DENVER – Colorado Citizens for Ethics in Government (CCEG), a non-partisan, non-profit legal watchdog group, filed an Internal Revenue Service (IRS) complaint against The Colorado Good Government Initiative (“CGGI”), the Colorado Leadership Fund (“CLF”), the Senate Majority Fund (“SMF”) and Trailhead Group LLC (“Trailhead”) for failing to report contributions and expenditures as required by federal tax law.

In April and May of 2006, Trailhead made two contributions to SMF, totaling $25,000, yet SMF failed to report either in its tax filings. This is significant because Trailhead’s April contribution was tied for SMF’s largest contribution of the quarter. Trailhead also reported receiving $55,000 from SMF on April 13, 2006, but SMF reports making only a $30,000 contribution to Trailhead.

Similarly, although Trailhead reported making a contribution of $50,000 to CLF on April 21, 2006, and receiving a contribution of $50,000 from CLF on April 23, 2006, CLF did not report either transaction. Within hours after the Colorado Confidential weblog exposed these undisclosed transactions, CLF amended its filings and belatedly reported the transactions as fundraising events.

In addition, Trailhead reported a $20,000 contribution to CGGI, which is not registered in any form with the IRS and has no reports of receiving the contribution. CGGI shares the same office suite as Trailhead but neither group has reported any rent payments made by CGGI.

“It appears that Trailhead and these other 527s are flagrantly evading their disclosure requirements necessitating an immediate investigation by the IRS,” said Chantell Taylor, CCEG’s Director. “Disclosure requirements have a purpose: to make clear who is funding candidates and how the money is being spent. These groups are clearly trying to hide this information from the public.”

The IRS complaint and supporting exhibits are available on CCEG’s website.

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Colorado Citizens for Ethics in Government (CCEG) is a non-profit, legal watchdog group dedicated to holding public officials in Colorado accountable for their actions. For more information, please visit www.coloradoforethics.org or contact Chantell Taylor at (303) 626-2100 ctaylor@coloradoforethics.org