The House Committee on Oversight and Accountability has initiated an investigation into potential political campaigning and lobbying by tax-exempt 501(c)(3) entities. The committee is questioning the enforcement capabilities of the Internal Revenue Service (IRS) and expressing concerns about possible bias in targeting activist groups. U.S. Rep. James Comer (R-Ky.), chairman of the committee, announced the probe via a press release.
In a letter addressed to IRS Commissioner Daniel Werfer, Comer identified One Fair Wage, Inc. as being "primarily engaged in a host of lobbying practices diverting from a charitable mission." He explained that tax-exempt status applies to entities that are "operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational" purposes. Such entities should not be involved in political campaigning or legislative efforts.
Comer stated in his letter: "Despite these limitations on political and lobbying activities by 501(c)(3) designated entities, activist advocacy organizations, such as One Fair Wage, Inc., seem to view their charitable work as indistinguishable from their substantial lobbying pursuits."
He also pointed out that One Fair Wage, Inc. disclosed its involvement in the "25 by 250 Campaign," which involves orchestrating legislative and ballot measures across 25 states. Moreover, during a civil lawsuit filed last year, the organization admitted that lobbying constitutes a significant portion of its activities - if not the primary purpose. Court records show that One Fair Wage's lawsuit described its organizational purpose as primarily centered around lobbying against specific wage policies.
In a press release announcing the investigation's launch, Comer expressed concern over IRS' actions: "We are concerned that IRS may now be engaged in withholding legitimate enforcement efforts as they pertain to activist groups hiding behind their non-profit statuses." According to this release, there have been instances where the IRS singled out conservative groups who were tax-exempt applicants instead of applying the same standard to all tax-exempt entities. The Committee has requested all documents related to internal IRS guidance and training for IRS officials, employees, and contractors connected to enforcement activities involving 501(c)(3) tax exempt entities, as well as all documents and communications related to One Fair Wage, Inc.
According to his biography on his official website, Comer represents Kentucky's 1st Congressional District. He was elected in 2016 and currently serves as the chairman of the House Committee on Oversight and Accountability.
