IRS Reverses Position, Recognizes Kemp Group

The I.R.S. has changed its mind and given tax-exempt status to Empower America, an advocacy group headed by Jack Kemp, the former Republican Vice-Presidential candidate, and other prominent Republicans.

In a ruling last year, the I.R.S. decided that the policy group did not qualify for a tax exemption under Section 501(c)(4) of the Internal Revenue Code.

Empower America was a “partisan issues-oriented organization,” the I.R.S. said, and its “activities also substantially benefited the Republican Party and politicians affiliated with the Republican Party.”

But in a new ruling, the I.R.S. said that Empower America now qualifies because the group provided supplemental information that proved that it was doing non-partisan work.

The organization expanded its Board of Directors to include people unaffiliated with political parties or candidates, the I.R.S. said. And it also promised to follow the following procedures to guarantee non-partisanship:

Not to solicit or knowingly receive support from political parties or affiliated groups. (However, its purchase of mailing lists from political parties and affiliated organizations, if offered for purchase through third-party list brokers at market rates, would not constitute such support.)

To hold regular board meetings at which members would select issues to promote in a way that is independent from and not in coordination with any other organization.

To require top officials to take an immediate leave of absence and to disassociate themselves from the group if they run for public office.

To make sure that none of its assets would be used to benefit any top official who might be thinking about running for office.