NYU Tax Law Center, Separating Myths and Facts about the IRS’s Mishandling of 501(c)(4) Applications in the Early 2010s

This analysis endeavors to correct significant confusion and inaccuracies around the IRS’s handling of applications for 501(c)(4) status in the early 2010s. Accusations have persisted that the Obama Administration used the IRS to target conservative groups in an effort to silence them. The analysis explains why those accusations are not based on fact. Exhaustive, nonpartisan investigations revealed serious mismanagement and errors of judgment but no evidence that political bias played a role in the mishandling of tax-exemption applications. There is no evidence that the White House or any political appointees had any involvement in how tax-exemption applications were processed during this time period, consistent with longstanding laws and norms ensuring nonpartisan tax administration.