AFJ Briefing on Proposed Rules on Political Activity by 501(c)(4)'s
Dec. 11, 2013-The Alliance for Justice held an educational briefing on the IRS/Treasury proposals to change the rules for 501(c)(4)'s, the tax exempt social welfare organizations.  Michael B. Trister, partner at Trister, Ross, Schadler & Gold, PLLC, outlined numerous potential problems with the proposed rules including the areas of voter registration and get out the vote efforts, candidate appearances at events, voter guides, and public communications that refer to a candidate.  Trister also noted several areas which the proposed rules do not address, including the extent to which they might apply to 501(c)(3)s. 
The activities of some 501(c)(4)'s were a matter of controvery in the 2012 election cycle, and there was also controversy earlier this year about the application of IRS rules to Tea Party groups.

Treasury and the IRS announced the proposed rules on Nov. 26, 2013, and the notice of proposed rulemaking (NPRM) was published in the Federal Register on Nov. 29; organizations have until Feb. 27, 2014 to comment.  The proposed rules attempt to define the notion of "candidate-related political activity" which is somewhat related to the "electioneering communications" designation used by the Federal Election Commission.  

Trister theorized that the aim of the proposed rules is "to force activity out of (c)(4)'s and into 527 organizations."  He termed the approach "very heavy handed" and said that in his opinion Congress, not the IRS, ought to be acting in this area.  Marcus Owens, an attorney at Caplin & Drysdale who attended the event, termed the IRS/Treasury proposal "the most bizarre proposed regulations I've ever seen."  He said the proposal "raises more questions than it answers."  
Nan Aron, president of the Alliance for Justice, Abby Levine, legal director of AJF's Bolder Advocacy Initiative (back to camera), Michael Trister and Marcus Owens discuss the proposed changes in the rules for 501(c)(4)'s.

Feb. 20, 2014 Update
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