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IRS Sued For Failing to Revise Rules Governing 501(c)(4) Groups
Posted at 8:04 p.m. on May 21, 2013
A lawsuit against the Internal Revenue Service was filed today seeking to compel the agency to initiate a rulemaking procedure to resolve conflicts between IRS regulations and the tax code’s requirements for section 501(c)(4) groups. IRS regulations currently permit 501(c)(4) organizations to have tax-exempt status if they operate “primarily engaged” in promoting social welfare. Yet, the tax laws require these organizations to be “operated exclusively” for social welfare purposes.
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