Thanks to the Cincinnati office of the Internal Revenue Service -- they applied the regulations regarding nonprofit, tax-exempt status for political organizations correctly.
The 401C.4 regulations as written only allow social welfare organizations tax-free status. I am not aware of any PAC running a soup kitchen.
Correct enforcement of the IRS regulations will serve two major purposes:
It will eliminate the excessive contributions to political campaigns, and it will require those contributions to be taxed. If you buy a car, you pay a tax. If you buy a politician, you should also be taxed.
Most wage earners use short forms and don't benefit from nonprofit contributions. Whether it's Michael Bloomberg or the Koch brothers, liberal or conservative, regulations need to be adhered to.
Instead of criticism or scape-goating, the IRS staff in Cincinnati should be commended for upholding the law as written.