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Advocacy Blog
Wednesday, September 20, 2006
Congressmen Accurately React to IRS Political Activity Compliance Initiative (PACI)
On Monday September 18, Representatives Adam Schiff (D-Calif.) and Walter Jones (R-N.C.) sent a letter to the Internal Revenue Service expressing great concern over its Political Activity Compliance Initiative (PACI). They intently warn that the IRS initiative could be a harmful obstruction to an exempt organizations' capacity to discuss matters of public policy. They are asking that the IRS alter the political intervention rules to be clearly well defined for nonprofits. The letter specifically addresses investigations into houses of worship, with the point that the free speech of clergy is at stake.
Despite the release of additional IRS guidance on political intervention, we are unclear as to why statements that solely take an opinion on issues of the day are grounds for revocation of a tax exemption.
Schiff and Jones also referred to the OMB Watch report released in July.
The OMB Watch report showed that the IRS claims of violation were based only on cases not dismissed after two rounds of investigations and that no violation was found in nearly two-thirds — 64 percent — of all completed investigations.
The letter to the IRS can be found here.
Posted by Amanda Adams
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