IRS to rein in tax-exempt groups after targeting scandal

IRS to rein in tax-exempt groups after targeting scandal

The Obama administration launched an attempt Tuesday to rein in the same class of politically active non-profit groups the IRS was accused of targeting last summer.

Under the proposed new rules, organizations that fall under the tax-exempt 501(c)(4) umbrella would also be more clearly identified during campaigns. The new guidance would curtail activities such as running ads, distributing campaign literature and other get-out-the-vote initiatives.

The groups in question are able to raise millions of dollars to influence elections.

Smaller organizations that are similarly classified were the subject of unfair targeting practices earlier this year by IRS employees, leading to the eventual resignations of several senior IRS officials.

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However, it could be several years before any regulations are finalized, meaning the groups could likely still raise millions before next year’s elections.

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