The IRS scandal can be traced back to a series of letters that the liberal groups Campaign Legal Center (CLC) and
Democracy 21
sent to the IRS back in 2010 and 2011. Both groups were funded by George’s Soros’s
Open Society Foundations.
The CLC received $677,000 and Democracy 21 got $365,000 from the Soros-backed foundation, according to the Foundation’s 990 tax forms.The letters specifically targeted conservative Super PACs like Karl Rove’s Crossroads GPS, asking the IRS to scrutinize them more thoroughly to determine whether or not they should retain their tax-exempt status.On Oct. 5, 2010, when the first letter was sent to the IRS, calling specifically for the agency to “investigate” Crossroads GPS. The letter claimed Crossroads was “impermissibly using its tax status to spend tens of millions of dollars in the 2010 congressional races while hiding the donors funding these expenditures from the American people.” Democracy 21 President Fred Wertheimer wrote a blog post for the liberal Huffington Post to promote it, and the effort to get the media to notice the anti-conservative campaign began.On June 27, 2011, a second letter by the CLC and Democracy 21 complained about enforcement of 501(c)(4) tax regulations, asking “that the IRS issue new regulations that better enforce the law.” Two days later, an IRS senior agency official was briefed on a new policy targeting groups which “criticize how the country is being run,” according to a Washington Post story. According to the Post, this policy was later revised.A third letter by the CLC and Democracy 21, on Sept 28, 2011, got media traction. The letter showed the escalation of the left’s complaint about 501(c)(4) groups. It challenged “the eligibility of four organizations engaged in campaign activity to be treated as 501(c)(4) tax exempt organizations.” The four organizations included Crossroads GPS, Priorities USA, American Action Network and Americans Elect.The Soros-funded Center for Public Integrity ($2,716,328) published a “study” on 501(c)(4) groups, on October 31, which drew heavily from, and referenced, the CLC and Democracy 21. The Center for Public Integrity has strong media connections and boasts an advisory board that includes Ben Sherwood, president of ABC News, and Michele Norris, an NPR host, as well as a board of directors with such prominent names as Huffington Post CEO Arianna Huffington, Steve Kroft of CBS News’s “60 Minutes” and Craig Newmark (founder of Craigslist)