Trump administration targets liberal nonprofits for tax-exempt status revocation

The Trump administration is preparing to revoke the 501(c) tax-exempt nonprofit statuses of several liberal-leaning organizations. According to reports, the Treasury Department and the Internal Revenue Service (IRS) are targeting groups linked to George Soros, including the Open Society Foundations, as well as the Southern Poverty Law Center (SPLC), MediaJustice, and the Private Equity Stakeholder Project.

The initiative follows a September 2025 national security memorandum issued by President Trump regarding countering domestic terrorism and organized political violence. The administration aims to ensure that tax-exempt entities are not financing political violence. The SPLC has previously faced scrutiny following a federal grand jury indictment on wire fraud charges.

Legal advocacy groups, such as Protect Democracy, have filed lawsuits alleging that the administration is illegally using the tax code to target political opponents. Critics note that federal law prohibits executive branch influence over taxpayer audits and investigations, and that the IRS must follow specific audit and appeals procedures before a nonprofit can lose its tax-exempt status.