Belated Thoughts on the IRS Non-Scandal
Posted by Bob Lord
One question that received little focus during the entire IRS scandal was whether it had anything to do with the IRS' core mission — to collect tax revenue.
On the surface, the answer would be that it had nothing to do with collection of tax revenue. The funny thing about the tea party organizations that had applied for 501(c)(4) status is that they had done so to avoid disclosure, not to avoid tax. The tax advantage of 501(c)(4) status is that the income of the organization (interest, dividends, etc) is exempt from tax. But political orgainzations spend contributions shortly after receiving them. The actual income they generate through investment is negligible. So, the IRS efforts to root out their applications did not stand to increase tax collections.
Beneath the surface, however, I'm afraid, the main point of the IRS scandal was to hinder tax collection, and all the allegations made against the Obama administrartion were designed to attract attention and little else.