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Camp: IRS Suspends Gift Tax Examination

July 07, 2011

Washington, DC –  In response to a directive issued this afternoon by the IRS regarding the gift tax treatment of donations to 501(c)(4) organizations, Ways and Means Chairman Dave Camp (R-MI) issued the following statement:

“I am pleased that following my and other inquiries questioning the motives behind these investigations, the IRS has decided to immediately suspend all current gift tax examinations in this area and will not begin any new investigations before issuing public guidance.  However, I remain troubled that the IRS has failed to explain what prompted these audits in the first place.  It has yet to adequately address why taxpayers were given no warning prior to the launching of these investigations.  Furthermore, the IRS has failed to clarify that the gift tax will not apply to future political donations.  Especially troubling is that the directive explicitly leaves open the possibility of future audits.  Given the lack of transparency, I will continue my investigation until the complete story behind the actions of the IRS has been told.”