Internal Revenue Service officials released a report, with an executive summary, on the agency's examination of political campaign activity by tax-exempt organizations during the 2004 election campaign. The report, released on February 24, 2006, found some level of prohibited political campaign activity by section 501(c)(3) organizations in nearly three-quarters of the cases reviewed.
In connection with the report, the IRS unveiled new examination procedures for the 2006 election season, which provide additional guidance to charities regarding political campaign activities. As part of its approach to promoting compliance in this area, the IRS began its educational and enforcement efforts to help ensure that charities have enough advance notice of the statutory rules against engaging in political campaign activities.
- News Release IR-2006-36 (announcing release of report)
- Memorandum from Director, Exempt Organizations
- Executive Summary of Report
- Final Report - 2004 Political Activity Compliance Initiative
- Procedures for 501(c)(3) Organizations (Attachment A)
- Letters and Information Document Requests (Attachment B)
- Letter 3934
- Letter 3934C
- Information Document Requests
- 2004 Political Activity Compliance Initiative Summary of Results
- Fact Sheet 2006-17 (educational material for exempt organizations)
- Report of the Treasury Inspector General for Tax Administration