Trump team eyes tax crackdown on Soros, SPLC and CAIR's nonprofit status

A New York Post report claims that officials appointed by U.S. Treasury Secretary Scott Besant are considering a plan to target the tax-exempt status of major non-profit organizations that are seen as being ideologically opposed to the Trump administration. The groups reportedly under scrutiny include George Soros Open Society Foundations, the Southern Poverty Law Center, and the Council on American-Islamic Relations. According to the report, the proposed action could involve revoking tax exemptions, imposing civil penalties, and seeking what it describes as massive back payments. The Treasury Department could take a leading role because the Internal Revenue Service, which administers federal tax exemptions, operates under Treasury. However, the legal basis for a broad crackdown remains unclear. The IRS is not supposed to revoke non-profit tax exemptions based on an organization's political or ideological views. One possible legal justification could come from a Trump executive order issued last year targeting non-profits that operate with a substantial illegal purpose. The U.S. president has also referred to some organizations as bogus charities, while Vice President JD Vance has criticized several major non-profits. Experts even say potential threats are bank de-risking first. Followed by reduced support from donors and grantmakers, rising examination costs, and lastly, actual revocation. They also warn that expanding executive power to target specific organizations could establish a precedent that future administrations might use against groups across the political spectrum. The report also highlighted concerns about protecting philanthropic freedom, arguing that safeguarding the rights of organizations and donors is important to preserving broader civil liberties.