The IRS Scandal, Day 968

Phil Kerpen (President, American Commitment), The Free Speech Silver Lining in the Budget Cloud:

The massive omnibus package of tax and spending changes recently passed by Congress was mostly a defeat for free-market economics. ... But the deal is actually a triumph in the single most important policy area: the First Amendment. ...

In 2012, Democrats won a national election by turning the IRS into a political intimidation agency, systematically destroying the vitality of the tea party movement that delivered a conservative wave in 2010. Given the level of scrutiny the agency is now under as a consequence, you might think there was no way they could use the same playbook to tilt the playing field for 2016. But the IRS was actually poised to propose official rules that would have been facially neutral but would have had the effect of silencing precisely the same groups that were sidelined by targeting in 2012.

This deal takes that risk off the table by expressly prohibiting such rules.

The deal also includes a comprehensive package of IRS reforms authored by Rep. Peter Roskam of Illinois that enjoy broad support but that until now had failed many attempts to be attached to a legislative vehicle that would be signed by the president.

That package includes a prohibition on IRS employees using private email address, as we know Lois Lerner and her coconspirators often did when orchestrating targeting, a mechanism for nonprofit groups to challenge IRS determinations in court so that they cannot be held indefinitely in limbo, and a provision requiring any IRS employee engaged in political targeting to be fired. (In the recent scandal nobody was: Even Lois Lerner was allowed to retire with her full pension.)

Most significantly, Roskam's reform package bans the IRS from trying to assess gift tax on contributions to nonprofit organizations, which they infamously attempted against conservative donors.

In 2011, donors to conservative groups were told that despite decades of clear legal understanding and practice, they could be found liable for gift tax on their contributions. While the IRS never did impose such a tax, the threatening letters they sent likely had a chilling effect on contributions to conservative groups, which was the point.

Taxing contributions to nonprofits would do nothing to advance the intended purpose of the gift tax — enforcing compliance with the federal estate tax — and would serve to dramatically diminish the ability of nonprofit groups to educate and mobilize citizens in the public policy process. Yet some liberal advocates continued to praise these abusive letters and even call for more of them to be issued.

Now donors have an ironclad legal guarantee that their contributions to nonprofit groups will not be subject to threatening IRS audit letters and arbitrary taxation.

The bottom line is that on a wide range of issues the omnibus deal is deeply disappointing, but the First Amendment provisions are an enormous silver lining because they mean activists will not be IRSed in 2016 the way they were in 2012. And that assures conservatives an honest opportunity to effectively engage the political process and come back to win on all the other issues.

