Enforcement Success at the Internal Revenue Service

September 30, 2015


Contact: Shannon Reed, 602-626-8805

TEMPE, Ariz. – Sept. 30, 2015 – A complaint filed by Torres Law Group led to a successful enforcement by the Internal Revenue Service. The IRS has revoked the tax-exempt non-profit 501(c)(4) status of the out-of-state, dark money entity known as the Veterans for a Strong America (VSA). Earlier this year, TLG filed a federal complaint against VSA when it refused to disclose its federal tax forms in violation of Department of Treasury Regulations. “This enforcement action is a sign of greater enforcement efforts from the IRS against social welfare nonprofits that violate filing and spending requirements,” said TLG attorney Jim Barton. “We are confident that this is only the first of many more violations to be uncovered when dark money groups are investigated.” In July, TLG prevailed at the Arizona Secretary of State’s office when the Secretary issued a reasonable cause determination against VSA. The Secretary found reasonable cause to believe that VSA violated independent expenditure reporting requirements. This enforcement action from the IRS is notable because it marks a major enforcement decision against a social welfare nonprofit entity in a climate where the IRS has come under considerable criticism for its handling of political spending by social welfare nonprofits. Torres Law Group, PLLC is a Tempe-based law firm promoting the interests of Arizona’s working families by advising political action committees, social welfare nonprofits and labor groups. The firm litigates a variety of matters, including Freedom of Information Act claims, election-law issues and labor disputes in state and federal court.