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IRS is examining more than 70 tax code Section 501(c)(4) social welfare organizations, some to determine if social welfare is indeed their primary purpose, letters to and from IRS released by Sen. Levin say. The examinations go to the heart of the controversy this political season over whether the organizations are abusing their tax-exempt status to covertly engage in politics. Some of the groups have been charged with spending millions of dollars on campaign activities in violation of their tax exempt status. While the letters between Levin and IRS from July 27 through Sept. 14 show that IRS is probing the organizations, it has not revoked the tax-exempt status of any 501(c)(4)s in the past six months.
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