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Senator Seeks IRS Probe of Nonprofit Group

Posted on Jan. 20, 2021

The IRS should investigate a prominent conservative nonprofit organization for possibly violating the terms of its tax-exempt status by flouting COVID-19 guidelines, according to a Senate taxwriter.

Turning Point USA, a section 501(c)(3) entity founded by conservative activist Charlie Kirk, knowingly exposed hundreds of people to serious risk of infection when it hosted parties for students in Palm Beach County, Florida, Senate Finance Committee member Sheldon Whitehouse, D-R.I., said in a January 19 letter to the IRS.

At the December 2020 social events, one of which took place at President Trump’s Mar-a-Lago Club, participants mingled indoors without wearing masks, Whitehouse said, citing press reports and social media posts.

Turning Point USA’s reckless decision to host potential ‘superspreader’ events, in open violation of local COVID-19 regulations, put children and others at risk, and was clearly contrary to the public good,” Whitehouse wrote. “Organizations that knowingly put in danger minors entrusted to their care should not enjoy the benefits of tax-exempt status.”

Therefore, the IRS should determine whether Turning Point USA’s exempt status should be revoked, the senator concluded.

Turning Point USA Responds

A spokesperson for Turning Point USA denied the allegations.

The conference took place on county property in coordination with local officials, the spokesperson said in a statement to Tax Notes. Turning Point USA even turned away students to comply with reduced capacity limits and social distancing protocols to complete the entire four-day program as planned, the statement said.

Nevertheless, Turning Point USA “is hopeful this is just a misunderstanding and would be honored to discuss and clarify this matter with Senator Whitehouse directly as it seems he’s been misinformed about the nature of the event,” the statement said.

Other Probe Requests

In recent weeks, Democratic lawmakers have been asking the IRS to investigate the role of other right-leaning groups in controversial events.

In a January 13 letter to the Treasury Department, House Ways and Means Committee Democrats expressed alarm over news reports that pro-Trump nonprofits organized events that led to the January 6 insurrection at the Capitol and asked Treasury to “consider whether any actions against or investigations of specific organizations may be appropriate in light of these reports.”  

On January 15 Senate Finance Committee ranking member Ron Wyden, D-Ore., asked the IRS to look into reports that “tax-exempt organizations, including those recognized by IRS as charities and social welfare organizations, may have been involved in inciting or facilitating” the unrest at the Capitol.

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