March 9, 2006 | Read Time: 1 minute
The IRS has cleared a nonprofit watchdog group in Austin, Tex., and its affiliated charitable foundation of any wrongdoing after a 13-month investigation.
The revenue service began examining the two organizations, Texans for Public Justice and the Public Justice Foundation of Texas, in December 2004 after receiving information from Rep. Sam Johnson, a Texas Republican who is an ally of former House Majority Leader Tom DeLay. The watchdog group has been critical of campaign spending by Mr. DeLay, a Texas Republican.
Mr. Johnson’s complaint to the IRS was prompted by a letter sent by Barnaby W. Zall, a lawyer in Rockville, Md., that said the groups might have broken laws on politicking and other activities. Mr. Johnson forwarded Mr. Zall’s letter to the IRS.
Craig L. McDonald, executive director of Texans for Public Justice, said the letters — copies of which he obtained under the Freedom of Information Act — were punishment for the watchdog group’s criticism of Mr. DeLay, who was indicted last year on charges of money laundering and conspiracy to hide corporate donations. Mr. DeLay has denied the charges.
“The IRS shouldn’t open audits based on rhetoric by partisan political players,” Mr. McDonald said. Mr. Zall has done work for a Washington law firm that has represented a political action committee founded by Mr. DeLay.
In a statement, Mr. Johnson denied any partisan motivations. Mr. Zall did not return phone calls seeking comment.
An IRS spokesman said the revenue service does not engage in politics when selecting organizations for audit.
