Paul L. Caron
Dean





Wednesday, February 10, 2016

The IRS Scandal, Day 1007

IRS Logo 2The IRS yesterday approved the tax-exempt 501(c)(4) status of Karl Rove's Crossroads GPS, more than five years after the group filed its application:

https://taxprof.typepad.com/taxprof_blog/2016/02/the-irs-scandal-day-1007.html

IRS News, IRS Scandal, Tax | Permalink

Comments

Mr. Spradling. Is this a trick question or just a dumb one? Labor unions are not 501(c)(4) orgs. So the answer is no, labor unions are not within the letter of the law for 501(c)(4). On the other hand, labor unions are precisely within the letter of law for labor organizations under 501(c)(5).

Posted by: Publius Novus | Feb 12, 2016 9:58:48 AM

PN, if Crossroads was a union, would they be within the letter of the law?

Posted by: Dale Spradling | Feb 12, 2016 6:40:56 AM

Crossroads GPS does not meet the letter of the law. It qualifies, if at all, under the IRS' 1959 administrative expansion of the law. And the IRS has no more authority to administratively expand the law of exemptions than to administratively raise tax rates.

Posted by: Publius Novus | Feb 11, 2016 6:29:12 PM

Gator- Why not? If you give me $100 and, with that and my own $100, we buy a sign that says "Clean Up Politics", should I have to pay income tax on your $100? If Trump spends his own $200, he's advantaged and has more to spend. Political speech is pretty important to a self-governing people, be careful how to you squash it.

Posted by: Yo Gabba Gabba | Feb 11, 2016 12:14:25 PM

While Crossroads may meet the letter of the law, it is clear to any informed person that they are political. We should not be providing tax exemption to organizations such as Crossroads.

Posted by: gator | Feb 11, 2016 3:09:25 AM