Camp, Hatch respond to proposed IRS rule changes

House Ways and Means Committee Chairman Rep. Dave Camp (R-Mich.) and Senate Finance Committee Ranking Member Sen. Orrin Hatch (R-Utah) expressed concern on Tuesday about proposed changes to sections of IRS code that regulate tax-exempt organizations.

Camp and Hatch said congressional investigation into the targeting of conservative-leaning tax exempt groups should be completed before rule changes are handed down by the Department of Treasury.

“There continues to be an ongoing investigation, with many documents yet to be uncovered, into how the IRS systematically targeted and abused conservative leaning groups,” Camp said. “Before rushing forward with new rules, especially ones that appear to make it harder to engage in public debate, I would hope (the Department of Treasury) would let all the facts come out first – something they could achieve by fully cooperating with Congress in the investigation.”

The proposed rule changes define “candidate-related political activity” in the section of IRS code that regulates 501(c)(4) organizations. The changes would also amend regulations so that candidate-related political activity does not count as promotion of social welfare, according to the Department of Treasury.

Hatch said it was “unfortunate” that the Obama Administration is moving forward with new rules before the Finance Committee could conclude its bipartisan investigation.

“…Given the IRS’ recent track record, I pledge to thoroughly oversee this process to ensure politics aren’t brought to bear,” Hatch said.

Hatch also noted that any changes to IRS code regarding political groups should also be applied to tax-exempt union groups.