Three years later, TheTeaParty.net finally gets IRS tax-exempt OK

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Three years later, TheTeaParty.net finally gets IRS tax-exempt OK | WashingtonExaminer.com

One of the groups at the center of the IRS scandal has finally received its tax-exempt status after a three year delay prompted by a politically driven move to block Tea Party and other conservative groups, many that slammed the president during his reelection, from winning the special status.

TheTeaParty.net, one of the nation's largest tea party groups, told Secrets that the long-sough declaration arrived Monday, well over three years after they applied for 501c(4) tax-exempt status in March of 2010, the start of the Tea Party movement. The notice came in a letter from the IRS.

The group said that the IRS branch headed by the recently retired Lois Lerner endured harassment by agents targeting mostly conservative non-profit groups for their political donors, agenda and even reading lists, all against the rules.

"After four years battling Lois Lerner's shock troops, we are relieved that the IRS has relented and finally recognized our right to operate as a non-profit,” said Todd Cefaratti, founder of TheTeaParty.net. “First they tried to ignore us. Then they tried to discredit us. And then they tried to deny our legal rights. Hopefully this is the beginning of the end to a sad chapter in our government’s targeting of its own citizens," he added.

Commenting on the long legal battle, the group’s lawyer, Dan Backer, said legal threats from the group helped squeeze out the positive decision. “It just proves the only way to beat the overreach of government is to fight back,” he said.

In addition to winning the IRS ruling, the group joined with another titled the “Contract From America” to form a partnership to highlight the original GOP Contract With America that turned 20 years old this week. They plan to promote the contract during the midterm elections, when the original was used to help win the Republicans their first control of Congress in decades.
 

The land Of The Free - And the leader of this land did NOTHING about this injustice.................Very sad.
 

from 501(c) organization - Wikipedia, the free encyclopedia

501(c)(4) organizations are generally civic leagues and other corporations operated exclusively for the promotion of "social welfare", such as civics and civics issues, or local associations of employees with membership limited to a designated company or people in a particular municipality or neighborhood, and with net earnings devoted exclusively to charitable, educational, or recreational purposes.[SUP][39][/SUP] An organization is operated exclusively for the promotion of social welfare if it is primarily engaged in promoting the common good and general welfare of the people of the community.[SUP][35][/SUP][SUP][40][/SUP]

501(c)(4) organizations may inform the public on controversial subjects and attempt to influence legislation relevant to its program[SUP][41][/SUP] and, unlike 501(c)(3) organizations, they may also participate in political campaigns and elections, as long as its primary activity is the promotion of social welfare.[SUP][42][/SUP] The tax exemption for 501(c)(4) organizations applies to most of their operations, but contributions may be subject to gift tax, and income spent on political activities – generally the advocacy of a particular candidate in an election – is taxable.[SUP][43][/SUP] An "action" organization generally qualifies as a 501(c)(4) organization.[SUP][44][/SUP] An "action" organization is one whose activities substantially include, or are exclusively,[SUP][45][/SUP] direct lobbying or grass roots lobbying related to advocacy for or against legislation or proposing, supporting, or opposing legislation that is related to its purpose.[SUP][46][/SUP] A 501(c)(4) organization may directly or indirectly support or oppose a candidate for public office as long as such activities are not a substantial amount of its activities.[SUP][35][/SUP][SUP][47][/SUP]
Contributions to 501(c)(4) organizations are usually not deductible as charitable contributions for U.S. federal income tax, with a few exceptions.[SUP][48][/SUP] Dues or contributions to 501(c)(4) organizations may be deductible as a business expense under IRC 162, although amounts paid for intervention or participation in any political campaign, direct lobbying, grass roots lobbying, and contact with certain federal officials are not deductible.[SUP][49][/SUP] If a 501(c)(4) engages in a substantial amount of these activities, then only the amount of dues or contributions that can be attributed to other activities may be deductible as a business expense.[SUP][50][/SUP] The organization should provide a notice to its members containing a reasonable estimate of the amount related to lobbying and political campaign expenditures, or else the organization is subject to a proxy tax on its lobbying and political campaign expenditures.[SUP][49][/SUP] The organization should also provide an express statement that contributions to the organization are not deductible as charitable contributions during fundraising solicitations.[SUP][49][/SUP]
501(c)(4) organizations are not required to disclose their donors publicly.[SUP][51][/SUP] The lack of disclosure has led to extensive use of the 501(c)(4) provisions for organizations that are actively involved in lobbying, and has become controversial.[SUP][52][/SUP][SUP][53][/SUP] Criticized as "dark money", spending from these organizations on political TV ads has exceeded spending from Super PACs.[SUP][54][/SUP][SUP][55][/SUP]
The origins of 501(c)(4) organizations date back to the Revenue Act of 1913, which created a new group of tax-exempt organizations dedicated to social welfare in a precursor to what is now Internal Revenue Code Section 501(c)(4).[SUP][56][/SUP]

Here's the IRS rules that limit political activities:

http://www.irs.gov/pub/irs-tege/eotopicm95.pdf
 

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