Democracy 21 and the Campaign Legal Center filed a petition today with the Internal Revenue Service challenging the legality of IRS regulations that define whether an organization that conducts campaign activity is entitled to obtain or maintain tax-exempt status as a section 501(c)(4) organization.
Under Section 553(e) of the Administrative Procedure Act, "Each agency shall give an interested person the right to petition for the issuance, amendment, or repeal of a rule." The petition states that existing IRS regulations permit section 501(c)(4) groups to make far more campaign expenditures than is allowed by the law. ![]() |