Congressman sues IRS

[Judge Roy Bean]

The politics of taxation takes yet another twist:

http://www.courthousenews.com/2013/08/23/60534.htm

"Defendant Internal Revenue Service (IRS) has for many years violated the Internal Revenue Code (IRC) by allowing tax-exempt social welfare organizations to expend substantial sums on electoral activity,"

[AndyK]

At best -- convoluted.

Van Hollen (DISCLOSURE: I voted for him in at least two elections) sems to be ignoring the fact that the IRS operates according to legislative mandate -- as interpreted and directed by various political appointees.

If the IRS is not properly treating 501 (whatever) organizations properly according to the letter of the laws as enacted by his fellow congress-critters, then he has other, much more powerful, alternatives to expose and address the situation.

1 - He -- totally on his own -- can contact GAO and request an investigation into the issue.

2 - He can work through the appropriate House committee(s) to request hearings into the issues.

3 - He can correspond directly with the Commissioner requesting (in effect demanding) answers to his questions. [This, by the way, constitutes a "drop everyting and deal with the Congressman" situation for the IRS]

The law suit is a joke. Someone in the Representative's office made a major boo-boo.

[Famspear]

According to the Internal Revenue Code itself, section 501(c)(4) organizations consist of:

Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes.

--from 26 U.S.C. section 501(c)(4) (emphasis added).

From the Treasury regulation:

An organization is operated exclusively for the promotion of social welfare if it is primarily engaged in promoting in some way the common good and general welfare of the people of the community. An organization embraced within this section is one which is operated primarily for the purpose of bringing about civic betterments and social improvements.....

--from 26 C.F.R. § 1.501(c)(4)-1(a)(2)(i) (emphasis added).

And:

The promotion of social welfare does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office.....

--from 26 C.F.R. § 1.501(c)(4)-1(a)(2)(ii).

The Treasury regulation from which these passages are quoted was promulgated in its final form in 1960, and was amended in 1990.