The Lacuna Project

lacuna (n.) a gap in a record where something should be

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Agency

Internal Revenue Service

Findings that rest on exhibits naming this entity

  • REL-4.1: Federal law excepts churches, their integrated auxiliaries, and conventions or associations of churches from the notice requirement for applying for IRS recognition of exemption (26 U.S.C. § 508(c)(1)(A)) and from filing the annual information return, Form 990 (26 U.S.C. § 6033(a)(3)(A)(i)).
  • REL-4.2: The Church Audit Procedures Act of 1984 (26 U.S.C. § 7611) permits the IRS to begin a church tax inquiry only on a written reasonable belief held by an appropriate high-level Treasury official and written notice to the church, and requires written approval of regional counsel before a revocation, deficiency notice or assessment. Congress enacted it after a 1983 Senate hearing at which the chairman cited constitutional entanglement and the harm of extended examinations to small congregations.
  • REL-4.6: Religion Unplugged reported on 30 March 2021 that a former Ensign Peak employee prepared a 74-page complaint to send to the IRS whistleblower program, and that an IRS spokesman in Utah could not confirm any investigation. No public IRS outcome has been found. By the Church's own account the SEC first expressed concern about Ensign Peak's reporting in June 2019.
  • REL-4.7: In a staff memorandum to Senator Grassley dated 6 January 2011, Senate Finance Committee staff reported that six media-based ministries classify themselves as churches and that, with very limited exception, staff found no Form 990 for them or their related organizations. Staff recommended against requiring every church to file Form 990.
  • REL-4.8: On 7 July 2025 the IRS and the plaintiffs in National Religious Broadcasters v. Long jointly asked a federal court to declare that a house of worship speaking to its congregation through its customary channels on matters of faith, in connection with religious services, does not participate or intervene in a political campaign under 26 U.S.C. § 501(c)(3). On 31 March 2026 the court dismissed the case without prejudice for lack of subject-matter jurisdiction, without reaching the merits, and the plaintiffs noticed an appeal on 22 April 2026.
  • POL-5.2: A 501(c)(4) social welfare organization may intervene in political campaigns if campaign activity is not its primary activity. No statute or regulation quantifies "primarily."
  • POL-5.3: Federal law does not require a 501(c)(4) to disclose its contributors' names to the public. Since Rev. Proc. 2018-38 (July 2018) and T.D. 9898 (28 May 2020), the organization also does not report contributor names and addresses to the IRS on Schedule B, and the IRS public data files show every Schedule B donor field as RESTRICTED.
  • POL-5.5: Itemized contributions to super PACs and hybrid PACs from organizations whose names approximately match an IRS 501(c)(4) record (derived from FEC bulk files and the IRS exempt-organization master file) were $12 million in 2012, $13 million in 2014, $13 million in 2016, $91 million in 2018, $453 million in 2020, $126 million in 2022 and $969 million in 2024.
  • POL-5.6: Super PACs aligned with each party received itemized transfers from a paired 501(c)(4). In 2024 One Nation gave $36 million to Senate Leadership Fund and American Action Network gave $43 million to Congressional Leadership Fund; Majority Forward gave $82 million to Senate Majority PAC, House Majority Forward gave $47 million to House Majority PAC, and Future Forward USA Action gave $266 million to Future Forward PAC, 48 percent of that super PAC's receipts.
  • POL-5.7: In 69 Form 990 filings by twelve 501(c)(4) organizations, six on each side, reported Schedule C political expenditures never exceeded 47.5 percent of total expenses. The highest ratios are Majority Forward (47.5 percent, period ending May 2019), The Concord Fund (46.9 percent, period ending June 2025) and Future Forward USA Action (45.1 percent, period ending December 2024).
  • POL-5.8: Organizations on both sides pass money to political groups through intermediaries that name no donors in public filings. Over tax periods ending 2020 to 2025, Schedule I grants by the right-side Marble Freedom Trust were $1,024 million and by DonorsTrust $1,241 million, and the left-side Tides Foundation $2,281 million, New Venture Fund $1,881 million, Sixteen Thirty Fund $924 million and Hopewell Fund $425 million; Marble Freedom Trust reported $1,603,791,362 in contributions for the year ended April 2021 and named no donor.
  • POL-5.12: TIGTA found that from early 2010 the IRS selected exemption applications by names and policy positions, and that every application with "Tea Party," "Patriots" or "9/12" in its name was processed as a potential political case. The criteria TIGTA reviewed also included "Progressive," Occupy, ACORN Successors and Emerge, and 6 of 20 applications with "progress" or "progressive" in the name (30 percent) were processed as potential political cases.
  • POL-5.16: The public record does not show the original donors behind 501(c)(4) transfers to super PACs. The IRS public data file shows every Schedule B donor field as RESTRICTED, and the IRS no longer collects contributor names from 501(c)(4) organizations.
  • REL-5.3: The committee's staff did not issue subpoenas to the ministries or to informants. The staff memo of 6 January 2011 gives three reasons: subpoenas to informants would be counterproductive, committee rules require the chairman's participation, and the 2009 health-reform legislation left no time or resources.
  • REL-5.4: The materials released on 6 January 2011 are a minority-staff memorandum to Senator Grassley, not a report adopted by the committee. The memo frames issues for consideration and contains no bill text, and on 5 January 2011 Grassley asked the Evangelical Council for Financial Accountability whether the issues can be addressed without legislation.
  • REL-5.5: The staff memo states that four of the six churches refused to provide tax information, so staff could not determine whether and to what extent they report and pay taxes on income earned in related entities, including private airports and aircraft leasing companies.

