Watchdog to IRS: Update 501(c)(4) rules

CREW and David Gill, a Democrat who unsuccessfully ran for Congress last year, mentioned those rules in a February lawsuit against the IRS, which said the agency had not been adequately watching over 501(c)(4) groups.

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The American Action Network and Crossroads GPS, which has ties to Karl Rove, are both conservative groups, and Republicans generally received more backing from 501(c)(4)s and super-PACs.

The American Action Network dismissed CREW’s lawsuit when it was filed, saying the IRS and courts had “rightfully concluded” that 501(c)(4)s can play a limited role in the political process.