Friday, May 23, 2014

IRS backs down?

Tea Party Victory! 

IRS Backs Down on Tea Party Fight

IRS
According to Politico, the IRS is scrapping regulations that had been proposed to curtail 
 activities of nonprofits that the IRS had deemed to be political in nature.
 
Despite the efforts by the Obama Administration to quietly advance the proposed rule 
changes, the proposed IRS regulations caused an uproar with many nonprofit groups on 
both sides of the aisle who seek to provide a public service dedicated to social welfare.
 
Now, it seems that the IRS has yielded to the likelihood of a fierce legal fight by nonprofits 
and has scrapped the proposed rules and regulations that would have broadly defined- 
and prohibited- “political activity” by nonprofits as a means of curtailing influence of 
groups that serve a public purpose that may run counter to the Obama agenda.
 
The rules would have made it impossible for nonprofits to discuss anything the Obama 
Administration deemed political- that included speaking of the Constitution, issuing 
nonpartisan voter guides or mounting nonpartisan drives to register voters.
 
In order to maintain tax-exempt status, a 501(c)4, the official designation for nonprofits, 
must serve as a beacon of social welfare and strive to better society. While some nonprofits 
better society by running soup kitchens, many look to better their communities by offering 
 information and resources to the people.
 
While nonprofits have long been barred from actively campaigning for a candidate in 
an official capacity, these new regulations would have made, essentially, any utterance 
of anything quasi-political a form of “political activity,” thus enabling the federal government 
the right to crack down on nonprofits- which includes many Tea Party groups.
 
The new regulations were seen as an attempt to codify what Obama’s IRS had hoped to 
achieve with mere harassment. For years, Tea Party groups were stifled and forced to fight 
legal battles. With this anchor dragging them down, these groups were naturally hindered 
in their ability to effect the needed changes.
 
In December of 2013, as the IRS considered the proposed regulations, Kimberly Strassel 
of The Wall Street Journal noted, 
What makes this targeting more obvious is that the Obama Treasury rule only applies to 501(c)(4) groups. The ultra-liberal League of Women Voters Education Fund is registered as a 501(c)(3)—one of those “charities” supposedly held to the strictest IRS standards on politicking. Yet it brags on its website that it holds “candidate debates and forums,” and that its “educational activities” include “understanding candidate views and ballot initiatives.”
 
The League will continue to be able to do its voter guides and registrations and candidate forums. Yet under this new rule, any conservative social-welfare organization that attempts to do the same will likely lose its tax-exempt status. Nor does the new rule apply the biggest spenders of all in politics—unions, which are registered as 501(c)(5)s. The only category muzzled is the one recently flooded by conservative groups that Democrats fear in the 2014 election. 
Strassel also noted the timing of the new regulations that threatened the implementation of these 
new rules so as to discourage groups from forming or growing. She wrote, 
Consider the timing. This “proposed guidance”—while technically pending public comment—puts conservative groups on immediate notice that it could be enforced at any moment. It is clearly designed to have a chilling effect on any group gearing up for next year’s midterms, just as the first round of targeting was designed to dampen conservative participation in the 2010 and 2012 elections. 
With the IRS backing down, it is a tremendous victory for the Tea Party Movement that relies on 
nonprofit statuses to continue to organize and educate.

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