The Motley Fool Discussion Boards
Politics & Current Events / Political Asylum
|Subject: Re: Lamest scheme ever||Date: 5/17/2013 6:00 PM|
|Author: albaby1||Number: 1878104 of 2145412|
(1) 501(c)(3) status is irrelevant to donors, so they didn't lose donations because of the delay.
It's 501(c)(4), and how do you know that it's irrelevant to donors? Our law firm has a weekly 'casual day' where proceeds go to a selected organization that employees nominate - but only 501(c) organizations are eligible to participate.
(2) The groups are automatically eligible for tax-exempt status as political organizations, so they were never disadvantaged there either. Unless they can show that they paid unnecessary taxes. No one's made that claim to my knowledge.
You keep saying this, but there are things you need to do to register as a 527 organization that go beyond the filing of the end-of-year form FORM 1112-POL. You have to file a notice before the organization begins its activities and periodic disclosures throughout the year. If you go through the year thinking you're tax-exempt as a 501(c)(4), and the IRS later disagrees with you, you can't just wave a magic wand and have that go away. You're in trouble - and you have to be aware of that before you start engaging in your activities.
I wrote elsewhere that this is similar to being the only one pulled over for speeding on the highway when there are lots of other cars going as fast as you. If the cop pulled you over because you were driving a Ferrari and everyone else was in a Ford, it's wrong, but it doesn't mean you weren't speeding.
Except you weren't speeding. That's the point - these folks weren't speeding. They met the requirements, and didn't deserve to get pulled over. They got pulled over for months while other cars got to go on to their destination. Plus, these groups are trying to influence time-sensitive public policy decisions (like the health care act and budget decisions) - so unlike your highway example, they are disadvantaged in pursuing their goals by the fact that other cars aren't stopped also. Those other drivers are going to get where they're going ahead of you, because you got stopped. Plus, change "driving a Ferrari" to "having an Obama bumper sticker" and you get closer to the actual situation.
|Copyright 1996-2017 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|