IRS scandal could change rules for non-profits

June 17, 2013 at 4:59 PM
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WASHINGTON, June 17 (UPI) -- The scandal involving non-profit organizations and the Internal Revenue Service could bring clarity to rules governing non-profits, members of Congress say.

Democrats and Republicans differ on how regulations should be changed but there is common ground that the current system, with vague rules, needs improvement, Politico reported Monday.

"Congress needs to provide very clear guidance. The whole area has grown extensively without sufficient oversight," said Rep. Charles Boustany, R-La.

Rep. Carolyn Maloney, D-N.Y., said the statute on non-profit organizations "needs to be clarified so it is understood by IRS employees and the American public."

Congress has passed a law banning all political activity at 501 (c)(4) non-profit organizations, including those recently targeted, but the IRS implements a less stringent rule, saying only the organizations should not be primarily political, Politico noted.

"The IRS revelations are frankly helping to spur and help people realize the need for a reform bill," Senate Finance Committee Chairman Max Baucus, D-Mont., said.

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