Ending the year by weighing in again on a topic that caused it great grief back in the spring, the Internal Revenue Service on Tuesday defined limits on the political activity of tax-exempt "social welfare" organizations.
that the Obama administration is "seeking to reduce the influential role that the secretive groups have played in recent elections. The new 'guidance' ... would curtail a broad array of these tax-exempt entities' activities, including campaign advertising, voter registration, get-out-the-vote efforts, and distribution of voter guides and campaign materials."
The Treasury Department says the guidance, , "defines the term 'candidate-related political activity,' and would amend current regulations by indicating that the promotion of social welfare does not include this type of activity."
Translation: Social welfare organizations could not engage in such "candidate-related political activity" and retain their tax-exempt status.
What does "candidate-related political activity" include?
-- "Communications that expressly advocate for a clearly identified political candidate or candidates of a political party."
-- "Communications that are made within 60 days of a general election (or within 30 days of a primary election) and clearly identify a candidate or political party."
-- "Communications expenditures that must be reported to the Federal Election Commission."
-- "Any contribution that is recognized under campaign finance law as a reportable contribution."
-- "Grants to section 527 political organizations and other tax-exempt organizations that conduct candidate-related political activities (note that a grantor can rely on a written certification from a grantee stating that it does not engage in, and will not use grant funds for, candidate-related political activity)."
-- "Voter registration drives and 'get-out-the-vote' drives."
-- "Distribution of any material prepared by or on behalf of a candidate or by a section 527 political organization."
-- "Preparation or distribution of voter guides that refer to candidates (or, in a general election, to political parties)."
-- "Holding an event within 60 days of a general election (or within 30 days of a primary election) at which a candidate appears as part of the program."
The IRS after it was revealed that some conservative groups were targeted for extra scrutiny when they applied for tax-exempt status. The scandal .
In a statement, a Treasury official indicated the guidelines are meant to simplify oversight of tax-exempt groups:
" 'This proposed guidance is a first critical step toward creating clear-cut definitions of political activity by tax-exempt social welfare organizations,' said Treasury Assistant Secretary for Tax Policy Mark Mazur. 'We are committed to getting this right before issuing final guidance that may affect a broad group of organizations.' "
Treasury said it is seeking public comment about the proposed guidelines.
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