The Supreme Court’s Dec. 2003 decision upholding the Bipartisan Campaign Reform Act (BCRA) has raised new questions about what kinds of political action committees are subject to federal campaign finance laws. On Jan. 15 the Federal Election Commission (FEC) voted to consider new regulations defining what kinds of political action committees would be subject to contribution and expenditure limits for federal election activity. FEC plans to have a proposed rule published on March 4. There will be a comment period followed by a public hearing in mid-April.

The Secret Service has created restricted areas to keep those actively opposing President Bush's policies from being seen during his public appearances. People have been arrested for stepping outside the designated free speech area, and one man was prosecuted in federal court. In South Carolina a long-time political activist was fined $500 for entering a restricted area during a presidential visit. Much like two people who were arrested for stepping onto the street in Atlanta, Brett Bursey, 55, was peacefully protesting.

The recent Supreme Court decision in McConnell v. FEC upholding the Bipartisan Campaign Reform Act of 2002 (BCRA) has the potential to dramatically expand the scope of regulation of federal election activity. The decision did not address the act's applicability to 501(c)(3) charity organizations. However BCRA sponsors Reps. Shays and Meehan have filed suit against the Federal Election Commission (FEC) challenging regulations that exempt 501(c)(3) groups and unpaid broadcasts from restrictions issue ads.

In late December the IRS released an announcement reminding tax exempt organizations that they must comply with both campaign finance and tax rules during an election year. The guidance, in Revenue Ruling 2004-6, focuses on those nonprofits permitted to take sides in an election and lists the facts and circumstances the IRS believes distinguish genuine issue advocacy from partisan electioneering. Six specific examples are provided. The IRS asks for comments and suggestions on questions for future guidance in this area.