Exhibits naming this entity

  • Exhibit 413 as in force 2026. United States Congress (Internal Revenue Code): 26 U.S.C. § 508 (special rules for section 501(c)(3) organizations)
  • Exhibit 414 as in force 2026. United States Congress (Internal Revenue Code): 26 U.S.C. § 6033 (returns by exempt organizations)
  • Exhibit 415 1984; as in force 2026. United States Congress (Internal Revenue Code; added by Pub. L. 98-369 § 1033, 18 July 1984): 26 U.S.C. § 7611 (restrictions on church tax inquiries and examinations; Church Audit Procedures Act)
  • Exhibit 416 as in force 2026. United States Congress (Internal Revenue Code; clause added 1954): 26 U.S.C. § 501(c)(3) (exemption; political campaign clause, "Johnson Amendment")
  • Exhibit 418 24 May 1983. Supreme Court of the United States: Bob Jones University v. United States, 461 U.S. 574
  • Exhibit 419 30 September 1983. U.S. Senate Committee on Finance: Church Audit Procedures Act, hearing on S. 1262 before the Subcommittee on Oversight of the Internal Revenue Service, Committee on Finance, S. Hrg. 98-481
  • Exhibit 426 30 March 2021. Religion Unplugged: A Cloud Of Mystery Remains Over Whistleblower Complaint Against LDS Church
  • Exhibit 427 6 January 2011. U.S. Senate Committee on Finance, minority staff: Review of Tax Issues Raised by Media-Based Ministries (staff memorandum to Sen. Grassley, 61 pp.)
  • Exhibit 435 7 July 2025. Plaintiffs and Defendants (IRS), U.S. District Court, Eastern District of Texas: National Religious Broadcasters v. Long, No. 6:24-cv-00311 (E.D. Tex.), Joint Motion for Entry of Consent Judgment (ECF 35) with proposed order (ECF 35-1)
  • Exhibit 436 31 March 2026. U.S. District Court, Eastern District of Texas (Judge J. Campbell Barker): National Religious Broadcasters v. Bessent, No. 6:24-cv-00311 (E.D. Tex.), Opinion and Order (ECF 106)
  • Exhibit 437 12 May 2000. U.S. Court of Appeals for the D.C. Circuit: Branch Ministries v. Rossotti, 211 F.3d 137 (D.C. Cir.)
  • Exhibit 444 6 January 2011. U.S. Senate Committee on Finance, minority staff (Pattara and Barnett): Memorandum to Senator Grassley: Review of Media-Based Ministries (61 pp.)
  • Exhibit 445 6 January 2011. U.S. Senate Committee on Finance, minority staff: Staff memo, Appendix C item 3 (IRS filing requirements)
  • Exhibit 454 current. U.S. Code: 26 U.S.C. 107 (Rental value of parsonages)
  • Exhibit 455 current. U.S. Code: 26 U.S.C. 4958 (Excess benefit transactions)
  • Exhibit 456 current. U.S. Code: 26 U.S.C. 7611 (Church tax inquiries and examinations)
  • Exhibit 457 15 March 2019. U.S. Court of Appeals for the Seventh Circuit: Gaylor v. Mnuchin, 919 F.3d 420 (7th Cir. 2019)
