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OpinionAugust 12, 2001

Here's a news flash from Washington: Big Labor had no political expenses to report from the infamous 1996 presidential, congressional, gubernatorial and state legislative races. That's what The Associated Press says. The AP story reports: "Labor unions have spent millions of dollars of workers' dues on election-year ads and get-out-the-vote drives while reporting no taxable political expenses to the IRS, a review of union and government documents shows. ...

Here's a news flash from Washington: Big Labor had no political expenses to report from the infamous 1996 presidential, congressional, gubernatorial and state legislative races. That's what The Associated Press says.

The AP story reports:

"Labor unions have spent millions of dollars of workers' dues on election-year ads and get-out-the-vote drives while reporting no taxable political expenses to the IRS, a review of union and government documents shows. IRS officials told the AP that it appeared the unions were obliged to show at least some of the activities on their tax forms. Failure to report can result in back taxes and fines if the IRS concludes the spending failed to follow rules for tax-exempt groups organizations such as unions."

"Yes, it could trigger an audit, it certainly could." said Jack Reilly, an IRS official who has written manuals for tax-exempt organizations.

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It is widely known and reported that the AFL-CIO spent at least $35 million on these activities during the 1996 election campaign.

This makes their current failure to report all the more surprising.

The AP reports that some of organized labor's political foes did report political spending. The U.S. Chamber of Commerce reported nearly $14 million in political spending in 1996.

It is to be hoped that IRS and other responsible officials will pursue this matter. Public faith in honestly run election campaigns is at stake.

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