May 16th 2013
President Obama acted quickly upon accusations of targeted audits against conservatives, to cut off the 'acting' head of the IRS – who had nothing to do with these actions. What I really don’t understand is, why the big fuss? During the elections and campaigning, we were all complaining about the actions of many of these organizations. They broke the law. As 501(c)(3) organizations, they are entitled to tax-exempt status. It’s a privilege – not a right – based on following the Tax Code. Contributors are entitled to tax charitable contributions deductions for their donations to 501(c)(3) organizations. When those organizations break the law, the donors lose their deductions. One firm tenet of 501(c)(3) organizations is that they do not engage in political activities. If they want to take strong, influential stands (whether as a charity or religious organization), they must do it through a different entity. When preaching politics from the pulpit, they void their right to 501(c)(3) status. When using a charity to promulgate documents, protests, etc. about a political matter, whatever it may be, the organization voids its right to exempt status. So, the IRS did right in targeting exempt organizations to see whether they are meeting their exempt conditions. Ironically, those very same people who screamed loudest in the political arena now have the nerve to bully the government to stop their audits. One red-faced individual complained about having three audits running at the same time. Perhaps it’s because he’s running several organizations improperly? TIGTA will be issuing a report this week, summarizing their investigation into this issue. I am curious to see the results. What do you think about all this? Was IRS right? Or was this a travesty, targeting innocent organizations?