IRS Complaint Filed Against “Non-Profit”, Reports

SACRAMENTO, Calif., Oct. 23, 2012 /PRNewswire via COMTEX/ — Calling it a “perpetual political campaign masquerading as a taxpayer-subsided nonprofit,” filed an official compliant with the U.S. Internal Revenue Service against and its sister organization, the Consumer Education Foundation, for violating their nonprofit status.

The complaint notes that the nonprofit is indistinguishable from the group’s 501c4 political organizations, utilizing the same staff, same offices, same e-mail addresses, same resources, and same social network accounts for its involvement in political work. The complaint contained hundreds of pages of documentation accompanying IRS Form 13909, the agency’s Tax-Exempt Organization Complaint Form.

“Taxpayers should not be subsidizing an organization whose main activity is running and influencing political campaigns,” said Steven Maviglio of “ConsumerWatchdog spends millions of dollars on politics, hides its donors, and is actively engaged in fighting and proposing measures on California’s ballot, and has been throughout its existence–even building in funding for itself in a political measure. It’s a political group hiding behind the fig leaf of nonprofit status. Taxpayers should not be subsidizing their perpetual political activity.”

“The Internal Revenue Service rightly has the enforcement tools to ensure that nonprofits do not spend the vast majority of their efforts and resources on political campaigns,” noted the letter accompanying the complaint. “ has a long history of doing nothing but that, largely to feather the nest of its founders and executives who are paid six-figure salaries.”

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