IRS forces DLC to admit it does not help Democrats

This case seems similar to the one where Fox news had to admit it does not actually care for the truth to win its court case.

The legal structure of the DLC forbids it from helping a party. Instead the DLC is forced to admit that its purpose is to promote its corporatist agenda rather than help promote real change.

DLC dismisses exempt status attack by IRS

"The Internal Revenue Service said the nonprofit organization became an advocacy group for elected Democrats and demanded payment for three years of back taxes."

"[T]he IRS could revoke the organization's nonprofit status for future tax exemptions if it benefited only one political party, namely Democrats. "

more below

Here is the core of the DLC's defense:

The court's ruling said that during a July 1999 political convention, DLC Chief Executive Officer Al From said the New Democrat agenda "has been so successful that the Republicans are trying to parrot our politics." The ruling also quoted Mr. From saying, "After all we went through, we're not going to sit idly by and let the Republicans reclaim the political center on the cheap."

Forbes has an article discussing the implications given that the DLC is not a typical 501(c)(3) charity:
The Democrats' Little Tax Secret

What's the practical value of a (c)(4) designation if it doesn't generate writeoffs for its donors? A (c)(4) isn't taxed as a for-profit business would be and doesn't have to disclose its donors, as a political action committee does.

The DLC responds that its exclusive purpose is to develop and promote its "Third Way" agenda and that some causes it has lobbied for--e.g., welfare reform, fast-track approval of free-trade agreements--got more Republican than Democratic votes in Congress.

Lastly, we get to hear again from Joe Lieberman and Ralph Nader. Lieberman may come to the rescue because as an Independent he may be their hope for "bi-partisanship." While Nader-inspired group will go after the DLC

The Justice Department has hired a researcher from Public Citizen, the watchdog group founded by Ralph Nader, to help make the case against the DLC.

•  Corrections & miscellany

  Immediately applicable is the American Campaign Academy, in which the tax court agreed with the IRS that a school nominally open to all but in practice a GOP consultant training school conferred an impermissible private benefit on the GOP.  Somewhat bafflingly, the court that ruled in the DLC's favor didn't mention the case at all.

  That's the summary version, too.  This is an ugly, nebulous area of law.

  That said, it's silly to call the DLC a "little tax secret."  The org doesn't abuse the statutes, and it doesn't act as a shadow PAC.  Its operations are within the core activity of (c)(4) advocacy groups.

  by burrow owl on Tue Apr 15, 2008 at 09:09:11 AM PDT

•  FUCK the Democratic Leadership Council.

  I'd love to see a grassroots effort to oust them, one at a time, from positions of power in the party. I could wholeheartedly support it.

  by Uebermensch on Tue Apr 15, 2008 at 09:11:48 AM PDT

•  One more thing:

  This

  Here is the core of the DLC's defense:

  The court's ruling said that during a July 1999 political convention, DLC Chief Executive Officer Al From said the New Democrat agenda "has been so successful that the Republicans are trying to parrot our politics."

  is incorrect.  (whether it's truthy is another question)  To the contrary, the court cites that memo against the DLC, and not in defense of it.  

  by burrow owl on Tue Apr 15, 2008 at 09:12:05 AM PDT

  •  ??

    Sorry. I am not a lawyer. are you saying the DLC is arguing that it is helping democrats?

    by pbsloop on Tue Apr 15, 2008 at 09:54:20 AM PDT

•  News to me

  I've always thought that they helped Rethugs.

  by IhateBush on Tue Apr 15, 2008 at 09:43:28 AM PDT

  •  Say...

    ...that's helping one party. Off with their heads!

    by JeffW on Tue Apr 15, 2008 at 10:38:10 AM PDT

•  Can we file a brief

  saying we don't want their help?

  by Allogenes on Tue Apr 15, 2008 at 10:29:46 AM PDT

•  Nader

  So much much money is the Bush administration paying Nader?

  by agoldnyc on Tue Apr 15, 2008 at 10:34:34 AM PDT