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Outside of Republican candidates themselves, very few political players had a worse campaign season than Karl Rove. His well-funded attack operation invested heavily and lost just about every race it contested, and Rove added insult to injury with an on-air tantrum that's already become the stuff of legend.
But as awful as Rove's 2012 has been, there are some post-election questions that need answers, too. ProPublica uncovered fascinating evidence of dubious claims Rove's Crossroads GPS made to the Internal Revenue Service -- and misleading the IRS is generally a pretty serious no-no.
In a confidential 2010 filing, Crossroads GPS -- the dark money group that spent more than $70 million from anonymous donors on the 2012 election -- told the Internal Revenue Service that its efforts would focus on public education, research and shaping legislation and policy.
The group's application for recognition as a social welfare nonprofit acknowledged that it would spend money to influence elections, but said "any such activity will be limited in amount, and will not constitute the organization's primary purpose."
Crossroads filed for tax-exempt status, and ProPublica obtained the group's original application, which claimed half of its efforts would focus on education, 30% on lobbying, 20% on research, including sponsoring "in-depth policy research on significant issues."
Rove's group conceded Crossroads might get involved in elections, but assured the IRS that "[a]ny such activity will be limited in amount, and will not constitute the organization's primary purpose."
Paul S. Ryan, senior counsel for the Campaign Legal Center, reviewed Crossroads' application and concluded, "That statement of proposed activities does not seem to align with what they actually did, which was to raise and spend hundreds of millions to influence candidate elections."
Which seems like a very polite way of saying Rove & Co. may have lied to the IRS.
Remember, because Crossroads GPS is classified as a "social welfare" group -- a 501(c)4 organization -- it's able to raise money while keeping its donors secret. ProPublica added that the IRS could deem Rove's group ineligible for tax-exempt status, and Crossroads "could be forced to reveal the identities of its donors."
And wouldn't that be interesting.
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Shut UP!!! Are you saying that Mr. Rove may be wearing stripes someday? That's the gift that keeps on giving. . . .
We could only wish that he would be prosecuted. It will never happen. I doubt that the IRS will even challenge the status of Crossroads.
You all are probably right that it won't ever get to the serious stage, but the image is one that makes me whistle a happy tune.
I just think he and his ilk have done immense damage to the governance of this country. Look no further than the gridlock in Congress and the inability to get anything of substance done.
aww but as a US Citizen you have a right to bring charges against there status
as a 501c and the IRS has to investigate its the law.
You should hope not because if Rove gets examined, all the progressive versions of Crossroads will get roasted too. So far, it seems Moveon, CAP, and others are tax exempt and political at the same time.
Bring it on. And see who is the most corrupt organization.
News flash: Karl Rove lies!
In other important news, tide continues to ebb and flow.
Too bad, basketball boy, you miss again. Those organizations follow the law. They are 501(c3) organizations and get audited every year.
"It seems"? This is stupid even for you, Shooter. If you just take five seconds and look on MoveOn's "about us" page, you'll see that it consists of a nonprofit educational organization and a political PAC that does advocacy and discloses its donors.
Thanks for playing, now please try our home game instead of hanging around here bothering people who actually engage with reality.
They need to look at Rove's and all of the other organizations for tax evasion and lies. I don't care who they promote, all need to prove their legitimacy or be held accountable for their lies. That money attempting to buy elections is just wrong. And NOBODY should be allowed to hide their donations, nobody. Nonprofit my ass, they should all be paying taxes.
shooter
The difference between you and most of the liberals that you attack is that we are perfectly willing to see anyone "on our side" who is corrupt go down. You defend your criminals with the childish "they did it too" statements that are not even effective when spoken by grade school children. When your kids said to you, "they did it too," did you think it was a valid explanation?
One thing Rove is not is a dummy. He probably is careful to keep the political money in a separate account that is technically not part of the 501(c)(4). All he needs to do is keep all that cash that funded campaign ads out of his main checking account and he is probably clean. On the other hand, maybe the IRS will accept Rove's assertion that these independent campaign ads were "educational" in the sense meant by Section 501 of the Internal Revenue Code.
Elbonian, I don't think the issue is that Rove used the money himself, but that it was used directly for promoting candidates in the election, as opposed to "public education, research and shaping legislation and policy," as the law stipulates for organizations to be classified under 501(c)4.
He probably won't be prosecuted, but Crossroads will get fined, the donor list will get revealed, and Mr Rove will be shuffled down the road to retirement.
IF the IRS actually does its job and goes after them.
But once again Obama probably will want the IRS to "look forwards instead of backwards" and worry that prosecuting Rove and Crossroads will look like a "political witch hunt."
Sadly, the image of Kevin Bacon in "Animal House" bent over and saying "Thank you sir, may I have another?" keeps coming to mind whenever I watch Obama engaged with Republicans.
Beregond, the President doesn't really get much say here. The IRS can pursue what it feels like pursuing within its charter.
