Earlier today, two campaign finance watchdogs announced they'd asked the IRS to investigate a group started by Karl Rove for violating federal tax laws.
The group, Crossroads Grassroots Policy Strategies, is set up as a 501(c)(4) nonprofit, which means that, by law, its "primary purpose" is not supposed to be political. Yet it has been the biggest third-party player on television in Senate races across the country over the last two months, according to data from the Campaign Media Analysis Group, which tracks political advertising.
The letter to the I.R.S. was issued by Gerald Hebert, executive director of the Campaign Legal Center, and Fred Wertheimer, president of Democracy 21. In it, they argue that Crossroads GPS "was organized to participate and intervene in the 2010 Congressional races while providing donors to the organization with a safe haven for hiding their role."
Crossroads GPS, founded by Rove and Ed Gillespie, is regarded as a "social welfare" group, and thus doesn't have to disclose its donors. What makes this potentially even more egregious is that Crossroads GPS' sister organization, American Crossroads, is a 527.
The letter includes several instances where Crossroads GPS ran classic "call your congressman" or "call your Senator" ads. It also quotes several articles in which officials with both organizations openly tout Crossroads GPS' appeal to those who want anonymity.
"Social welfare" groups have been popular on both sides for many years. Generally, however, no more than half of such groups' activities can be political in nature. However, it doesn't look like Crossroads GPS is even trying to stay under that limit.
It's not likely action will come on this before the midterms--but hopefully the IRS can smack Rove and Gillespie down before they can start playing games for 2012.