In the News

End Citizens United to IRS: No Labels Violates Tax Law

Feb 07, 2024

Tim Mooney
2/7/24

(Alliance for Justice) End Citizens United (ECU) recently filed several complaints against No Labels that highlight the limits of what a 501(c)(4) organization can do in the promotion of aligned political parties.  ECU’s complaint, in part, alleges No Labels enjoyed the benefits of being a (c)(4) — most notably protecting the identities of its donors from public disclosure — but was exceeding the limits of how much it could legally support the No Labels Party, particularly in its attempts to secure ballot access for its candidates in various states.

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ECU’s IRS complaint against No Labels alleges its support of the No Labels Party exceeds the amount it’s legally allowed, making partisan political work its primary purpose. The activity alleged includes efforts to secure ballot access for the party in various states and the development of a political platform.

501(c)(4)s are not obligated to disclose their donors, unlike PACs and political parties. This allows No Labels’ supporters to remain anonymous in support of its efforts. However, the cloak of anonymity only works if No Labels is legitimately acting as a 501(c)(4) and limiting its partisan support to a secondary activity. End Citizens United alleges No Labels is not acting like a 501(c)(4) and should not enjoy the benefits of one.