In early May, news reports revealed that the Internal Revenue Service (IRS) engaged in seemingly selective scrutiny of organizations applying for 501(c)(4) nonprofit status. According to a number of sources, IRS employees targeted groups appearing to be affiliated with conservative-leaning causes, including the Tea Party movement.
This scandal raises many questions—about the IRS process for granting tax-exempt status for nonprofit organizations, and about what qualifies certain groups for certain classifications. Nonprofit and tax experts from The Urban Institute and Tax Policy Center weighed in.