Tax committee Republicans press for Treasury crackdown on nonprofits promoting fraud, 'anti-American' hate
As nonprofits draw increasing scrutiny over bilking taxpayers with fraudulent schemes and organizing divisive protests nationwide, House Ways and Means Committee Chairman Jason Smith and all 25 Republican members of...
By Fox News · Fox News
As nonprofits draw increasing scrutiny over bilking taxpayers with fraudulent schemes and organizing divisive protests nationwide, House Ways and Means Committee Chairman Jason Smith and all 25 Republican members of the committee are pressing Treasury Secretary Scott Bessent to crack down on organizations that are "manipulating the Tax Code" to operate tax-free while promoting "anti-American and/or pro-terrorist ideals" and engaging in "significant fraud, waste, and abuse of taxpayer dollars." The request marks one of the most aggressive congressional pushes in memory to revoke tax-exempt status, expand audits and rein in what lawmakers describe as systemic failures in policing the nonprofit sector. In the letter, obtained by Fox News Digital, Smith and the Republican lawmakers wrote to Bessent, who is acting IRS commissioner, and Frank Bisignano, who is the CEO at the IRS, and warned of a growing pattern of tax-exempt organizations pursuing activity that falls outside legitimate charitable purposes. Smith and the lawmakers said they were writing to "express concern" over "significant fraud, waste, and abuse of taxpayer dollars" and urged the IRS to "transition from the laissez-faire approach implemented under the Biden administration and utilize a more hands-on approach" when overseeing nonprofits. COMER VOWS MINNESOTA FRAUD PROBE WILL EXPAND TO OTHER STATES AMID MOUNTING SCRUTINY They cited the massive fraud scandal in Minnesota , in which officials at the nonprofit Feeding Our Future were prosecuted and convicted for stealing an estimated $250 million from federal social welfare programs intended to feed low-income children. The case has resulted in dozens of indictments and criminal convictions. Amid the widening scandal, Minnesota Gov. Tim Walz chose not to run for a third term. Bessent announced last month that he was opening an investigation into allegations that some of the stolen funds may have been routed to regions of Somalia where they could have ended…