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The Water Cooler
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Title: Are U.S. Tax OIfficials Punishing Zionists Who Won't Toe The White House Line?
Source: HAARETZ
URL Source: http://www.haaretz.com/news/interna ... -the-white-house-line-1.310620
Published: Aug 27, 2010
Author: By Natasha Mozgovaya and Haaretz Service
Post Date: 2010-08-27 20:26:50 by Brian S
Keywords: None
Views: 368

Right-wing Z-Street sues IRS over claims it withheld tax breaks because campaigners' policies clashed with Obama's: 'This is a clear violation of the First Amendment.'.

By Natasha Mozgovaya and Haaretz Service

So is America's Internal Revenue Service discriminating against Z Street on political grounds, dragging its feet in approving tax-exempt status for the pro-Israel right-wing group?

That’s what the organization, formed by two activists, Lori Lowenthal Marcus and Allison Rowen Taylor, to counter left-wing rivals like J Street, claimed in a lawsuit filed this week against the Commissioner of Internal Revenuein a U.S. court.

Z Street says it was told by an IRS official that its application for tax-exempt status had been held back because an IRS policy requires consideration of whether a group’s views on Israel differ from those of the current White House administration.

“Z Street filed for tax-exempt status in January of this year and, despite having met all of the requirements for grant of this status, the application has been stalled,” the group said in a statement.

“An IRS agent told Z Street’s lawyers that the application was delayed because of a 'Special Israel Policy' that requires more intense scrutiny of organizations which have to do with Israel, in part to determine whether they espouse positions on Israel contrary to those of the current administration."

The move violated the U.S. constitutions guarantees of speech, Z Street said

"Not only is it patently un-American but it is also a clear violation of the First Amendment for a government agency to penalize an organization because of its political position on Israel or anything else”.

The group claims the delay in confirming its tax exemption status is harming its fundraising efforts.

Lowenthal Marcus told Haaretz: “Essentially the rule is that to obtain status as a tax-exempt educational organization, one’s public discussions must be fact-based, and must provide a basis for the consumers of those discussions to make up their own minds. There is no requirement that one must be objective – J Street and CAIR both have this exemption, after all”.

Asked what prompted the group leaders to create another pro-Israeli organization, when there are several powerful existing ones, Lowenthal Marcus said: “That depends on your definition of powerful. Powerful in terms of dollars? In terms of a voice? In terms of influence on public opinion? In terms of impact on US policy? Z Street isn't powerful in any of those ways. We provide a different voice, fill a different niche, offer a different perspective to the vast majority of pro-Israel organizations, and our style is different as well.

"We clearly touched a nerve, as within two weeks of my writing the first article about Z Street, initially posted on one news blog, 20,000 people came to the site and people all over the world thanked us - including people not only from all over the U.S. and Israel, but Germany, Cuba, Switzerland, New Zealand, Gibraltar, Argentina and a dozen more.

"In addition, because we're about education, not political power, our goals are different: unlike AIPAC, for example, we're focused on informing actual human beings about Zionism and the facts relating to Israel and its 'matzav' [situation] - and not on getting Congress to pass laws or on getting the U.S. government to do, or not to do, some specific thing. So the existence of 'powerful' organizations having to do with Israel, even if they hold substantive positions I personally might agree with, is really neither here nor there when it comes to Z Street's reason for being”.

The group’s founders define three 'No's – echoing the Arab League's famous Khartoum Resolution of 1967: “No compromises. No negotiations. No concessions to terrorists."

Lowenthal Marcus adds: "And we refuse to use the vocabulary of those who have delegitimized and stolen the Zionist idea. Words like 'occupation', 'West Bank', and 'settlers' are weapons pointed at the heart of Zionism, not neutral instruments. The sooner people see that, the faster we’ll all attain clarity”.

One blog websites that reported the lawsuit was quick to add an illustration calling the IRS 'Obama’s Gestapo'.

The IRS, whose official response to Z Street's complaint is due in about two months, said in a statement:

“The IRS, by law, cannot comment on specific charities or even confirm whether a specific exemption request exists. When any organization applies for tax exempt status, it is the responsibility of the IRS to ensure that the organization’s funds will be used to accomplish charitable purposes. When a domestic charity is conducting or funding activities in the United States or overseas, we routinely ask questions about the nature of the charitable activities and the controls and oversight over the use of charitable funds. Depending on the facts and circumstances surrounding the organization and its activities, the agency may need to ask follow-up questions to further clarify the nature of the situation and to ensure that the final determination is consistent with federal tax law.”

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