A higher standard of transparency is now in effect

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Groups funded by Soros and Arabella - like the Rural Organizing Initiative have been recognized by the IRS as (c)(4)s - but with a tax exemption if they are advocating for certain topics, in a non-political manner.

Until now - the definition, oversight and enforcement has allowed nefarious and craven groups to blow through this loophole like an 18 wheeler sliding sideways with a 1,000 feet to spare on each end. This loophole has been abused horrifically - mostly by left wing/globalist groups.

These days are coming to an end with this court decision:

“WASHINGTON—A federal appeals court narrowed the tax rule that has let conservative and liberal groups pour billions of dollars into political campaigns without disclosing their donors, and the case could restrict the flow of so-called dark money into politics. 

The unanimous opinion from a three-judge panel of the 5th U.S. Circuit Court of Appeals came this week in a healthcare case that didn’t directly address politically active organizations. But the decision—from a conservative court—sets a tighter legal standard for tax-exempt status that the advocates for political donor transparency have long sought. 

The court said groups can’t qualify for tax exemption under Section 501(c)(4) of the tax code if they have a substantial nonexempt purpose. That is a much stricter standard than the one in Internal Revenue Service regulations, which say groups only need a primary purpose that qualifies for the exemption. That has been interpreted to allow tax exemptions for groups that spend 51% of their money on lobbying or other clearly allowed activities—and 49% on politics. 

“The people who are making the case that they can do up to 49%, do they have a leg to stand on? Their leg got a lot weaker,” said Phil Hackney, a University of Pittsburgh tax law professor. “

A victory - but like any good criminal - they will be innovative to get around the light shining on their activities by the partial lifting of the veil through this court finding.

ColonelRetJohn Substack

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