New evidence from nonprofit advocacy organizations Common Cause and the Center for Media and Discovery bolsters claims that the American Legislative Exchange Council (ALEC) has been falsely portraying itself as a tax-exempt organization, while using money from taxpayers to fund lobbying practices for its own private interests.
Common Cause originally filed the tax fraud whistleblower complaint several years ago, and this new evidence could be particularly potent. Along with the Center for Media and Discovery, it sent a letter to John Koskinen, the commissioner of the Internal Revenue Service, demanding that the agency conduct an investigation of ALEC, collect back taxes and fines and permanently revoke the tax-exempt status of the organization.
These new developments come just a couple of months after ALEC threatened to file countersuits against Common Cause and several other organizations it has clashed with on issues like telecommunications and climate change.
The new evidence includes statements from 20 different corporations admitting they helped ALEC influence legislation and grow closer to important lawmakers in Congress. Such admissions come from companies like Yelp, AT&T, Comcast, Verizon, Yahoo, eBay, Anheuser-Busch, BP, Chevron and ExxonMobil. Additionally, new evidence indicates the primary purpose of ALEC is pushing for certain types of legislation, and all of its activities support this main goal. This is the third time Common Cause has filed complaints about ALEC pretending to be a charity at the expense of taxpayers.
When you are aware of wrongdoing within a corporation or nonprofit organization, you have a right to speak up. To learn more about your options, meet with Steve Kardell at Whistleblower Law for Managers.