Tax

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 as the organization operated pursuant

The U.S. House of Representatives this week passed a bill to provide gift tax certainty to individuals who make gifts to 501(c)(4) social welfare organizations, 501(c)(5) labor unions, and 501(c)(6) trade associations.  The bill, H.R. 1104 (the “Fair Treatment for All Gifts Act”), was approved with bipartisan support on a voice vote.  It now goes

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 White House Statement of Administration

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 mirror the approach first taken

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 must also be reported to

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 on this here and here

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 by the Attorney General.  The