The 501(c)(4) organization, U.S. Term Limits, now has some more trouble. The Democratic Senatorial Campaign Committee (DSCC) has filed a complaint with the Internal Revenue Service (IRS) claiming that the group violated the law by not disclosing on its Web site that contributions made to the group are not tax-deductible.

Roll Call ($$) reports that the "complaint against U.S. Term Limits comes as the Internal Revenue Service is stepping up its enforcement of nonprofit organizations that engage in political activity, particularly 527s and 'social welfare' groups that register under section 501(c)(4) of the tax code. The DSCC's complaint to the IRS is the first time that the committee has sought to strip an outside political group of its tax-free status."

Meanwhile, the Democratic Congressional Campaign Committee (DCCC) filed a second complaint with the Federal Election Commission (FEC) against the organization Freedom's Watch. The DCCC complaint alleges that Freedom's Watch ran a television "attack ad that directly and illegally advocates the defeat of a Democratic candidate and also for failing to disclose the names of the donors funding that ad."

Robert Lenhard, one of the Democratic nominees for the Federal Election Commission (FEC), has withdrawn his name from consideration. This latest news means it could be even longer until the FEC is up and running with six commissioners.

However, this editorial from RollCall ($$) suggests that "the way out would be for the White House to nominate - and the Senate quickly confirm - two new commissioners, giving the panel four members, two from each party, and the ability to get work done this election year."

Senate Majority Leader Harry Reid (D-NV) sent White House Chief of Staff Joshua Bolten a letter saying Lenhard made this decision because of the Senate's delay in confirming the nominees. Reid's letter stated that "given the complete unwillingness among Republicans to constitute a functional FEC, I could not assure him of timely confirmation. This development now makes a resolution of this conflict more difficult because I have lost an exceptional leader for the FEC who will need to be replaced. That will necessitate a search for a new Democratic nominee and a new nomination process. That process typically takes at the least several months. "

The Internal Revenue Service (IRS) released draft instructions for the redesigned Form 990 and is requesting public comments through June 1. In its announcement, the IRS notes that the instructions include "highlights lists indicating certain items in the instructions on which the IRS would especially like to receive public comments. As with comments received on the draft Form 990, the IRS plans to post comments on the instructions on its Web site." The IRS also included some resources to make filling out the 990 easier, including a glossary of terms, a list to help determine the order in which to fill out the form, and some examples.

These instructions, available on the IRS Web site, are important for understanding how to fill out the new form.