501(c)(4) applications lower when IRS began targeting conservatives

[Revmitchell]

Despite claims that the Internal Revenue Service (IRS) was under seige by a flood of new tax-exempt applications from nonprofit political groups in the wake of the Supreme Court’s Citizens United decision, the number of 501(c)(4) applications to the IRS actually dropped around the time the IRS began targeting conservative groups for extra scrutiny.

The IRS received 1,735 applications from groups seeking 501(c)(4) nonprofit status in fiscal year 2010, 16 less than the 1,751 applications it received in fiscal year 2009, according to a report released by the Treasury Inspector General.

IRS targeting of conservative groups began in February 2010, in the fifth month of fiscal year 2010.

Read more: http://dailycaller.com/2013/05/20/5...r-when-irs-began-conservatives/#ixzz2TsPjcCnP

 

[Crabtownboy]

v501(c)(4) is an application for a tax exempt status as a Social Welfare Organization. Why would the Tea Party apply for a tax exempt status as a Social Welfare Organization and not a political organization?

A political organization subject to section 527 is a party, committee, association, fund, or other organization (whether or not incorporated) organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures, or both, for an exempt function.

A political organization must be organized for the primary purpose of carrying on exempt function activities. A political organization's primary activities must be exempt function activities. A political organization may engage in activities that are not exempt function activities, but these may not be its primary activities.

To be exempt, a political organization must file a timely notice with the IRS that it is to be treated as a tax-exempt organization.

http://www.irs.gov/Charities-&-Non-...xemption-Requirements-Political-Organizations