Inside the imposing walls of the Internal Revenue Service headquarters on Constitution Avenue, Room 2501 is set to become the focal point of a new political initiative led by former President Donald Trump.
Known for its elite criminal investigation unit, IRS-CI, the office has a storied history of tackling financial crimes, most famously taking down mob boss Al Capone.
Now, Trump aims to repurpose this powerful investigative team to scrutinize left-leaning funding groups, including those connected to billionaire philanthropist George Soros.
Targeting Liberal Funding Ahead of Nationwide Protests
The move comes just days before the scheduled “No Kings” protests on October 18, which organizers claim will be the largest in American history.
Critics on the right, including Republican Senator Roger Marshall and House Speaker Mike Johnson, have framed the demonstrations as orchestrated by professional protesters funded by Soros, labeling the events a “hate America rally.”
Soros, who founded the $32 billion Open Society Foundations (OSF) and now oversees it via his son Alex Soros, has long supported progressive causes.
Trump has publicly called Soros a “bad guy” who should be “in jail,” allegations that Soros denies, emphasizing that neither he nor OSF fund political violence.
IRS Investigators Set to Lead the Charge
Ryan Mauro, a conservative investigator with the Capital Research Center, told the Daily Mail that examining tax-exempt statuses may offer the most straightforward approach.
“The smoking gun could be an undisclosed bank transaction,” Mauro explained, adding that targeting nonprofit tax statuses could reveal financial misdeeds without the need for complicated criminal investigations.
Although no specific targets have been officially named, the White House has hinted at potential scrutiny for figures like LinkedIn co-founder and Democrat donor Reid Hoffman, as well as nonprofit groups like Indivisible, which is backing the “No Kings” protests.
Former IRS-CI agent Gary Shapley, who previously blew the whistle in the Hunter Biden tax probe, is expected to be promoted to head the unit, with fewer legal restrictions on investigations than before.
Broader Strategy Against Political Funding Networks
This IRS effort is part of a wider strategy by Trump’s team to crack down on financial networks accused of fueling political violence.
Investigators could combine IRS probes with criminal inquiries from the Justice Department and FBI, surveillance from other federal agencies, and potential actions under racketeering or anti-terrorism laws.
Key advisors including Stephen Miller, Attorney General Pam Bondi, and Treasury Secretary Scott Bessent are reportedly involved in shaping the plan.
The White House has accused left-wing organizations of coordinating violent riots, doxing campaigns, and weapon drop points.
In September, Trump vowed to “identify and disrupt financial networks that fund domestic terrorism and political violence,” explicitly naming Soros and Hoffman as potential targets.
Nonprofits Push Back Against Allegations
Soros’ OSF has rejected the claims, stating: “Neither George Soros nor the Open Society Foundations fund protests, condone violence, or foment it in any way.
Claims to the contrary are false.” Hoffman has declined to comment.
The White House also highlighted prior political protests that included clashes with law enforcement and property damage, naming groups such as ActBlue, the Coalition for Humane Immigrant Rights, and Jewish nonprofits opposing Israel’s war in Gaza.
These groups have denied involvement in any violence.
Potential Consequences for Tax-Exempt Organizations
Investigating nonprofit funding and potentially revoking tax-exempt status could force some organizations to close.
Diane Yentel, head of the National Council of Nonprofits, warned that these actions are “not about preventing violence, they are about silencing organizations and individuals with which the administration disagrees.”
A recent 113-page dossier from the Capital Research Center identified additional targets, including major foundations like Ford and Tides, as well as nonprofits working in homelessness advocacy, which the report claimed were funneling money into political activism.
Soros’ Longstanding Philanthropic Efforts Under Scrutiny
George Soros, a Hungarian-born financier, created OSF to support democracy movements worldwide and later expanded into the U.S., funding racial justice, climate activism, and other progressive causes.
This record has made him a lightning rod for right-wing criticism, with some accusing him of orchestrating unrest through nonprofit networks.
OSF maintains that all activities are peaceful and lawful, rejecting claims that it funds terrorism or political violence.
“These accusations are politically motivated attacks on civil society, meant to silence speech the administration disagrees with and undermine the First Amendment,” a spokesperson said.