A powerful Republican voice in Congress is demanding action after a left-wing nonprofit—founded by none other than Stacey Abrams—was hit with a record-setting fine for alleged election law violations. Now, the IRS is being urged to strip the group of its tax-exempt status altogether.
Representative Jason Smith (R-MO), chairman of the influential House Ways and Means Committee, is calling for the IRS to revoke the 501(c)(3) designation of the New Georgia Project, a nonprofit that once operated under Abrams’ leadership. In a letter sent directly to IRS Commissioner Melanie Krause, Smith declared the group’s actions “a blatant abuse of the tax code and a direct insult to our democratic process.”
“If we let this slide,” Smith warned, “we’re opening the door to tax-exempt political machines operating under a charitable disguise.”
The Ethics Bombshell
Earlier this year, the Georgia State Ethics Commission unanimously determined that the New Georgia Project failed to report more than $4 million in campaign contributions and over $3 million in expenditures during the 2018 gubernatorial race—where Abrams was the Democrat nominee.
The result? A jaw-dropping $300,000 fine—the largest in the commission’s history and, according to Smith, “likely the biggest ethics fine ever handed down in U.S. political history.”
“This wasn’t a clerical error,” Smith said. “This was a coordinated, deliberate effort to tilt an election while hiding behind tax breaks meant for churches and soup kitchens.”
Legal Lines Crossed?
The Internal Revenue Code is clear: 501(c)(3) groups are barred from intervening in political campaigns. Smith argues that the New Georgia Project blatantly crossed that line.
“The organization actively supported Abrams and other Democrat candidates. That’s campaign intervention, plain and simple,” Smith said. “They should be reclassified as a political action group, not a charity.”
Even though Abrams officially stepped away from the group in 2017, the violations took place during her 2018 run. “It doesn’t matter if she had a title or not,” Smith added. “This was her machine. And it was used to manipulate Georgia elections.”
A Pattern of Misuse?
This isn’t the first time the Abrams-linked network has faced scrutiny. In fact, the New Georgia Project and its political arm, the New Georgia Project Action Fund, have long operated in a murky gray area—registering voters while boosting Democrat turnout. The difference? The action fund can legally endorse candidates, but its sister nonprofit cannot—and donations to the former aren’t tax-exempt.
“Taxpayers shouldn’t be subsidizing partisan get-out-the-vote operations,” Smith said bluntly. “The IRS needs to crack down, now.”
Legal Pushback Begins
An attorney for the group, Aria Branch, claimed the fine was rooted in a procedural issue, not the merits of the case.
“We remain disappointed that the federal court ruling on the constitutionality of the Georgia campaign finance law was overturned on procedural grounds,” Branch said. “We accept the outcome and are eager to move forward.”
But critics aren’t buying it.
“They broke the law. They got caught. And now they want to move on?” said Georgia Republican strategist Mark McCall. “If the IRS doesn’t act, they’re complicit.”
The Bigger Picture
This fight isn’t just about one group in Georgia—it’s about restoring faith in a system many conservatives believe has been rigged in favor of the left.
Abrams, once a rising Democrat star and rumored Biden running mate, has championed progressive causes for years. Her voter registration push in Georgia was credited with helping flip the state in 2020. But now, the very organization that fueled that movement is facing major legal and financial fallout.
“This is a warning shot,” said Rep. Lauren Boebert (R-CO). “If you cheat, if you use nonprofit status to run shadow campaigns, we’re coming for you.”
Fox News reached out to the IRS and the New Georgia Project for comment but received no response by press time.
As investigations heat up and election season looms, one thing is clear: the spotlight is back on Stacey Abrams, and the heat is rising.
Follow American Wire News for updates on this developing story.
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