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Congressional Research Service Concludes that the Federal Gift Tax Should Apply To Contributions to 501(c)(4) Social Welfare Organizations

The Congressional Research Service has issued a report analyzing whether the federal gift tax applies to contributions made to 501(c)(4) organizations.  Many years ago, the IRS took the position in rulings that the gift tax applied.  However, the IRS had not enforced the tax for over 20 years until 2011, when the IRS audited five … Continue Reading

Checkmate!

Yesterday, 10 Republican members of the U.S. Senate, led by Senator Orrin Hatch, wrote to the IRS and urged it to resist calls to limit the amount of political activity that 501(c)(4) social welfare organizations are permitted to engage in under a Treasury Regulation that has been in effect for 52 years.  Yesterday’s letter follows … Continue Reading

The IRS and 501(c)(4) Groups: Change May Come, But Not Quickly Enough For Some

In an exchange of letters released Monday by Democracy 21 and the Campaign Legal Center, the IRS has stated that it will consider changes in the rules relating to political activity by 501(c)(4) organizations as it works to identify tax issues that should be addressed through regulations or other published guidance.  The IRS letter can be … Continue Reading
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