Democracy 21 and the Campaign Legal Center asked the Internal Revenue Service to determine whether conservative-leaning American Crossroads Grassroots Policy Strategies is abusing laws governing the political activity of non-profit organizations, The Washington Post reported. While its parent organization is a "super PAC," Rove's GPS group is barred from spending money on advertising that favors particular candidates or parties.
"We're living in a new world now, and the IRS can't just stand on the sidelines anymore," said Fred Wertheimer of Democracy 21, one of the litigants. "You have groups basically using their non-profit status to keep their donors secret."
The Supreme Court threw out limitations on contributions by corporations, union and other interest groups to political action committees. But PACs must still report donations and their amount.
"This is a baseless complaint, filed by a partisan group that files baseless complaints for its living," said Jonathan Collegio, a spokesman for American Crossroads and American Crossroads GPS.