At issue are groups that claim 501(c)4 tax-exempt status by saying they engage exclusively in “social welfare” activities but spend a considerable amount of time and money on political advertising and advocacy. Such groups, including Crossroads GPS and Priorities USA were bankrolling multimillion dollar advertising campaigns designed to provide additional firepower for Republican and Democratic candidates.
Suggestions that tax-exempt organizations should be required to document the exact percentage of their “social welfare” undertakings on their 990 IRS form. “Organizations should be required to ‘show their math’ to demonstrate that political election activities and other statutorily limited or prohibited activities do not violate the ‘primary purpose’ regulation” for tax-exempt group



