Donations to bona fide charities and many non-profit organizations are tax deductible. Donations to political groups are not.  This has led the fund raisers and money men of politics to form organizations with charity in their charters but political advocacy as the real intent. Tax authorities have been lax in pursuing these abuses of the tax law, that is to say they were lax until the controversial Koch brothers emerged on the national scene.  No longer is George Soros the only nationally known figure seen to be giving major financial support to political causes.  On May 13, 2011, The New York Times published an article headlined IRS Moves to Tax Gifts to Groups Active in Politics.  According to Times, the Internal Revenue Service has sent letters to five major donors warning them that they may be required to pay taxes on such donations. Whoa!  Aren't taxes something you pay on income?  Since when must one pay taxes on donations?  What we have here...(Read Full Post)