Overview
- Chairman Jason Smith sent a formal referral asking the IRS to investigate CAIR-California and consider revoking its 501(c)(3) status.
- The referral alleges mishandling of more than $7 million in Afghan refugee legal-aid funds, saying fewer than 10% of promised clients were served and money was routed through an unregistered affiliate using CAIR-CA’s tax ID, raising potential False Claims Act issues.
- It asserts CAIR-California institutionally supported campus encampments that led to arrests, citing examples at UCLA and UC San Diego and questioning compliance with limits on tax-exempt political activity.
- The letter also points to national network activity, including promotion of a “Protest Donald Trump” rally during the 2024 cycle, as possible campaign intervention barred for 501(c)(3) organizations.
- CAIR rejected the claims as politically motivated and inaccurate, said refugee funds were properly used, and sent its own response to Treasury and the IRS; Republicans framed the referral within broader calls for nonprofit scrutiny tied to a large Minnesota COVID-era fraud probe.