Chamber of Commerce Accused of Tax Fraud
The U.S. Chamber of Commerce, the anti-regulation mega lobby that plans to spend tens of millions of dollars to support corporate candidates in the coming election, has been accused of tax fraud, according to a complaint filed with the IRS on Friday.
The complaint alleges that the Chamber abused the tax-exempt status of its 501(c)(3) charitable organization, the National Chamber Foundation (NCF), by directing NCF funds to the Chamber for prohibited political activities. Further, the complaint alleges, the NCF money was originally a donation from the Starr Foundation, another 501(c)(3) tax-exempt entity led by the former chair of A.I.G., Maurice Greenberg. The complaint charges that the A.I.G.-affiliated Starr Foundation donated $18 million to the NCF, which was then “loaned” to the Chamber for non-charitable purposes, such as training staff and lobbying for legislation that would benefit A.I.G.
The complaint was filed by U.S. Chamber Watch, whose mission is to “promote greater transparency and accountability in American political processes by shedding light on the funding and practices of the largest special interest lobbyist in America, the U.S. Chamber of Commerce.” The complaint requests that the IRS assess the proper taxes on NCF and the Starr Foundation for the $18 million in expenditures, and revoke the NCF’s tax-exempt status. You can view U.S. Chamber Watch’s complaint here.