GOP Demands Answers From IRS on Gift Tax Probe of 501(c)(4) Groups

House Ways & Means Committee Chair Dave Camp today released a letter he sent to the IRS demanding information about its recent investigation on the possible application of the gift tax to 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)