Posted by AzBlueMeanie:
About damn time! Treasury proposing new rules on tax-exemption:
The Treasury Department proposed new guidelines Tuesday that would affect so-called social welfare groups applying for tax-exempt status[.]
The intended rule change would establish a new term, “candidate-related political activity,” to help the IRS determine which organizations should be disqualified from 501 (c)(4) status.
The department said it will also seek recommendations for changing how much of a group’s activities could fall into that prohibited category before they would be ineligible for tax-exemption.
Many lawmakers have criticized the IRS’s current policy of allowing organizations to qualify as long as the majority of their activities do not involve political actions, a standard that is difficult to measure.
The newly proposed rules would clarify that social welfare does not count as prohibited activity. It would also define the term “candidate-related political activity” to include communications, grants and contributions and activities closely related to elections or candidates advocating for a clearly identified political candidate.
The Notice of Proposed Rule Making is Here.