IRS Defends Test Used To Determine Nonprofit Status

By Alex Wolf (November 3, 2016, 9:12 PM EDT) -- Federal attorneys defending the Internal Revenue Service against accusations it used an unconstitutional method to deny tax-exempt nonprofit status to a conservative group told a Texas federal judge Wednesday that the test in question "is neither unconstitutionally vague nor overly broad."

In arguments against plaintiff Freedom Path Inc.'s bid for partial summary judgment, the federal government disputed the group's assertion that the test used by the IRS to determine whether a group that otherwise is exempt from federal income tax has spent money on a function that Congress has made subject to tax is unconstitutionally vague, subjectively applied and burdensome on...

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