Emails show IRS’s Lerner, Treasury Department secretly drafted new rules to restrict nonprofits

We’re now finding out that Obama administration’s Treasury Department and former IRS official Lois Lerner conspired to draft new 501(c)(4) regulations to restrict the activity of conservative groups in a way that would not be disclosed publicly, according to the House Committee on Ways and Means. The Treasury Department and Lerner started devising the new rules “off-plan,” meaning that their plans would not be published on the public schedule. They planned the new rules in 2012, while the IRS targeting of conservative groups was in full swing, and not after the scandal broke in order to clarify regulations as the administration has suggested.


Under the new rules, tougher restraints would be on what would be considered political activity by the IRS, effectively limiting the standard practices of a wide array of non-profit groups.

“Don’t know who in your organizations is keeping tabs on c4s, but since we mentioned potentially addressing them (off -plan) in 2013, I’ve got my radar up and this seemed interesting…,” Treasury official Ruth Madrigal wrote in a June 14, 2012 email to Lerner and others obtained by Ways and Means and provided to The Daily Caller.

Daily Caller

Ways and Means chairman Rep. Dave Camp blasted the off-the-record plan during a hearing Wednesday with IRS commissioner John Koskinen, and called for the administration’s newly proposed 501(c)(4) rules to be halted until criminal investigations into the IRS targeting scandal are complete.

“If Treasury and the IRS fabricated the rationale for a rule change it would tend to raise questions about the integrity of the rule-making process,” Camp said.

“I want to be perfectly clear – this committee will fight any and all efforts to restrict the rights of groups to organize, speak out and educate the public, just as unions are allowed to do so. We will get to the bottom of this, and I expect the IRS to produce – quickly – the outstanding documents the committee has requested,” Camp said.

“I believe the IRS has a long way to go in restoring its credibility. But, you can take a first step by complying with this committee’s request and stopping all action against 501(c)(4) groups until the appropriate investigations are completed.”

Daily Caller

New IRS commissioner Koskinen said that the rules should “put to rest all of the issues surrounding applications for tax-exempt status.” The object is to get these new rules into effect before the 2014 elections.

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