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IRS to scrap a proposed rule on 501(c) 4 groups

The Motorcycle Riders Foundation (MRF) reports that the Internal Revenue Service (IRS) has said it will abandon the current proposed rule that would impact the non-profit, social welfare groups, like the MRF.

The tax agency had proposed limiting “political activity” of the nonprofits 60 days before any election. The IRS never described exactly what “political activity” would entail. Some fears were that even simple meetings with Members of Congress and their staffs would be banned under the rule. The rule could have crippled what the MRF does on a daily basis.

The MRF opposed the rule and submitted comments to the agency. The IRS mentioned that they had received an enormous amount of public comment from both conservative and liberal organizations, all against the proposed rule.

The IRS is going to be writing a new set of proposals that will start over at square one.