mimi wrote:
it should be noted that the letter is not specifically for TeaBaggers. Note that they are receiving 'Letter 1313', which has been around for ages.
^^^^^^^^^^^^^^^^^^^^^^^^^^^ This. The Internal Revenue Manual -- most of which is accessible online -- at section 7.21.5 describes the various
letters generated during the process of considering an organization's application for recognition of tax-exempt status. Letter 1313 is the first request for additional information for cases received on Form 1024,
Application for Recognition of Exemption Under Section 501(a) or Determination Under Section 120. If the org fails to establish exempt status or blows off responding to the Letter 1313, a Letter 1315 is issued, denying recognition. If an org's tax-exempt status is revoked, it will receive a termination letter, Letter 2242.
But, yeah, the 'Baggers feel picked on.
Quote:
IRS battling conservatives over tax-exempt status
Associated Press
Posted on March 1, 2012 at 5:01 PM
Updated Thursday, Mar 1 at 5:03 PM
WASHINGTON (AP) — The Internal Revenue Service is embroiled in battles with tea party and other conservative groups who claim the government is purposely frustrating their attempts to gain tax-exempt status.
The fight features instances in which the IRS has asked for voluminous details about the groups' postings on social networking sites like Twitter and Facebook, information on donors and key members' relatives, and copies of all literature they have distributed to their members, according to documents provided by some organizations.
While refusing to comment on specific cases, IRS officials said they are merely trying to gather enough information to decide whether groups qualify for the tax exemption. Most organizations are applying under section 501 (c) (4) of the federal tax code, which grants tax-exempt status to certain groups as long as they are not primarily involved in activity that could influence an election, a determination that is up to the IRS.
[snip] (emphasis added)
Section 501(c)(4) provides tax exemption for social welfare organizations. See
http://www.irs.gov/charities/nonprofits ... 78,00.html. As Professor Donald Tobin
explains:
Quote:
Social welfare organizations must be organized primarily (although the statute says exclusively) for a social welfare purpose and political campaign advocacy is not a social welfare purpose. The regulations governing (c)(4) organizations provide that an organization qualifies as a (c)(4) if “it is primarily engaged in promoting in some way the common good and general welfare of the people of the community.” The regulations further provide that “the promotion of social welfare does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office.” See Treas. Reg. 1.501(c)(4)-1(a)(2)(i) and (ii). Intervention in a political campaign has been defined broadly by the IRS, and it is the IRS’s definition, not the FEC’s definition that applies in this instance.
Organizations whose primary purpose is to influence the “selection, nomination, election, or appointment of any individual to any federal, state or local public office" may be granted tax-exempt status under I.R.C. 527. Contributions are not taxed so long as the organization makes financial disclosure, including the names of donors. Alternatively, the organization may elect to maintain the anonymity of its donors, but at a price: the organization is subject to corporate income tax on non-disclosed contributions.
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