IRS highlights rules relating to charities and elections

By Steve Moyer

Nevada Daily Mail

Michael T. Devine is the new IRS media relations contact for Missouri. Devine stopped by the offices of the Nevada Daily Mail to introduce himself and provide some information of value to taxpayers this election season.

"I wanted to come by and introduce myself," Devine said. "I think it's important to get out and let people know what we can do for them."

One of the issues Devine mentioned were the rules governing the activities of charities during elections.

"There are a lot of rules that charities must follow but they can be summed up by saying they can't campaign for or against a political candidate," Devine said.

In the 2004 elections, the IRS noticed an upturn in politicking on the part of 501(c)(3) organizations. The agency responded by increasing its educational efforts and launching an enforcement program, the Political Activity Compliance Initiative, to investigate specific, credible allegations of wrongdoing.

Devine said the rules, though volumous, weren't that hard to understand.

"There were a lot of pages, about 17, but they weren't in legalese so they were easy to read," Devine said. "I read them through a couple of times to make sure I really understood them but it wasn't hard."

A press release from the IRS laid out some more information.

Whether an organization is engaging in prohibited political campaign activity depends upon all the facts and circumstances in each case. For example, organizations may sponsor debates or forums to educate voters, but if the debate or forum shows a preference for or against a certain candidate, it becomes a prohibited activity.

Federal courts have ruled it is not unconstitutional for the tax law to impose conditions, such as the political campaign prohibition, upon exemption from federal income tax.

Several resources are available from the IRS on the Internet that discuss the issue further, found at www.irs.gov.