>> brown: well, richard schmalbeck, do you have an answer for that or is that just how the system haslved? why is the i.r.s. the one looking at it? >> well, it is part of the internal revenue code, so they are the enforcers in chief as to 501-c-3, 501-c-4s, but they do have a joint jurisdiction with the federal election commission as to political campaign activities. >> announcer: let me stay with you on this question raised earlier about the confidentiality of 501-c-4s. what's the history behind that? that goes back to the 1950s, i understand. >> you know, the history is murky. i think it probably has to do with the fact that c-3s, the charitable-type of organization, has long wanted to protect its donor lists. a lot of donors like to make their gifts anonymously. they don't want to be approached by people just because they are known to be generous in their flp. so-- fill anthropee. c-3s have always been confidential. even political groups under 527 have been able to keep their donors confidential until 2000, and then congress changed that. and, really, there's probably not a strong

law, and what the groups are charging, we are joined by duke university law school professor richard schmalbeck. he's a former tax attorney. and former i.r.s. attorney jay sekulow. as chief counsel at the american center for the law and justice, he is representing tea party organizations. he also hosts a conservative talk radio program. gentlemen, welcome to you both. jay sekulow, let me start with you. let's go back to the application that these groups made for tax-exempt status. what sort of tax treatment exactly were they asking for? >> most of them were asking for, our clients were asking for c-4 status which allows for the money given is not taxable. it's not tax deductible by the donor but it's not a tax event to the organization. so it was a 501c-4 legal status. the application actually is very straightforward. the first series of questions were not terribly imreus i have. it was the second round of questions that were very imreus i have and has caused the problem here. >> why if they were seeking this status, which is tax exempt as we just heard him say, why then are they eligible for t