And Crossroads will have to pay tax on all that angry old billionaire money it took in at the top marginal corporate rate. Let's not forget that . . .
Not sure how you calculate AGI for a company that's designed to be a nonprofit but fails to meet the requirements, but making these asswipes fork over 27% of the crazed old white billionaire dough they take in would be the most effective campaign finance reform possible.
Stephen Colbert and Trevor Potter explained this on The Colbert Report, last month, y'all. It was perfectly hilarious but also true: http://www.colbertnation.com/the-colbert-report-videos/421160/november-12-2012/colbert-super-pac-shh----secret-second-501c4---trevor-potter
Oh, Carolinalady, that was priceless! (Well, literally, it was.) Thanks for the link. I so enjoyed it.
Sorry, but stories like these mean nothing. If one can torture and get away with it, how can one expect justice for simply lying to the IRS. Super Pacs are new ground, so the excuses will be thick. Rove should have been jailed for politicizing the US Attorneys office, so this is small potatos, finger ones in fact...
Al Capone was ultimately busted on tax evasion. If Rove gets busted, then he gets busted. Why quibble over the details?
Just remember, Al Capone couldn't be prosecuted for all his numerous crimes, so, how did the government finally put this violent mobster away?
Tax evasion...
Al Capone was not running a newly created outfit that the Supreme Court just ruled on. Even in the very best scenario here, some taxes might have to be paid. They are not going to jail anyone over this...
I don't think one can be imprisoned for tax offenses any more. You can be prosecuted, certainly, but it only amounts to restitution and punitive fees.
People do indeed go to prison for tax evasion when the crime is committed "knowingly" as it certainly was here.
This is news like saying the sky is blue is news. "Dark money" and anonymous donors just sets the table for subversion. But, like so many irregularities this campaign season, I expect this to get a blurb of news and then go away. Keeping my fingers crossed that somehow, some way, this gets some legs.
Karl Rove thinks he deserved to be free
To advance all conservatives he'd see...
So now, the IRS
can evaluate the mess
He left on his political spree...
While the thought of Karl Rove being some inmate's bitch is a pleasant daydream, I do not expect it to ever happen because, as we all know, the rules are different for people like him.
It would be extremely interesting to see that donor list, though . . .
Doubt Rove gets more than a slap for this, will just re-group and form under another name later.
If anyone is interested, LaPierre is speaking right now. Mostly what he is saying is that it is everybody's fault but the NRA's and he's implying that schools should be armed.
It's the police, the courts, video games, the media,and the entertainment industry that he's blaming so far.
Yea - substantial speech - YAWN - like they haven't ever said THIS before!!
I LOVE that there are serious protesters there making their points!!!
I am SO DISGUSTED - I can't listen any more. Now it is the President's fault too - but not NRA's!!!
All this is is a political ad for NRA!
Most unbelievable line:
The only way to stop a bad guy with a gun is with a good guy with a gun.
Well, if the NRA is so determined that a cop w/gun should be in every school, then I think they and their members should pay for that...in EVERY SCHOOL....might take up some of that lobbying money to do that. The NRA is way too powerful in this country.
What do we do to make the world safer? We sign treaties and DISARM! Why do you think the Cold War is over - because we got together and agreed to REDUCE the number of harmful weapons.
Where is violence striking out in the world? Where every little "militia" find a way to get guns.
A society can't call itself "civilized" if it needs to have guns everywhere.
As for me, I don't want my children having to live in an armed camp - I want them to have the freedom to live that I had when I was growing up.
NRA just sees this terrible tragedy as an opportunity to further its own aims and to "sell" its training programs.
Orgetorix said something in the previous blog that bears repeating:
This is very off topic from the post above. But what I don't understand about the school shooting in CT is that everyone is saying 'We need more guns' or 'We need less guns'. How about we look at the real problem here. The schools security was horrible. In my elementary (maybe it was because I lived in an 'unsafe' district) you HAD to be buzzed into the school if you were an adult. You could not just opne the door and walk in. You had to press a buzzer and the securtiy guard had to let you in. There was a camera aimed right at the door so they could see the person before they let them in. And if you had a bag, they inspected it before you walking into the hallway. Everyone can keep saying 'guns are what caused this problem'. Wrong. If the school had better security measures, this would not have happened.
Amber: The dude with the terrible hair just spoke, and I think we just found a Love Connection. Sent ole Wayne a love letter, offer to spruce up his combover, this is your moment... seize it...
Amber, are you related to Shooter242? You are completely full of @!$%#! The grade school had a 'buzz in' system & the gunman shot his way in.
OK--chill, SOV. She probably missed that detail in all the news coverage.
But yes, Amber, there was a locked door. No one buzzed him in. He shot through it. Other than Mr. LaPierre's suggestion that we add more high-powered guns to our schools to keep them safe (doesn't that just sound like the kernel for a Monty Python skit?), I don't know how you keep this from happening.
