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The Section 527 Obstacle to Meaningful Section 501(c)(4) Regulation

Дата публикации: 07-10-2026 00:00:00

As is well known, on May 10, 2013, at a session of the American Bar Association Tax Section meeting in Washington, D.C., Lois Lerner, at the time the director of the Exempt Organization Division of the Internal Revenue Service (IRS or Service), apologized for IRS mishandling of applications by Tea Party groups for exemption as social welfare groups under section 501(c)(4) of the Internal Revenue Code. A few days later, the Department of the Treasury (Treasury) Inspector General released a report (TIGTA Report) concluding that the “IRS used inappropriate criteria that identified for review Tea Party and other organizations applying for tax-exempt status based upon their names or policy positions instead of indications of potential political campaign intervention.”On November 29, 2013, the Treasury and the Service issued a Notice of Proposed Rulemaking containing proposed Treas. Reg. § 1.501(c)(4)-1 (the “2013 Proposed Regulation”) regarding the activities of organizations...

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