Tea Party V. IRS: Tax Trouble Or Class Action Nightmare?

Law360, New York (March 21, 2014, 12:37 AM EDT) -- In NorCal Tea Party Patriots et al v. IRS et al, Tea Party groups have asserted Privacy Act and constitutional rights violations in a class action alleging the Internal Revenue Service unfairly delayed and scrutinized their and similar organizations' filing for tax-exempt status pursuant to Section 501(c)(4) of the Internal Revenue Code. Section 501(c)(4) applies to social welfare organizations and would allow them to avoid paying duplicative taxes on contributions made for expressive activities. This case entangles tax, privacy and class action law and, given its high-profile in the media, all types of practitioners should be following this case....

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