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Here is an interesting twist to the IRS controversy:
The IRS controversy is all about the IRS singling out conservative groups that have applied for tax exempt status. These groups all applied for that status under 501(c)(4), the statute in the code that allows for thier tax exempt status.
All of these groups applied as Social Welfare organizations under501(c)(4). All good except this: Under 501(c)(4) an application for tax exempt status is not required. Tax Exempt status is automatically granted. It is fulfilled via the organization's tax return with a form 990.
So just to get this straight - These organizations didn't have to apply, but they did anyway. Thousands of them!
And, those needless applications were held up by the IRS creating the controversy.
Who applies for status already granted? And why?
The IRS controversy is all about the IRS singling out conservative groups that have applied for tax exempt status. These groups all applied for that status under 501(c)(4), the statute in the code that allows for thier tax exempt status.
All of these groups applied as Social Welfare organizations under501(c)(4). All good except this: Under 501(c)(4) an application for tax exempt status is not required. Tax Exempt status is automatically granted. It is fulfilled via the organization's tax return with a form 990.
So just to get this straight - These organizations didn't have to apply, but they did anyway. Thousands of them!
And, those needless applications were held up by the IRS creating the controversy.
Who applies for status already granted? And why?