NEW YORK — The US government has revoked the tax-exempt status of a group run by prominent white nationalist Richard Spencer for its failure to file tax returns.
Internal Revenue Service records show Spencer’s National Policy Institute automatically lost its tax-exempt status as a 501(c)(3) nonprofit after failing to file returns for three consecutive years.
Spencer blamed the revocation on an IRS error that led his group to think it wasn’t required to file tax returns. But he doesn’t have any evidence the move was politically motivated and expressed confidence that his organization can regain its tax-exempt status.
‘‘I don’t think of this as a political assassination at the moment,’’ he said Tuesday. ‘‘It’s an annoying thing. It’s also kind of a bump in the road.’’
The Los Angeles Times first reported the story.
Spencer popularized the term ‘‘alt-right’’ and is a leading figure in a fringe movement that has been described as a mix of racism, white nationalism, and populism. Spencer, an outspoken supporter of President Trump, hosted a postelection conference in Washington that ended with audience members mimicking Nazi salutes after Spencer shouted, ‘‘Hail Trump, hail our people, hail victory!’’
IRS records indicate that, sometime in 2006 or 2007, the agency mistakenly reclassified the National Policy Institute as one that didn’t need to file tax returns, according to Chuck McLean, a senior research fellow for the nonprofit watchdog Guidestar.
The IRS posted a notice of the group’s revocation on its website Monday, but the loss of its tax status is retroactive to May 15, 2016, the date when its most recent tax return was due.
McLean said he suspects the group’s revocation was an ‘‘automated thing.’’
‘‘They handle so many of these, it’s just a routine thing,’’ he added.
Spencer said he had delegated bookkeeping responsibilities to others and was let down, but acknowledged that ‘‘ignorance of the law is not an excuse.’’
‘‘I’m assuming we can play ball with the IRS going forward,’’ he said, adding that his group already has submitted tax forms for the past three years.
Associated Press