I suspect that the "copycat motivation" is a large part of this. If we didn't have Columbine and Virginia Tech in our national lore, those outcast types wouldn't think it up on their own. But you can't unring the bell or put the water back in the faucet. It's out there now.
Hey Amber - your girlfriends in Stepford miss you.
No I am not related to shooter. I consider myself very liberal actually. Ive voted democratic since I registered to vote. I've commented on this site multiple times before. I don't know why all of you's are getting your panties in a twist. I didn't suggest MORE guns in schools. I just said that security should be tighter. We had that door system and chain link material around our windows. The only way to get outta the window (incase of fires) was to opne the latch on the INSIDE. No one could open it from the outside. And what was the door made of? Glass? That seems VERY secure. If it wasn't glass, how did he shoot through it?
Amber- Unless the door was made of high grade steel (not likely), the weapons that Lanza had were perfectly capable of shooting away door locks. The .223 bullets he used are essentially a military assault rifle ammunition, extremely high velocity (which gives it it's penetrating power).
And one of the things I read a few times was that he had armor piercing ammo, which could probably take down a tank if he had enough time and effort. It would go through a Kevlar bulletproof vest. And I also read that he had some sort of argument with the school the day before, so they were discussing in the office if they should even let him in, when he shot out the window and opened the door himself.
The saying "the only thing to stop a bad guy with a gun is with a good guy with a gun" is meaningless with "unless he has a 6 year old hostage." Or "somebody opens a back door somewhere for him to get in silently."
Nothing will happen to Rove. Sheldon Adleson and the Koch Brothers will bribe everyone from the janitor to the head of the IRS to just fagetaboutit.
Adleson and the Kochs are not very happy with the lack of return on their huge investment in Rove...doubt they'd throw more money away to save him and instead might just cut him loose...unless they were at risk of prosecution too.
Don't forget that Adelson is already under investigation. Something about bribery concerning his casino in Macau, I believe. He was hoping Mr. Romney would win (spent $100M to make it happen, in fact) to ensure his empire would withstand the scrutiny. If it crumbles, now--well, c'est la vie!
One can only hope that their tax exempt status is revoked. If some small actual charitable organization doesn't follow the rules the action is swift. Involving billionaires, maybe they just buy their way out of trouble.
Seeing Rove frogmarched out of somewhere in handcuffs remains a goal... if the IRS makes it happen because Rove obviously lied to them, it will be bigger then when they got Capone. Oh, please, oh, please let it happen....
What is wrong with us and our judicial system? If the law is broken..........charge the person and make them pay the price. It's unbelievable that this country, people who have money and "status" break the law, harm the entire country, then get their faces and crime all over the media, but are allowed to play fast and loose with the laws of the land; but a poor, disenfranchised person is slammed in jail. What's wrong with this picture? Where's the outrage?
The outrage is right here, amongst those of us with little or no power to do anything about it.
Rove--What a conman in the image of Bernie Madoff! He's raked off millions from the Republican financial elite. And they deserve every penny of it. You get what you sow. You sow discontent and mistrust and you reap that in return. There are too many of these vampires at the edges of our economy draining our real institutions of their worth and integrity, providing nothing more than worthless dissent and controversy to feed their egoes and line their pockets.
Call me a cynic.
Care to count on one hand the number of times that the IRS has gotten involved in something such as this?
One need only look at the IRS and churches getting involved in political endorsements as an example.
Tell me that the catholic church didn't come out and endorse Romney for President. I live in Illinois. In various Dioceses in Illinois, the bishops came out and told the priests to read letters telling voters to vote against Obama.
I predict someday Rove will go to jail. It is only a matter of time.
Time, and an administration wtih the guts to indict him.
One of Crossroads GPS's core principles, if not its only principle, is that rich people (like Rove and his donors) should not have to pay taxes. Or, as Leona Helmsley put it, "Only little people pay taxes."
So you can't accuse the group of being inconsistent. Fraudulent, yes, but not inconsistent.
Do not, I repeat do not, examine the perennial threat from the congressional authority to provide a reduced budget for the IRS. This would further reduce the agencies ability to pursue fraud, or audit large filings.
Thanks, RMJ -- Was wondering when someone would bring up this point. The same Congress that budgetarily sanctioned then passed a rule preventing the CDC from researching gun violence -- they're alive and well. They'd chop the IRS' enforcement budget just for the fun of it.
Withheld.
Crossroads...does not seem to align... Ironic.
Ha ha! BUSTED! Hopefully....
We need to add one more tune to John Philip Sousa's body of work.
The Frog March.
LOCK HIM UP!
Is it just me, or does Mr. Rove really bare a striking resemblance to Porky Pig?
That is an insult to Porky and all other pigs, pigs being among the most intelligent of animals. :-)
May Carl Rove meet the same fate as Ham Rove.
I so hope to see Karl Rove doing the perp walk, and all of his donor pool being drug out into the daylight for all to see. The taxes and fines they will have to repay can be used to investigate the rest of these scoff laws. What a wonderful way to start the New Year!