Members of the Senate Finance Committee called on IRS Commissioner John Koskinen on Tuesday to prevent a rule that would limit the political activities of tax-exempt 501c4 organizations.
Senate Finance Committee Ranking Member Sen. Orrin Hatch (R-Utah) led a group of 11 committee members in a letter that urged Koskinen not to sign off on the proposed rule.
“(Koskinen is) in a unique position to stop the 501c4 proposed regulations from becoming final,” the senators said. “As set forth in Treasury regulations, (Koskinen) must approve regulations before they can become final. And as Treasury Secretary (Jack) Lew confirmed in a hearing before the Senate Finance Committee on March 5, 2014, (Koskinen) can stop the proposed regulation from becoming final by exercising (his) right to not sign off on the final regulation….”
Rules proposed by the Treasury Department in November would prevent 501c4 organizations from engaging in voter registration efforts, leading get-out-the vote activities and convening forums without jeopardizing their tax-exempt status.
Under current law, social welfare groups with 501C4 designation can engage in limited political activities if their primary activity is to promote social welfare.
Senate Finance Committee Member Sen. Pat Roberts (R-Kan.) called the proposed changes a politically motivated abuse of federal resources and enforcement powers.
“Part of a larger pattern of this administration (is) using the IRS to shut down its critics and opponents,” Roberts said. “There is a commonsense solution to all of this. Stop all action on the proposed 501c4 regulations until we know what went on, who was involved, what the implications of this are and how we can address the issues raised and hold people accountable.”