Wednesday, May 15, 2013
First, thanks to Darryll for his insights last night - for the record, I whole heartedly agree. Lost in this whole discussion is that there is a serious tax compliance issue that needs to be addressed. As I read all of the news, I can only think of the Ways & Means hearings that were held a few months ago. I distinctly remember how many pointed questions on Section 501(c)(4)s the committee asked the panel, even though it was really off topic. I fear that the IRS has been simultaneously told to give guidance and yet do nothing (see also, gift taxes and Section 501(c)(4) contributions) that will mess up the status quo. I do not envy the position of the folks at the IRS, may of whom I've had the pleasure of working with personally and know to be dedicated civil servants.
The two biggest updates from yesterday in 501(c)(4) gate:
Yesterday, the Treasury Inspector General for Tax Administration released its report, entitled "Inappropriate Criteria Were Used to Identify Tax-Exempt Applications for Review." The link is here, but I will try to update my post below so it's one-stop shopping. My hope is to provide a more comprehensive review of the IG's report tomorrow for you all.
To some degree more shocking to me, AG Holder has indicated that a criminal investigation into the issue. I know many of us are thinking - criminal, really? On what basis? The primary speculation at this point is release/misuse of confidential taxpayer information, but there may be other causes of action floating around. I will try to collect those and do an additional update on that point as well.
That's all for now... more to follow tomorrow (now that grading is over!) EWW