Law: Tax Tussle

Vets could lose a break

The 29 million U.S. taxpayers who even now are itemizing their deductions always feel a bit more charitable toward groups that give them a tax break on contributions. Many organizations would have trouble surviving if they could not offer such a sweetener. In exchange, the IRS requires that the groups—the American Red Cross, the Wilderness Society and private schools, for example—must not devote a "substantial" part of their efforts to political lobbying. With one striking exception. Congress never applied the lobbying restriction to veterans' groups like the American Legion and Veterans of Foreign Wars. But now the...

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