Subject: Re: [EL] Electionlawblog news and commentary 12/17/10
From: Rick Hasen
Date: 12/17/2010, 7:56 AM
To: David Mason
CC: Election Law <election-law@mailman.lls.edu>

Thanks for the clarification.  There is a bit more information on the c(4) examination to come at page 28 of the report:

Section 501(c)(4), (5) and (6) Organizations. In recent years, our examination
program has concentrated on section 501(c)(3) organizations. Beginning in
FY 2011, we are increasing our focus on section 501(c)(4), (5) and (6)
organizations. With the additional information available on the new Form 990,
we will look at issues including political activity, inurement and the extent of
compliance with the requirements for tax exemption by organizations that
self-identified themselves as a section 501(c)(4), (5) or (6) organization


On 12/17/2010 7:26 AM, David Mason wrote:
Thanks, Rick for the pointer to the IRS TEGE Newsletter.  I agree the "PACI" statistics are very informative.
 
However, it is important to note that the statistics in that newsletter have to do with examinations of (c)(3) entities, not (c)(4)s.
 
There are two key differences: the ban on political activity for (c)(3)s is absolute and, as a result, the IRS can begin an examination as soon as an allegation is made (see reference in the newsletter to 2010 allegations now under review.)
 
Lois Lerner spoke at COGEL last week and reminded everyone that for (c)(4) entities (allowed to participate in political activity, so long as it is not their major purpose) that IRS can examine a (c)(4) only after a return is filed, which with automatic extensions, is often 6 months after the end of that entity's fiscal year.  As a result IRS will not even start looking at (c)(4) activity in fall 2010 until after returns covering that period are filed, which may be up to a year from now.
 
Dave Mason

On Fri, Dec 17, 2010 at 12:32 AM, Rick Hasen <hasenr@gmail.com> wrote:

More on IRS Treatment of Allegedly Political (c)(4)s

See pages 19-20 of this IRS publication.

Posted by Rick Hasen at 04:57 PM 
-- 
Rick Hasen
William H. Hannon Distinguished Professor of Law
Loyola Law School
919 Albany Street
Los Angeles, CA  90015-1211
(213)736-1466
(213)380-3769 - fax
rick.hasen@lls.edu
http://www.lls.edu/academics/faculty/hasen.html
http://electionlawblog.org

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-- 
Rick Hasen
William H. Hannon Distinguished Professor of Law
Loyola Law School
919 Albany Street
Los Angeles, CA  90015-1211
(213)736-1466
(213)380-3769 - fax
rick.hasen@lls.edu
http://www.lls.edu/academics/faculty/hasen.html
http://electionlawblog.org