Rules Preventing Rules Regarding Nonprofits in Omnibus Spending Bill of 2022

We are seeing some familiar foolish provisions prohibiting the IRS and the SEC from engaging in rulemaking in Congress’s Consolidated Appropriations Act of 2022. The Senate passed the $1.5 Trillion dollar spending bill last night for the fiscal year that started about 5 months ago. It is good to have an appropriations bill done, and these provisions were probably not worth fighting over to ensure the government has the money and certainty it needs to act.

In Div E, Title I, sec. 123 (p. 498) of the Act, Congress prohibits the IRS and Treasury Department from issuing rules about section 501(c)(4) organizations. I guess recognizing that there is some problem with this provision, because of the fact that the IRS continues to have to make judgments about these organizations on determination and audit, which surely could be construed as rules, provides that the law after the Act will be based upon the “standard and definitions as in effect on January 1, 2010, which are used to make such determinations . . . for purposes of determining status under section 501(c)(4) of such Code of organizations created on, before, or after” the Act.

Div E Title I sec. 610 prohibits the President’s office from requesting a determination regarding an organization described in section 501(c). I am not certain why that is in the bill. Have not seen this one before, so appreciate anyone who has knowledge as to why this got added. 

Div E, Title VI, sec 633 (p. 602) prohibits the SEC from issuing rules regarding the disclosure of political contributions to tax exempt organizations. 

Philip Hackney

March 11, 2022