The Gift Tax
Campaign Money Watch sent letters to six conservative organizations questioning whether they have notified their secret major donors about their tax responsibilities. The six organizations have pledged to spend, collectively, nearly $250 million before Election Day, with much of that money coming in anonymously.
Donations by individuals above $13,000 in a calendar year to both 501(c)(4) organizations, like Crossraods GPS, and 501(c)(6) trade associations are subject to a 35 percent "gift tax". The question, though, is whether the donors are aware of this tax and if they are fulfilling their obligation to pay it. Campaign Money Watch sent a letter to the organizations below highlighting the gift tax and asking if the organizations are making their donors aware of it.
From the letter:
Given the size of your electoral campaigns and the secrecy with which you have funded it, we believe it would serve the public interest for your organization to disclose whether you advise donors to pay or not pay the gift tax. Donors to 501(c)(4)s and 501(c)(6)s should not be allowed to avoid paying taxes, and we hope that your organization has a clear policy to notify donors of their significant tax obligation.
The organizations receiving letters today include: