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Montana Governor Steve Bullock is Suing the IRS Over Dark Money

Today, I sued the Internal Revenue Service (IRS) and the Treasury Department over their recent decision https://www.reuters.com/article/us-usa-tax-groups/us-treasury-moves-to-protect-identities-of-dark-money-political-donors-idUSKBN1K704F to abandon disclosure requirements for major donors to dark money groups.

I have fought for nearly a decade to end the disastrous Citizens United decision that opened the floodgates for corporate spending in our elections. Before the IRS decision last week, 501(c) groups had to tell the IRS who their major donors were. In a post Citizens United world, the best way to know whether a group is what it says it is, or the agenda they support, is to look at where the group’s money comes from.

Last week, the IRS announced they were getting rid of disclosure requirements for a subset of tax exempt 501(c) groups. In particular, they said that 501(c)(4) groups will no longer have to disclose who their donors are. 501(c)(4) groups are the "dark money" organizations used for funneling secret money in elections. With this change, there’s even less transparency over these organizations and less ability to determine if they are acting lawfully.

We’re coming up on important midterm election in Montana. The IRS, and the administration, are sending absolutely the wrong message at the wrong time: spend money to get corporate interests elected, and we’ll work to cover your tracks. Well, I say not on my watch.

Our suit https://www.nytimes.com/2018/07/24/us/politics/steve-bullock-montana-irs.html alleges that the IRS’s change to disclosure laws were unlawful and outside the agency’s authority. The case represents the first legal challenge to the IRS’s action since it was announced last week. This suit seeks to block the Trump Administration from upending the rules that have been in place for almost 50 years that require 501(c) dark money groups to disclose their major donors to the IRS. Absent that disclosure, so-called social welfare groups could be taking unlimited corporate, or even foreign, contributions to influence elections, contrary to the requirements that grant them tax exempt status.

When the federal government makes big changes that have been in place since Nixon was President, it has to follow the rules. The IRS didn’t follow the rules, so we’re suing to enforce them.

I believe Montanans deserve a government that works for them, and only for them. I will not stop fighting to end dark money in our elections and return government back to the people.

Sincerely,

STEVE BULLOCK
Governor

Video: https://www.facebook.com/GovernorBullock/videos/10160126776858682/

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