SPLC indictment builds momentum for Bessent’s Treasury to probe partisan nonprofits The Treasury Department is strengthening IRS tax-exempt reporting requirements to identify nonprofit funding used for extremist activities and fraud. This move follows an indictment of the Southern Poverty Law Center (SPLC) for allegedly funneling money to extremist groups. The revised Form 990 will aim to increase transparency and accountability in nonprofit financial dealings.

• The Treasury Department is tightening IRS tax-exempt reporting requirements to combat extremist activity and fraud within nonprofits.
• This initiative is partly motivated by the recent indictment of the Southern Poverty Law Center (SPLC) for allegedly funding violent extremist groups.
• Treasury Secretary Scott Bessent stated the goal is to end the hiding of fraud and abuse through nonprofit structures.
• The SPLC claims the payments were for gathering intelligence through paid informants, though they no longer use them.
• Revisions to IRS Form 990 will aim to clarify sponsorship arrangements and improve transparency regarding how funds are used.
• Current rules allow nonprofits to obscure donor names and the destinations of payments, which can be exploited by ‘rogue actors’.
• The Trump administration sees revising Form 990 as crucial for tackling ‘dark money’ nonprofits.