House GOP Members Call on IRS to Investigate AARP Tax-Exempt Status
- Posted on December 27, 2011 at 12:34pm by
Christopher Santarelli
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House Republicans have called on the IRS to reexamine how the nonprofit seniors group AARP is able to retain a tax-exempt status despite being in contract with private insurance companies who pay AARP royalties in return for an endorsement, while holding a considerable authority over the structure of the plans it endorses.
Three House Republicans on the Ways and Means Committee sent a letter to the Internal Revenue Service last week asking the agency to take a closer look at AARP contracts with two specific businesses that suggest the nonprofit group’s relationship is much more than an agreement to license the AARP name. The Republican lawmakers allege that the seniors’ group effectively holds “day-to-day control” over private firms with the AARP stamp of approval, yet shields millions of dollars from tax levies thanks to their nonprofit status:
“AARP has extensive decision making authority and is deeply involved in United’s business operations. The ARRP relationship with both United and Hear USA seems to suggest a pattern of business partnerships and activities that permit AARP to engage in for-profit businesses under the cover of its tax-exempt status.”
One of the three Ways and Means Republicans writing to the IRS, Washington Rep. David Reichert, tells Fox News that AARP uses their brand to sell everything from health insurance to hearing aids netting huge profits for the tax-exempt seniors’ group:
Fox News reports that Republicans point to AARP’s income from United HealthCare alone which has skyrocketed from 2007 to 2009 in the midst of the recession, leaping from $284 million to $427 million during that time, a 50 percent jump. In 2010 those revenues soared to $670 million.
AARP has responded to the renewed Republican criticism of its business practices, claiming that GOP House members are attacking quality control practices that benefit consumers by allowing the organization to provide oversight for AARP-branded products. The Hill reports:
“AARP said it’s ‘confusing’ that the lawmakers would target ‘some of the clearest examples of how AARP’s work to influence the private sector has helped create stronger consumer protections and options in markets where too many seniors had previously been left behind.’
The group’s agreement with United, for example, requires that AARP review such plan changes as potential premium increases.
‘AARP takes seriously our commitment to making sure AARP-branded products are consistent with our social advocacy mission, and in doing so we’ve helped millions of older Americans get help that was previously kept out of reach,’ the group said. ‘We are disappointed that this work should be the subject of Congressional criticism.’”
AARP makes the majority of its revenues from supplemental insurance policies to seniors. The seniors‘ group has supported the Obama administration’s new health care law, which calls for $500 billion in cuts to Medicare, and FOX News notes critics say makes it more likely people would need supplemental insurance.
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Comments (77)
jakartaman
Posted on December 27, 2011 at 2:04pmAnyone that belongs to AARP are nothing more than sheeple.
Report Post »I am not a joiner anyway but would have to be pretty ignorant to be a member of this socialist crowd.
Eliasim
Posted on December 27, 2011 at 2:14pmYou do realize that you are nursing off the tit of a dead cow don’t you? You speak about things as if the system isn’t already dead.
Report Post »scheduler
Posted on December 27, 2011 at 2:14pmShould have been done years ago.
http://politicalbowl.com – Political Videos
Report Post »smithclar3nc3
Posted on December 27, 2011 at 2:15pmExactly, I recently sent them a cease and desist order cammanding them to remove my address from their mailers.
Report Post »GeorgieJo
Posted on December 27, 2011 at 2:23pmDidn’t AARP receive STIMULUS MONEY???
Report Post »They sure do have ALOT of commercials ON EVERY CHANNEL
Hmmmmm I smell corruption?
pamela kay
Posted on December 27, 2011 at 4:53pmJAKARTAMAN, I agree. I am happy to see an investigation on this organization. Finally. It has been needed for a long time.
Report Post »Publius Novus
Posted on December 27, 2011 at 2:02pmThe IRS being put to some good use for a change….am I dreaming? We’ll see what happens. AARP is a fairly large lobby & donor to well…you know. Still it’s nice to see some Republicans with some ******.
Report Post »Baddoggy
Posted on December 27, 2011 at 2:25pmThis will come with retribution by the Dems. Your Church will be next. We need to abolish the IRS to end all the unConstitutional BS.
