Hypothetical Dr. Dredd is extremely angry about the Internal Revenue Code. He thinks it is deeply unfair that it penalizes wealthy individuals like him with higher taxes. He decides to form a new charitable organization to construct monuments to great men like himself. In addition to this activity, Dr. Dredd dedicates his time at the non-profit to publishing research about the tax code and sending letters to the IRS in an attempt to influence their regulations. Will the IRS allow Dr. Dredd to retain a tax exempt status?

 

A. Yes, because Dr. Dredd is engaging in political lobbying which is always allowed under the IRS regulations and protected by the First Amendment.

B. Yes, because Dr. Dredd is engaging in activities which are specifically excluded from the definition of "lobbying expenses."

C. No. Dr. Dredd is engaging in exclusively political speech and that is not covered by the definition of "charitable purpose."

D. No. Lobbying is a "substantial part" of what Dr. Dredd is doing with the charity, so his tax exempt status will be revoked.