In a follow-up to
the legal troubles of Z Street,
here is the affadavit of an IRS employee which is straight forward: if you contribute charitable funds to Israel, you may be supporting terrorism and therefore, the organization which is the recipient of your contributions can have its tax exmpt status held up. Z St. comments included:
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF PENNSYLVANIA
Z STREET, INC.,
Plaintiff, No.2:IO-cv-04307-CMR
v.
DOUGLAS H. SHULMAN, IN HIS OFFICIAL CAPACITY
AS COMMISSIONER OF INTERNAL REVENUE,
Defendant.
DECLARATION OF JON WADDELL
I, Jon Waddell, pursuant to 28 U.S.C. § 1746, do hereby declare as follows:
1. I am the Manager of Exempt Organizations Determinations Group 7830 (the Touch-and-Go or "TAG" Group). I have held this position since November, 2009. I have been employed by the IRS since August, 1998.
2. On July 23, 2010, Bill Angner, a Manager in the Exempt Organizations Determinations Group contacted me regarding Z Street's application for recognition of exempt status and whether or not a referral to the TAG group was appropriate.
3. On that date, I spoke with Bill and reviewed Z Street's application, including website printouts of Z Street's website, www.zstreet.org. I determined that a referral to the TAG group was appropriate because, among other things:
a. The application indicated that Z Sreet could be providing resources to organizations within Israel or facilitating the provision of resources to organizations within the state of Israel; [THERE IS NOT NOW, NOR HAS THERE EVER BEEN, BECAUSE IT IS NOT TRUE, ANY INDICATION AT ALL THAT Z STREET PROVIDES ANYONE OR ANYTHING IN ISRAEL WITH ANY RESOURCES. ADDED BY Z ST]
b. Israel is one of many Middle Eastern countries that have a "higher risk of terrorism." (LR.M. 7.20.6.7.5.2(1). See also http://www.state.gov/s/ct/rls/crt/2008/122433.htm); and
c. A referral to TAG is appropriate whenever an application mentions providing resources to organizations in a country with a higher risk of terrorism. [IN OTHER WORDS, ISRAEL SUPPORTERS ARE TREATED AS IF THEY ARE AS LIKELY TO BE SUPPORTERS OF TERRORISM AS ARE ACTUAL SUPPORTERS OF TERRORISTS BECAUSE TERRORISM HAPPENS IN ISRAEL. ADDED BY Z ST.]
A referral to the TAG group does not indicate that the organization supports terrorism, only that further development is necessary to ensure that the organization will put procedures in place to prevent resources from being used to support terrorism. [FURTHER, THE Z STREET CHARTER SPECIFICALLY OPPOSES TERRORISM AND OPPOSES DEALING WITH TERRORISTS IN ANY WAY./Z ST]
5. For instance, the TAG group ensures that organizations that may provide resources to countries with a heightened risk of terrorism:
a. Are aware of the Office of Foreign Assets Control ("OFAC") requirements regarding providing funds to foreign countries; [HAD Z STREET BEEN ASSIGNED TO THE TAG GROUP AS WADDELL STATES, HOW IS IT THAT 5 MONTHS LATER THE IRS TAG GROUP HAS STILL NOT TAKEN ANY EFFORTS TO ENSURE IT IS AWARE OF ANY OF THESE ISSUES? ADDED BY Z ST]
b. Have procedures in place to ensure that resources are not diverted to individuals and organizations on the OFAC list; and [SEE ABOVE. " "]
c. Have procedures in place to ensure that any grants they give are used for appropriate, charitable purposes. [SEE ABOVE/ " "]
6. Z Street's application was not referred to the TAG group because of an "Israel Special Policy" as alleged in Z Street's complaint.
7. Z Street's application was not referred to the TAG group because its viewpoints on Israel contradict the viewpoints espoused by the Obama administration.
CERTIFICATION
I declare under penalty of perjury that the foregoing is true and correct.
Executed on: [Dec. 8, 2010] Jon WADDELL [Original signed]
Manager,
Exempt Organizations Detenninations Group 7830,
Internal Revenue Service.
Full brief is
here.
I am waiting for comments by lawyers and attorneys but on the face of it, it could be argued that the IRS has created a detour system for harrassing groups they don't especially like, or that oppose Administration policies, in disguise. It is highly suspect that the potential threat of terrorism would play a role in this administrative procedure.
First, the IRS's duty, I think, is limited to whether or not the monies a group distribute go to the organizations listed and not another group or that the goals of the receiving group are legitimate and worthy. It is another orgnaization's duty to decide whether the group is practicing crime.
For example, a resident of a prison in the States cannot vote. Does an Election Board official have to check whether a Mr. X is committing a crime which may make him a potential prison resident and therefore his right to vote is cancelled?
Second, as pointed out, if there is a terrorist threat, it is one that Z Street would seem to alleive by promiting policies that seek to strengthen Israel's security through a proper US appraoch to diplomacy.
In addition, I would think that if only in July the doubts arose, after several months of review of Z Street's application, then definitely there is foot-dragging here.
Come back for more.
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