Skip to main content

There is a post that confuses the tax exemption for religious and charitable organizations, 501(c)(3), with the exemption for social welfare organizations, 501(c)(4). There is no lawsuit challenging the church tax exemption.

However Maryland Representative Chris Van Hollen and others are challenging the IRS regulation for 501(c)(4) "social welfare" organization arguing that under the law they must be "exclusively" engaged in social welfare, not just "primarily" so engaged.

The leeway in the definition of "primarily" has been criticized as a loophole allowing the groups to attack candidates running for office without disclosing their donors' names.

The lawsuit asks the court to rule the IRS is unlawfully interpreting Congress's intent in the 501(c)(4) law, and that 501(c)(4) groups must be barred from all political activity.

"The public has a right to know who's bank rolling these election campaigns," said Representative Chris Van Hollen, a Maryland Democrat suing the IRS with Democracy 21, Campaign Legal Center and Public Citizen Inc, liberal-leaning groups that advocate for more campaign finance transparency.

This needs to be addressed. If the IRS does not revisit the regulation hopefully this challenge will succeed. Alternatively, Congress could revisit the law and set the IRS straight. That is, of course, if there is agreement on the issue.

But no matter what, this has nothing to do with the "church" and "charitable" tax exemptions.

Originally posted to September 17, 1787 on Mon Aug 26, 2013 at 10:43 AM PDT.

Also republished by Street Prophets .

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site