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The IRS Should Revoke The NAACP And Julian Bond's Tax Exemption

By Joseph Boudreau
Oct. 29, 2004

The NAACP (National Association for the Advancement of Colored People) announced publicly that it is under investigation by the IRS (Internal Revenue Service). The NAACP implied the IRS action was a political move to silence it.

The IRS is reviewing the tax exempt status of the NAACP because of a violation of rules against partisan activity. In a letter dated October 8th, the IRS said it received information regarding a speech given at the NAACP Conference held in July at Philadelphia. The IRS asked who authorized the speech by Julian Bond, and sought an accounting of all expenses for the Philadelphia convention.

NAACP Chairman Julian Bond delivered the speech in question on July 11, 2004. Bond condemned the administration policies of George W. Bush on education, the economy, and the war in Iraq. Bond went on to say that Democratic presidential candidate John Kerry had accepted the group's invitation to speak, but Bush declined. "The differences between the candidates this year are neither incremental nor inconsequential", he said. Bond's words were a definite endorsement for John Kerry.

Tax law prohibits charities organized under Section 501(c)(3) from taking sides in political campaigns. The law restricts these organizations because donations are tax-deductible for the donor and, in effect, subsidized by the government.

Julian Bond called the IRS investigation a political move meant to deter the NAACP from its traditional role of registering and turning out black voters on election day, something he said has not been called into question over decades of such activity. Bond went beyond an attempt to get African-Americans to realize the necessity of exercising their right to vote. Bond endorsed a political candidate, and that is specifically forbidden by tax exempt organization regulations.

IRS Commissioner Mark Everson stated he cannot comment on any particular case but denied that politics is involved in the agency's enforcement decisions. "Any suggestion that the IRS has tilted its audit activities for political purposes is repugnant and groundless".

When asked why he waited three weeks to announce the IRS probe, until 5 days before the election, Julian Bond said he had to inform his board of directors about the action. I question the credibility of such a remark, in light of the recent propaganda to the effect that the Republican party is attempting to stifle minority votes. Bond's move comes across as another attempt to play "victim" politics and frighten African-American voters. In this age of fax machines, email, and teleconferencing, communications can be achieved almost instantaneously. For a national tax exempt organization, such as the NAACP, loss of tax exempt status could result in a major loss of revenue. It seems to me such a situation would constitute an emergency. It should not have taken three weeks to contact the NAACP Board, reach an agreement on a plan of action, and initiate action to resolve the conflict.

USA TODAY cited Frances Hill from the University of Miami Law School. Ms. Hill, allegedly an authority on non-profit groups, commented that it was, "Amazing that the IRS would audit a group based on a public speech. Usually you would look for some activity other than disagreeing with policies".

I don't know why Ms. Hill finds that amazing. The IRS has been doing the same thing to Christian churches for years. As a result, churches are very careful how they approach political elections. One method they have of informing their congregations is to disseminate voter guides that show stances on various issues held by all candidates for a given office. Another method employed is to invite all candidates for a given office to directly address the congregation. The church officials do not endorse any candidate, but allow each candidate to speak for themselves in a public forum. Such behavior falls within the prescribed IRS regulations for tax exempt organizations.

Despite Julian Bond's implications that the NAACP is being singled out for IRS audit due to its ethnicity or politics, that is not so. The NAACP is being held to the same standard that all other tax exempt organizations are held to. It is not an issue of Free Speech. Had Mr. Bond given the same speech at a non-tax exempt venue nothing would have been said about it by the IRS.

George Orwell wrote a great line in his novel, "Animal Farm": "All animals are created equal, but some are created more equal than others". Perhaps Mr. Bond perceives his "equal rights" as being "more equal than others".

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About the author Joseph Boudreau: I spent just under 24 years in the Navy, 9 on active duty, the rest in the Naval Reserves. From paygrade E-1 I advanced to paygrade O-4, and retired as a Lieutenant Commander.

Email: bunnyboggins@aol.com


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