Thursday, May 16, 2013

In Wake of IG Report, Evangelical Leaders Charge IRS Also Dealt Improperly With Religious Non-Profits

As widely reported, this week the Treasury Department's Inspector General for Tax Administration issued a report (full text) concluding that the Internal Revenue Service used inappropriate criteria in reviewing applications of Tea Party and similar conservative organizations for tax exempt 501(c)(4) status.  Now, two well-known Christian evangelical leaders are claiming that the IRS also dealt improperly with certain conservative religious non-profits.

In a May 14 press release, Dr. James Dobson said that Family Talk Action Corp., formed to provide Christ-oriented advice and education and speak on cultural issues that affect the family, filed its Form 1024 application for 501(c)(4) status in September 2011.  In March 2013 the group still had not received its determination letter. The attorney who filed the application had a conversation with the IRS reviewing agent. According to the press release:
Ms. Medley [the IRS agent] responded saying, I don't think your Form 1024 ... will be granted because Family Talk Action is "not educational" because it does not present all views.  She continued, saying that Family Talk Action sounded like a "partisan right-wing group" because, according to Ms. Medley, it only presents conservative viewpoints.  She then added, "you're political" because you "criticized President Obama, who was a candidate."
Opposing Views has more on the case.

Meanwhile, as reported by CNN, on May 14 prominent evangelical leader Franklin Graham wrote President Obama (full text of letter) complaining of tax audits last year.  After the Billy Graham Evangelistic Association ran full page ads supporting North Carolina's proposed Marriage Amendment, the Association as well as an affiliated group, Samaritan's Purse, were notified by IRS that a review would be conducted of their tax status as Section 501(c)(3) organizations for the 2010 tax year. Franklin wrote:
I do not believe that the IRS audit of our two organizations last year is a coincidence-- or justifiable.

UPDATE: On May 17, the Thomas More Society (TMS) announced that it has submitted 150 pages of materials (full text) to the House Ways and Means Committee which, according to TMS, shows IRS harassment of pro-life organizations.