Environmental Working Group - Challenge To 501(c)(3) Tax Exempt Status

Challenge To 501(c)(3) Tax Exempt Status

On February 8, 2002, the Bellevue, WA based Center for the Defense of Free Enterprise wrote a letter to the IRS, claiming that the EWG's "excessive lobbying and politicking" activities are "clearly illegal and should (at a minimum) result in revocation of the organization's tax-exempt status." The complaint charges that the group hid its political-lobbying expenditures, failed to register as a lobbyist in California, submitted false or misleading reports with the IRS and acted as a political-action organization in violation of Section 501(c)(3) rules. Ron Arnold, executive vice president of the Center for the Defense of Free Enterprise, stated that "The Environmental Working Group is not what it seems. Its goal is not protecting the environment. Its goal is power--political power."

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