• The IRS Scandal, Day 967 (Jan. 1, 2016)
• The IRS Scandal, Day 966 (Dec. 31, 2015)
• The IRS Scandal, Day 965 (Dec. 30, 2015)
• The IRS Scandal, Day 964 (Dec. 29, 2015)
• The IRS Scandal, Day 963 (Dec. 28, 2015)
• The IRS Scandal, Day 962 (Dec. 27, 2015)
• The IRS Scandal, Day 961 (Dec. 26, 2015)
• The IRS Scandal, Day 960 (Dec. 25, 2015)
• The IRS Scandal, Day 959 (Dec. 24, 2015)
• The IRS Scandal, Day 958 (Dec. 23, 2015)
• The IRS Scandal, Day 957 (Dec. 22, 2015)
• The IRS Scandal, Day 956 (Dec. 21, 2015)
• The IRS Scandal, Day 955 (Dec. 20, 2015)
• The IRS Scandal, Day 954 (Dec. 19, 2015)
• The IRS Scandal, Day 953 (Dec. 18, 2015)
• The IRS Scandal, Day 952 (Dec. 17, 2015)
• The IRS Scandal, Day 951 (Dec. 16, 2015)
• The IRS Scandal, Day 950 (Dec. 15, 2015)
• The IRS Scandal, Day 949 (Dec. 14, 2015)
• The IRS Scandal, Day 948 (Dec. 13, 2015)
• The IRS Scandal, Day 947 (Dec. 12, 2015)
• The IRS Scandal, Day 946 (Dec. 11, 2015)
• The IRS Scandal, Day 945 (Dec. 10, 2015)
• The IRS Scandal, Day 944 (Dec. 9, 2015)
• The IRS Scandal, Day 943 (Dec. 8, 2015)
• The IRS Scandal, Day 942 (Dec. 7, 2015)
• The IRS Scandal, Day 941 (Dec. 6, 2015)
• The IRS Scandal, Day 940 (Dec. 5, 2015)
• The IRS Scandal, Day 939 (Dec. 4, 2015)
• The IRS Scandal, Day 938 (Dec. 3, 2015)
• The IRS Scandal, Day 937 (Dec. 2, 2015)
• The IRS Scandal, Day 936 (Dec. 1, 2015)
• The IRS Scandal, Day 935 (Nov. 30, 2015)
• The IRS Scandal, Day 934 (Nov. 29, 2015)
• The IRS Scandal, Day 933 (Nov. 28, 2015)
• The IRS Scandal, Day 932 (Nov. 27, 2015)
• The IRS Scandal, Day 931 (Nov. 26, 2015)
• The IRS Scandal, Day 930 (Nov. 25, 2015)
• The IRS Scandal, Day 929 (Nov. 24, 2015)
• The IRS Scandal, Day 928 (Nov. 23, 2015)
• The IRS Scandal, Day 927 (Nov. 22, 2015)
• The IRS Scandal, Day 926 (Nov. 21, 2015)
• The IRS Scandal, Day 925 (Nov. 20, 2015)
• The IRS Scandal, Day 924 (Nov. 19, 2015)
• The IRS Scandal, Day 923 (Nov. 18, 2015)
• The IRS Scandal, Day 922 (Nov. 17, 2015)
• The IRS Scandal, Day 921 (Nov. 16, 2015)
• The IRS Scandal, Day 920 (Nov. 15, 2015)
• The IRS Scandal, Day 919 (Nov. 14, 2015)
• The IRS Scandal, Day 918 (Nov. 13, 2015)
• The IRS Scandal, Day 917 (Nov. 12, 2015)
• The IRS Scandal, Day 916 (Nov. 11, 2015)
• The IRS Scandal, Day 915 (Nov. 10, 2015)
• The IRS Scandal, Day 914 (Nov. 9, 2015)
• The IRS Scandal, Day 913 (Nov. 8, 2015)
• The IRS Scandal, Day 912 (Nov. 7, 2015)
• The IRS Scandal, Day 911 (Nov. 6, 2015)
• The IRS Scandal, Day 910 (Nov. 5, 2015)
• The IRS Scandal, Day 909 (Nov. 4, 2015)
• The IRS Scandal, Day 908 (Nov. 3, 2015)
• The IRS Scandal, Day 907 (Nov. 2, 2015)
• The IRS Scandal, Day 906 (Nov. 1, 2015)
• The IRS Scandal, Day 905 (Oct. 31, 2015)
• The IRS Scandal, Day 904 (Oct. 30, 2015)
• The IRS Scandal, Day 903 (Oct. 29, 2015)
• The IRS Scandal, Day 902 (Oct. 28, 2015)
• The IRS Scandal, Day 901 (Oct. 27, 2015)
• The IRS Scandal, Days 801-900 (July 19, 2015 - Oct. 26, 2015)
• The IRS Scandal, Days 701-800 (April 10, 2015 - July 18, 2015)
• The IRS Scandal, Days 601-700 (Dec. 31, 2014 - April 9, 2015)
• The IRS Scandal, Days 501-600 (Sept. 22, 2014-Dec. 30, 2014)
• The IRS Scandal, Days 401-500 (June 14, 2014 - Sept. 21,2014)
• The IRS Scandal, Days 301-400 (Mar. 6, 2014 - June 13, 2014)
• The IRS Scandal, Days 201-300 (Nov. 26, 2013 - Mar. 5, 2014)
• The IRS Scandal, Days 101-200 (Aug. 18, 2013 - Nov. 25, 2013)
• The IRS Scandal, Days 1-100 (May 10, 2013 - Aug. 17, 2013)