Refocus Notes:

According to Wikipedia:

A 527 organization or 527 group is a type of U.S. tax-exempt organization organized under Section 527 of the U.S. Internal Revenue Code (26 U.S.C. § 527). A 527 group is created primarily to influence the selection, nomination, election, appointment or defeat of candidates to federal, state or local public office.

Technically, almost all political committees, including state, local, and federal candidate committees, traditional political action committees, “Super PACs“, and political parties are “527s.” However, in common practice the term is usually applied only to such organizations that are not regulated under state or federal campaign finance laws because they do not“expressly advocate” for the election or defeat of a candidate or party.

There are no upper limits on contributions to 527s and no restrictions on who may contribute. There are no spending limits imposed on these organizations; however, they must register with the IRS, publicly disclose their donors and file periodic reports of contributions and expenditures.^[1]

One would, after taking into account recent history, wonder what the political persuasion of these exposed groups in question actually were…..

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National Journal

Brian Fung | Technology writer

Another day, another slipup by the Internal Revenue Service.

The incident involves the unwitting exposure of “tens of thousands” of Social Security numbers, according to a recent audit by the independent transparency and public-domain group Public.Resource.org. The identifying numbers were on the Internet for less than 24 hours after being discovered, but the damage was done. And unfortunately, the data-breach concerns some of the most sensitive types of transactions: Those made by nonprofit political groups known as 527s.

Every so often, 527s have to file tax forms to the IRS, which then get added to a database. The database itself is hardly a secret; the IRS has been sending updated records routinely to Public.Resource.org and other public-interest groups, and it’s a favorite among political reporters. But when the IRS told the group’s founder, Carl Malamud, to disregard the Form 990-Ts included in the agency’s January release, he took a closer look at the files in question.

After analyzing the breach, Malamud wrote a letter to the IRS pointing out 10 instances where a social security number was accidentally revealed on the government’s website—just a small sample of the larger breach.

Just the day before, Malamud had filed another letter to the agency describing a problem with the 990-Ts. Of over 3,000 tax returns contained in the January update, 319 contained sensitive data the agency should have scrubbed, Malamud wrote in the July 1 report that he filed to the inspector general’s office. In that mixup, some 2,319 social security numbers—perhaps more—were revealed.

To determine the extent of the exposure, we’ve analyzed our logs and have also analyzed the data received from the IRS. We maintain a privacy registry based on any clicks made on the privacy cover sheet on the top of each return. That registry indicates that 8 clicks were made from 4 unique IP addresses. However, none of those resulted in privacy complaints and could have been made by an automated process.

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