Vox: The government is making it easier for “dark money” donors to go unnamed

Vox: The government is making it easier for “dark money” donors to go unnamed

“Large amounts of foreign national donations to a politically active nonprofit could be a red flag to IRS staff that could trigger greater scrutiny,” Paul S. Ryan, vice president at the watchdog group Common Cause said. “But such red flags will no longer be visible to IRS staff. President Trump’s Treasury Department has struck a blow to US democracy with this rule change.”

The United States government is making it easier for “dark money” donors to keep their contributions, well, in the dark. The Treasury Department on Monday said it planned to end requirements that certain tax-exempt organizations identify their financial contributors on their tax returns. …

Paul S. Ryan, vice president at the watchdog group Common Cause, said Americans for Prosperity, the advocacy group founded by the Koch brothers, has been fighting for the IRS change for years and has actively opposed state efforts to expand donor disclosure requirements for political spending. “AFP has been the most active, open, and visible advocate for reducing and preventing disclosure of donors to 501(c)(4) organizations,” he said. …

Ethics experts say the Treasury Department’s announcement on Monday regarding donor disclosures will make deciphering the murkiness surrounding the NRA more difficult because it undermines the federal government’s ability to detect illegal activities by nonprofit groups.

It’s still illegal for groups such as the NRA to spend contributions from foreign nationals to influence US elections, said Ryan, but because donations don’t have to be listed, it will be harder for the authorities to identify malicious activity.

“Large amounts of foreign national donations to a politically active nonprofit could be a red flag to IRS staff that could trigger greater scrutiny,” Ryan said. “But such red flags will no longer be visible to IRS staff. President Trump’s Treasury Department has struck a blow to US democracy with this rule change.”