(Luis Cornelio, Headline USA) Several leftist nonprofit organizations could lose their tax-exempt status under a new policy currently being developed within the Trump administration, several news outlets reported Thursday.
Specifically, Treasury Secretary Scott Bessent and the IRS could strip the tax-exempt status of entities such as George Soros’s Open Society Foundations, the Southern Poverty Law Center and the Council on American-Islamic Relations.
All three entities have been behind some of the most aggressive leftist attacks against conservatives, Republicans and freedom-aligned individuals, organizations, politicians and activists.
According to the New York Post, which cited three anonymous sources, Bessent is planning a “sweeping audit of outfits deemed to be using and abusing Uncle Sam’s tax code.”
The outlet added that “Bessent’s inner circle is drafting a blueprint that could ultimately strip non-compliant organizations of their 501(c)(3) status, according to two of the people familiar with the plans.”
Trump admin set to target George Soros nonprofit, Southern Poverty Law Center and CAIR in major tax crackdown: sources https://t.co/IRJIsV7y98 pic.twitter.com/mu0T4A0dbk
— New York Post (@nypost) August 27, 2026
If the entities are deemed to have violated these rules, they could face what the Post described as “massive back payments and civil penalties,” according to the same sources.
In response to the reported plans, an Open Society Foundations spokesperson said, “Threatening any nonprofit’s tax status for political reasons would be nothing more than an illegal attempt to target and stifle work that the administration disagrees with.”
The reporting comes as the DOJ investigates the Open Society Foundations over allegations of potential wrongdoing. Neither the foundation or its officials have been charged with any offenses.
The Southern Poverty Law Center has been indicted by a federal grand jury over allegations that it misled donors while using millions of dollars to enrich so-called informants inside hate groups. Former SPLC Intelligence Project Director Heidi Beirich has also been indicted in the case.
