Washington Post - Letter to the Editor: Keeping Politics out of Social Welfare Organizations

Op-Ed

After reading their Aug. 7 op-ed "Holes in the IRS narrative," I was disappointed that Reps. Darrell Issa and Dave Camp failed to mention the most glaring hole: The gap between federal law and Internal Revenue Service regulation. Federal law requires tax-exempt social welfare organizations to operate "exclusively for the promotion of social welfare." However, an IRS regulation allows these groups to be only "primarily" engaged in promoting social welfare. This inconsistency creates a loophole that allows tax-exempt social welfare organizations to spend millions of dollars on campaign activities while keeping their donors secret.

The underlying problem that contributed to the improper scrutiny of tax-exempt groups remains unsolved. IRS bureaucrats are still trying to determine whether social welfare organizations are engaging in too much political activity, based on a vague evaluation of the "facts and circumstances." The American people want solutions, not more political bickering. I have introduced "The 501(c)(4) Reform Act," which would help ensure that political campaign spending is transparent and that tax-exempt social welfare organizations do not engage in any political campaign activity, as federal law requires. Instead of just talking about the inconsistencies, let's solve this problem and close this loophole.

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