IRS Decision to Revise Proposed Regulations “Reflects the Reality” the Initial Changes were Deeply Flawed and Unconstitutional

Today’s decision by the IRS to revise proposed rules governing non-profit organizations “reflects the reality that the initial proposed rules were so deeply flawed and unconstitutional that the IRS had no choice but to back off.”

“The decision by the IRS to revise proposed rules governing the actions of non-profit organizations reflects the reality that the initial proposed rules were so deeply flawed and unconstitutional that the IRS had no choice but to back off,” said Jay Sekulow, Chief Counsel of the ACLJ. “We still believe the agency is institutionally incapable of correcting itself and any attempt to put further restrictions on the free speech of non-profit groups will not succeed. We continue our legal challenge against the IRS and will vigorously oppose the on-going attempt by the IRS to justify its illegal behavior by implementing a rules change."

The ACLJ’s federal lawsuit is progressing. The ACLJ represents 41 organizations in 22 states. Of the 41 groups, 24 organizations received tax-exempt status after lengthy delays, 11 are still pending, 5 withdrew applications because of frustration with the IRS process, and 1 had their file closed by the IRS after refusing to answer the unconstitutional requests for more information.