DANIEL LIPINSKI COMMITTEE ON TRANSPORTATION
AND INFRASTRUCTURE

3RD DISTRICT, ILLINOIS


emanates:Eottiazm Congress of the ?atten ?atates
(202) 225?5701

390MB Di Mmesmtatthes
Washington, 20515?1303

COMMITTEE ON SCIENCE, SPACE,
AND TECHNOLOGY

February 14, 2018

Mr. David J. Kautter
Commissioner (Acting)
Internal Revenue Service
77 ST, NE
Washington, DC 20002

Dear Commissioner Kautter:

As you know, non-pro?ts play an important role in American society. At their best, these
organizations ?ght for the poor and working class, ensure a level playing ?eld for all, and make
our communities better places to live. For these reasons, non-pro?ts are exempt from taxation.
But that privileged status also comes with obligations the leaders of these groups must not
enrich themselves at their organizations? expense.

I write to call your attention to a recent Chicago Sun-Times/ProPublica story that outlines
potential violations of the US. federal tax code by non-pro?t, 501(c)3 organizations under the
control of John Michael Tillman, Chief Executive Of?cer of the Illinois Policy Institute. As a
Member of Congress from Illinois, where these organizations are primarily domiciled, I am
concerned that Mr. Tillman and his organizations may have violated Reg. 
the prohibition against private inurement, as well as Reg. the prohibition
against private bene?t.

The recent Chicago Sun-Times/ProPublica investigation revealed that Think Freely Media, a
501(c)3 organization of which Mr. Tillman is the board chairman and former president, made
two loans of $60,000 and $49,400 to Crowdskout, a for-pro?t corporation owned by a holding
company over which Mr. Tillman exercises ?majority unit control.? Most concerning is the fact
that the $49,400 loan did not carry an interest rate. As you know, zero-interest loans to
disquali?ed persons are considered a violation of the private inurement prohibition (see John
Marshall Law School and John Marshall University v. United States, 81?2 USTC 9514).

Additionally, Think Freely Media reportedly made at least four grants to other non?pro?t
organizations, which then hired for-pro?t marketing ?rms that Mr. Tillman controlled. This
appears to be an attempt by Mr. Tillman to derive a private bene?t from Think Freely Media?s
ostensibly charitable activities.

Finally, Think Freely Media has reportedly paid more than $99,000 to Crowdskout through a
?labor sharing agreement? between the two entities. Crowdskout also rented of?ce space from
for-pro?t companies owned by Mr. Tillman in both Chicago and Washington, DC. Again, this
appears to be an attempt to confer a private bene?t to Mr. Tillman.

6245 SOUTH ARCHER AVENUE 5309 WEST 95TH STREET 222 EAST 9TH STREET #109 14700 SOUTH RAVINIA AVENUE
CHICAGO, IL 60638 OAK LAWN, IL 60453 LOCKPORT, IL 60441 ORLAND PARK, IL 60462
(312) 886?0481 (708) 424?0853 (815) 838?1990 (708) 403?4379

(773) 767?9395 FAX (708) 424?1855 FAX (815) 838?1993 FAX (708) 403?5963 FAX

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Federal law provides tax bene?ts that help non-pro?ts pursue their agendas, including
ideological agendas. What is does not allow, however, is for an individual to use a non-profit
organization to inure excessive bene?ts to himself. I fear that is exactly what Mr. Tillman has
done. Therefore, I request that you conduct a fair and thorough investigation with all due speed.

Sincerely,

Jar-*-

DANIEL LIPINSKI MC .
Member of Congress