Cause of Action’s Executive Director Dan Epstein commented on the new report, “The Chain of Environmental Command,” released by the Senate Committee on Environment and Public Works revealing how collusion amongst a handful of individuals, environmentalist groups and the government is shaping public policy:
“Despite our request nearly two years ago to TIGTA to investigate organizations violating their tax-exempt status through fiscal sponsorship, the agency has done nothing and as the Committee’s new findings show, the abuse of fiscal sponsorship is obviously still a problem. While the IRS seems to be over-inclusive in auditing legitimate nonprofits that differ politically from the Administration, they have been under-inclusive in their oversight of politically favored groups who are actually abusing the law. Even the President has spoken out against millionaires and billionaires ‘bankrolling whoever they want, however they want, in some cases undisclosed.’ But what EPW’s report shows is the environmental movement is following the very model President Obama criticized, manipulating the tax code in the process, with no repercussion from the IRS. Cause of Action has asked the IRS to take simple steps to define the rules for fiscal sponsorship, but they refused to do so, protecting their political friends, while targeting their political enemies.”
Read our report on fiscal sponsorship here.