DEMOCRAT REP. SUING IRS TO GO AFTER NONPROFITS
Rep. Chris Van Hollen (D-Md.) is joining with two campaign finance watchdog groups, Campaign Legal Center and Democracy 21, to sue the IRS for its regulations that give "wiggle room" to nonprofit groups allowing them to engage in political actions. The regulations state that nonprofit groups can act politically if they are "primarily" devoted for social welfare.
Van Hollen said, "The statute is very clear. It says that a 501(c)(4) organization is reserved for entities that are engaged 'exclusively' in social welfare activities, and it's not clear to me what part of 'exclusive' the writers of the regulation didn't get when it came to this particular provision of the law."
The IRS regulation, written in 1959, was not a subject for dispute until the Supreme Court ruled in the Citizens United case that nonprofit under section 501(c)(4) and 501(c)(6) of the tax code could obtain corporate and union money and spend it on elections without disclosing donors.
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