Breaking News! New IRS Chief to Even Out Audits

Striving to move beyond the political fallout of the IRS’s scandalous treatment of conservative and libertarian organizations that sought nonprofit status, President Barack Obama  appointed senior White House budget officer Daniel Werfel as acting commissioner of the Internal Revenue Service Thursday. 

In a companion move that appears calculated to reestablish the Internal Revenue Service’s bona fides as an even-handed, neutral arbiter of the law, it is expected that Werfel will launch audits of multiple organizations previously granted nonprofit status.  The new targets of the IRS review will include Netroots Nation, a 501 (c)(3) nonprofit, the Center for American Progress a 501 (c)(4) organization, and NARAL Pro-Choice America, also registered under Section 501 (c)(4) of the Internal Revenue Code.  White House officials insist that these organizations have come up for audit under the IRS’s standard management review cycle.  The IRS will investigate political lobbying activity.  It is not lawful for organizations to claim they serve an educational or social welfare purpose, when they are actually organized for the purpose of lobbying members of Congress and influencing officials in the Executive Branch.      

Netroots represents a broad coalition of left leaning and progressive organizations.  The Netroots website describes its influencing role as follows. 

Think of the Netroots as a big political family. We may not agree on everything but common threads connect us—for example, we stand for an America where every person deserves a good job with fair wages and equal opportunity. Our tent may be broad but we all can agree that America has gone off the rails and it’s time to get back on track with policy that is fair and just for everyone. 

The Washington, DC based Center for American Progress is chaired by John Podesta whose political resume and connections to the President include the following.

Prior to founding the Center in 2003, Podesta served as White House chief of staff to President William J. Clinton. He served in the president’s cabinet and as a principal on the National Security Council. While in the White House, he also served as both an assistant to the president and deputy chief of staff, as well as staff secretary.

Podesta served as co-chair of President Barack Obama’s transition, where he coordinated the priorities of the incoming administration’s agenda, oversaw the development of its policies, and spearheaded its appointments of major cabinet secretaries and political appointees. 

The Center describes its American political operation as follows.

How we work

Through dialogue with leaders, thinkers, and citizens, we explore the vital issues facing America and the world. We develop a point of view and take a stand. We then build on that and develop bold new ideas.

We shape the national debate. We share our point of view with everyone who can put our ideas into practice and effect positive change. That means online, on campus, in the media, on the shop floor, in faith communities, and in the boardroom. Our progressive partners—including the CAP Action Fund—take our ideas to Congress and statehouses. 

The third nonprofit, NARAL Pro-Choice America, pushes its abortion rights agenda by targeting both Congress and the Executive for action.

The President

President Obama can do a lot to affect pro-choice policies.

· President Obama picks the people who oversee services important to women's health. He also nominates women and men to serve as judges on federal courts.

· President Obama can use executive orders to change some policies. Just after entering office, he canceled the anti-choice global gag rule.

· President Obama proposes the federal budget. Choice is part of many programs.

· President Obama has the power to sign into law or veto choice-related laws Congress passes. 

Learn more about the powers of the president (PDF)

Congress

Congress—the House and Senate—creates laws and spends money on many health programs. The Senate also approves people the president picks to serve as judges or in key government positions. Right now, pro-choice lawmakers are outnumbered in both the House and Senate.

Find out how members of Congress voted on choice-related issues in 2012.

If the audits find the organizations have worked outside the scope of nonprofit charters, the entities will be required to file tax returns for the last three years, and will be assessed interest and penalties on their tax liability.  Per standard IRS practice, assets will be seized, as necessary, to pay monies due the U.S. Treasury.  Individuals who made tax deductible contributions to any of these organizations or affiliates may also be assessed for tax deficiencies.  If evidence is adduced of willful violation of the Internal Revenue Code during the audits, officials of the organizations may be referred to the Justice Department for criminal prosecution.