Monday, June 24, 2013

IRS: equal opportunity targeting

Let's get something straight here.    The job of the staff in the IRS office that processes applications for tax-exempt status includes spotting those that are ineligible because their primary activity is political.

When they "targeted" Tea Party groups, they didn't do anything to them that is not something that any applicant might be asked to do.    The claim is that they subjected innocent applicants to extra forms and scrutiny and delays.   But so what:   if the IRS decides -- for whatever reason -- to audit your tax return, that is just doing their job.

So what is the beef here?   There was good reason to have a heightened scrutiny of those who chose names that suggested political activity or the causes widely known to be associated with a particular political fervor and movement.  And applications from such groups surged during that time period.

The solution to the complaint of "targeting" seems to me to be simple:   hire extra staff and let everyone who applies for tax exempt status go through the same extra scrutiny.  In other words, target everybody, which is the same as targeting nobody.

Today we learned from a deputy commissioner of the IRS that progressive groups were also on the list of groups to be "on the lookout for."   Key words that were listed triggers:  Israel, progressive, occupy.

I don't really get what the problems is.   It's not like these groups were automatically rejected or arrested.  The were just looked at more closely.  Someone please explain to me how this is different from the IRS being "on the lookout" for people who claim business deductions for use of a home office -- which absolutely does happen.  It is one of the known triggers for an audit.

Perhaps I'll scream "scandal" on behalf of home office users.

Ralph

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