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The House Ways & Means Committee Chairman, Jason Smith (R-Mo.), is calling on the IRS to revoke the tax-exempt status of the New Georgia Project (NGP) after the organization was fined $300,000 for violating state election laws. The Georgia Ethics Commission ruled that the nonprofit failed to disclose over $4 million in campaign contributions and $3 million in expenditures while supporting Stacey Abrams’ 2018 gubernatorial campaign.
Smith, in a letter to IRS Commissioner Melanie Krause, argued that NGP violated Internal Revenue Code Section 501(c)(3), which prohibits tax-exempt organizations from engaging in political campaign activities. He emphasized that the organization’s intervention in the 2018 election cycle should result in its reclassification as an “action organization” and the revocation of its nonprofit status.
Although Abrams founded NGP in 2013, she has not been involved with the organization since 2017. The group’s affiliate, the New Georgia Project Action Fund, can legally endorse candidates, but donations to it are not tax-exempt. Smith contends that NGP’s political involvement went beyond allowable voter education efforts, crossing into prohibited election activity.
The IRS has yet to respond to the request. The New Georgia Project’s attorney, Aria Branch, acknowledged the Ethics Commission’s ruling but stated that the organization is ready to move forward from past activities.
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