The Internal Revenue Service (IRS) determined that the Democratic Leadership Council Inc. (DLC) which previously filed as a 501(c)(4) organization, was not eligible for tax exempt status. The group then filed a lawsuit to seek a reversal of the IRS determination. A hearing was scheduled for last September, but then canceled when lawyers for both parties agreed that the hearing was not necessary. But now the judge has changed his mind and according to BNA Money and Politics ($$) the judge has scheduled oral arguments for April 23. The IRS claimed that the group operated for the benefit of Democratic political candidates, but the DLC argued that it is a "think tank". Partisan political activities may not be the primary purpose of a 501(c)(4). This is an exceptional case because the tax status of an organization involved in politics is being handled in court rather than by the IRS. Lawyers for the DLC said that the groups work is not meant to help Democrats in campaigns and is independent of the Democratic Party. While the amount of tax money owed by the DLC is relatively small, the case could have significance by shedding light on important issues regarding limits on the activities of groups that have spent millions of dollars on activities related to politics. There has been little guidance in the past about limits on 501(c)(4) groups, like the DLC.