After complaints from some academics about the rationale for a New York investigation of tax exempt organizations and a letter from Congressional Republicans Dave Camp (MI) and Orrin Hatch (Utah)suggesting that the New York Attorney General should not be seeking copies of federal returns from taxpayers but rather through the IRS, AG Schneiderman responded in defense of his rights to investigate based on federalism and the New York AG's interest in state law enforcement. See Bernie Becker, New York AG defends efforts on tax-exempt groups, The Hill: On the Money blog (Sept. 24, 2012).
Schneiderman is investigating a group of tax-exempt organizations called "501(c)(4)s" after the Code section that permits them for federal income tax purposes. Those groups are not required to reveal their donors, and are supposed to conduct social services. Many of these groups these days are functioning as purportedly independent advertisers for political candidates and parties, funded by big donors who want to remain anonymous.
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