Common Cause Releases ALEC IRS Complaint; ALEC Responds

Common Cause released yesterday its lengthy letter to the IRS asserting that the American Legislative Exchange Council (ALEC) has underreported its lobbying expenditures and does not qualify for section 501(c)(3) status.  The online version of the letter in turn provides links to thousands of pages of exhibits that Common Cause says support its assertions.  Common Cause filed the letter under the Tax Whistleblower Act, 26 U.S.C. § 7623(b), although there is no indication that Common Cause is seeking any financial reward if the IRS in fact determines that ALEC owes unpaid taxes.

Here, in its entirety, is the statement by attorney Alan P. Dye on behalf of ALEC, in response to the complaint and the related news stories blogged about yesterday:

Statement by Alan P. Dye on Latest Harassment Tactic Against ALEC by Liberal Front Groups

WASHINGTON – Alan P. Dye, legal counsel to the American Legislative Exchange Council (ALEC), issued the following statement in response to the frivolous IRS complaint by Common Cause against ALEC:

“The attacks on the American Legislative Exchange Council are based on patently false claims being made by liberal front groups that differ with ALEC on philosophical terms.

“The current complaint mostly ignores applicable law and distorts what it does not ignore. After three decades of counseling clients on nonprofit and federal disclosure requirements, it’s clear to me that this is a tired campaign to abuse the legal system, distort the facts and tarnish the reputation of ideological foes.

“Without question, Common Cause is a partisan front group masquerading as an ethics watchdog.”

LHM