Obama administration proposes new limits on tax-exempt political groups

[applegrove]

Obama administration proposes new limits on tax-exempt political groups

By Patrick Temple-West and Andy Sullivan at Reuters

http://www.reuters.com/article/2013/11/26/us-irs-rules-idUSBRE9AP10V20131126?feedType=RSS&feedName=topNews

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(Reuters) - The Obama administration proposed new rules on Tuesday to rein in tax-exempt groups that have transformed the U.S. political landscape in recent years by harnessing hundreds of millions of dollars in anonymous donations to influence elections.

The proposal would alter definitions in the tax code that allow limited campaign and fundraising activities by the tax-exempt groups, some of which have been at the center of allegations that the Internal Revenue Service targeted conservative Tea Party groups for extra scrutiny.

These tax-exempt "social welfare" groups, organized under section 501(c)(4) of the tax code, mushroomed after a 2010 U.S. Supreme Court ruling that relaxed campaign finance rules. Part of their appeal is that the groups do not have to disclose the identities of their donors as long as they spend less than half their time and money on political activities.

Critics say the relaxed rules have opened the door to the abuse of campaign finance rules meant to curb the influence of wealthy donors in U.S. politics.


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