Tax

Under a new law, each 501(c)(4) organization will have to notify the IRS of the intent to operate as a 501(c)(4) organization; however, such notice will not be due until at least 60 days after regulations are issued implementing the notification procedures.

As reported in Inside Political Law on December
Continue Reading UPDATE: 501(c)(4) Organizations Not Required To Provide Notice Until Treasury Issues Regulations

Under recent legislation, newly-created and certain existing 501(c)(4) social welfare organizations must file a notice with the IRS.  In the past, social welfare organizations were not required to submit an application (Form 1024) to the IRS to be recognized as a tax-exempt organization but could “self-declare” exempt status, as long
Continue Reading PATH Act Requires 501(c)(4) Organizations To Provide Notice To IRS After Formation

Two items in last week’s news highlight that federal tax law remains an important consideration in the lead up to the 2014 and 2016 elections.

First, the IRS released a letter that denied the application of the Arkansans for Common Sense, a now defunct liberal group, for classification as a
Continue Reading IRS Release Reflects Ongoing Scrutiny of Political Activity by Nonprofits

Earlier today, IRS Commissioner John Koskinen, in his first appearance before the House Appropriations subcommittee on Financial Services and General Government Oversight, stated that final regulations governing political activity by 501(c)(4) social welfare organizations are unlikely to be completed before the November elections.

His statement seems to differ from the
Continue Reading Conflicting Signals on Finalizing the Proposed Treasury Regulations for 501(c)(4)s

Yesterday evening the Treasury and the IRS released, sooner than expected, proposed regulations that could fundamentally change the playing field for 501(c)(4) organizations active in politics.  The proposed regulations will be published in the Federal Register on Friday, November 29.  The pre-publication version is here.

Highlights

The proposed regulations
Continue Reading Proposed IRS Regulations for 501(c)(4)s: Sooner Than Expected, But Probably Too Late

Twenty House Democrats yesterday introduced proposed legislation that, if enacted in its current form, would amend the Federal Election Campaign Act of 1971 to:

  • Require corporations and labor unions which “submit[] regular, periodic reports” to their shareholders and members to include certain detailed information concerning their political spending.  That information


Continue Reading OPEN Sesame or a Potemkin Village?

The IRS on Tuesday issued its eagerly anticipated 30-day report summarizing its initial review and assessment of “what went wrong” in connection with the IRS’s use of inappropriate criteria to screen exemption applications from Tea Party groups seeking recognition that they are 501(c)(4) social welfare organizations.  We had previously blogged
Continue Reading Charting a Path Forward for Certain 501(c)(4) Organizations, and Perhaps Others

New York Attorney General Eric Schneiderman announced today that he has adopted regulations requiring non-profits engaging in certain electioneering activity in New York, including 501(c)(4) organizations, to disclose their donors.  We previously wrote on the proposed rules, which after a series of public hearings, have been slightly modified and adopted
Continue Reading Non-Profit Donor Disclosure Rules in New York Are Now In Effect

All eyes are on the IRS and its regulation of 501(c)(4) organizations these days, with the agency’s mishandling of exemption applications, the release of the Treasury Inspector General’s report, and the lengthy hearings held by the House Ways and Means Committee, the Senate Finance Committee, and the House Oversight
Continue Reading Group Sues Treasury and IRS to Amend 501(c)(4) Regulations