Republican Senators Ask IRS to Clarify Intentions for 501(c)(4)s
Republican Senators Ask IRS to Clarify Intentions for 501(c)(4)s
The U.S. Senate Committee on Finance has announced that ten Republican senators have sent a letter to Internal Revenue Service commissioner Douglas Shulman asking for clarification about the agency's intentions with respect to 501(c)(4) organizations.
Submitted by Sen. Orrin Hatch (R-UT), ranking member of the finance committee, the letter expressed concern after the agency recently indicated it "was aware of the public interest" in 501(c)(4)s and "will consider proposed changes...[to section 501(c)(4) of the Internal Revenue Code] as we work with the IRS Office of Chief Counsel and the Treasury Department's Office of Tax Policy to identify tax issues that should be addressed through regulations and other published guidance."
The statement was in response to a petition from outside groups that have been pressuring the agency to change the tax treatment of so-called "social welfare" organizations, which can raise donations from individuals and corporations without having to reveal the names of donors. While such groups are allowed to engage in some kinds of political activity, several groups applying for 501(c)(4) status claim they have received "excessive" follow-up inquiries from the IRS.
"We believe these petitions [aimed at changing the law] have less to do with concerns about the sanctity of the tax code and more about setting the tone for the upcoming presidential election," the senators wrote, "and we urge you to resist allowing the IRS rulemaking process to be subverted to achieve partisan political gains."
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