IRS gift tax move could hit new anonymous groups

Did you see this story today?  It is very big news.  I bet Rove has a lot of angry big Republican donors calling.

The gift tax was an issue we raised last year in our request for a special prosecutor against these anonymous donation electoral groups — illegal non-profits.  No other group raised this obscure issue.  Great to see it come to fruition.  A lot of previous donors will be over the limit and unable to donate again without paying a 35% tax — higher than the tax they pay on their capital gains! It is going to be much harder for Rove, the Chamber et al to get these big donations now.  See attached letter we sent Holder that raises this issue.

Seems like a lot of our work from over the last year is coming to fruition.

KZ

IRS gift tax move could hit new anonymous groups

From POLITICO:

The Internal Revenue Service appears to have begun to enforce a tax on gifts to the non-profit organizations that were a key vehicle for anonymous politics in the last five years and had promised to play a large role in the presidential cycle, a move which could reshape the place of money in politics in 2012.

“It appears that the IRS Estate and Gift Tax team has also started paying attention to 501(c)(4) organizations,” a Los Angeles tax lawyer who has followed the issue closely, Ofer Lion, wrote in a memo to clients today.

Gifts to other political organizations are not taxable under federal law, and lawyers informally say many donors do not typically pay the gift tax — which may run as high as 35%, mirroring income tax rates — for contributions to 501(c)4s…

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