The Internal Revenue Service has granted tax-exempt status to Crossroads GPS, a conservative group that has aggressively pioneered in a new form of political engagement by nonprofit groups sanctioned by the Supreme Court's Citizens United decision.
The decision by the IRS -- first reported by OpenSecrets.org, the website of the nonpartisan Center for Responsive Politics -- means that Crossroads GPS has been deemed a "social welfare" nonprofit under Section 501(c)(4) of the tax code. Such groups can raised unlimited sums from individuals and corporations and spend money on direct political activity, as long as they do not spend the majority of their funds on campaigns. Unlike political committees, they are not required to reveal their donors.
“We have always taken compliance very seriously, so we’re not surprised by the final result," president Steven Law said in a statement. "What we were surprised by was how long it took and how people outside the IRS improperly tried to influence and politicize the process, not just against us but against many other law-abiding advocacy groups.”