Section 501(c)(4) Background

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Written by Annette Nellen | Posted in Tax Policy

The drama surrounding Section 501(c)(4) – the IRS reviews of applications, congressional investigation and hearings, and news stories are likely not over yet. The Senate Finance Committee asked the IRS for lots of documents and information in May (Forty one questions seeking what must be thousands of pages of information). The House asked TIGTA to further explore possible improper disclosure by the IRS.

I’ve got a short article with background on this controversy and Section 501(c)(4). I’ve also created a resource site you might find of interest. I will post it in sections during the week.

Perhaps tax reform will take a look at 501(c) and its 20+ different types of non-profit entities. Can this be simplified? Does the list still make sense? Should the 501(c)(4) regulations be modified to tie to the statute (the statute uses exclusive and the regs use primary purpose – two different terms!).

What do you think?

Social welfare, inappropriateness, resignations, hearings, and complexity—the Sec. 501(c)(4) story has it all…

This blog post is written in five parts:

1. The Sec. 501(c)(4) Story: Program Notes – Part 1

2. The Sec. 501(c)(4) Story: Program Notes – Part 2-Plot and Controversy #1

3. The Sec. 501(c)(4) Story: Program Notes – Part 3-Controversy #2

4. The Sec. 501(c)(4) Story: Program Notes – Part 4-Controversy #3

5. The Sec. 501(c)(4) Story: Program Notes – Part 5-Controversy #4 & Resolution

Annette Nellen

Annette Nellen, CPA, Esq., is a professor in and director of San Jose State University’s graduate tax program (MST), teaching courses in tax research, accounting methods, property transactions, state taxation, employment tax, ethics, tax policy, tax reform, and high technology tax issues.

Annette is the immediate past chair of the AICPA Individual Taxation Technical Resource Panel and a current member of the Executive Committee of the Tax Section of the California Bar. Annette is a regular contributor to the AICPA Tax Insider and Corporate Taxation Insider e-newsletters. She is the author of BNA Portfolio #533, Amortization of Intangibles.

Annette has testified before the House Ways & Means Committee, Senate Finance Committee, California Assembly Revenue & Taxation Committee, and tax reform commissions and committees on various aspects of federal and state tax reform.

Prior to joining SJSU, Annette was with Ernst & Young and the IRS.