IRS Pledges to Stomp Out 'Egregious' Violations of Politicking Rules

April 18, 2008

IRS Pledges to Stomp Out 'Egregious' Violations of Politicking Rules

The Internal Revenue Service says that in this election year it is making “extensive efforts” to educate charities and churches about federal law that bans their political campaign activity.

At the same time, the tax agency plans to enforce the law with “a focus on cases involving allegations of egregious violations,” says Lois G. Lerner, director of the IRS’s office on exempt organizations, in a press release.

By law, the IRS notes, churches and charities may not “participate in, or intervene in (including the publishing or distributing of any statements), any political campaign on behalf of (or in opposition to) any candidate for public office.”

The IRS says it is sending letters to the national political party committees that explain the law’s prohibition about churches and charities. In March, a letter from the revenue service was published in the Federal Election Commission’s monthly newsletter, asking candidates to ensure that their contacts with charities do not inadvertently jeopardize the tax-exempt status of any charity, the IRS said.

The tax agency also has posted on its Web site a “program letter” to its employees who work in its exempt organizations office that explains its objectives this year.

Among other things, the letter explains how IRS officials should review cases in which churches and charities post communications on their Web sites.

“Many of these communications include links to Web sites of other organizations,” the letter says. “The analysis of cases involving links on a 501(c)(3) organization Web site involves determining whether material on a linked Web site is attributable to the Section 501(c)(3) organization.”

Over all, says Steven T. Miller, commissioner of the IRS office for tax-exempt and government entities, “We take very seriously our obligation to ensure that tax-exempt organizations have the information they need to make the right decisions about political campaign activities.”

Mr. Miller added: “The vast majority of charities want to do the right thing, and as in past years, we will continue our efforts to make sure they have the information they need.”

— Grant Williams

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