|
 |
 |
|
New York AG defends efforts on tax-exempt groups
New York’s Democratic attorney general on Monday defended his efforts to obtain information from tax-exempt organizations, in the process pushing back on criticism from top GOP tax writers.
Attorney General Eric Schneiderman, in a Monday letter obtained by The Hill, said that New York was entitled to directly request tax information from charitable and nonprofit groups, and that it was commonplace for tax-exempt organizations to share federal tax returns with state officials.
Schneiderman also cast his actions as a state's rights issue in a direct response to Rep. Dave Camp (R-Mich.) and Sen. Orrin Hatch (R-Utah), who questioned last week whether the attorney general might be violating federal guidelines by not requesting tax information directly from the IRS.
“I hope you share my understanding of federalist principles, which contemplate a crucial role for state law enforcement,” Schneiderman wrote to Camp, the chairman of the House Ways and Means Committee and Hatch, the ranking Republican at Senate Finance.
“The recent activities of some tax-exempt organizations and businesses have been matters of great concern to New Yorkers. While my office respects applicable federal requirements and restrictions, I will continue to perform my duties and enforce the laws of the state of New York,” added Schneiderman, after saying he wanted to correct "apparent misimpressions" held by Camp and Hatch.
Schneiderman’s letter marks the latest development in the debate over tax-exempt 501(c)(4) groups and their role in political campaigns, which has grown since the Supreme Court’s Citizens United decision in 2010.
The IRS did not immediately respond to a request for comment on Schneiderman’s letter, or about how state officials should seek tax records from nonprofit groups.
Hatch and Camp’s offices also have yet to offer a comment, after the two said last week that states could only get tax return information about a 501(c)(4) from the IRS and only enough to administer state laws.
In his Monday letter, Schneiderman noted that New York maintained a registry of charitable organizations, which includes some 501(c)(4) groups, as part of its oversight of nonprofit groups.
A source with knowledge of Schneiderman’s efforts noted that the attorney general had worked to ensure that nonprofit groups that raised or spent more than $25,000 in the state were on the registry.
New York requests tax information for groups on the registry, but the source also did not say whether the state would disclose information on donors or other records from the groups.
Many Democrats in general want the IRS to rein in 501(c)(4)s, which don’t have to reveal their contributors, but are supposed to focus on social welfare work.
Democrats on Capitol Hill have also suggested implementing a “bright line test” to limit how much political work 501(c)(4)s do, and have said they will seek legislation on the issue if need be.
Republicans, meanwhile, have urged the IRS to ensure that politics don’t play a role in updating any guidelines for 501(c)(4) groups.
Most Viewed RSS Feed »
