Surprise, the FEC and IRS Will not Investigate Complaint

The Internal Revenue Service (IRS) and the Federal Election Commission (FEC) decided against going forward with an investigation into Americans for Job Security (AJS), a 501(c)(6) organization. According to BNA Money and Politics ($$), "AJS has spent about $40 million since its founding a decade ago, nearly all of it for political advertising that favors Republican congressional candidates and attacks Democrats. The organization has steadfastly refused to disclose its funding sources, drawing complaints from watchdog groups that charge AJS has been thumbing its nose at campaign finance and tax laws for years." In 2007 Public Citizen filed complaints against the group's advertising charging that they violated their tax exempt status.

The FEC apparently dismissed the case after a tied vote on the matter. Craig Holman of Public Citizen said the group was "awaiting the FEC's release of further information about the commission action before making any decision about a possible court challenge of the dismissal."

According to the organization's web site, AJS has spent more than 95 percent of the 40 million it received in membership dues on "direct issue advocacy" which includes television commercials, radio ads, direct mail, and telephone calls. You can watch or listen to ads from AJS here. Many recent ads, including those aired during  the election, have focused on the Employee Free Choice Act, also known as the card check bill. According to a recent Campaign Finance Institute report, AJS spent over 8 million during the 2008 election season in electioneering communications. Whether or not the messages are issue advocacy is questionable. 501(c)(6) organizations may engage in some partisan activity and help to influence an election, but it can not be their primary purpose. It is unfortunate that enforcement agencies exhibit an inability to address these issues and perhaps open up an investigation, but instead such difficult questions are simply put off.

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