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
At the federal level, it is generally illegal for an outside group like a Super PAC or a 501(c)(4) organization to coordinate its independent expenditures with the candidate it supports. The same is true in many states. As we recently reported in our 2013 FEC Year in Review, however,
Continue Reading State Action, Federal Inaction on Coordination Enforcement Cases
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:
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
Late yesterday afternoon, the Treasury Inspector General for Tax Administration released its eagerly awaited report on its investigation into the IRS’s use of inappropriate criteria for screening tax-exempt applications (“IG Report”). The Inspector General initiated its investigation after members of Congress raised concerns during the 2012 election cycle that the
Continue Reading Treasury Inspector General to IRS: Yes, That Was Wrong
This morning the Senate Judiciary Committee Subcommittee on Crime and Terrorism held a hearing on “Current Issues in Campaign Finance Law Enforcement.” The focus of the hearing was what the Department of Justice and Internal Revenue Service are doing to enforce campaign finance law violations post-Citizens United with respect
Continue Reading Senate Judiciary Committee Holds Campaign Finance Enforcement Hearing
Today we issued a detailed advisory to clients about the anticipated campaign finance investigation by the Senate’s Permanent Subcommittee on Investigations. Senator Levin, who chairs the Subcommittee, recently announced his intention to lead an investigation of “secret money” in US elections. We are following this very closely for clients, including
Continue Reading Covington Issues Client Advisory Concerning Senate PSI Campaign Finance Investigation