TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Sunday, February 21, 2016

The IRS Scandal, Day 1018

IRS Logo 2Peter J. Reilly (Forbes), IRS Rules Bingo Is For Charities Not A Charity In Itself:

[Y]ou cannot qualify an organization for exempt status if what it does is mostly run bingo games.  That was more or less the essence of Private Letter Ruling 201603039. ...

The portion of the IRS that concerns itself with exempt organizations is reeling from the fallout of the interminable scandal.  It has come in for criticism from the other side now for its granting of exempt status to Karl Rove’s Crossroads GPS, which was pretty explicitly started to avoid spending disclosure for poltical activity.  And here we have the IRS worrying about what organizations can run bingo.  Paul Streckfus has been following it in great detail in his EO Tax Journal and is advocating getting the IRS out of these matters entirely.

With its surrender to Crossroads GPS, I believe the argument for getting EO regulation out of the IRS has just been made stronger. The IRS as an institution has now demonstrated repeatedly that it is totally incapable of providing meaningful regulation of the EO sector. I recognize that Congress is partly responsible for these repeated IRS failures, but that excuse only goes so far.

I think he is right.

http://taxprof.typepad.com/taxprof_blog/2016/02/the-irs-scandal-day-1018.html

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Comments

We can't really take Democrats seriously when they don't want the tens of thousands of Democrat activist groups to live by the same rules. They can't even explain how OFA gotmexempt status despite be explicitly political. Bunch of totalitarian hypocrites that want to strip the victims of their policies of free speech rights.

Posted by: Wodun | Feb 21, 2016 5:05:48 PM