The Internal Revenue Service used a numerical test for deciding whether nonprofit groups were too political to qualify for a tax exemption, said an agency employee, contradicting a former IRS executive’s statement.
Groups that devoted no more than 49 percent of their activities to politics were deemed acceptable, IRS employee Elizabeth Hofacre told congressional investigators, according to a transcript reviewed by Bloomberg News. Those decisions are at the center of the controversy about the agency’s extra scrutiny of anti-tax Tea Party groups’ applications.
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