A pro-Israel group called “Z Street” has sued the IRS for allegedly impeding or denying applications for tax-exempt status by groups that oppose the government’s policies towards Israel. However, most tax law experts are of the opinion that the group’s allegations are not reasonable.
“Z Street” feels that a letter they received from an IRS agent was outside the scope of a normal IRS enquiry. The group’s tax lawyers feel that the tenor of the letter was targeting pro-Israel groups. Among the questions asked of the group in their application for tax-free status was, “Does your organization support the existence of the nation of Israel?” This question was posed by IRS agent Tracy Dornette. Another one was, “Describe your organization’s religious belief system toward the land of Israel”.
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