New IRS Rules on Nonprofit Politicking to Come in Early 2015

The Internal Revenue Service will propose new regulations early next year that spell out permissible political activity by nonprofit “social welfare” groups, IRS Commissioner John Koskinen has told the Center for Public Integrity.

Mr. Koskinen offered details on his previously announced plans to revisit the “dark money” issue after an attempt this year to tighten regulations on nonprofit politicking collapsed amid intense criticism from across the ideological spectrum. He said the new rules will define what constitutes political activity and how much 501(c)(4) groups can spend on it, and might also cover trade associations and labor unions, which were not addressed in the earlier effort.

The commissioner said replacing the current tax code’s vague wording on 501(c)(4) groups’ mission would benefit them “in terms of knowing what they can do and can’t do.” Nonprofit leaders should not be “surprised or concerned that when they undertake more of an activity that after the fact somebody is going to say, ‘You’ve now jeopardized your [tax] exemption,’” he added.