Under the Dome

GOP alleges irregularities with Progress NC

The state Republican Party Tuesday asked the Secretary of State Elaine Marshall to investigate a Democratic group's fund raising practices.

The state GOP is questioning whether Progress NC, a 501 © (3)Democratic leaning group that has been highly critical of the Republican legislature, is acting properly.

State GOP Chairman Claude Pope said Progress is claiming to be tax deductible organization, even though it has not been granted tax exempt status by the IRS and its state charitable license expired May 15th.

"Progress NC doesn't pay taxes because they claim to be a tax exempt organization," Claude Pope, the state GOP chairman said in a statement. "The problem is, they have not been granted federal tax except status.''

Michael Weisel, an attorney for Progress NC said the group, which was started about a year ago, has applied for tax exempt status from the IRS, a process that typically takes 12-36 months. He noted that Renew North Carolina Foundation, the 501(© (4) non profit that is running TV ads boosting Republican Gov. Pat McCrory also has not received tax exempt status from the IRS.

Weisel said that Progress Action, a 501© (4) organization, has been granted tax status by the IRS.

He said GOP asserts that Progress NC's charitable license has expired is incorrect.

Wiesel said the "charitable solicitation license is current in and place.''


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The organization may operate as tax-exempt

From IRS Publication 4220 "Applying for 501(c)(3) Tax-Exempt Status"
Page 10: "While Your Application Is Pending"
"While an organization’s Form 1023 is waiting for processing by the IRS, the organization may operate as a tax-exempt organization."

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