter has a new name and a scheme to collect donations and divert them for political use in a way that abuses tax laws governing charitable organizations, according to a Washington-based public interest group.
Cause of Action, a nonprofit taxpayer watchdog, charged in a letter to the Treasury Inspector General for Tax Administration that the tax-exempt Texas Organizing Project (TOP), formed from the ashes of scandal-ridden ACORN, is using money funneled to it by a closely associated group called the Texas Organizing Project Education Fund for political activity.
The fund gave nearly 80 percent of its revenues -- approximately $640,000 -- to the advocacy group in 2010, leading Cause of Action officials to believe its reason for being is to raise charitable donations to send to TOP, which is permitted to fund political activity. TOP has used its website to solicit support for Mary Ann Perez, a Democrat running for state representative.
Cause of Action is asking the IRS to investigate these groups for potential abuses of their tax exempt status."
- Dan Epstein, Cause of Action
Fiscal sponsorship [has allowed TOP and TOP ED] to use a loophole in the tax code to engage in improper political activities...."
The public advocacy watchdog group also claims in the letter that TOP and TOP ED are an example of former state chapters of ACORN re-branding themselves in the wake of controversies that led to the national parent group shutting down in 2010. Cause of Action claims the defunct non-profit instructed its affiliates to funnel tax-deductible and/or taxpayer dollars to ACORN over a 40-year period.
"After ACORN became subject to public scrutiny, and eventually filed for bankruptcy, it re-branded many of its state chapters in order that those organizations could continue pursuing ACORNs goals,"...
(Excerpt) Read more at foxnews.com ...
The letter from the watchdog group, Cause of Action, is here.