What’s That Again About the So-Called IRS Scandal?

This is completely awesome.

The Obama administration on Tuesday proposed new guidelines to govern political spending by dark money groups, the tax-exempt entities that have grown and spread over the past few election cycles.

The proposed guidance issued by the Treasury Department and the Internal Revenue Service would define a new category of activity — “candidate-related political activity” — that would not qualify as social welfare.

This is what happens when you make a big deal over nothing. Now it’s going to be more difficult for these obviously political groups to attain tax-exempt status. It’s similar to how Edward Snowden has made it more — not less — difficult for future leakers.

Brilliant.

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  • i_a_c

    The IRS’s interpretation of laws governing 501(c)(4)s is pretty broad. Here’s the law:

    Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes.

    Right now, the IRS interprets this to exclude activities “on behalf of or in opposition to any candidate for public office”, but that leaves room for ads that say “Tell Congressman ____: no amnesty for illegal immigrants” or something like that. It can be construed as promotion of or opposition to legislation, but let’s face it, they’re attack ads against candidates.

    This proposed regulation would ostensibly tighten up these borderline cases.

  • Christopher Foxx

    This is what happens when you make a big deal over nothing.

    A Mouse was living under the granary. In the floor of the granary there was a little hole, and the grain fell down through it. The Mouse had an easy life of it, but she wanted to brag of her ease : she gnawed a larger hole in the floor, and invited other mice.

    ” Conie to a feast with me,” said she ; ” there will be plenty to eat for everybody.”

    When she brought the mice, she saw there was no hole. The peasant had noticed the big hole in the floor, and had stopped it up.

    • http://drangedinaz.wordpress.com/ IrishGrrrl

      I like this…particularly because they are rodents.

  • drspittle

    The lack of guidelines, in addition to the Citizen’s United decision which triggered submission of more requests, were the root causes of the problems the IRS was having in trying to figure out how to treat the applications. These were the real issues. And I wouldn’t call it a “scandal”. It was an administrative and legal process issue that sorely needed to be addressed. Ironically, the Tea Party has filed law suits against the IRS, and under Federal law the taxpayers foot the bill for the defense of IRS personne (many of whom are here in Cincinnati). But we all know how concerned the Tea Party is with government spending. And my local librul media always fails to acknowledge that no Tea Party applications were rejected but an application from a “progressive” group was.