On September 18, 2012, The Daily Caller reportedWonder how Media Matters passed the IRS Tax Exempt Test?
that dozens of pages of internal Department of Justice (DOJ) emails
(obtained via the Freedom of Information Act) showed that Media Matters
had secretly collaborated with the communications staff of Attorney
General Eric Holder
in an effort to discredit and suppress further news stories about
scandals that were plaguing Holder and his agency. Among those scandals
were DOJ's infamous dismissal of voter-intimidation charges against the New Black Panther Party, and the role Holder and other DOJ officials may have played in Operation Fast and Furious.
For further details about these collaborations between Media Matters and DOJ, click here.
Media Matters' collaboration with DOJ is significant because the former enjoys tax-exempt status
under Section 501(c)(3) of the Internal Revenue Code. This not only
exempts Media Matters from paying federal tax on its income, but also
permits its donors to claim income-tax deductions for their
contributions to the organization. However, 501(c)(3) status is
typically reserved for groups that do not engage in partisan
politicking, a criterion that Media Matters clearly does not meet.
The IRS must just consider Liberal Organization exempt from rules that apply to Tea Party Organizations.
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