Taxpayer watchdog calls on IRS to probe re-branded Texas ACORN branch

[WestVirginiaRebel]

Fox News:

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.

“Fiscal sponsorship [has allowed TOP and TOP ED] to use a loophole in the tax code to engage in improper political activities under the radar of the IRS,” Dan Epstein, executive director of Cause of Action, said to FoxNews.com. “Cause of Action is asking the IRS to investigate these groups for potential abuses of their tax-exempt status, and to hold them accountable for any violations they find.”

"Texas Organizing Project Education Fund is abusing this privilege by not sponsoring an individual educational project, but rather sponsoring an entire political entity, the Texas Organizing Project. TOP ED should suffer tax penalties for essentially existing as a channel through which money is being directed to a political organization, but the IRS is either intentionally overlooking this abuse, or is unaware of it," Epstein added.

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