In a directive issued today to IRS offices, the Service is suspending any further examination activity on the gift tax treatment of contributions to 501(c)(4) organizations. The issue has been referred for further study and leaves open a number of unanswered questions. See "Guidance for SB/SE Estate and Gift Tax and TE/GE Exempt Organizations." In a further action the Chairman of the House Ways and Means Committee, David Camp (R-MI), issues a statement indicating that his investigation of the IRS initiation of current examinations will continue. See "Camp: IRS Suspends Gift Tax Examination." For further background on this issue, see " IRS Moves to Tax Contributions to 501(c)(4) Groups Active in Politics."
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