Watchdogs Say: Lax Internal Revenue Service rules help groups shield campaign donor identities

American Crossroads GPS, an advocacy group that reported spending about $17 million on advertising before the midterm elections, generated controversy by using its nonprofit status to shield donors' identities.

As it turns out, the Internal Revenue Service hasn't even approved the group's nonprofit status. Crossroads filed an application in September but the agency has not acted on it.

Watchdog groups say that Crossroads and other groups active in campaigns are taking advantage of lax IRS enforcement to offer political donors anonymity.