
James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Author: James F. McDonough
Date: June 5, 2014
Of Counsel
732-568-8360 jmcdonough@sh-law.comThe Internal Revenue Service (IRS) has announced that it will revise, without holding a public hearing, the proposed rules governing nonprofit groups’ involvement in politics. The rules, released last year, attempted to provide guidance for the political activity groups organized under section 501(c)(4) of the U.S. tax code could take without risking the loss of their tax exempt status or being required to disclose their donors. The 501(c)(4) groups have played a significant role in U.S. elections, spending more than $250 million on the 2012 election.
The tax laws provide that 501(c)(4) groups must be organized “exclusively” to promote social welfare, while the IRS regulations say social welfare must be their “primary” focus. This has led to conflicts over how to measure politics and primary purpose.
The regulations stemmed from the Tea Party controversy that occurred last summer. The IRS revealed that it exerted extra scrutiny of certain Tea Party groups seeking tax-exempt status, based on a serious of factors, including their names as well as actual conduct of political activity by other groups already qualified under (c)(4) and the description of the applicant’s activities under pending applications. As a result, the rules were created to provide guidelines for IRS employees in determining what activities were considered political involvement that would result in a group losing its tax-exempt status.
After the IRS released the new rules, it received in excess of 150,000 comments and objections to their breadth and violation of free speech rights. Many called for the IRS to start over, but the IRS’s recent announcement indicated they believe it will be more efficient to not hold public hearings until after the revised rules have been published. The IRS’s statement did not specify how extensive the revisions will be or when the new rules are expected to be released, but it has been speculated that the process will not be completed in 2014.
If you have any questions about the issues discussed above or would like to discuss other tax law matters, please contact me or a member of the award-winning Scarinci Hollenbeck Tax Practice Group. You can also find additional posts regarding the special tax concerns facing businesses on our blog, Tax, Trust, and Estate News.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!