Report Post »saranda
Posted on December 27, 2011 at 2:32pmMany churches do hide behind the veil of “being a church” to keep their tax free statues. There are many that do not deserve the right to not pay tax. Unfortunately to get to the ones who are scamming the IRS it would cause problems for many that are legitimate. The tax definition of Church is way too far reaching.
Report Post »Midroad
Posted on December 27, 2011 at 2:02pmAARP is able to keep their tax exempt status because they pad the pockets of the dirty, corrupt democrat party.
Report Post »frank
Posted on December 27, 2011 at 1:58pmRepublicans don’t want to talk about changing the tax code; they sow what happened to Herman Cain.
Report Post »wbhpro
Posted on December 27, 2011 at 1:56pmMaybe it’s time for the tax exempt status to end at a certain dollar amount. If a food shelter takes in 100k in donations and spends most of that in a year. Fine. Pay no taxes. If AARP takes in millions and still has millions in assets at the end of their calender year. Make them pay taxes over a minimum. Of course all the CEO’s, VP’s would probably just take a bigger bonus and drain the accounts.
Report Post »Vechorik
Posted on December 27, 2011 at 1:52pmAMAC was founded to be a conservative alternative to AARP. You have a choice!
Looking for an alternative to AARP? You’ve come to the right place. The Association of Mature American Citizens (AMAC) is a conservative, nonpartisan organization looking out for the interests of Americans 50 years of age and older.
National Auto & Home Insurance Discounts
Health & Life Insurance
Medicare Supplement
Long-Term Care Insurance
National Travel Discounts
http://amac.us/amac-was-founded-to-be-your-alternative-to-aarp-2
Report Post »watashbuddyfriend
Posted on December 29, 2011 at 9:07amSeems, I recall that the AMAC, and I have communicated, recently, following my firing the AARP membership! I asked AMAC to provide me with the how/who runs the Internal Control of the contribution of monies, but have not received a response, of course, I don’t believe I will ever get the response!
Report Post »frank
Posted on December 27, 2011 at 1:43pmThe IRS is a welfare house full of people that can’t hold a private job. Following Barny tax code. Tax exempt corp, org are socialists that hide their true identity. It is how democrats socialists gets their fraudulent vote, just like the hood churches, fraud organizers.
Report Post »welovetheUSA
Posted on December 27, 2011 at 1:40pmAbout time..this outfit is anti-American.
Report Post »texasfarmer
Posted on December 27, 2011 at 1:37pmIt’s about damn time.
Report Post »ddg7
Posted on December 27, 2011 at 6:54pmDitto!
Report Post »Blazer123
Posted on December 27, 2011 at 1:32pmI’m out of work, maybe I could be an editor for the Blaze? Members call. Member calls. My first one is free :)
Report Post »Arc
Posted on December 27, 2011 at 1:24pmApproximately 16 years ago I was young, innocent and stupid and enrolled in AARP for 1 year thinking they were solidly on the side of the seniors. Now, 16 years later, I am middle aged, well used and savvy consumer and still stupid just a few bucks poorer. What a RIPOFF!!!!!!!
Report Post »oldguy49
Posted on December 27, 2011 at 1:42pmsince aarp came out for obama care i return to sender or obama on all their mail i get…………..
Report Post »RightPolitically
Posted on December 27, 2011 at 1:22pmOnce again, the dumb ol’ GOP House, led by an “inside the beltway” player, John Bonehead, comes up with another stupid idea. AARP is an Obama favored group. The IRS is run by liberals and takes orders from Executive Branch chief Obama. As such, what kind of investigation could it possibly be? More posturing, that’s all.
Report Post »Eliasim
Posted on December 27, 2011 at 1:18pmMidWestMom and the rest of you non-believers (because that’s what you really are),
Report Post »I pity you, and you will soon enough see how it relates to AARP, and the elderly, and you too. Because even yet you don’t see that the cup of wrath is tilting and dribbling on you.
Eliasim
Posted on December 27, 2011 at 1:23pmAnd you don’t see (mostly because you worship yourself) how it is you have brought your own flood of waters the last over 100 years, and you don’t see how that relates to Elijah hiding in a cave waiting for the Lord, and you don’t see how the Lord counters your flood with a flood of his own. I do truly pity you and your root.
