The Republican-proposed Stop Targeting of Political Beliefs by the IRS Act to block the new rule passed a House committee Tuesday but is not expected to pass into law. But the Obama administration’s rule may be shut down for its own illegality.
The Paperwork Reduction Act, passed in 1980 and amended in 1995 during the House speakership of Newt Gingrich, requires government agencies to estimate its new programs’ paperwork burden for the public before receiving Office of Management and Budget (OMB) approval.
But the Obama administration’s IRS misstated its new rules’ paperwork burden, a legal expert told TheDC.
“The IRS grossly underestimates the record-keeping burden” of the new rule, Center for Competitive Politics senior fellow Eric Wang told TheDC, claiming two violations of the Paperwork Reduction Act.
The IRS estimated in its “Notice of Proposed Rulemaking” that the new rule would only cost nonprofit groups two extra hours of record-keeping time. But Wang said that the agency’s estimate refers to only one small ”sliver” of the new record-keeping requirements put forth by the rule.