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U.S. IRS to propose new rules for tax-exempt political groups

Tuesday, 26 Nov 2013 | 1:21 PM ET

WASHINGTON, Nov 26 (Reuters) - The Obama administration proposed new rules on Tuesday for certain tax-exempt groups at the center of the Internal Revenue Service's Tea Party targeting scandal this year.

According to a Treasury Department news release, the proposed rules will change the definition of "social welfare" in the 501(c)(4) section of the tax code, which allows tax-exempt groups to engage in certain limited campaigning activities.

In May, the Internal Revenue Service was engulfed in a scandal over agency targeting of 501(c)(4) groups that included "Tea Party" and other conservative phrases in their titles.

(Reporting by Patrick Temple-West; Editing by Howard Goller)