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Wednesday, March 15, 2017

IRS Strips Tax-Exempt Status From Richard Spencer's White Nationalist Nonprofit

NPI 3Following up on my previous post, Alt-Right Group Has Not Filed Form 990s Due To IRS Error, Allowing Group's Finances To Escape Scrutiny:  Los Angeles Times, IRS Strips Tax-Exempt Status from Richard Spencer's White Nationalist Nonprofit:

The nonprofit run by one of America’s most prominent white nationalists, Richard Spencer, has lost its tax-exempt status for failing to file tax returns with the federal government, according to Internal Revenue Service records.

An inquiry by The Times also raised questions about whether Spencer had properly filed paperwork allowing the National Policy Institute to raise funds in Virginia, its primary place of business, and whether Spencer, a Donald Trump supporter, had flouted federal rules that forbid nonprofits from supporting or opposing political candidates.

On Monday, Spencer said an IRS error led him to believe his group was not required to file federal tax returns, and said he would appeal the loss of his tax-exempt status. “I don’t know what to say. I don’t want to make a comment because I don’t understand this stuff,” Spencer said in a telephone interview. “It’s a bit embarrassing, but it’s not good. We’ll figure it out.”

Spencer also said his group had filed the necessary paperwork to operate as a nonprofit in Virginia. But a spokeswoman for the Virginia Department of Agriculture and Consumer Services, which regulates charities in the state, said Monday that the status of Spencer’s group was under review.

The paperwork trouble at the National Policy Institute, which was registered under section 501(c)(3) of the Internal Revenue Code, seems to have started shortly after Spencer took over the organization in 2011 and used it as a vehicle for promoting his “alternative right” beliefs, which include the need for a separate nation for white people.

The National Policy Institute’s website says it is “dedicated to the heritage, identity, and future of people of European descent in the United States, and around the world.”

As Spencer’s profile rose on the national stage in recent years, the National Policy Institute’s nonprofit status allowed his supporters to make tax-deductible donations to support his publications and conferences for white nationalists. One of the National Policy Institute’s events included a November conference in Washington, where Spencer told a crowd, "Hail Trump! Hail our people! Hail victory!" and received Nazi salutes in return.

Washington Post, IRS Punishes Richard Spencer’s White-Nationalist Group for Failing to File Returns

http://taxprof.typepad.com/taxprof_blog/2017/03/irs-strips-tax-exempt-status-from-richard-spencers-white-nationalist-nonprofit.html

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Comments

This is probably an indication of how trivial Spencer's group is. Does anyone belong besides Spencer? The media is looking desperately for white nationalist groups, and the best they can come up with is some group so small it doesn't even bother to file 990's. Probably it gets too few contributions for it to be worth it, and the filing would just show how low its budget is.

Posted by: Eric Rasmusen | Mar 16, 2017 8:13:44 AM

The media is looking desperately for white nationalist groups,

Their favorite freak has been Fred Phelps, who presided over a congregation which had a census which barely made it into three digits, had no denominational affiliation, and which was heavily populated with his relatives.

Of course, when you're an oddball and do not get much attention, elements of the federal police will on occasion to use cannons to kill cats (see Randy Weaver in particular but also the David Koresh crew).


The media fancy they stand up for liberty. What they really do is use every tool at their command to harass those in the category of cultural enemy. They also provide cover for public agencies when they do the same.

Posted by: Art Deco | Mar 17, 2017 8:13:12 AM