Power Grab/Fire anyone who can stop him
Treasury is drafting an audit and a blueprint to strip tax exemption from Open Society, the SPLC and CAIR, the New York Post reports
The August 27, 2026 report cites 3 people briefed on internal deliberations; Treasury declined to comment, and no revocation or fine had been issued as of October 9.
What happened
On August 27, 2026, the New York Post reported that Treasury Secretary Scott Bessent’s office was drawing up an audit of nonprofits and a blueprint that could strip 501(c)(3) status from Open Society Foundations, the Southern Poverty Law Center and the Council on American-Islamic Relations. It cited 3 people briefed on internal deliberations. Treasury declined to comment.
The plan leaned on NSPM-7, the September 2025 memorandum directing the IRS to act against tax-exempt entities said to finance political violence. Penalties under consideration ran from corrective fines to full revocation, the Post reported.
On September 1, Reps. Lloyd Doggett and Terri Sewell renewed an unanswered oversight demand to IRS chief Frank Bisignano. He had told Congress on March 4 he would “100 percent” not revoke exemptions on political grounds.
Who benefited
The administration would gain a lever over 3 organizations that litigate and campaign against its policies, and a task force Bessent assembled under Tony Saffier. The Post said Bessent enlisted Saffier, a former special-operations veteran, to lead an interagency task force. No revocation or fine had been issued as of October 9.
Who wanted something
Trump had named Open Society and the SPLC as targets since September 2025, and NSPM-7, signed September 25, 2025, told the IRS to ensure no tax-exempt entity finances political violence. Treasury’s stated aim, the Post said, was a crackdown on “bogus” charities. The Post said CAIR was examined as a national-security matter.
Who lost out
Open Society Foundations, the SPLC and CAIR face audit costs and donor uncertainty before any finding. Section 7217 of the tax code makes it a crime for the president, the Treasury secretary or their staff to ask the IRS to audit a particular taxpayer. The IRS chief had told Congress he would not revoke exemptions on political grounds.
Why it matters
Tax exemption is the financial precondition for most organized advocacy, and the power to review it sits inside the executive branch. The reporting describes targets named before any finding, drawn from one side of politics. Protect Democracy had already sued Treasury and the IRS in 2026 over political use of the tax code.
Sources New York PostRep. Lloyd Doggett (press release) (primary)The White House (primary)