Tax-exempt organizations, including private foundations and other types of nonprofits associated with high-net worth individuals, have been subject to increasing investigative scrutiny in recent years. Last Congress, for example, the House Judiciary Committee and several other committees issued document requests to multiple nonprofit organizations, and in this Congress the trend
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IRS Release Reflects Ongoing Scrutiny of Political Activity by Nonprofits
Posted in Tax
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…
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Charting a Path Forward for Certain 501(c)(4) Organizations, and Perhaps Others
Posted in Tax
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…
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Treasury Inspector General to IRS: Yes, That Was Wrong
Posted in Tax
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…
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IRS Says: “That was wrong.”
Posted in Tax
“That was wrong. That was absolutely incorrect, it was insensitive and it was inappropriate. That’s not how we go about selecting cases for further review.”
In an unexpected move that surprised some and angered others, Lois Lerner, Director of Exempt Organizations of the Internal Revenue Service, publicly apologized for the…
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‘Tis the Season!
Posted in Tax
Like the men and women in red suits ringing bells on street corners, press reports are springing up everywhere alleging that numerous 501(c)(4) social welfare groups—including groups on both sides of the aisle—have violated their tax-exempt status by spending too much time and money on political campaign activities during the…
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