TLG Managing Partner Jeff Tenenbaum Quoted in Chronicle of Philanthropy Article, “Trump’s Order to Investigate Liberal Groups Is Likely to Face Legal Challenges”

TLG Managing Partner Jeff Tenenbaum was quoted in the Chronicle of Philanthropy article entitled, “Trump’s Order to Investigate Liberal Groups Is Likely to Face Legal Challenges.” “In addition to pushing for criminal investigations, Trump urged the Internal Revenue Service to revoke the tax-exempt status of organizations suspected of supporting terrorism — a process added to the agency’s arsenal to fight terrorism following the September 11, 2001, attacks and meant to root out foreign groups like al-Qaeda and Hamas. The order also directs the IRS to share any suspicious tax filings with the Department of Justice.”

““This is a war on all fronts,” said Jeff Tenenbaum, a lawyer who represents nonprofits.”

“Under current law, the IRS can revoke a group’s tax-exempt status if it doesn’t provide tax filings for three straight years or after an extensive — and private — audit that can be challenged by the nonprofit. A third way is to invoke 501(p) of the tax code, which allows for immediate suspension of a group’s nonprofit status if it is designated as a terrorist group.”

““It’s instantaneous,” Tenenbaum said. “There’s no right to go to court and challenge it. It doesn’t require an audit. We have seen the administration take some pretty aggressive interpretations of existing law, and I would not be shocked to see that done here.””