Ways And Means Votes To Overhaul Charitable Organization Rules

The House Ways and Means Committee approved a series of bills last week targeting IRS administrative functions, including a bill that would overhaul how organizations apply for, and receive, tax-exempt status under Section 501(c)(4).

Many of the bills are direct responses to the IRS's heavily criticized handling of investigations into the tax-exempt status of many organizations in 2012 and 2013. The IRS has admitted to improperly scrutinizing some political organizations. The bills passed by the committee include provisions that would do the following:

• Require the IRS to fire employees who threaten audits for political reasons (H.R. 709)
• Allow the IRS to disclose internal investigations of illegal activity by employees (H.R. 1026)