❓WHAT HAPPENED: A nonprofit watchdog group, the Center to Advance Security in America (CASA), and Republicans on the House Ways and Means Committee are urging the Treasury Department and Internal Revenue Service (IRS) to begin investigating the tax-exempt status of leftist nonprofits, especially those behind violent anti-ICE protests in Minnesota.
👤WHO WAS INVOLVED: The Center to Advance Security in America (CASA), the House Ways and Means Committee, the U.S. Treasury Department, the IRS, and various leftist nonprofit organizations.
📍WHEN & WHERE: The letters were sent to the U.S. Treasury Department and IRS on Tuesday, January 20, 2026.
💬KEY QUOTE: “Based on CCR’s fiscal sponsorship of an organization called, ‘Defend 612,’ we believe they may be in violation of one or more requirements for tax-exempt status under Section 501(c)(3), including, but not limited to, advocating for interference with federal immigration enforcement operations and advocating for ‘community defense’ against federal immigration authorities, insinuating the use of violence as a tactic.” — Center to Advance Security in America (CASA)
🎯IMPACT: Both the CASA and the House Ways and Means letters urge a broader federal approach that could result in a new framework for granting tax-exempt status and for how nonprofits operate in the United States.
A nonprofit watchdog group, the Center to Advance Security in America (CASA), is pushing U.S. Treasury Secretary Scott Bessent and the Internal Revenue Service (IRS) to launch an investigation into the tax-exempt status of a Minnesota group they allege has been integral to funding violent anti-ICE demonstrations in the state. At the same time, Bessent is also being urged by the House Ways and Means Committee’s Republican members to launch a similar investigation into leftist nonprofits and efforts to interfere with U.S. Immigration and Customs Enforcement (ICE) operations.
“We are writing to formally request that the Internal Revenue Service begin an investigation to review the tax-exempt status of the above-referenced organization, Cooperation Cannon River [CCR],” the CASA letter reads, continuing, “Based on CCR’s fiscal sponsorship of an organization called, ‘Defend 612,’ we believe they may be in violation of one or more requirements for tax-exempt status under Section 501(c)(3), including, but not limited to, advocating for interference with federal immigration enforcement operations and advocating for ‘community defense’ against federal immigration authorities, insinuating the use of violence as a tactic.”
“We believe that after a proper investigation, the facts will show that CCR’s support for ‘Defend 612’ and funding of its potentially illegal activity will be sufficient evidence to revoke its tax-exempt status,” the watchdog group’s letter contends.
Likewise, the House Ways and Means letter is asking Bessent and the IRS to investigate a broader swath of nonprofits, which they say exploit tax-exempt status to promote “anti-American and/or pro-terrorist ideals” and engage in fraudulent activities that misuse taxpayer funds. “As the Ways and Means Committee continues to investigate every corner of the tax-exempt sector to root out this waste, fraud, abuse, and illegal activity, it is now abundantly clear the system is in desperate need of an overhaul,” Chairman Jason Smith (R-MO) wrote.
The National Pulse reported earlier this month that Secretary Bessent announced the IRS would soon form a task force charged with investigating instances of COVID-19 pandemic relief fraud and violations of 501(c)(3) tax-exempt status by nonprofits tied to the numerous Somali community-linked social services fraud schemes. However, both the CASA and the House Ways and Means letters urge a broader federal approach that could result in a new framework for granting tax-exempt status and for how nonprofits operate in the United States.
Already, the Ways and Means Committee has referred 11 nonprofits to the Treasury Department for investigation, citing allegations of antisemitism, terrorism ties, and illegal activities. Among those under scrutiny are The People’s Forum, accused of ties to the Chinese Communist Party (CCP), and other groups allegedly involved in anti-Israel protests and activities deemed unlawful.
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