Source:
The New York TimesThree nonprofit advocacy groups that recruited and trained potential political candidates in the last several years have been denied tax exemption by the Internal Revenue Service.
Copies of the letters informing the groups of the decisions were heavily redacted by the I.R.S. when it released them last week, so it is impossible to know the names of the organizations involved, or which political party with which they might have been affiliated.
“You are not operated primarily to promote social welfare because your activities are primarily for the benefit of a political party and a private group of individuals, rather than the community as a whole,” the I.R.S. wrote in the letters. “Accordingly, you do not qualify for exemption.”
Word of the decisions has been circulating this week, especially among lawyers who advise these types of nonprofits because they have become more prominent in political elections. The organizations had been created as a type of nonprofit — known as a 501(c)4 for the section of the tax code that governs it. “I don’t know that you can read a message into these decisions, but the fact that they’re landing now, just as interest in these types of organizations is heating up again, is causing them to get a lot more attention than they normally would,” said Marcus S. Owens, a lawyer who used to run the division of the I.R.S. that oversees all nonprofit groups.
Read more:
http://www.nytimes.com/2011/07/20/business/irs-denies-3-political-advocacy-groups-tax-exempt-status.html