An advocacy group run by former Iowa House Speaker Chris Rants "is operating with the primary purpose of influencing political campaigns" in violation of federal tax code, according to the watchdog group Citizens for Responsibility and Ethics in Washington.
Last month CREW filed Internal Revenue Service complaints against ten 501(c)(4) groups, which claim non-profit status as "social welfare" organizations but spent a large share of their funds on political activity during the 2014 election cycle. One of them was the Iowa-based Legacy Foundation Action Fund, for which Rants serves as president and secretary. (The fund did not seek to influence any Iowa elections in 2014.) CREW also filed criminal complaints against six of the ten groups for "falsely representing the amount of money they spent on political activity in 2014"; the Legacy Foundation Action Fund was not among them.
Although Rants’s 501(c)(4) does not disclose its donors, CREW was able to determine that most of its 2014 funding came from American Encore, a "secretive" 501(c)(4) group "formerly known as the Center to Protect Patient Rights." American Encore has been described as "the linchpin" of the Koch brothers dark money network. The Legacy Foundation Action Fund reported $980,000 in "contributions and grants" on its 2014 tax return; $880,000 of that amount came from American Encore.
More details on CREW’s IRS complaint are below. Rants responded via e-mail, "I am confident that Legation Foundation Action Fund is in compliance with the IRS rules. Legal counsel is reviewing the tax returns and we will file any amendment necessary to ensure the tax returns accurately reflected the organizations actives."Continue Reading...