FEC slaps conservative '527' group with $750,000 fine

[Amianthus]

Wednesday, February 28, 2007
WASHINGTON (CNN) -- The Federal Elections Commission slapped a conservative group that raised several million dollars in the 2004 election with a steep fine Wednesday in relation to alleged campaign finance violations.

The Progress for America Voter Fund -- which raised $45 million in the 2004 election cycle -- has agreed to pay the FEC $750,000 "to settle charges that it failed to register and filed disclosure reports as a Federal political committee and accepted contributions in violation of Federal limits and source prohibitions," according to a statement released from the FEC.

The FEC said the group should have registered as a federal political committee -- subject to contribution limits -- since "its major purpose is involvement in campaign activity." Instead the group registered as a '527' organization and was therefore tax exempt and free from contribution limits.

The fine is the third largest civil penalty ever leveled by the commission, according to the statement.

Despite agreeing to pay the fine, the Progress for America Voter Fund says it is not admitting to "any wrong doing," and blames poor FEC guidance for the infractions.

"Despite Congressional pressure to impose some set of rules or provide guidance for so called '527' groups, the FEC still refuses to do so," the group's legal counsel Benjamin Ginsburg said in a statement posted on the groups website. "Given the ambiguous legal nature of this situation and the cost of litigating this dispute, PFA-VF has decided it is a more prudent use of its resources and energy to conclude this proceeding."

• FEC release
  
• The Progress for America Voter Fund statement
  

-- CNN Ticker Producer Alexander Mooney

Article

[sirs]

So, I wonder when organizations like the NAACP, NOW, and the NEA will be investigated to determine how "non-partisan" they're supposed to be vs are, in order to maintain their tax-exempt status?

[Amianthus]

So, I wonder when organizations like the NAACP, NOW, and the NEA will be investigated to determine how "non-partisan" they're supposed to be vs are, in order to maintain their tax-exempt status?

What I find interesting is that FEC refused to publish any rules regarding what activities can be undertaken by 527s and then goes after the 527s for, apparently, "breaking the rules."

Of course, this is only one group that is settling. They went after some other 527s as well, including some well known liberal ones. I posted that article a couple months back.

[sirs]

What I find interesting is that FEC refused to publish any rules regarding what activities can be undertaken by 527s and then goes after the 527s for, apparently, "breaking the rules."

Sounds a little like the IRS, where you can ask a half a dozen IRS agents the same question, get a half a dozen different answers, and when all is said and done, could likely cite you for voilating some provision of the IRS code.  A perpetual money maker

Of course, this is only one group that is settling. They went after some other 527s as well, including some well known liberal ones. I posted that article a couple months back.

I do recall.  Thanks for its posting as well

[Amianthus]

Sounds a little like the IRS, where you can ask a half a dozen IRS agents the same question, get a half a dozen different answers, and when all is said and done, could likely cite you for voilating some provision of the IRS code.  A perpetual money maker

I have a friend that works for a company - TaxAnalysts - that publishes IRS rulings. When the IRS makes a formal ruling about a company, they collect the ruling and make it available to all companies that subscribe to their service. This way, the IRS will be required to abide by that ruling for other companies as well. Prior to the formation of this company, there was no way (other than scouring the Federal Register and court records) to discover tax rulings, and the IRS is not required to publish them.

[Plane]

I am glad to see the FEC takeing action .

The FEC for too long was quite toothless and lethargic.

[sirs]

I am glad to see the FEC takeing action .  The FEC for too long was quite toothless and lethargic.

Now, if only the UN could notice the effort, and similarly alter their status quo

[sirs]

...Prior to the formation of this company, there was no way (other than scouring the Federal Register and court records) to discover tax rulings, and the IRS is not required to publish them.

Why am I not surprised