IRS Not Shutting Down Exempt Groups Used for Election Funding

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The improper use of social welfare organizations as conduits for funding special purposes advocated by donors during political campaigns cannot be addressed immediately by IRS, a top official says. IRS Director Lois Lerner says because the social welfare organizations do not report to IRS until the end of the tax year on the totality of their activities, it is impossible to determine whether political activities have become their primary activity. Tax code Section 501(c)(4) organizations are allowed to get involved in political campaigns as long as that activity does not become their primary purpose.