Group Started By Ex-Gop Boss Loses Irs Ruling

In a decision with both political and legal ramifications, the IRS recently informed a group started by former GOP chairman Haley Barbour that it wasn’t entitled to its tax-exempt status because its activities were “too Republican.”

Internal documents obtained by The Associated Press show the National Policy Forum, started in 1993 by Barbour, hoped to help candidates craft an “effective campaign message” and promised big Republican National Committee donors a role in policy development.

The group, which recently drew the GOP into the political fund-raising controversy, was supposed to be legally separate from the Republican Party and designed “exclusively for social welfare.”

But the IRS informed the NPF earlier this year that it wasn’t entitled to a tax exemption because its efforts were “too Republican,” according to an individual close to Barbour.

The person, who spoke only on condition of anonymity, said the initial ruling came after the forum had already closed its doors and the group is appealing before the tax agency renders a final decision.

The IRS retroactively can seek taxes from nonprofits it concludes did not follow the law. And the Federal Election Commission could take action against the Republican National Committee if it concludes the party misused the tax-exempt group - as Democrats allege in a 1995 complaint.