Monday, April 14, 2008

IRS cracking down on political activities of nonprofits... again?

Roll Call reports...
Tax regulators are hinting at an imminent crackdown of outside political outfits masquerading as nonprofit organizations, groups that already are making a splash in the 2008 Congressional primaries.

So, we might see some of the new 501(c)(4)s that were gearing up to engage in a lot of activity supporting or opposing candidates drop out before they begin... this might prompt some litigation depending on how the IRS chooses to enforce things. It's still stinging from losing the DLC case recently, and I suspect the DLC's success may prompt other 501(c)(4)s to fight it out in the courts with the IRS over anything in the exempt activity (loosely speaking, anything that supports or opposes a candidate) category.

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