The Homa Files

Last week, we raised a couple of points re: the IRS – Tea Party flap.

First, we pointed out that organizations don’t need to seek IRS approval to operate as  a 501(c)4 … they can just do it.

Someday they might get the 501(c)4 status audited and  revoked, but since Tea Parties spend the money that they raise on their activities, there shouldn’t be any income to tax.

And, donations to a 5042(c)4 are not tax deductible.

If there isn’t a tax advantage to either the organization or it’s donors, why did the conservative organizations go through thee agony of applying?

The answer is simple … and, not surprisingly, upended by the IRS targeting …

What’s the benefit for organizations to get approved for 501(c)(4) status?

Donor anonymity.

Tea Party-iike organizations operate on donations.

And, many donors prefer to remain anonymous … to avoid, well, targeting by the IRS and liberal media.

By IRS statute, donors names don’t have to be revealed.

That’s the sought-after benefit!

= = = = =

An interesting twist

As part of the IRS targeting process, they asked Tea Parties for their donor lists?

Huh?

But, if the organization is legitimately a 501(c) 4, then the law says it can keep the donor list confidential.

So, the IRS minions were going right after the major benefit that the Tea Parties were seeking.

Double huh?

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This entry was posted on June 3, 2013 at 6:59 am and is filed under IRS, Obama Scandals, Tea Party. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.