At a hearing Tuesday, Senate Finance Chairman Max Baucus (D-MT) declared that after the “smoke of the [IRS] controversy clears,” Congress must reform tax laws for political groups that seek tax-exempt status by masquerading as social welfare organizations.
“It allows them to engage in political activity while keeping the identity of their donors secret,” he said.
“We need to examine the root of this issue and reform the vague 501(c)(4) tax laws. Neither the tax code or complex regulations that govern non-profits provide clear standards for how much activity a group can undertake. The code does not even provide a clear definition of what quallfies as political activity.”
