Z STREET, a pro-Israel non-profit corporation, filed a lawsuit in federal court today charging that the IRS violated the organization’s First Amendment rights. The suit was filed after Z STREET was told by an IRS official that its application for tax-exempt status has been delayed because an IRS policy requires consideration of whether a group’s views on Israel differ from those of the current Administration.
“Not only is it patently un-American but it is also a clear violation of the First Amendment for a government agency to penalize an organization because of its political position on Israel or anything else,” said Z STREET president Lori Lowenthal Marcus, a former First Amendment lawyer. “This situation is the same as if the government denied a driver’s license to people because they were Republicans or Democrats. It goes against everything for which our country stands.”
Z STREET filed for tax-exempt status in January of this year and, despite having met all of the requirements for grant of this status, the application has been stalled.
An IRS agent told Z STREET’s lawyers that the application was delayed because of a Special Israel Policy that requires greater scrutiny of organizations which have to do with Israel, in part to determine whether they espouse positions on Israel contrary to those of the current Administration.
Z STREET is a Zionist organization that proudly supports Israel’s right to refuse to negotiate with, make concessions to, or appease terrorists. Z STREET’s positions on Israel and, in particular, on the Middle East “peace process” differ significantly from those espoused by the Obama administration.
If Z STREET had tax-exempt status, its donors would be able to deduct contributions from their taxable income. The IRS's refusal to grant tax-exempt status to Z STREET has inhibited the organization‘s fundraising efforts, and therefore impeded its ability to speak and to educate the public regarding the issues that are the focus and purpose of Z STREET.
The lawsuit, Z STREET v. Shulman, Commissioner of Internal Revenue, was filed today in the United States District Court for the Eastern District of Pennsylvania.
J-Street on the other hand had no problem getting it.
By the way, it is illegal for a 501(c)(3) to endorse a political candidate.
That's why J-Street created three "separate" legal entities in the same J-Street family (and office), so they can get around that little problem by claiming each division to be legally independent.
The J Street family consists of three legally independent organizations:Do you think they're doing a good job keeping their departments separate on anything but paper? I'm sure they're very smart about keeping things looking separate on paper, and that's probably where it counts the most.
J Street is itself a 501(c)(4) non-profit corporation, and a registered lobbying organization, which uses online organizing, advocacy, and education to achieve its goals on Capitol Hill and with the Executive Branch.
JStreetPAC is a legally independent political action committee and is the first PAC specifically established to endorse and raise money for candidates for federal office who support active American leadership to bring peace and security to Israel and the Middle East. In its first year, JStreetPAC raised nearly $600,000 for its 42 endorsed candidates for U.S. Congress, 34 of whom won their races.
J Street Education Fund, Inc. is a 501(c)(3) charitable organization. It aims to educate targeted communities about the need for a two-state solution to the Israeli-Palestinian conflict, raise the visibility of a mainstream pro-Israel, pro-peace presence within the American Jewish community, and promote open, dynamic and spirited conversation about how to best advance the interests and future of a democratic, Jewish Israel. J Street Local, J Street’s national field program and J Street U, J Street’s on campus movement are programs of the J Street Education Fund.
(But if you personally think that J-Street is in violation of their tax exempt status, you can certainly contact IRS Customer Service operations concerning tax-exempt organizations at (877) 829-5500 (toll-free number). The call center is open 8:00am to 9:30pm Eastern Time.)
But we're talking Z Street in this post, not J Street.
I simply find it strange that non-profits dealing specifically with Israel undergo extra scrutiny, and can be denied tax exempt status by having a policy that disagrees with the current Regimes.
It sounds almost unconstitutional.
Wherever I am, my blog turns towards Eretz Yisrael טובה הארץ מאד מאד
