It appears the first group denied its 501(c)(4) tax exempt status was Democratic

[JLarocque]

12. I think we should just create a category called 501C28: Political Advocacy Nonprofit

There is confusion because political advocacy groups may want to register there is no good choice for them to get a government ID number. They are not going away. Currently, we try to determine how much activity is and isn't political and limit the amount performed. We need to create a special class for them and then tax their political activity and not tax their organizational expenses and non-political activity expenses are not taxed. We can then audit their expenses for appropriate classifications. Then these groups could get a tax id and use it when contracting for goods and services. The rules must prevent setting up such a group to only operate for a few months and then disappear. The rules should also require the disclosure of donors. There is a chance that huge payments could be made to individuals not running for office so we should protect for that and make sure it is declared as in requiring the group to issue 1099s.