-Caveat Lector- http://www.freedomforum.org/news/2000/12/2000-12-27-03.htm IRS Internet review worries tax-exempt groups By The Associated Press 12.27.00 A quiet Internal Revenue Service examination of how to apply the tax law restrictions for tax-exempt organizations to the groups’ Internet Web sites has raised an alarm. Some groups fear the move could lead to excessive government intrusion and stifle free speech. IRS officials, who published a notice in October seeking comment on the issue, say they’re merely considering whether to modernize laws that affect some 1.3 million entities exempt from taxes under section 501(c) of the tax code. But others aren’t so sure. “This request raises many concerns,” said House Majority Leader Dick Armey, R-Texas. “The idea of turning the tax man into a Net cop would have a chilling effect on free speech on the Internet.” Section 501(c) covers a wide range of tax-exempt organizations, including religious institutions, charities, foundations, public service entities and nonprofit groups. Those that qualify for Section 501(c)(3) can accept tax-deductible contributions but can’t engage in political activity. They can take part only in “insubstantial” lobbying. In addition, there are rules regarding income from activities such as advertising, fund-raising and issue advocacy. In its low-profile notice, released Oct. 16, the IRS asked for comment on a host of questions about how these rules translate to the increasing use of the Internet. Some tax-exempt organizations have raised concern that the IRS could hold them accountable� — and possibly revoke their tax-exempt status for their Web page links to political groups or for statements made in Web newsgroups or chat rooms. “I am very concerned with the IRS proposal because of the difficulty I would have with policing links from the site,” said Jim Harper, who runs a 501(c)(3) privacy-policy site called Privacilla.org. “I would easily have more than 1,000 links, each of which the IRS could find to be ‘advocacy’ because of the content on the other end.” Another 501(c)(3) group, the Citizens’ Council on Health Care, which is based in St. Paul, Minn., said in an e-mail that the IRS could produce rules that would “seriously limit public discourse and freedom of speech. Even if the Web site is eventually found to be innocent of the IRS charge, damage to the organization will be extensive.” But officials with the Treasury Department say the idea for updated IRS guidelines originated with tax-exempt groups themselves, including Independent Sector, a coalition of leading nonprofit and philanthropic groups, and the American Bar Association’s tax section. Washington attorney Pamela Olson, chairwoman of the ABA tax section, said the rules are “an area where we definitely need guidance. I think Treasury is listening closely to the comments.” Judy Kindell, IRS tax law specialist in the exempt organizations division, said the intent is to apply existing law for tax-exempt groups to new practices made possible by the Internet. The IRS, she said, is not attempting to enact new restrictions or rewrite the law. “We’re not trying to broaden our authority at all. We’re just trying to do our job and move it to the Internet age,” Kindell said. Some of the negative comments, she added, “go back to the underlying prohibition, not what happens when you take existing activities and move them to the Internet.” The IRS will accept comment on the issue through Feb. 13, and it is possible officials will decide to take no further action. If new guidelines are developed, Kindell said, it could take months or even years before they are finalized. ======================== <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance—not soap-boxing—please! These are sordid matters and 'conspiracy theory'—with its many half-truths, mis- directions and outright frauds—is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRLgives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://peach.ease.lsoft.com/archives/ctrl.html <A HREF="http://peach.ease.lsoft.com/archives/ctrl.html">Archives of [EMAIL PROTECTED]</A> http:[EMAIL PROTECTED]/ <A HREF="http:[EMAIL PROTECTED]/">ctrl</A> ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
