Federal court strikes down IRS policy targeting conservative group

Published October 2, 2025 4:07pm ET



A federal court this week struck down a controversial Internal Revenue Service “facts and circumstances” test for nonprofit tax-exempt status, calling it unconstitutionally vague and opening the door to major changes in how political speech by advocacy groups is regulated.

Judge Jia Cobb of the U.S. District Court for the District of Columbia ruled Tuesday that the IRS violated constitutional protections when it denied tax-exempt status to the conservative group Freedom Path using a vague and subjective multi-factor test. The ruling held that the agency’s “facts and circumstances” framework, an 11-part analysis derived from a 2004 IRS revenue ruling, fails to survive the heightened scrutiny required when government rules implicate First Amendment speech rights.

Already a print subscriber? Click here to login/register your account

Trusted reporting.Unlimited access.

Subscribe for full access to Washington Examiner coverage, expert political analysis, and subscriber-only journalism.

Get Unlimited Access

Already a member? Log in

Cancel anytime.