Report Post »Eliasim
Posted on December 27, 2011 at 1:29pmWhy did the ancients take the time to find a “Big dipper” and a “Little dipper” in the heavens each a ladle or “A cup?“ Perhaps to remind people of ”I, even I“ as in ”The cup of wrath.”
Report Post »str8blues
Posted on December 27, 2011 at 9:11pmAre you drunk or just stupid?
Report Post »str8blues
Posted on December 27, 2011 at 9:15pmNurse…….OH NURSE…..Eliasim has gotten into the koolaid cooler.
Report Post »JJBlazeReader
Posted on December 27, 2011 at 1:17pm..
AARP is another example of crony capitalism just like GE.
Report Post »JRook
Posted on December 27, 2011 at 1:27pmReally than what is Paul Ryan’s plan that would abolish Medicare going forward and privatize it. Just what we need more money being syphoned from care.
Report Post »Bill Rowland
Posted on December 27, 2011 at 4:01pmENCICOM – The only lobbying done by AARP in the last few years has been for AARP not for its membership. They use your membership dues to fund political campaigns, they use thier earnings from insurance sales to give themselves huge salaries and bonuses.
The original purpose was good but they have been so corrupted that they care only about preserving their own benefits.
Check it out before you waste your time defending them.
OMG
Report Post »Turtleman
Posted on December 27, 2011 at 1:12pmMore crony capitalism!
Report Post »Say it ain’t so!
kentuckypatriot
Posted on December 27, 2011 at 1:11pmWhy does the GOP have to ASK the IRS to investigate? Why don’t they DEMAND? I, for one, am sick to death of the GOP playing nice. It’s time for them to walk the walk instead of talk.
Report Post »As far as AARP, I’m offended they send me their garbage hoping I will become a member, when in fact, I’m not even 50 yet. I will take the advice of my fellow Blazers.. next time I get their junk mail, I’ll send it back empty, or write them a “ nice ” note telling them how I really feel.
GeorgieJo
Posted on December 27, 2011 at 2:27pmKENTUCKY?
Report Post »It took almost EIGHT letters from me for them to STOP sending their propaganda to me.
GOOD LUCK!!!
pap pap
Posted on December 27, 2011 at 1:05pmI was a member a few years back but when I decided I didn’t like their political policies and attitude I bailed out.
They are just like the government, it‘s not what’s good for the members or constituants but what’s good for AARP or BIG GOVERNMENT that matters to them.
Report Post »RodT82721
Posted on December 27, 2011 at 1:05pmIMHO, AARP are a bunch of snake oil salesman. It’s about time someone woke up to their game!
Report Post »They found their nitch with old folks, that love something for nothing, even if it’s worthless. Then throw in a free magazine and you have them!
Put together a bunch of semi-worthless coupons and freebies, to suck them in, then sell them insurance packages at a premium price.
All the while claiming tax exempt status for ‘helping’ old folks! The only ones they are helping now are their favorite members of Congress that will allow them to keep every penny they mange to extort for old folks, insurance companies, and their own bottom line.
I cancelled my membership in 1998 and I still get ‘last chance’ enrollment packages. I guess not taking NO as an answer must be a good tactic too.
garylee123
Posted on December 27, 2011 at 12:54pmWhenever I get one of their promo’s with a pre paid envelope, they get it back empty. Gotta support the Post Office and nothing like using an uberlib organizations money to do it.
Report Post »carbonyes
Posted on December 27, 2011 at 1:06pmLove it! The AARP is an ultra lib organization, which supports everything the carp Obama shills out to change the country for the worse, which is basically everything the Imposter-in-Chief does.
Report Post »The AARP needs a major shakedown from the top down, personnel, programs and audit, with close attention to their contributions to Obama and his cronyism. The AARP does not in reality support the seniors but support their own coffers and liberal programs and ideology. Time for AARP to pay the piper.
angelcat
Posted on December 27, 2011 at 1:49pmDarn! i wish I had thought to do that. I know I will have plenty of opportunities since they send me stuff constantly. My husband and I will join one of the conservative alternatives to AARP.
Report Post »bullcrapbuster
Posted on December 27, 2011 at 12:52pm@Eliasim….Hey sonny it’s dad….did you forget to take your meds again?
Report Post »elosogrande
Posted on December 27, 2011 at 12:49pmOrganizations that promote liberal, socialist Democrats are tax exempt.
