On October 9, 1970, the Internal Revenue Service announced that it was beginning a 60-day review of the tax-exempt status of §501(c)(3) organizations that supported or directly undertook the litigation of environmental, consumer, or related "public" issues. The IRS' announcement attempted to define traditional public service litigation, e.g., charitable neighborhood legal services, in such a way as to exclude them from the review.

On November 12, 1970, the IRS completed its review of the tax status of the organizations concerned. The new regulations, printed in part below, show that the review was favorable to the organizations whose status was challenged. In the 33-day review period, the IRS received comments supporting the tax-exempt status of the organizations from a variety of sources. Russel E. Train, Chairman of the Council on Environmental Quality, William Ruckelshaus, Director of the new Environmental Protection Agency (at the time not yet confirmed), numerous senators and representatives and others opposed the possible withdrawal and future withholding of the exemption from organizations whose purpose is the protection of the environment and other public interests through litigation.