  • Exhibit 879 26 November 1960. U.S. Treasury Department (T.D. 6500, 1960; amended 1990): 26 CFR 1.501(c)(4)-1, Civic organizations and local associations of employees
  • Exhibit 880 accessed 10 November 2026. Internal Revenue Service: Social welfare organizations (IRS page)
  • Exhibit 881 undated PDF (accessed 10 November 2026). Internal Revenue Service: Audit Technique Guide: IRC Section 501(c)(4), Civic Leagues, Social Welfare Organizations, and Local Associations of Employees
  • Exhibit 882 December 2014. Taxpayer Advocate Service (IRS): National Taxpayer Advocate 2014 Annual Report to Congress, Vol. 1, Legislative Recommendation 5: Section 501(c)(4) political campaign activity
  • Exhibit 883 as in force 2026. United States Congress: 26 U.S.C. § 6104 (publicity of information required from certain exempt organizations)
  • Exhibit 884 July 2018 (2018-31 I.R.B. 280). Internal Revenue Service: Rev. Proc. 2018-38 (Schedule B contributor reporting)
  • Exhibit 885 28 May 2020. Treasury Department / IRS: T.D. 9898, Guidance Under Section 6033 Regarding the Reporting Requirements of Exempt Organizations (85 FR 31959)
  • Exhibit 886 filed 2022. Internal Revenue Service (TEOS e-file XML): Marble Freedom Trust Form 990 (FYE April 2021), public XML: Schedule B fields
  • Exhibit 887 29 November 2013. Treasury Department / IRS: Guidance for Tax-Exempt Social Welfare Organizations on Candidate-Related Political Activities (REG-134417-13), 78 FR 71535
  • Exhibit 888 18 December 2015. United States Congress: Consolidated Appropriations Act, 2016, Pub. L. 114-113, sec. 127 (Financial Services and General Government)
  • Exhibit 889 14 May 2013. Treasury Inspector General for Tax Administration: Inappropriate Criteria Were Used to Identify Tax-Exempt Applications for Review (2013-10-053)
  • Exhibit 890 26 June 2013. Treasury Inspector General for Tax Administration: TIGTA letter to Rep. Sander Levin on the 'Progressives' BOLO entry
  • Exhibit 891 28 September 2017. Treasury Inspector General for Tax Administration: Review of Selected Criteria Used to Identify Tax-Exempt Applications for Review (2017-10-054)
  • Exhibit 892 28 September 2017. Treasury Inspector General for Tax Administration: TIGTA 2017-10-054, quotation of IRS July 2012 assessment of political leanings
  • Exhibit 919 run 10 November 2026. Lacuna derivation from FEC bulk files and IRS EO BMF: Dataset: FEC contributions by organizations to super PACs 2012-2024, matched to IRS EO BMF
  • Exhibit 920 run 10 November 2026. Lacuna derivation from IRS TEOS XML: Dataset: IRS Form 990 e-file XML, 26 organizations, tax years 2015-2024
  • Exhibit 921 filed 2022. Marble Freedom Trust / IRS TEOS: Marble Freedom Trust Form 990, fiscal year ended April 2021