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Is the IRS it's Own Worst Enemy?


Elrod

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I like the lawsuit filed by Rep. Chris Van Hollen to force IRS to use the "Exclusive purpose" language instead of the "Primary", that is the real cause of this problem

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>>some bureaucrats have made an unlawful change in how they carry out their legal responsibility<<

Don't expect a slam dunk that the courts will agree with the plaintiff. The tax code is complicated, and half of it is written backwards. The Code itself says "exemption from taxation under subsection (a) shall be denied because a substantial part of the activities of such organization consists of carrying on propaganda, or otherwise attempting, to influence legislation." Subsection (a) includes both 501( c)(3) and 501( c)(4) organizations, but only the ( c)(3)'s are named as subject to this denied exemption. IRS regs properly apply it to ( c)(4)'s as well.

The Code itself does NOT refute that "promotion of social welfare" includes influencing legislation. It just makes a point to limit that function, which suggests that it would otherwise be allowable.. One possible outcome of this lawsuit is that ( c)(4)'s will have no limitation on political activity whatsoever! So be careful what you wish for--you just might get it.

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