Wednesday, June 15, 2011
GOP Demands Answers From IRS on Gift Tax Probe of 501(c)(4) Groups
Camp questioned the process leading up to this action and level of involvement by the Obama Administration. ... “Every aspect of this tax investigation, from the timing to the sudden reversal of nearly thirty years of IRS practice, strongly suggests that the IRS is targeting constitutionally-protected political speech. The IRS must explain its actions or risk creating a chilling effect that threatens not only political advocacy groups, but all tax-exempt organizations that depend on contributions from individual donors.”
- Accounting Today, Congress Demands Answers from IRS on Gift Tax Probe
- Bloomberg, Ways and Means Chairman Questions IRS Chief on Gift Tax Audits
- The Hill, GOP Chairman to IRS: Gift Tax Actions Troubling
- Wall Street Journal, Ways and Means Chairman Steps Up IRS Gift Tax Scrutiny
Prior TaxProf Blog coverage:
- Are Contributions to 501(c)(4) Groups Subject to the Gift Tax? (Oct. 15, 2010)
- Are Contributions to American Crossroads, Other 501(c)(4) Groups Taxable Gifts? (May 11, 2011)
- NY Times: IRS Moves to Tax Contributions to 501(c)(4) Political Groups (May 13, 2011)
- IRS Denies Political influence in Gift Tax Scrutiny of 501(c)(4) Groups (May 13, 2011)
- Tobin: Application of the Gift Tax to § 501(c)(4) Organizations (May 16, 2011)
- GOP Questions IRS on Applying Gift Tax to Contributions to 501(c)(4) Groups (May 19, 2011)
- Kristan: Is the Gift Tax Law on the Side of 501(c)(4) Donors? (May 19, 2011)
- Gift Tax Seen for Wealthy Donors as IRS Probes Campaign Contributions (May 25, 2011)
- Barone, Froomkin on the IRS's Use of the Gift Tax Against § 501(c)(4) Groups (May 27, 2011)
- IRS Responds to GOP Questions on Application of Gift Tax to 501(c)(4) Groups (June 4, 2011)
Come on Camp...get with the program. Senate Finance asked for the stuff a month ago. Just since the agency hasn't enforced from administering the law (which W&M and Sen Fin was likely responsible for reviewing/enacting), doesn't change the fact (i) that the Hill folks are trying to protect their own, (ii) non-enforcement of a law doesn't stop an executive branch agency from beginning to do it, and (iii) they should just shut up and fix it legislatively (and retroactively of course).
Beating up the IRS for challenges of Congress (and their allies) was one of the main reasons for the creation of the National Treasury Employees Union (NTEU) - and we have seen how well unionized federal employees have worked out - they should just stick with their pettiness re: debt limit and let the IRS be.
Posted by: Prof D | Jun 15, 2011 2:33:41 PM
The continued pressure by the GOP must mean that they think donations to 501(C)(4) groups are subject to the gift tax. Otherwise they would just let it go.
Posted by: Sid (real one) | Jun 15, 2011 3:54:57 PM