Amid backlash, IRS delays new U.S. rules for social welfare groups

Reuters News
Posted: May 22, 2014 7:36 PM

WASHINGTON (Reuters) - U.S. Republicans claimed victory on Thursday after the Internal Revenue Service said it will delay and rewrite proposed rules for tax-exempt, social welfare groups that were at the heart of the agency's a political controversy last year.

"This proposed rule was wrong from the start," said Republican Representative Dave Camp, chairman of the tax-writing committee in the House of Representatives.

"Hopefully the IRS and the Obama Administration will think twice before ever trying to go down this path again," he said in a statement.

Since the rules were introduced in November 2013, Republicans have tried to stop them from being finalized.

The proposed rules would limit the political activities of social welfare groups that fall under Section 501