Thank You, "Low-Level" IRS Agents
With outrage erupting from every corner, pundits & politicians seem to be missing the point of the IRS exercise: to ferret out applicant organizations which had primarily political agendae & would therefore be ineligible for the tax-exempt status for which they were applying. Fox News reported,
The internal IG timeline shows ... that list of criteria drastically expanding.... It then included groups focused on government spending, government debt, taxes, and education on ways to 'make America a better place to live.' It even flagged groups whose file included criticism of 'how the country is being run.' By early 2012, the criteria were updated to include organizations involved in 'limiting/expanding government,' education on the Constitution and Bill of Rights, and social economic reform.
I don't see how an organization interested in "expanding government" or in "social economic reform" or in "making America a better place to live" is necessarily conservative.
In fact, "The IRS says that 300 groups were set aside for extra review. About 75 of them had the words 'tea party' or 'patriot.'" That is, about 25 percent of the groups who received closer scrutiny identified themselves as tea party or "patriot" groups. Since the tea party was expanding rapidly during the time frame in question, it is possible that the IRS under-"targeted" conservative groups.
The so-called scandal does not appear to be an effort to "intimidate political groups," as everyone is braying, but rather an effort to separate true charitable groups from political organizations which might have been trying to obtain undeserved tax-exempt status.
Maybe all these Congressional investigations will reveal some politically-motivated scheme. But right now I don't see any IRS intimidation. I see IRS employees following the law and protecting the government -- and the honest taxpaying public -- from potential tax cheats. I see IRS agents doing their jobs.
Reader Comments (4)
Regarding this IRS "scandal", I couldn't agree more. As a CPA, and a member of a 401(c)(4) which I took through the application process, I can tell you that it sounds to me like the IRS was doing was it is SUPPOSED to do. It took two tries for our tiny little non-profit to get through the application process and receive tax-exempt status, so why shouldn't clearly politically motivated organizations get closer scrutiny as well? What I find scandalous is that all these organizations apparently received their tax-exempt status, no one was declined. Please tell me, what social welfare Glenn Beck's 401(c)(4) is providing.
Those liberal media folks play right into Repub hands by giving this "scandal" any coverage at all.
@cakers: Hear! Hear! You are so correct. I still can't see what "social welfare "many of these groups offer, yet they get tax-exempt status anyway. Chris Hayes had a good overview of what a 501(3)(c) is supposed to be using the IRS guidelines. To fit many of these groups into that is a real stretch. He also pointed out ho much damage the Citizens United decision has done.
Not for the first time, Obama let himself be snookered by the media.
The numbers on my keyboard shifted right. The code sections cited should be FIVE01(c)(4)......
The numbers on my keyboard shifted right. The code sections cited should be FIVE01(c)(4)......
And to clarify further, a 501(c)(3) is a charitable organization and is the only type capable of receiving donations that are tax deductible. A 501(c)(4), is a social welfare organization and while they may receive donations, they are not tax deductible by the donors. Businesses get around that by treating them as a business expense such as "business promotion".