“The IRS should conduct an investigation of whether each such organization has engaged in more than an insubstantial amount of nonexempt activity by participating or intervening in political campaigns and accordingly is not primarily engaged in the promotion of social welfare,” the groups said. If they have, “the organizations should be denied or should lose tax-exempt status. In addition, appropriate penalties should be imposed by the IRS.”
"Consistent with the requirements for a tax-exempt status under the law, Americans Elect does not and will not support or oppose any candidate or candidate committee — it simply provides the nominating process where the American people can participate directly," said Daniel B. Winslow, Americans Elect's attorney.
Bill Burton, senior strategist for Priorities USA, said, "Our organization operates in compliance with all federal rules and regulations enforced by the IRS."
The other groups were not immediately available for comment on the complaint.
Terri Henderson, 6, center, whose mother is El Salvador, attends a rally with members of Congress at Union Station's Columbus Circle to announce the Restore Opportunity, Strengthen, and Improve the Economy (ROSIE) Act on July 29, 2014. The legislation provides incentives for government contractors to pay a living wage and other benefits that would help low-income workers.