The IRS just announced that it will not pursue gift tax audits of donors to Section 501(c)(4) organizations, and closed the outstanding examinations. Further, it is coordinating with its Office of Chief Counsel on the need for further guidance, but any enforcement action would be prospective only and after notice to the public.
See below for a copy of the IRS letter.
This recent announcement lifts the cloud of uncertainty that has been hanging over Section 501(c)(4) organizations and their donors since the gift tax audits began a few months ago.
Many are hopeful this position will hold through the 2012 elections. Past experience with the IRS would suggest that any future change in enforcement policy would come only after thorough, deliberate consideration over a period of years.