WASHINGTON: Trump administration officials are considering a US nonprofit tax crackdown that could put the 501(c)(3) status of Open Society Foundations, SPLC and CAIR under review.
The New York Post reported that three people familiar with internal Treasury discussions said Treasury Secretary Scott Bessent’s team was developing plans to examine whether nonprofit organisations were complying with federal tax rules.
The groups identified in the report include George Soros-founded Open Society Foundations (OSF), the Southern Poverty Law Center (SPLC) and the Council on American-Islamic Relations (CAIR).
Treasury had not publicly announced revocation proceedings against those organisations when the report was published.
The administration has previously broadened scrutiny of nonprofit activity. President Donald Trump signed a March 2025 order using the phrase “substantial illegal purpose” in rules governing Public Service Loan Forgiveness.
A September 2025 directive separately instructed the IRS to ensure tax-exempt entities do not finance political violence or domestic terrorism.
However, loss of tax-exempt status is not automatic. IRS guidance states that an examination can lead to revocation, but an organisation typically receives written notice and can seek review by the agency’s Independent Office of Appeals.
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The Post estimated, based on 2024 filings, that OSF, SPLC and 17 CAIR chapters could have faced about $165 million in combined federal corporate tax if treated as taxable corporations.
The figure is hypothetical, not an assessed tax liability. The federal corporate income-tax rate is 21%. Open Society told the Post that using nonprofit tax status to punish political disagreement would be unlawful.
The foundation has separately said its US charitable entities comply with federal tax rules governing 501(c)(3) organisations.