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Will ACORN Lose Its Tax Exempt Status?

As we have noted several times before, most recently back on February 23, 2009, as a 501c3 “charity” ACORN is prohibited by the IRS from breaking the law – or even encouraging others to break the law:


(1) Substantiality Test

Violation of constitutionally valid laws is inconsistent with exemption under IRC 501(c)(3). As a matter of trust law, one of the main sources of the general law of charity, planned activities that violate laws are not in furtherance of a charitable purpose. "A trust cannot be created for a purpose which is illegal. The purpose is illegal … if the trust tends to induce the commission of crime or if the accomplishment of the purpose is otherwise against public policy…. Where a policy is articulated in a statute making certain conduct a criminal offense, then …, a trust is illegal if its performance involves such criminal conduct, or if it tends to encourage such conduct." IV Scott on Trusts Section 377 (3d ed. 1967). Thus, all charitable trusts (and by implication all charitable organizations, regardless of their form) are subject to the requirement that their purpose may not be illegal or contrary to public policy

(4) Planning Illegal Acts

Not only is the actual conduct of illegal activities inconsistent with exemption, but the planning and sponsoring of such activities are also incompatible with charity and social welfare

We strongly suspect that systematically encouraging tax evasion and prostitution and the sexual exploitation of minors is against several US laws and contrary to public policy in general.

But of course those strictures will never be enforced.

They have bought themselves a privileged position with the Democrats and this administration.

They have nothing to fear.

This article was posted by Steve on Tuesday, September 15th, 2009. Comments are currently closed.

14 Responses to “Will ACORN Lose Its Tax Exempt Status?”

  1. Reality Bytes says:

    From Acorn To A Mighty Oaf Did Grow

  2. Rusty Shackleford says:

    Words…..just words……..Our system of laws is unjust and the Constitution is a useless document. Therefore Blammo will wave a hand over it, like the indictment of certain black panthers, and make it all go away.

    Rush pointed out that one of our “bastions of fair and honest reporting” Charlie Gibson, knew nothing about ACORN and their troubles.

    Truly, he is on the pulse of the news world.

  3. GL0120 says:

    Sure, ACORN has stated that it has fired the people involved but wait a week or two and I’ll bet that they’ve either been rehired by ACORN or by an ACORN affiliate.
    The video could be used as a reference by those involved; it shows that they’ve learned to master fraud.

  4. Steve says:

    An update from ABC News, via Jake Tapper:

    House Republican Leaders Ask IRS to Sever Ties with ACORN

    September 15, 2009

    House Republican leaders today requested that the Internal Revenue Service sever all ties with ACORN.

    ACORN right now assists low and middle class citizens with income tax preparation. The group says that since 2004, it has helped low- and middle-income Americans prepare approximately 150,000 free tax returns totaling $190 million in refunds as well as increased participation in the earned income tax credit.

    But House Minority Leader John Boehner, R-Ohio, House Minority Whip Eric Cantor, R-Va., and Rep. Dave Camp, R-Mich., the ranking Republican on the House Ways and Means committee, today wrote to IRS Commissioner Douglas Shulman encouraging him to end any referrals by the IRS to ACORN offices for tax preparation consultation…


    While they are talking to the IRS, maybe they should bring up ACORN’s violations of its tax exempt requirements.

    • canary says:

      ACORN learned to master-mind fraud from their attorney Barack Obama, who chose leaders that evaded paying taxes, to rob the honest tax-payers. To think ACORN even bullied H&R Block. Better for ACORN to be on the streets pimping, than be provided with offices and aid that make it easier for them ruin this country.

    • proreason says:

      Acorn and Barak Obama are the same thing.

  5. proreason says:

    Beck is smoking hot on Acorn today.

    In the latest clip, besides advising the “prostitute” to seduce bank executives, the Acorn “advisor” admits she murdered her ex-husband.

    • proreason says:

      Meanwhile, the House has voted to condemn Joe Wilson.

      After his heartfelt and unnecessary apology for speaking the truth in calling the Moron a liar.

      Much more important than examing the deepest corruption ever unearthed in the Republic.

      Since it’s Democrat corruption.

    • wardmama4 says:

      And please let’s not forget Proreason – that while there were allegations that ACORN was committing election fraud in how many states 11 to 14? That the self same (Joe Wilson rebuking House Crapweasels) were wasting our tax payer time & money investigating steroids in baseball – wow I am so impressed with all they are doing in this the most ethical Congress.

      It would be funny if it weren’t Corruption with a capital C on our freaking tax money – I think We The People should just say to hell with them – pay each other in cash and yell on April 15th 2010 – prove how much I made.

      Then run a list of each and every corrupt Crapweasel in Congress and corrupt ‘community organization’ out there – tell them to get their tax monies there. It is obviously being wasted big time.

      And oh btw – I’d like to see if any single one of the Dems who boo-d President Bush’s SOTU Address was ‘condemned’ – any investigative journalists at all out there – seems like of late – the only real ones are a 25 year old guy and his 20 year old girl Friday.

      And wouldn’t it be a real hoot – if these two Jane & John Does – are the ones who destroy this Thug Administration?

      All it takes it the right card pulled at the right time – to bring this house of cards down in an instant.

  6. VMAN says:

    I fear that if this corruption continues to be exposed and nothing is done people will take things into their own hands.

  7. Chuckk says:

    Nothing meaningful will be done to ACORN. Prediction: They will get more money from the government next year than they got this year.

    • MinnesotaRush says:

      … and the current administration using its’ derelict “Justice” Dep’t will make sure it all goes away.

      Hmmmm. Maybe we should send a photo of a cracked acorn to the WH and Justice Dept?

  8. Liberals Demise says:

    I’ve been wanting to say this to ACORN for a long time ………

    (screaming) “YOUR NUTS ARE SHOWING!!!!”

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