IRS May Be Targeting Karl Rove Group

The IRS may be trying to block the tax exemption of one of the largest politically active nonprofit groups, Crossroads Grassroots Policy Strategies, an organization founded by Republican strategist Karl Rove.

The oblique disclosure can be found between the lines of an inspector general’s report released on Thursday, which said that 149 of 160 stalled applications from nonprofits with potential ties to politics have been resolved. Of the other 11, six are in litigation with the IRS — which Crossroads isn’t — and five have received proposed denial letters or are appealing.

That suggests that the Internal Revenue Service has sent Crossroads a denial letter. Crossroads is one of the most politically involved nonprofit groups, and its bid for tax exemption is being closely watched by campaign-finance lawyers.

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