House Ways & Means Committee Chair Dave Camp today released a letter he sent to the IRS demanding information about its recent investigation on the possible application of the gift tax to 501(c)(4) groups:
Camp questioned the process leading up to this action and level of involvement by the Obama Administration. … “Every aspect of this tax investigation, from the timing to the sudden reversal of nearly thirty years of IRS practice, strongly suggests that the IRS is targeting constitutionally-protected political speech. The IRS must explain its actions or risk creating a chilling effect that threatens not only political advocacy groups, but all tax-exempt organizations that depend on contributions from individual donors.”
- Accounting Today, Congress Demands Answers from IRS on Gift Tax Probe
- Bloomberg, Ways and Means Chairman Questions IRS Chief on Gift Tax Audits
- The Hill, GOP Chairman to IRS: Gift Tax Actions Troubling
- Wall Street Journal, Ways and Means Chairman Steps Up IRS Gift Tax Scrutiny
Prior TaxProf Blog coverage:
- Are Contributions to 501(c)(4) Groups Subject to the Gift Tax? (Oct. 15, 2010)
- Are Contributions to American Crossroads, Other 501(c)(4) Groups Taxable Gifts? (May 11, 2011)
- NY Times: IRS Moves to Tax Contributions to 501(c)(4) Political Groups (May 13, 2011)
- IRS Denies Political influence in Gift Tax Scrutiny of 501(c)(4) Groups (May 13, 2011)
- Tobin: Application of the Gift Tax to § 501(c)(4) Organizations (May 16, 2011)
- GOP Questions IRS on Applying Gift Tax to Contributions to 501(c)(4) Groups (May 19, 2011)
- Kristan: Is the Gift Tax Law on the Side of 501(c)(4) Donors? (May 19, 2011)
- Gift Tax Seen for Wealthy Donors as IRS Probes Campaign Contributions (May 25, 2011)
- Barone, Froomkin on the IRS’s Use of the Gift Tax Against § 501(c)(4) Groups (May 27, 2011)
- IRS Responds to GOP Questions on Application of Gift Tax to 501(c)(4) Groups (June 4, 2011)
