Todd Andrews
Footballguy
That is how the IRS has interpreted the actual statute written by Congress, but the statute itself says that 501c4 social welfare organizations qualify if they are operated EXCLUSIVELY for social welfare purposes. Congress in the 50s interpreted "exclusively" from the statute in an IRS reg as "primarily" engaged in promoting the common good and general welfare of the people of the community. Exclusively does not equal primarily.It's also not true. They can engage in activities that are considered political. They just can't support political campaigns.That's not really addressing the issue, though. It's a smokescreen to try and distract from the real point which is the IRS willfully targeted conservative groups. Stay focused, Todd.By statute, 501©(4) orgs cant do ANY political efforts so all of these so-called social welfare orgs of all stripes should be stripped of their tax exempt status. That will be the ultimate end result of this mess: all of the tea party groups complaining of being targeted will lose their tax exempt status anyway, as they should.
It is that little wiggle room that allows 501c4 orgs to advocate politically so long as they deceptively and baldly lie that their primary purpose is still social welfare--that is what Karl Rove did with Crossroads GPS when he spent hundreds of millions on the 2012 campaign. Completely ridiculous and these sham 501c4 orgs should be shut down. Real 501c4 orgs that are exclusively for social welfare purposes should continue, of course.
