Preventing Tax-Exempt Propaganda: The Case for Defining the Second Prong of the Methodology Test

Authors

Jordanne Miller

Abstract

Under current Treasury Regulations, various propaganda groups throughout the United States are exempt from paying federal income tax. This is so because the current test used by the IRS to determine tax-exempt eligibility, the methodology test, is incapable of separating wild propaganda from viewpoints supported by facts.

The IRS created the methodology test in the late 1970s/early 1980s. Since then, groups denied tax-exempt status have repeatedly challenged its validity. The IRS has responded, and the test has evolved. However, the second prong of the test remains undefined—it is still unclear what it means for facts to be “distorted.” This Comment traces the history of the test and uses the Center for Security Policy to illustrate its major flaw. Then, this Comment suggests a possible remedy for this flaw: the Daubert test.

Recommended Citation

Jordanne Miller, Preventing Tax-Exempt Propaganda: The Case for Defining the Second Prong of the Methodology Test, 68 Cath. U. L. Rev. 551 (2019).
Available at: https://scholarship.law.edu/lawreview/vol68/iss3/9