Press Release For immediate release: Contact: Arn Pearson May 3, 2012 (207) 272-2886 Common Cause Calls on Maine Attorney General to Investigate ALEC’s Complian ce with State Tax and Lobbying Laws AUGUSTA, MAINE- On the heels of filing a whistleblower complaint with the IRS charging abuse of federal tax laws by the American Legislative Exchange Council (ALEC), Common Causetoday asked Attorney General William Schneider to look into the group’s compliance with Maine’s tax and lobbying laws. ALEC is registered in Maine with the Secretary of State as a charitable organization, and at the federal level has tax-exempt status under section 501(c)(3) of the Internal Revenue Code. Common Cause filed its complaint to the IRS under the Whistleblower Tax Act on April 21, seeking an investigation into ALEC’s lobby ing activities, the collection of unpaid taxes, and assessment of appropri ate penalties. Based on more than 4,000 pages ofALEC documents, the complaint alleges violation of the group’s federal tax-exempt status, massive underreporting of its lobbying activities and improper tax ded uctions forALEC’s corporate f unders. The complaint was filed on Common Cause’s behalf, pro bono, by the prominent whistleblower law firm of Phillips & Cohe n LLP. In light of the evidence of extensive federal tax violations by ALEC, Common Cause’s letter to Attorney General Schneider requests an investigation into ALEC’s compliance with Maine’s tax, gift, solicitation and lobbying laws. “ALEC operates as a corporate lobby group masquerading as a public charity at the taxpayers’ expense,” said Arn Pearson, Vice President for Programs at Common Cause. “Given ALEC’s abuse of federal tax laws and failure to report lobbying expenses, Maine citizens have every reason to be concerned about whether ALEC is operating in violation of state laws as well.” “Mainers should not be forced to subsidize ALEC’s efforts to quietly pass laws written by out-of-state lobbyists and designed to benefit the economic and political interests ofALEC’s corporate backers,” Pearson said. ALEC has come under increased fire lately for its extremist agenda to limit voting rights, privatize schools and prisons, weaken environmental protections, and promote ‘Stand
