[quote](CNN) – Democratic Rep. Chris Van Hollen of Maryland will file a lawsuit Wednesday against the Internal Revenue Service over the agency's criteria for tax-exempt social welfare groups, according to Democracy 21, a group filing jointly with the congressman.
The lawsuit will look at a discrepancy in the way federal law defines eligibility requirements for a 501(c)(4) group versus the way the IRS defines such groups.
The difference comes down to two words: 'exclusively' and 'primarily.'
The federal tax code states that a 501(c)(4) group is tax-exempt if the non-profit is "operated exclusively" to promote social welfare.[/quote]
[url]http://politicalticker.blogs.cnn.com/2013/08/21/democratic-congressman-to-sue-the-irs/[/url]
I think that's a fair point - A social welfare group could still easily be for-profit, and so shouldn't exactly be exempt from taxation.
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