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IRS is Looking at Big Donors Who Didn’t Pay Tax on Gifts to Nonprofit Advocacy Groups

Posted May 12, 2011 4:33 PM CDT
By Martha Neil

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Five large donors could be asked to pay gift tax on millions of dollars in contributions to nonprofit advocacy groups.

The donors, who aren't identified, can support campaigns and causes in this manner without being publicly identified. Although the Internal Revenue Service has long had a rule requiring that tax be paid on such donations, it hasn't previously been enforced, reports the New York Times.

The IRS has sent letters to the five informing them that their contributions may be subject to the tax.

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