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Analyzing the IRS 501(c)(4) Scandal

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.