Tag Archives: Z-Street

Federal Court rules in favor of lawsuit against IRS for harassment

The federal court of appeals today ruled in favor of the pro-Israel organization Z Street in its lawsuit against the IRS for specifically harassing them because their positions disagreed with the Obama administration.

To review:

Z STREET filed its lawsuit against the IRS in August, 2010, on the basis of statements made to its counsel by the IRS agent reviewing Z STREET’s application for 501(c)(3) charitable tax exempt status, filed in 2009. That agent revealed that the IRS has an “Israel Special Policy” which gave differential treatment to tax exemption applications from organizations holding views about Israel inconsistent with those espoused by the Obama administration, scrutinizing such applications differently and at greater length, than those made by organizations which did not hold such views. [emphasis mine]

As I like to say, the IRS, rather than doing tax enforcement, has been instead very specifically working as a lobbying agent for the Democratic Party and Barack Obama. The Z Street case documents it, and is now going to document it far more thoroughly than any Democrat or Obama can imagine.

The organization says it looks forward to the discovery phase of litigation in which it will seek to learn the nature and origin of the “Israel Special Policy” which the IRS applied to Z Street’s tax exemption application. Z Street will seek to learn how such a policy was created, who created it, who approved it, to whom it was applied, as well as all other information regarding this policy.

What Z Street learns will be directly useful to the conservative organizations that the IRS also harassed illegally. It might also do great political harm to a number of prominent Democratic Party elected officials.

Another lawsuit presses the IRS

A third lawsuit against the IRS, this one by True the Vote, will demand answers at a hearing on July 11 about those lost emails.

This lawsuit is in addition to the Z-Street and the Judicial Watch suits. Thus, we now have three different judges in three different courts pushing back at the IRS coverup, with hearings scheduled for July 10 and July 11.

As I said, things should get very hot for the IRS and the Obama administration come mid-July.

Another legal case that could blow the IRS open

The lawsuit of a pro-Israeli organization, filed in August 2010, makes the IRS extremely vulnerable to deep legal investigation.

[Y]esterday saw the beginning of the discovery phase in the lawsuit by Z-Street a pro-Israel organization that was told its application for tax exempt status was being delayed because “…these cases are being sent to a special unit in the DC office to determine whether the organization’s activities contradict the Administration’s public policies.” …
Judge Jackson gave the IRS until June 26 to respond to Z-Street. That deadline has now passed, so the case enters discovery. This means that Z-Street can subpoena IRS officials, place them under oath, and ask them questions about how they acted, and cross examine them closely. They can also subpoena documents and require their production. This is much different than a House committee hearing in which members have only a few minutes to ask questions, and when friendly Democrats have their opportunity to apologize for the impertinence of daring to ask questions of our IRS masters. Depositions taken under oath can last many hours and involve detailed questions.

What makes the Z-Street case unique and potentially extremely damaging is that its lawsuit was filed in August 2010. That filing placed the IRS under legal obligation to preserve records.

As the article notes, as a legal proceeding it will be practically impossible for the IRS to stonewall, as it has done during Congressional hearings. Like the Judicial Watch case that will have a hearing on July 10, the IRS was required under the law to make sure evidence was not destroyed, and failed to do so. And like that case, the court will have the right to demand answers about that failure and get them.

I want to underline the basis of the Z-Street case: An IRS official admitted that this organization’s tax exempt status was being delayed merely because its “activities contradict the Administration’s public policies.” Think about that. The IRS believes it can decide your tax liability and status based on your political opinion.

Doesn’t that capture in a nutshell the entire scandal, in which the IRS was used as a weapon to harass opponents of the Democratic Party and specifically of Barack Obama.