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Tea Party at The Internal Revenue Service: The Basics

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As the flow of details in the "IRS scandal" continue to emerge, I think it's worth taking a look at exactly what all the fuss is about: The 501(c)(4) tax-exempt organization.

For reference:

http://www.marketplace.org/topics/economy/are-501c4-nonprofit-groups-too-partisan

http://www.irs.gov/Charities-&-Non-Profits/Other-Non-Profits/Types-of-Organizations-Exempt-under-Section-501(c)(4)

http://www.irs.gov/pub/irs-tege/eotopici03.pdf

That last link, from the Internal Revenue Service, has this under "Statutory Provisions":

  • "Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare."
  • "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."

Question: How and why would a "Tea Party"-type organization be better defined or classified as a 501(c)(4) organization, rather than a 527 organization?

Comments

Roland Gunslinger 1 year, 7 months ago

Sure- look into them; on the reverse side of that coin the same scrutiny should be given to liberal organizations who are operating in the same manner. This wasn't done.

chootspa 1 year, 7 months ago

Liberal groups were scrutinized, too. http://www.bloomberg.com/news/2013-05-15/irs-sent-same-letter-to-democrats-that-fed-tea-party-row.html?alcmpid=politics

It looks like there were more tea party groups targeted, but I'm willing to bet there were more tea party groups applying for tax exempt status during that period.

Liberty275 1 year, 7 months ago

What is a ""Tea Party"-type organization"?

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