Is the IRS Targeting Pro-Israel Groups?

A Jewish group called "Z Street" is suing the IRS, claiming that its application for tax-exempt status is being held up on account of its support for the State of Israel. "Z Street" has introduced a letter it has acquired in federal court to back up this claim.

According to Politico:

"A Pennsylvania Jewish group that has claimed the Internal Revenue Service is targeting pro-Israel groups introduced in federal court today a letter from an IRS agent to another, unnamed organization that tax experts said was likely outside the usual or appropriate scope of an IRS inquiry.

"'Does your organization support the existence of the land of Israel?' IRS agent Tracy Dornette wrote the organization, according to this week's court filing , as part of its consideration of the organizations application for tax exempt status. 'Describe your organization's religious belief system toward the land of Israel.'"

While the IRS can deny an organization tax-exempt status for work against "established public policy," such as engaging in racial discrimination, an inquiry into the political beliefs of an organization seems unusual-at best.

While outside tax experts consulted in the Politico story believe that the question was the result of a "misguided" agent, "Z Street" has suggested that its organization has been targeted for its pro-Israel views by the IRS. According to Politico:

"Z Street maintains, however, that the questions are more evidence of a broader policy targeting pro-Israel groups. The organization claims that the agency is 'improperly considering the political viewpoint of applicants' and engaging in 'clear viewpoint discrimination.'"

Considering the pro-Arab tilt by the Obama administration, the charge is not exactly a frivolous one. The administration has been pressuring Israel to make concessions with its Palestinian neighbors and has attacked the Israeli government over housing construction in eastern Jerusalem. At the same time, the Obama White House has restrained Israel from openly attacking Iran's nuclear weapons program, preferring to pursue a diplomatic route. Israel is suspected of conducting clandestine operations against Iran, however.

Use of the IRS to pressure political opponents is not exactly without precedence either. The IRS as a political weapon has been a feature of government under some of the less scrupulous presidents since at least Franklin Roosevelt. Barack Obama may not be above indulging in that sort of thing.

Whether the letter obtained by "Z Street" constitutes a "smoking gun" pointing to a systematic campaign of viewpoint discrimination by the IRS, or is just a one-time anomaly, is a question for the court to decide. The suspicion raised that the administration is targeting the so-called "Jewish Lobby," so-named by people who complain about what they consider to be undue influence American Jews have on American foreign policy, is likely to be politically damaging to the Obama administration.

Source: IRS to Jewish group: 'Does your organization support the existence of the land of Israel?' Ben Smith, Politico, November 24th, 2010