Tax Exempt Status

So now the Republicans want to turn the debate over requiring insurance companies to cover contraceptives into a debate about religious freedom? They argue no one should be forced to support (with their tax dollars) activities that conflict with their religious views. I'll set aside for the moment the argument that insurers covering free contraceptives actually save money in the long run due to reduced health-care costs. I'll also set aside the fact that most Catholic women don't agree with the all-male bishopric that is setting the rules for them.

Arguing that the congressional investigation into the IRS should be concluded, Rep. Elijah E. Cummings said Sunday that closed-door interviews with the agency's staff show neither the White House nor officials in Washington had a hand in targeting conservative groups for added scrutiny. The House Committee on Oversight and Government Reform has been conducting interviews for several days with managers in the Internal Revenue Service's Cincinnati office, which is responsible for reviewing applications for tax exempt status.

More than 6,700 small nonprofits in Maryland could lose their tax-exempt status unless they file tax returns for past few years by Oct. 15, according to the IRS. It used to be that small nonprofits with $25,000 or less in income didn't have to file a federal return. The Pension Protection Act of 2006 changed that. The agency made a variety of efforts to contact the groups, including sending letters in 2006 and 2007 to the last-known addresses of these organizations, said Jim Dupree, IRS spokesman in Baltimore.

Is the Internal Revenue Service really doing its job when the only organizations subject to delay and refusal of tax exempt status are ones that are opposed to current administration policies? For the IRS there appears to have been a very definite bias, at least at the lower levels ("At hearing, IRS official mum," May 23). The only question that remains is whether this was a decision by the individual employee of the IRS or whether the effort to hinder the granting of tax exempt status originated at the very top, including even the White House.

While not a member of the flock, I think some of the Catholic Church's recent actions in the political arena might hold good news for the rest of us. In Maryland, for example, the church has announced plans to help overturn the gay marriage law, as well as to ensure that Catholic organizations don't have to provide birth control. Having so obviously violated the separation of church and state, the church should also be forfeiting its tax-exempt status. As a Baltimore taxpayer, I pay the highest property taxes in the state.

Soccer clubs, PTAs, community associations, a temperance union and inactive foundations belonging to a couple of Baltimore sport legends are among the thousands of Maryland groups that have had their tax-exempt status revoked by the Internal Revenue Service. About 275,000 organizations nationwide — including nearly 6,200 in Maryland — lost their tax-favored status last week for failing to file annual returns for three years in a row. The IRS says it believes the vast majority of them are defunct.

Time is running out for nearly 6,800 Maryland nonprofits to get right with the IRS or lose their tax-exempt status. The nonprofits, which haven't submitted a tax return for three years in a row, have until Oct. 15 to file a return. If they fail to do so, their tax-favored status automatically will be revoked. That could have serious financial consequences. "If they receive donations from taxpayers, those donations aren't tax-deductible," says Jim Dupree, IRS spokesman in Baltimore.

Arguing that the congressional investigation into the IRS should be concluded, Rep. Elijah E. Cummings said Sunday that closed-door interviews with the agency's staff show neither the White House nor officials in Washington had a hand in targeting conservative groups for added scrutiny. The House Committee on Oversight and Government Reform has been conducting interviews for several days with managers in the Internal Revenue Service's Cincinnati office, which is responsible for reviewing applications for tax exempt status.

The Internal Revenue Service has revoked the tax-exempt status of a Baltimore County charity -- headed by women in their 70s and 80s -- for having a paid employee at bingo games."

Anne Arundel's Economic Development Corp. may have run afoul of federal tax regulations, putting at risk hundreds of thousands of dollars in state and federal grants meant to boost the county's economic growth.In light of revelations that the agency lent money to companies with financial ties to some board members, the Internal Revenue Service could revoke the agency's tax-exempt status, which qualifies it for such grants.Domenic J. LaPonzina, chief IRS spokesman, said he could not confirm whether the IRS is investigating the agency but added that the law prohibiting nonprofits' board members from profiting from board decisions is taken seriously.

On Wednesday, President Barack Obama fired the head of the Internal Revenue Service, the first sacrificial lamb brought down after the alleged "targeting" of conservative political groups by the IRS. Mr. Obama declared, "Americans are right to be angry about it. " Call me out of step, but I am angrier that the president is joining the rush to judgment. All that is known for sure is that some IRS functionaries took a shorthand route to identify partisan political groups that might be pretending not to be political so that they could get the tax exempt status available to social welfare organizations.

Like most people, I was originally horrified by the reported targeting of tea party groups ("IRS head forced to go," May 16). I am now less horrified. It is reported that various tea party groups were requesting tax exempt status as a "social welfare" group. We now need to know the definition of a "social welfare" group. Entities operating under the umbrella of the tea party would not appear to qualify. Of course, this tempest in a tea pot does highlight some interesting issues. Do we wish to expand the number of entities claiming tax exempt status or should we limit the number of groups not paying taxes?

The real scandal is why the IRS approved for tax-exempt status organizations that were plainly political and not "social welfare" organizations, as section 501(c)(4) of the Internal Revenue Code requires ("Taxing the tea party," May 14). The GOP's phony outrage obscures the fact that not a single application from the tea party-affiliated organizations for tax exempt status was denied. They probably should have been. Mark Davis, Baltimore

Loyal readers of this page are likely aware that we have not been great supporters of the tea party movement. Too often, we have found those anti-tax crusaders who call themselves tea party patriots are simply rebranded John Birch Society members of an earlier time with all the extremist anti-civil rights, anti-immigration, and anti-United Nations rhetoric that comes with it. But the latest disclosure - gleaned from a draft inspector general's report...

In his letter ("If the church wants to play politics, it should give up its tax-exempt status" July 6), the author seems to have a problem with the Catholic Church's right to express opinions on religious matters. The church does not endorse political candidates or promote political causes. If it were politically active, it would have strongly advised people to vote against President Barack Obama, who is a powerful advocate for all forms of abortion. Nor, would the church have allowed his commencement speech at a Catholic University.

While not a member of the flock, I think some of the Catholic Church's recent actions in the political arena might hold good news for the rest of us. In Maryland, for example, the church has announced plans to help overturn the gay marriage law, as well as to ensure that Catholic organizations don't have to provide birth control. Having so obviously violated the separation of church and state, the church should also be forfeiting its tax-exempt status. As a Baltimore taxpayer, I pay the highest property taxes in the state.

The facts sound familiar: a class designed to train political activists using tax-deductible money, involving House Speaker Newt Gingrich of Georgia, with organizing help from Republican Party officials.A lengthy investigation of the class concludes that those GOP ties were misrepresented to government officials.But it isn't "Renewing American Civilization," the class at the center of the ethics case currently tormenting Gingrich. It's the American Campaign Academy, a case with striking parallels made all the more intriguing because the same individuals played key roles in both enterprises.

So now the Republicans want to turn the debate over requiring insurance companies to cover contraceptives into a debate about religious freedom? They argue no one should be forced to support (with their tax dollars) activities that conflict with their religious views. I'll set aside for the moment the argument that insurers covering free contraceptives actually save money in the long run due to reduced health-care costs. I'll also set aside the fact that most Catholic women don't agree with the all-male bishopric that is setting the rules for them.

Soccer clubs, PTAs, community associations, a temperance union and inactive foundations belonging to a couple of Baltimore sport legends are among the thousands of Maryland groups that have had their tax-exempt status revoked by the Internal Revenue Service. About 275,000 organizations nationwide — including nearly 6,200 in Maryland — lost their tax-favored status last week for failing to file annual returns for three years in a row. The IRS says it believes the vast majority of them are defunct.