Nonprofit Law Matters

Monthly Archives: May 2014

IRS Postpones Summer Hearings on Political Rules, Will Do Second Draft

Posted in Unions, Associations, Clubs & Other Tax-Exempt Organizations

On May 22, 2014, the IRS announced that “it is likely that we will make some changes” to the heavily-criticized regulation proposed last November by Treasury and the Service to govern 501(c)(4) political activity.  The announcement continued:  “Given the diversity of views expressed and the volume of substantive input, we have concluded that it would be… Continue Reading

Top 25 Comments on IRS Proposed Political Activity Rules: #1 — American Bar Association Section of Taxation

Posted in Tax Treatment of Lobbying & Political Activities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

“Promulgating regulations with clear rules regarding political intervention or candidate-related political activity could help the government to avoid constitutional attacks on the grounds of vagueness. . . . Such regulations are not unconstitutional.  Quite the contrary, they help remove doubts as to the constitutionality of Service guidance in this important area.” Our countdown closes with… Continue Reading

Top 25 Comments on IRS Proposed Political Activity Rules: #2 — Bright Lines Project

Posted in Tax Treatment of Lobbying & Political Activities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

“We don’t want a bad political definition for 501(c)(4) organizations, rather we want a good definition for everybody.” So, we admit to a bias on this one.  Greg Colvin is chair of the Bright Lines Project (“BLP”) Drafting Committee, whose nine members include Rosemary Fei, also a principal in our firm.  Having said that, here… Continue Reading

Top 25 Comments on IRS Proposed Political Activity Rules: #3 — Center for Responsive Politics (OpenSecrets.org)

Posted in Tax Treatment of Lobbying & Political Activities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

“Over the last four election cycles, the amount of spending by 501(c)(4) social welfare organizations in particular has grown dramatically.  In 2006, just $1.3 million in political spending was reported to the Federal Election Commission (FEC) by 501(c)(4) organizations, while by the 2010 cycle, that total had risen to $92 million.  In 2012, the number more than… Continue Reading

Top 25 Comments on IRS Proposed Political Activity Rules: #4 — NAACP and NAACP-National Voter Fund

Posted in Tax Treatment of Lobbying & Political Activities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

“ . . . much of the work that the NAACP did in the early years to combat racial discrimination in the administration of our nation’s voting laws would be illegal under the proposed regulations.” The concise and eloquent comments by the NAACP and its 501(c)(3) affiliate, the NAACP-National Voter Fund, are among the most… Continue Reading

Top 25 Comments on IRS Proposed Political Activity Rules: #5 — American Institute of Certified Public Accountants (AICPA)

Posted in Tax Treatment of Lobbying & Political Activities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

“The confidence of exempt organizations, tax preparers, and the public, in the enforcement of tax laws, is diminished when the application of these laws [is] unclear or difficult to understand.” The AICPA is the world’s largest member association representing the accounting profession, with more than 394,000 members in 128 countries and a 125-year history.  Their brief… Continue Reading

Top 25 Comments on IRS Proposed Political Activity Rules: #6 — Independent Sector

Posted in Public Charities, Tax Treatment of Lobbying & Political Activities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

“We encourage the IRS to engage tax-exempt organizations in a meaningful dialogue to address the many concerns expressed during this comment process, and provide the public an opportunity to provide input on a revised proposed rule that better defines permissible political activity while preserving the important advocacy role and vital voice of tax-exempt organizations in… Continue Reading

Top 25 Comments on IRS Proposed Political Activity Rules: #7 — American Civil Liberties Union

Posted in Tax Treatment of Lobbying & Political Activities, Unions, Associations, Clubs & Other Tax-Exempt Organizations

 “ . . . we urge the Service to abandon both the approach in the proposed rule and the existing ‘facts and circumstances’ test.  We respectfully submit that the Service needs to offer a clear and easily interpreted rule on what constitutes express advocacy and a firm answer on how much such activity will result… Continue Reading