The Internal Revenue Service is set to scrap proposed rules governing the political activities of 501(c)(4) social-welfare groups.
The proposed regulations caused an uproar among nonprofit groups on both sides of the aisle who worried that, by broadening the definition of “political activity” to include voter education and registration, the new rules would endanger their tax-exempt status. Social-welfare groups cannot devote more than 50 percent of their time to activities deemed “political.”
According to Politico, the IRS said it will draft entirely new regulations. The current rules have been on the books since 1959.