How the IRS Went After a Pro-Israel Group, and Why It Matters

In 2010, a nascent pro-Israel organization called Z Street applied to the Internal Revenue Service for tax-exempt status. The IRS responded by subjecting the organization to greater-than-usual scrutiny, asking extensive questions about its political positions and opening a formal inquiry into whether it had ties to terrorism—thus preventing it from beginning its operations. After the process dragged on for years, Z Street’s founder Lori Lowenthal Marcus and her husband Jerome successfully sued the IRS, resulting in its eventual and only very recent acknowledgement of malpractice. Jonathan Tobin explains what happened:

The Z Street case must be viewed in the context of what came to be known as the IRS scandal. During the first term of the Obama administration, the IRS began subjecting conservative groups that applied for nonprofit status as educational organizations to the sort of special scrutiny not applied to liberal groups. . . . While no direct link between the White House and IRS decisions was ever produced, what followed was very much in line with the administration’s desire to prevent conservatives from taking advantage of the law. But it was not until after the 2010 midterms and President Obama’s re-election in 2012—when the work of those nonprofits might have impacted public opinion—that the controversy was aired and the policy reversed.

That’s where Z Street comes in. It was applying for 501(c)(3) status as a group that sought to educate the public about Israel. But its support for Jewish settlements put it in the cross hairs of federal bureaucrats, who apparently got the message from on high that such an organization was to be put through the wringer.

As was the case with the concerted process slowdown of some conservative groups, the attention given to Z Street was not about whether it was actually eligible for nonprofit status under the law. Rather, it was a function of the Obama administration’s dislike of its particular politics. Z Street was a supporter of the settlement movement at a time when President Obama was determined to force the Israeli government to stop building in the West Bank. . . .

This was not an inadvertent error [by the IRS]. During the course of their lawsuit, the Marcuses uncovered the fact that the IRS was compiling lists of groups that opposed the Obama administration’s policy toward Israel by drawing upon information from viciously anti-Zionist websites like MondoWeiss and Electronic Intifada. The bureaucrats seeking to mold tax policy to fit Obama’s opinions about the Middle East were not only brazenly seeking to politicize something that should be above politics but were also aware that doing so in this manner was wrong since they wrote to each other about avoiding an email trail that could document their intentions.

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More about: Barack Obama, IRS, Israel & Zionism, U.S. Politics

Yasir Arafat’s Decades-Long Alliance with Iran and Its Consequences for Both Palestinians and Iranians

Jan. 18 2019

In 2002—at the height of the second intifada—the Israeli navy intercepted the Karina A, a Lebanese vessel carrying 50 tons of Iranian arms to the Palestine Liberation Organization (PLO). But Yasir Arafat’s relationship with the Islamic Republic goes much farther back, to before its founding in 1979. The terrorist leader had forged ties with followers of Ayatollah Ruhollah Khomeini that grew especially strong in the years when Lebanon became a base of operations both for Iranian opponents of the shah and for the PLO itself. Tony Badran writes:

The relationship between the Iranian revolutionary factions and the Palestinians began in the late 1960s, in parallel with Arafat’s own rise in preeminence within the PLO. . . . [D]uring the 1970s, Lebanon became the site where the major part of the Iranian revolutionaries’ encounter with the Palestinians played out. . . .

The number of guerrillas that trained in Lebanon with the Palestinians was not particularly large. But the Iranian cadres in Lebanon learned useful skills and procured weapons and equipment, which they smuggled back into Iran. . . . The PLO established close working ties with the Khomeinist faction. . . . [W]orking [especially] closely with the PLO [was] Mohammad Montazeri, son of the senior cleric Ayatollah Hossein-Ali Montazeri and a militant who had a leading role in developing the idea of establishing the Islamic Revolutionary Guard Corps (IRGC) once the revolution was won.

The Lebanese terrorist and PLO operative Anis Naccache, who coordinated with [the] Iranian revolutionaries, . . . takes personal credit for the idea. Naccache claims that Jalaleddin Farsi, [a leading Iranian revolutionary]. approached him specifically and asked him directly to draft the plan to form the main pillar of the Khomeinist regime. The formation of the IRGC may well be the greatest single contribution that the PLO made to the Iranian revolution. . . .

Arafat’s fantasy of pulling the strings and balancing the Iranians and the Arabs in a grand anti-Israel camp of regional states never stood much of a chance. However, his wish to see Iran back the Palestinian armed struggle is now a fact, as Tehran has effectively become the principal, if not the only, sponsor of the Palestinian military option though its direct sponsorship of Islamic Jihad and its sustaining strategic and organizational ties with Hamas. By forging ties with the Khomeinists, Arafat unwittingly helped to achieve the very opposite of his dream. Iran has turned [two] Palestinian factions into its proxies, and the PLO has been relegated to the regional sidelines.

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More about: Hamas, History & Ideas, Iran, Lebanon, PLO, Yasir Arafat