CONGRESSMAN SUES IRS OVER POLITICAL CONTRIBUTION LAWS

Wash. D.C.

Representative Chris Van Hollen, Democrat from Maryland, is trying to force the IRS to correctly interpret a section of the Internal Revenue Code, regarding tax-exempt 501(c) organizations. The Revenue Code states that those groups must be “operated exclusively for the promotion of social welfare.” ¬†Yet, since 1959 the IRS has been interpreting the law to allow tax exempt groups to be in compliance with the law, so long as a majority, or 51% of the proceeds go to social welfare.

Even if 49% go to political activity, the IRS has deemed the groups to be in compliance with the code, even though the code states it must be “operated exclusively for the promotion of social welfare.”

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