Lifting up this matter from early October in case you missed it as well as commentary from Brad Smith and Eric Wang in WSJ and coverage in Current Federal Tax Developments (hat tip to Ellen Aprill): 

…the United States District Court for the District of Columbia issued a notable Memorandum Opinion and Order in Freedom Path, Inc. v. Internal Revenue Service, et.al.

In 2013, Freedom Path was denied 501(c)(4) tax-exempt status by the Internal Revenue Service (“IRS”) on the basis that it engaged in excessive political activity. The organization sued for a declaratory judgment that the denial was erroneous on the grounds that Treasury Regulations and Rev. Rul. 2004-06, which the IRS used to interpret both how much non-exempt activity a 501(c)(4) may do and what qualifies as non-exempt political activity, are unconstitutionally vague. The Court agreed and granted summary judgment for Freedom Path on these issues.

However, the Court could not determine whether Freedom Path was entitled to 501(c)(4) tax-exempt status using the IRS guidance that it found unconstitutionally vague; it has therefore ordered the parties to submit briefs proposing new standards for both 501(c)(4) tax-exempt status and political activity….