Wednesday, June 12, 2013

Curbing the IRS

Suppose you give your 30-year-old daughter a list of groceries to buy for you and $25 to pay for them. Does your daughter have to report the $25 to the IRS as income?
Of course not. That is a simplified representation of the original idea behind the tax exemption for organizations qualified under Section 501(c)(4) of the Internal Revenue Code. The $25 given to your daughter in the example above is not tax deductible to you, and neither are contributions to 501(c)(4) organizations. So contrary to the confusions of the mentally challenged Rep. Jim McDermott (D-WA), neither your daughter’s grocery errand nor 501(c)(4) organizations are subsidized by the taxpayers.

http://spectator.org/archives/2013/06/12/curbing-the-irs 

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