I.R.S. Begins Enforcing Rule on Gifts to Political Nonprofits
To me this is the BIG story of the day.
Big donors like David H. Koch and George Soros may owe taxes on their millions of dollars in contributions to nonprofit advocacy groups that are playing an increasing role in American politics.
The Internal Revenue Service has sent letters to at least half a dozen major donors to such groups, informing them that they should have reported their contributions as taxable gifts.
These groups have been drawing more and more criticism, from President Obama as well as others, as they have proliferated and funneled vast sums of money in support of campaigns and causes, without having to publicly disclose their donors. During the midterm cycle, for example, groups like Crossroads GPS, which has ties to the Republican strategist Karl Rove, and Americans for Prosperity, backed by Mr. Koch and his brother Charles, were heavily involved in politicking, spurring campaign finance watchdogs to complain that they were largely unregulated and flouting election and nonprofit laws