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

Wednesday, October 10, 2018

IRS Internal Watchdog Faults Vigilance On Nonprofits' Political Activities

TIGTAWall Street Journal, IRS Internal Watchdog Faults Vigilance on Nonprofits' Political Activities:

The IRS is still struggling with its role policing nonprofit groups’ political activities, the tax agency's inspector general said in a new report [Review of the Processing of Referrals Alleging Impermissible Political Activity by Tax-Exempt Organizations (2019-10-006) (Oct. 4, 2018)].

The report included no allegations of political bias inside the Internal Revenue Service, but the inspector general found IRS officials aren't sending enough allegations of impermissible political activity—such as involvement in a partisan campaign—to the Political Activities Referral Committee of managers responsible for deciding whether to pursue enforcement.

Based on the inspector general's sample, more than 1,000 cases in 2015 and 2016 could have gone to the the three-person committee, the report said. The committee reviewed 19 high-profile cases.

"There should be limits on the use of discretion in this area given the potential that bias could enter into decisions of whether or not to refer these types of cases for examination," said the report, released Tuesday.

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