Cause of Action files IRS complaint against Obamacare advocate Enroll America

BY KELLY COHEN | JULY 29, 2013 AT 7:35 PM

Cause of Action, a Washington-based non-profit government accountability group asked the IRS Monday to withdraw the tax-exemption of Enroll America, which was formed explicitly for the purpose of encouraging Americans to enroll in the Obamacare health insurance exchanges.

Cause of Action believes Enroll America should have its nonprofit status revoked because it does not adhere to the requirements in the tax code for tax exempt 501(c)(3) educational foundations.

In its complaint to the federal tax agency, Cause of Action said Enroll America “is engaged in commercial, for-profit business activities” and the “directors/officers/persons are using income/assets for personal gains.”

In addition, Cause of Action said the group “is organized more like a trade association for the healthcare industry, employing marketing and political tactics to sell health insurance. Accordingly, Enroll America is not organized and operating exclusively for a charitable purpose.”

Dan Epstein, Cause of Action’s executive director, said “an organization that has been granted tax deductible status but is actually depriving the American people of taxable revenue warrants an investigation.”

Cause of Action also plans to contact Covered California, California’s state health exchange, “to alert them of liabilities under federal and state laws and guidelines.”

Go here for more information on the Cause of Action complaint.