In a letter sent today to the IRS, Democracy 21 and the Campaign Legal Center acknowledged and welcomed a July 17, 2012 letter from Lois Lerner, IRS Director of the Exempt Organizations Division, stating that that the IRS “will consider proposed changes” in the regulations governing eligibility for section 501(c)(4) tax-exempt status.
On July 27, 2011, Democracy 21, joined by the Campaign Legal Center, submitted to the IRS a “Petition for Rulemaking on Campaign Activities by Section 501(c)(4) Organizations.” The groups wrote the IRS again on March 22, 2012 urging the agency to undertake the rulemaking
The IRS' announced review of rules governing 501(c)(4) "social welfare" nonprofits that are funded by undisclosed "dark money" comes in response to a series of letters sent by the campaign finance reform groups Democracy 21 and Campaign Legal Center. The groups had jointly petitioned the IRS not only to review the regulations governing this class of nonprofit, but also to individually investigate specific groups, including Karl Rove-linked Crossroads GPS, pro-Barack Obama Priorities USA and the American Action Network, which is headed by former Sen. Norm Coleman (R-Minn.).