[EL] big IRS story

Rick Hasen rhasen at law.uci.edu
Fri May 10 16:59:35 PDT 2013


Completely agree with you Mark, but a reader writes to tell me of a big 
Democratic "Patriot" group:

The nonprofit arm of Patriot Majority USA spent $7 million to help elect 
Democrats, also without identifying the source of the money; it didn't 
exist in 2008.

http://www.bloomberg.com/news/2013-04-30/fec-expired-terms-prompt-calls-for-obama-to-keep-promise.html


On 5/10/13 3:43 PM, Scarberry, Mark wrote:
>
> Apparently "Patriot" was one of the words that caused extra scrutiny.
>
> This can't be explained away. Someone at some level politicized the 
> review process. The only real question, I think, is the level at which 
> that was done.
>
> The extraordinarily unpersuasive excuse that the IRS official gave (it 
> happened because the process was centralized?) also seems telling. She 
> did not say, "We were flagging names that indicated political 
> activity." At least I have not heard that she said that.
>
> There may also need to be some accountability (at higher levels than 
> the level at which the decision was made) for creation of a culture or 
> of attitudes that would make this seem acceptable.
>
> Mark
>
> Mark S. Scarberry
>
> Professor of Law
>
> Pepperdine Univ. School of Law
>
> *From:*law-election-bounces at department-lists.uci.edu 
> [mailto:law-election-bounces at department-lists.uci.edu] *On Behalf Of 
> *Trevor Potter
> *Sent:* Friday, May 10, 2013 3:30 PM
> *To:* Joe La Rue
> *Cc:* law-election-bounces at department-lists.uci.edu; law-election at uci.edu
> *Subject:* Re: [EL] big IRS story
>
> To remind everyone of what we know at this point, applications for 501 
> c4 social welfare status were being flagged for review by IRS staffers 
> if they had words in their title that suggested the organizations were 
> political in nature-- ie that their major purpose was to engage in 
> political activity and therefore they should be registered as a 527 
> rather than a c4. That is one of the IRS's jobs-- to determine whether 
> a group qualifies for c4 status, or is too "political" in purpose to 
> do so. Based on recent cases, the IRS has certainly questioned/ 
> challenged the appropriateness of c4 status of groups with both 
> "Democrat" and " Republican" in their name.
>
> Trevor Potter
>
> Sent from my iPhone
>
>
> On May 10, 2013, at 6:22 PM, "Joe La Rue" <joseph.e.larue at gmail.com 
> <mailto:joseph.e.larue at gmail.com>> wrote:
>
>     The anger should be there, regardless. NOBODY should be targeted
>     by the IRS because of his or her political views. It doesn't
>     matter to me whether they are targeting conservatives only,
>     liberals only, or conservatives AND liberals together. And it
>     shouldn't matter to anyone else who claims to love freedom. If the
>     government can target us because of our political views, and can
>     subject us to extra scrutiny and make us jump through extensive
>     hoops because of we have political views, then what have we become?
>
>
>     Joe
>     ___________________
>     *Joseph E. La Rue*
>
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>     On Fri, May 10, 2013 at 3:16 PM, Byron Tau <btau at politico.com
>     <mailto:btau at politico.com>> wrote:
>
>     I think the anger comes from the fact that they were just flagging
>     conservative-linked words. If the list also included "progressive"
>     and "liberal," I don't think the anger would be there.
>
>     --
>
>     Byron Tau
>
>     Lobbying and influence reporter || POLITICO
>
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>
>     On May 10, 2013, at 6:03 PM, "john.k.tanner at gmail.com
>     <mailto:john.k.tanner at gmail.com>" <john.k.tanner at gmail.com
>     <mailto:john.k.tanner at gmail.com>> wrote:
>
>         Both are common adjectives for advocacy groups as well as the
>         names of political parties.   ADA, SDS, ....
>         Sent from my Verizon Wireless BlackBerry
>
>         -----Original Message-----
>         From: Mark Schmitt <schmitt.mark at gmail.com
>         <mailto:schmitt.mark at gmail.com>>
>         Sender: law-election-bounces at department-lists.uci.edu
>         <mailto:law-election-bounces at department-lists.uci.edu>
>         Date: Fri, 10 May 2013 17:47:50
>         To: law-election at uci.edu
>         <mailto:law-election at uci.edu><law-election at uci.edu
>         <mailto:law-election at uci.edu>>
>         Subject: Re: [EL] big IRS story
>
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-- 
Rick Hasen
Chancellor's Professor of Law and Political Science
UC Irvine School of Law
401 E. Peltason Dr., Suite 1000
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rhasen at law.uci.edu
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