House Oversight Committee Chairman James Comer (R-Ky.) has initiated an investigation into the Internal Revenue Service’s (IRS) enforcement of lobbying restrictions on tax-exempt organizations.
Comer addressed a letter to IRS Commissioner Daniel Werfel on Wednesday, expressing concerns that the agency may not be adequately enforcing regulations against lobbying activities by 501(c)(3) tax-exempt entities primarily designated for charitable purposes.
Comer’s letter emphasizes the requirement for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code (IRC) to be exclusively for religious, charitable, scientific, testing for public safety, literary, educational, or related purposes. However, he raises doubts about the IRS’s oversight of political and lobbying activities conducted by organizations holding this designation.
Citing instances such as One Fair Wage, Inc., Comer suggests a potential overlap between nonprofit charitable endeavors and political lobbying efforts.
One Fair Wage is cited for its involvement in advocating for legislation and ballot measures across 25 states, mobilizing grassroots support to influence lawmakers in purported wage-increase initiatives. The organization’s activities include organizing meetings, rallies, and events to engage supporters in advocacy campaigns.
Comer’s inquiry highlights concerns about the distinction between nonprofit charitable activities and political lobbying endeavors, urging scrutiny of compliance with IRS regulations governing tax-exempt status.
