The IRS Scandal, Day 1315: Bureaucratic Bumbling Or Targeting Of Conservatives?

Forbes: IRS Says Fixing Up Your Own House Is Not Charity, by Peter J. Reilly:

Got a run down old house that needs some spiffing up? Here is an idea. Get it designated an historic landmark. Then you can form a not-for-profit and get grants to do some renovations. Since it is an historic landmark, you'll have to let people see it sometimes. ...

[I]t did not end well for the organization (Let's call it This Really Old House (TROH))) that was the subject of Private Letter Ruling 201648020. ...

[T]he gatekeeper sorting the wheat from the chaff is the IRS Tax Exempt and Government Entities Division, sometimes referred to as EO. There are also state agencies of greater or less ferocity, usually the Attorney General rooting out phony charities, but mainly we seem to rely on IRS EO to prevent the charitable sector from being overrun by the less than charitable. The reliance was probably never that reasonable, but the developments over the last few years have made things much worse.

At its very heart the interminable IRS scandal, now on Day 1312 by TaxProf count was about exempt status applications.  Applications from Tea Party and similar organizations were held up and applicants were asked intrusive question.  Here is the thing. I am the last agnostic on the IRS scandal.  Was it bureaucratic bumbling or targeting of conservatives? I never found the targeting argument persuasive, but both Joe Kristan and George Will did, which gives me pause.

Regardless of whether it was bumbling or targeting, the end result has not been good for the integrity of the charitable sector. The IRS has streamlined the process and now many, possibly most applications are receiving no scrutiny thanks to the new Form 1023-EZ. You can find commentary to the effect that the corrupt IRS is still persecuting the Tea Party. I really think the only way out of the mess is to turn the vetting of exempt status over to a different agency. In the states supervision of not for profits generally falls under the Attorney General, not the revenue department. Maybe they are on to something.

The targeting believers will never accept that the IRS has been punished enough or that enough will be done to protect against future targeting, so taking the job away from the IRS might be the only way out of a downward spiral.

• The IRS Scandal, Day 1314: How The Trump Administration Can Stop IRS Abuse of Political Groups (Dec. 13, 2016)
• The IRS Scandal, Day 1313: The Koskinen-Trump Connection (Dec. 12, 2016)
• The IRS Scandal, Day 1312: Impeachment Averted, But Will Koskinen Resign Or Be Fired By President Trump? (Dec. 11, 2016)
• The IRS Scandal, Day 1311: The IRS 'Scandal' Was Part Of GOP's Strategy To Bog Down Obama Administration (Dec. 10, 2016)
• The IRS Scandal, Day 1310: Rep. Jim Jordan Is 'Frustrated' By House Passing On IRS Chief Koskinen's Impeachment (Dec. 9, 2016)
• The IRS Scandal, Day 1309: How Trump Got Yanked Into GOP's IRS Impeachment Fight (Dec. 8, 2016)
• The IRS Scandal, Day 1308: House Votes To Send Koskinen Impeachment Back To Judiciary Committee (Dec. 7, 2016)
• The IRS Scandal, Day 1307: Group Seeks Summary Judgment On Claim That Rev. Rul. 2004-6 Is So Vague That It Allows The IRS To Target Conservative Groups (Dec. 6, 2016)
• The IRS Scandal, Day 1306: Government Rejects Claim That Rev. Rul. 2004-6 Allows The IRS To Target Conservative Groups (Dec. 5, 2016)
• The IRS Scandal, Day 1305: Group Seeks Summary Judgment On Claim That Rev. Rul. 2004-6 Is So Vague That It Allows The IRS To Target Conservative Groups (Dec. 4, 2016)
• The IRS Scandal, Day 1304: 'The IRS Has Never Stopped Targeting Conservatives' (Dec. 3, 2016)
• The IRS Scandal, Day 1303: Group Sues IRS For Failure To Produce Communications With Joint Committee on Taxation (Dec. 2, 2016)
• The IRS Scandal,  Day 1302: The 'Corrupt' IRS Is Still Persecuting The Tea Party (Dec. 1, 2016)
• The IRS Scandal, Day 1301: If Koskinen Is Impeached Or Fired, Trump Could Appoint New IRS Commissioner To Go Easy On His Taxes (Nov. 30, 2016)
• The IRS Scandal, Days 1201-1300 (Aug. 22, 2016 - Nov. 29, 2016)
• The IRS Scandal, Days 1101-1200 (May 14, 2016 - Aug. 21, 2016)
• The IRS Scandal, Days 1001-1100 (Feb. 4, 2016 - May 13, 2016)
• The IRS Scandal, Days 901-1000 (Oct. 27, 2015 - Feb. 3, 2016)
• 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)