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Greenpeace has lodged a formal complaint with the IRS against the Alliance to Protect Nantucket Sound urging the authorities to investigate whether the Alliance has flouted tax laws when they aired a radio advertisement critical of Deval Patrick?s support for an offshore wind farm during the final days of the governor?s race.  At the same time, the complaint also asks the IRS to investigate if the Alliance has broken the law for 501 (c) (3)s i.e. nonprofit charities and educational groups that limits spending on lobbying and other activities.

Greenpeace believes that the Alliance has exceeded the spending limits on lobbying and engaged in activities that benefit the private interests of board members and donors.  As such they have requested the IRS to conduct a thorough investigation on the Alliance?s activities, contributions and expenditures.  Besides that, Greenpeace is also pushing for the IRS to impose fines, penalties and the revocation of the Alliance?s tax-free status.

501 (c) (3)s are not allowed to engage in any political campaign activity.  The IRS guidelines state that 501 (c) (3)s ?are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office.?

But the Alliance disagrees.  Its president, Audra Parker, said that its radio ad opposing Patrick?s support for the offshore wind farm at Cape Wind was perfectly legitimate and within the law.  The Alliance feels that it is duty bound to educate the public of the financial burden imposed on them if Cape Wind were to be implemented.

The Alliance?s ad was aired by 5 radio stations that covered Greater Boston, the Worcester area and the South Shore and heavily criticized Patrick for supporting Cape Wind and also noted the other gubernatorial candidates? opposition to the plan.  Furthermore, all donations to the Alliance being a 501 (c) (3) are eligible for tax-deductions because they are considered donations for the betterment of society.  On the same basis, the Alliance does not have to disclose the identity of their donors.

Besides lodging its complaint with the IRS, Greenpeace also filed a copy with the Attorney General Martha Coakley, who oversees local nonprofit organizations, and a third complaint with the state Office of Campaign and Political Finance, urging them to investigate if the Alliance violated campaign finance laws by not registering as a political committee and by coordinating its radio ad with an unnamed campaign for governor.

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