GOP Concerns About Tax-Exempt Groups May Prompt Probes, Guidance

House Republicans’ newly raised queries about how tax-exempt organizations may be engaging in political activities suggest a broader congressional probe and a potential nudge to long-awaited updated IRS guidance.

Ways and Means Chair Jason Smith (R-Mo.) and the committee’s oversight subcommittee Chair David Schweikert (R-Ariz.) requested information from the public in August on rules regarding 501(c)(3) and 501(c)(4) entities, citing reports about alleged foreign funds flowing through the organizations to influence US elections. Comments are due Sept. 8.

Organizations with 501(c)(3) tax-exempt status include charities and religious organizations, and 501(c)(4)s are social-welfare organizations. Nonprofits with 501(c)(3) status face strict prohibitions ...