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Trump Foundation should be probed by IRS: CREW

Republican presidential candidate Donald Trump delivers an economic policy address at the Detroit Economic Club August 8, 2016 in Detroit Michigan. (AFP)

A US watchdog group affiliated with Democratic nominee Hillary Clinton says the Trump Foundation should be probed by the IRS over unfairly helping his campaign in the run-up to the 2016 presidential election.

Citizens for Responsibility and Ethics in Washington (CREW) accused the foundation Monday of having violated rules by the United States Internal Revenue Service, banning NGOs from participating in a political campaign.

Noah Bookbinder, the liberal group’s executive director, wrote a letter to the IRS, saying, “The Trump Foundation appears to have violated this prohibition by participating in Mr. Trump’s campaign.”

CREW is said to have ties with longtime Clinton ally David Brock.

According to the group's complaint, the foundation violated IRS rules in January, when Trump opted for a hosted a televised fundraiser for military veterans instead of partaking in a scheduled GOP presidential primary debate.

Some $4.5 million was supposedly raised during the event, with about $2 million passing through the Trump Foundation.

“[Nonprofits are] absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign,” read the complaint. “In the context of a campaign rally designed to advocate for Mr. Trump’s nomination ... the use of the [Make American Great Again] slogan [by the Trump Foundation] can have no reasonable meaning other than to urge his election.”

The Trump Foundation is a non-governmental charity organization founded in the 1980s initially to give away profits from his book The Art of the Deal.”

If the foundation is found guilty by the IRS in this case, it could be stripped of its tax-exempt status.

The probe will probably take place after the foundation files its 2016 tax returns, following the November vote, but such a ruling is said be unlikely.

“The foundation’s global initiatives appear to be unlawful pursuant to IRS guidance,” the letter read.


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