Treasury, IRS Weighing Plan for Politically Motivated Actions Against Nonprofits

The U.S. Department of the Treasury and Internal Revenue Service (IRS) are considering a draft plan to politically target foundations and other nonprofits the Trump Administration disfavors by revoking their tax-exempt status or imposing significant fines. Under the draft proposal, the administration would launch "a sweeping audit" of organizations the administration claims are operating with a "substantial illegal purpose," which would allow the IRS to revoke the organizations' tax exemption or impose fines. Among those organizations reportedly targeted by Treasury and IRS are Open Society Foundations, Southern Poverty Law Center, Council on American-Islamic Relations, and Private Equity Stakeholder Group, and the labor union Service Employees International Union (SEIU).

In response, several members of Congress sent letters to Treasury Secretary Bessent and IRS CEO Bisignano requesting information about the plans and directing the agencies to preserve all records. As NCN has previously stated, it is an egregious abuse of power for any administration – whether Republican or Democrat – to threaten to use the immense powers of the IRS to target nonprofits it disfavors.