Updates on Developments in Campaign Finance, Lobbying & Government Ethics Law
The Internal Revenue Service (IRS) recently issued two private letter rulings (PLRs) that may be interesting for tax-exempt organizations that engage in political activity.
In the first ruling, the IRS held that a company could not deduct payments made to charity under a PAC matching contribution program as an “ordinary…
Continue Reading IRS Steps into Fray on Political Activities
In December 2015, we informed readers of the new requirement for 501(c)(4) social welfare organizations to notify the IRS upon formation. Enforcement of the requirement was delayed until the IRS was able to issue an appropriate form. The IRS recently announced that 501(c)(4) organizations may now register on the IRS…
Continue Reading 501(c)(4) Social Welfare Organizations Must Provide Notice to the IRS
Covington recently released a high-level primer that provides political consultants with a practical resource for creating and running a federal Super PAC in a legally compliant manner. The primer, which is available here, explains the history and basic rules that apply to federal Super PACs. The primer then discusses…
Continue Reading Forming and Operating Super PACs: A Practical Guide for Political Consultants in 2016
California is already home to some of the most complicated and searching political regulations in the country, especially in its efforts to expose “dark money” and other undisclosed political spending. A newly-amended lobbying regulation and proposed campaign finance law will enhance that reputation. The practical effect of each is to…
Continue Reading California Regulation, Proposed Statute Add to State’s Reputation for Complex, Detailed Disclosure
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
A major spending bill posted late last night by Congressional leaders contains provisions shooting down two key initiatives of the campaign finance reform community.
Stymied by a Federal Election Commission that has increasingly struggled to find consensus, campaign finance activists in recent years have turned their attention to other federal …
Continue Reading Congressional Spending Bill Shuts Down Key Goals of Campaign Finance Reform Community
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…
Continue Reading Gift Tax Certainty at Last?
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
