IRS to Enforce Gift Tax on New Anonymous Groups

All those ads attacking out-of-control taxes and deficits may wind up doing their own small part to fill the U.S. Treasury.

Piggy_BankThe Internal Revenue Service appears to have begun to enforce a tax on gifts to the non-profit organizations that were a key vehicle for anonymous politics in the last five years and had promised to play a large role in the presidential cycle, a move which could reshape the place of money in politics in 2012.

Gifts to other political organizations are not taxable under federal law, and lawyers informally say many donors do not typically pay the gift tax — which may run as high as 35%, mirroring income tax rates — for contributions to 501(c)4s.

Now the Republican donors who gave generously to Crossroads GPS and other groups last cycle may find themselves on the hook for substantial back taxes. And Democrats contemplating contributions to Priorities USA, the new pro-Obama c4, may face similar questions.

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Source: Ben Smith | POLITICO