To: National Desk

Contact: Naomi Seligman Steiner of the Citizens for Responsibility and Ethics in Washington, 202-408-5565

WASHINGTON, Nov. 2 /U.S. Newswire/ -- Citizens for Responsibility and Ethics in Washington (CREW) filed an Internal Revenue Service (IRS) complaint against Americans for Honesty on Issues (AFHOI), a registered 527 organization, for failing to report contributions and expenditures as required by federal law.

As of November 2, 2006, AFHOI had not filed reports with the IRS for two reporting periods, including the 3rd quarter report, due October 16, 2006, and the pre-general election report due on October 26, 2006. Federal law requires 527s like AFHOI to disclose all contributions and expenditures to the IRS.

Any 527 that fails to report its expenditures and contributions may be assessed a tax up to 35 percent of the unreported totals. CREW estimates that the IRS could fine AFHOI up to $1.68 million.

AFHOI filed as a 527 political organization in August 2006, and has subsequently raised over $3 million from its sole donor, Bob Perry. Perry previously gave $95,000 to former Majority Leader Tom DeLay's Americans for a Republican Majority (ARMPAC) and he contributed $200,000 to Swift Boat Veterans for Truth.

In response to a CREW IRS complaint, ARMPAC was levied a $115,000 fine and forced to shut its doors for tax violations in July 2006.

According to FEC records, AFHOI has aired advertisements against ten federal candidates around the country.

"It appears that Americans for Honesty on Issues isn't being honest with the American people about its campaign activities," said Melanie Sloan, CREW's executive director. "It is flagrantly breaking IRS law and should be investigated immediately."

The IRS complaint and supporting exhibits are available on CREW's website, http://www.citizensforethics.org.

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Citizens for Responsibility and Ethics in Washington (CREW) is a non-profit legal watchdog group dedicated to holding public officials accountable for their actions.

For more information, visit http://www.citizensforethics.org or contact Naomi Seligman Steiner at 202-408-5565, press@citizensforethics.org.

http://www.usnewswire.com/

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/© 2006 U.S. Newswire 202-347-2770/

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