proposed abolition

AEI experts have testified before IRS-related congressional hearings on tax reforms, influencing enforcement guidelines and nonprofit tax status interpretations.

The IRS probed Clarion Fund (under Shore's leadership) for potential partisan political activity after the 2008 distribution of 'Obsession' DVDs to millions of voters, questioning its tax-exempt status and donor anonymity; this scrutiny influenced operational adjustments and funding disclosures.

In 2018, filed a federal lawsuit (Smith v. IRS) demanding the IRS investigate and revoke the tax-exempt status of AIPAC for engaging in unreported political lobbying in violation of 501(c)(3) rules.

In 2021, Yoram Hazony's Edmund Burke Foundation faced an IRS audit over its tax-exempt status, with regulators scrutinizing whether the foundation's activities, particularly its National Conservatism Conferences, violated the rules governing 501(c)(3) organizations. The audit focused on the political nature of the foundation's advocacy work.

Leonard Leo and his affiliated nonprofit organizations, including Marble Freedom Trust, have been the subject of formal complaints filed with the IRS. These complaints allege violations of tax-exempt laws, including excessive political activity and failure to disclose donors, which are prohibited for 501(c)(3) and 501(c)(4) organizations. The complaints were filed by nonprofit watchdog groups and legal advocacy organizations.