Understand the big picture
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| Published: | 2014-Jul-14 |
| Last Updated: | 2015-Apr-15 |
| Principal Writer: | Barry Shatzman |
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Appropriations, 2015
2014 (HR-83)
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Shouldn't the IRS be punished for targetign nonprofit groups?
It was reported in 2013 that the IRS was targeting organizations with conservative-sounding names for extra scrutiny in determining whether they should be granted nonprofit status. Some are saying reducing the IRS budget will "rein in" these practices.
We see two reasons to not accept this rationale.
The first reason is with the issue of IRS targeting itself.
o Many of these groups were formed to influence elections - against the rules for 501(c)(4) nonprofit organizations.
See our coverage of this issue.
The second reason is that it makes no practical sense. Reducing the IRS budget affects beneficial services that have nothing to do with the issue - such as customer service and ensuring that corporations and wealthy individuals pay the taxes they owe.
Or, to look at this another way... if a traffic officer in your local police department committed some egregious act, what would happen if your city government decided to "retaliate" by shrinking the homicide department?