IRS Proposed Rules on 501(c)(4) Groups would curb much political activity

Under the proposed guidelines, candidate-related political activity includes: Communications Communications that expressly advocate for a clearly identified political candidate or candidates of a political party. Communications that are made within 60 days of a general election (or within 30 days of a primary election) and clearly identify a candidate or political party. Communications expenditures that must be reported to the Federal Election Commission. Grants and Contributions Any contribution that is recognized under campaign finance law as a reportable contribution. Grants to section 527 political organizations and other tax-exempt organizations that conduct candidate-related political activities (note that a grantor can rely on a written certification from a grantee stating that it does not engage in, and will not use grant funds for, candidate-related political activity). Activities Closely Related to Elections or Candidates Voter registration drives and “get-out-the-vote” drives. Distribution of any material prepared by or on behalf of a candidate or by a section 527 political organization. Preparation or distribution of voter guides that refer to candidates (or, in a general election, to political parties). Holding an event within 60 days of a general election (or within 30 days of a primary election) at which a candidate appears as part of the program. These proposed rules reduce the need to conduct fact-intensive inquiries, including inquiries into whether activities or communications are neutral and unbiased.

Statement: Proposed Rules on 501(c)(4) Groups - Wall Street Journal - WSJ.com