[EL] non-profit political activity and the IRS

[Paul Ryan]

Mark,

The FEC has long taken the position that an organization's tax status has no bearing on the application of campaign finance laws.  This position is perhaps best articulated in the FEC's Supplemental Explanation and Justification in its "Political Committee Status" rulemaking, published at 72 Fed. Reg. 5595 (Feb. 7, 2007).  For the record, the Campaign Legal Center argued in that rulemaking proceeding that an organization's tax status should have some bearing on its political committee status-at least with respect to groups claiming tax exemption under Section 527 of the tax code.  But the FEC rejected our argument.  Best,

Paul Seamus Ryan
Senior Counsel
The Campaign Legal Center
215 E Street NE
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From: law-election-bounces at department-lists.uci.edu [mailto:law-election-bounces at department-lists.uci.edu] On Behalf Of Scarberry, Mark
Sent: Wednesday, May 15, 2013 5:04 PM
To: law-election at uci.edu
Subject: Re: [EL] non-profit political activity and the IRS

I thought the FEC would need to understand the rules on (c)(4) corporations in order to determine whether a corporation is obligated to disclose its donors, especially where no letter has been obtained from the IRS confirming (c)(4) status.

Mark

From: Beth Kingsley [mailto:bkingsley at harmoncurran.com]
Sent: Wednesday, May 15, 2013 12:56 PM
To: Scarberry, Mark; law-election at uci.edu<mailto:law-election at uci.edu>
Subject: RE: [EL] non-profit political activity and the IRS

Not to suggest that Lois doesn't understand the IRS rules - I'm quite sure she does - but knowing FEC rules doesn't provide any basis for grappling with the very different IRS rules.

Beth

From: law-election-bounces at department-lists.uci.edu<mailto:law-election-bounces at department-lists.uci.edu> [mailto:law-election-bounces at department-lists.uci.edu] On Behalf Of Scarberry, Mark
Sent: Wednesday, May 15, 2013 2:11 PM
To: law-election at uci.edu<mailto:law-election at uci.edu>
Subject: Re: [EL] non-profit political activity and the IRS

As I noted before, Lois Lerner was a former high-ranking attorney with the FEC (head of the enforcement division, acting general counsel, etc.). She, at least, had to have understood the rules.

Mark S. Scarberry
Professor of Law
Pepperdine Univ. School of Law



From: law-election-bounces at department-lists.uci.edu<mailto:law-election-bounces at department-lists.uci.edu> [mailto:law-election-bounces at department-lists.uci.edu] On Behalf Of Schultz, David A.
Sent: Wednesday, May 15, 2013 11:02 AM
To: law-election at uci.edu<mailto:law-election at uci.edu>
Subject: [EL] non-profit political activity and the IRS

As I heard it on the news today the IRS said that many of its staff were confused about the rules regarding political activity for non-profits.
I teach both election law and non-profit law.  I am enclosing a "quick and dirty" handout from a talk I gave last year on rules for non-profits.  This is FYI.  My point is that if I can figure this out so can the IRS.

--
David Schultz, Professor
Editor, Journal of Public Affairs Education (JPAE)
Hamline University
School of Business
570 Asbury Street
Suite 308
St. Paul, Minnesota 55104
651.523.2858 (voice)
651.523.3098 (fax)
http://davidschultz.efoliomn.com/
http://works.bepress.com/david_schultz/
http://schultzstake.blogspot.com/
Twitter:  @ProfDSchultz
FacultyRow SuperProfessor, 2012, 2013
As
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