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Hmm: IRS May Revoke Tax-Exempt Status for Political Nonprofits

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A recent Internal Revenue Service decision has politically-affiliated nonprofit organizations worried that their donor rolls are about to shrink. Last month, the IRS revoked tax-exempt status for Emerge America, a nonprofit that trained Democratic women as candidates for office -- and now, major organizations on both sides of the aisle fear they're next.

The recent IRS decision sends a signal that it may turn its attention after November’s election to major nonprofits involved in this year’s election, said Marcus Owens, a lawyer and former IRS director who oversaw nonprofits.

“The message is groups like Crossroads [GPS] need...