Why is this so difficult to understand?
Report Post »EqualJustice
Posted on December 27, 2011 at 12:56pmOh, I forgot.. it’s the rest of us workng STIFFS that are selfish and need to pay more, right? Why have the Republicans NOT shown a LIST of al the PROGRESSIVE GROUPS AND INDIVIDUALS who AVOID paying taxes on BILLIONS of dollars? The liberals are screaming about taxing the rich and the big mouth hypocrites are saying ‘we want o pay more.” CALL THEM ALL OUT! Let’s PROVE they are liars. How many checked the BOX on their IRS form that ALLOWS THEM TO DO JUST THAT… PAY MORE TAXES? The conservatives have to get that message OUT THERE. The hypocrisy is killing me…
Report Post »EqualJustice
Posted on December 27, 2011 at 12:45pmWhat took so long? Everyone has known since 2009 that this was going on! THIS from November 2009..“Officials with the seniors lobby said the organization lost 150,000 members since July 1 because of the group’s support for health overhaul. But in that time, it also registered 2.7 million new members and renewals. Officials said they were confident their members would see the bill’s benefits.
But the group has come under attack in recent weeks for its considerable earnings from insurance royalties — more than $650 million from the sale of insurance policies, credit cards and other products that carry the AARP name, the Washington Post has reported, citing federal tax records.”
Read more: http://www.foxnews.com/politics/2009/11/04/house-health-care-aarp-endorsement-sources-say/#ixzz1hkPcznL8
Report Post »BrerRabbit
Posted on December 27, 2011 at 12:41pmWish they would take me off their mailing list. It will be a cold day in He$$ when I join the Commies.
Report Post »RightThinking1
Posted on December 27, 2011 at 12:58pmDo what most of us do, send back their prepaid envelopes empty, or better yet, with a ‘strongly worded’ note.
Report Post »TRONINTHEMORNING
Posted on December 27, 2011 at 12:40pmVery glad to see this; the left-leaning AARP can now be under the microscope. Can’t wait to see the findings.
Report Post »CatB
Posted on December 27, 2011 at 12:44pmI agree TRON .. besides their main focus is as an INSURANCE CO. And don’t forget they pushed for Obamacare on the rest of us .. then got a waiver!
TEA!
Report Post »AvengerK
Posted on December 27, 2011 at 12:46pmAARP gushed over Obama and Obamacare…now they can face the consequences.
Report Post »booger71
Posted on December 27, 2011 at 12:46pmHolder will let them slide.They give a lot of money to Barry’s stash
Report Post »lukerw
Posted on December 27, 2011 at 12:51pmAnother… Liberal scam to fund the Left!
Report Post »Eliasim
Posted on December 27, 2011 at 12:39pmAnd you hypocrites go to church and say but don’t do, and have learned nothing from Christ. If you will spoil the spirit of your children during good times through giving them handouts resulting in killing their spirit, then how much will you literally kill them during bad times? A lot! And that‘s why Elijah isn’t worthy to latch Jesus Christ’s shoes, just as you should view yourself as not worthy to latch your child’s shoes.
Report Post »MidWestMom
Posted on December 27, 2011 at 12:55pmHow exactly does your comment have anything to do with AARP?
Report Post »M13
Posted on December 27, 2011 at 12:55pmYour tin foil hat is making you babble on again, please turn to the left a little more so the messages from Ron Paul can get through.
Report Post »Stevsea
Posted on December 27, 2011 at 12:55pmMescal?
Report Post »LIBSALWAYSLIE
Posted on December 27, 2011 at 12:56pmEliasim
Report Post »you make no sense at all. in the future, try harder
barber2
Posted on December 27, 2011 at 1:05pmSome things are best ignored., like ELIA ( think the Blaze Troll group rewards this dude for the vast number of his unintelligible posts ..and they love to think they have taunted the Blaze with them..it’s the new form of junior high prank phone call for the digital age )
Report Post »COFemale
Posted on December 27, 2011 at 1:05pmIgnore him, he is off his meds again.
Report Post »texasfireguy
Posted on December 27, 2011 at 2:00pmDon’t forget Vman and Margie from Ohio. They are definitely in the tin foil hat brigade.
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