(a) Exemption from taxation
An organization described in subsection (c) or (d) or section 401 shall be exempt from taxation under this subtitle unless such exemption is denied under section 502 or 503.
(b) Tax on unrelated business income and certain other activities
An organization exempt from taxation under subsection (a) shall be subject to tax to the extent provided in parts II, III, and VI of this subchapter, but (notwithstanding parts II, III, and VI of this subchapter) shall be considered an organization exempt from income taxes for the purpose of any law which refers to organizations exempt from income taxes.
(c) List of exempt organizations
The following organizations are referred to in subsection (a):…
(4) (A) Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes.
The latest political outrage and this it is indeed an outrage and an event that should scare all Americans involves the Internal Revenue Service targeting for some time conservative political groups. Seems like the applications of some of these organizations for tax exempt status have been given extraordinary attention with the IRS usurping its authority by asking for donor lists and other information.
There are 28 types of nonprofit organizations found in Section 501 (c) that are exempt from federal income taxes. The ones that have the Administration and the Internal Revenue Service in hot water are the 501(c)(4), organizations that have objectionable words like “tea party” “patriot” and “constitution” in their application. These organizations are different from the usual pure charities because they can engage in advocacy work, political actions and lobbying. The AARP is a 501 (c)(4).
It is wrong in so many ways. The fact many of these groups oppose the policies of the Administration is irrelevant. It is an abuse of power, smacks of a police state and is just another example of government intimidation.
I could go on and on but I will let others carry the rhetorical baton but I have to say again, it is deeply concerning. This is a story that will not go away anytime soon. The IG will release a report in the next few days and I suspect it will be very damaging but it will not end there, nor should it.
According to IRS, the whole fiasco originated by a couple of low-level revenue agents. That may or not be true. It is clear, however, higher ups in the Service eventually knew such harassment was going on for several years.
It is critical there be full disclosure, investigation and installation of proper supervision. As far as I am concerned, there needs also to be a criminal probe to see if any crimes have been committed. However, I would not wait for the current Department of Justice to initiate such a probe.
I do not know if the trail will lead to others. I do not know if some direct political purpose was involved. I am not pointing any fingers at the White House or the Obama reelection campaign. What the IRS actions does shows though is the attitude of government fostered frankly by those in power to take whatever steps necessary to subvert, and oppose anyone who takes a different view, who disagrees on the direction of the country.
This is not the way it has to be. Unleashing the power of government to quell dissent is tantamount of shredding the First Amendment. Shall people- and I do not care what their view- hide in their house afraid to speak out? Afraid to organize? Vote? Contribute to a cause? Worried about the tax police, the regulators?
Makes one ponder, what were these people thinking? Did they think this was right?
I do not like this one bit. It stinks, smells and it odious. This type of conduct is the very reason many people do not trust government and believe it has gotten too powerful, too intrusive.
This is not just egg on the face, or “gotta ya”. This all goes to the fundamental foundation of consensual democracy. Even though many liberals distained and ridicule and blame their conservative fellow citizens, this conduct must be condemned in the strongest of fashion. For now, the Obama Administration looks positively Nixonian.
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