IRS: Letter from CLC & Democracy 21 to Inspector General George


According to testimony presented by Inspector General Georeg to the Senate Finance Committee on May 21, 2013, his office was undertaking an audit into how the Exempt Organization division of the Internal Revenue Service “monitors I.R.C. §§ 501(c)(4)–(6) organizations to ensure that political campaign intervention does not constitute their primary activity.” Testimony at 3 n.14. Both Campaign Legal Center and Democracy 21 believe this audit is essential in light of the failure of the Internal Revenue Service to enforce the tax laws against groups improperly claiming status as section 501(c)(4) “social welfare” organizations and in light of the IRS failure to replace the agency’s flawed regulations that have been wrongly interpreted to allow section 501(c)(4) groups to conduct far more campaign finance activities than the tax laws permit.