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ISSUE

IRS Funding

Published:2014-Jul-14
Last Updated:2015-Apr-15
Principal Writer:Barry Shatzman

Issue Sections

Understanding The Issue
Issue Status
Our Analysis and Actions
What You Can Do
The Rumor Mill

Reported News

Gov Services: Internal Revenue Service

Related Bills

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 The office responsible for determining nonprofit status received 1,000 more applications in 2012 than it had in the previous years.

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?

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