Senators Oppose New IRS Charity Lobbying Rules
Sixteen members of the 20-member Senate Finance Committee asked the IRS on Tuesday to withdraw proposed lobbying regulations they said could cause problems for as many as 300,000 charities.
The senators contended the proposed regulations restrict lobbying by the groups in ways not intended by Congress when it passed guidelines for the tax-exempt organizations in 1976.
That legislation allowed charities to spend limited portions of their budgets on legislative activities.
However, Sen. Bob Packwood (R-Ore.), the ranking Republican on the committee, contended that under the proposed regulations from the Internal Revenue Service, many charities could be interpreted as being over the limit. He said as many as 300,000 charities would be in danger of facing tax penalties or losing their tax-exempt status.
The letter, to IRS Commissioner Laurence B. Gibbs, said the regulations “would severely limit the rights of tax-exempt organizations to communicate with members of Congress, as well as other legislators and public officials.”
The letter asks that the regulations be withdrawn and a new version drafted.
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