Is the IRS Denying Tax-Exemption to Karl Rove?

Is the IRS Denying Tax-Exemption to Karl Rove?

Despite the ongoing investigation into IRS targeting, former White House adviser Karl Rove’s nonprofit political group is being held up by the agency for tax-exempt approval. Reports this week shed light on the case.

In 2013, documents from House Ways and Means Committee revealed the IRS had already begun a draft letter to deny Rove’s group, known as Crossroads Grassroots Policy Strategies (CGPS). This was just news broke that the agency was targeting conservative non-profits.

The documents revealed now-infamous lead agent, Lois Lerner, was directly involved. Lerner was directly involved in reviewing the application for tax-exemption from Crossroads GPS.

The 2014 election cycle had Republicans sweeping both federal and state offices. Crossroads GPS contributed approximately $34 million dollars to Republican efforts, specifically the races that played an essential role in the U.S. Senate takeover.

If Crossroads’ application is ultimately denied, the organization will be subject to at least three years of retroactive corporate taxes at the highest bracket of 35%, an amount which may force its closure.

According to this weeks Treasury Inspector General report, there are only 11 of the 160 stalled applications still awaiting resolution. Six of those are suing the IRS, and it is presumed that Crossroads is among the five groups still languishing in red tape.