Skip to main content

IRS delaying rules on tax-exempt political groups

By WTOP Staff

ANDREW TAYLOR
Associated Press

WASHINGTON (AP) — The Internal Revenue Service signaled Thursday that there will be further delays in new rules intended to rein in the use of tax-exempt groups for political campaigning.

The agency announced it won’t hold a hearing this summer until it has a revised plan to police loosely regulated big-money political outfits like GOP political guru Karl Rove’s Crossroads GPS and the pro-Obama Priorities USA.

Thursday’s announcement was read by both supporters and opponents of the regulations that a major rewrite was in the works. The outlines of an IRS plan for new rules on such groups were announced in November and sparked 150,000 comments, many from angry conservatives and tea party groups who said they were harassed by the IRS after seeking tax exempt status. The IRS says it’s committed to carefully reviewing those comments before issuing new rules.

The IRS and the Treasury Department had said they wanted to prohibit groups from using “candidate-related political activity” like running ads, registering voters or distributing campaign literature as activities that qualify them to be tax-exempt “social welfare” organizations.

Under current rules, social welfare organizations may conduct some political work as long as it’s not their main activity. The proposed new rules would block such things as running ads that “expressly advocate for a clearly identified political candidate or candidates of a political party” as fulfilling their tax-exempt mission. And ads that simply mention a politician to, for instance, urge him or her to vote a certain way couldn’t be run 60 days before a general election of 30 days before a primary.

The rules also would limit voter drives and voter registration efforts and distribution of literature.

Rep. Darrell Issa, R-Calif., said Thursday’s announcement meant that the IRS “has at least temporarily heeded the serious concerns expressed by myself and countless others, and has decided to scrap its proposed rule change restricting the political speech of social welfare groups.”

Supporters of the proposed rules said Thursday’s announcement was a setback.

“This delay is deeply disappointing and a real setback for democracy and faith in government,” said Sen. Chuck Schumer, D-N.Y. “The only hope we have is when the IRS goes back, they don’t succumb to any form of political pressure and enact a very tough rule that will equally curtail liberal and conservative groups.”

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote