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

While Pursuing a Thaw with Israel, Saudi Arabia Foments Anti-Semitism at Home

July 18 2018

For the better part of this century, Jerusalem and Riyadh have cooperated clandestinely to contain Iran’s growing power. The kingdom has also increasingly aimed its diplomatic and propaganda efforts against Qatar, whose funding of Islamist groups—including Hamas—has damaged both Saudi Arabia and Israel. But, writes Edy Cohen, there’s a dark side to Riyadh’s efforts against the enemies of the Jewish state:

The [Saudi cyberwarfare agency’s] Twitter account tweets daily, mostly against Qatar and Iran. It uses anti-Semitic terminology, referring to Qatar as “Qatariel,” a portmanteau of Qatar and Israel, and claiming the [Qatar-sponsored] Al Jazeera network “belongs to the Israeli Mossad.”

“‘The deal of the century’ is a Qatari scheme to sell Palestine to the Zionist entity,’” one tweet reads, while another alleges that the “Zionist” Hamad bin Khalifa al-Thani, the father of [Qatar’s ruler] Sheikh Tamim bin Hamad al-Thani, is scheming to divide the Arab states to fulfill the dreams of the “Zionist entity” and Iran. Yet another tweet alleges that Qatar is “trying to destroy the Arab world to serve the enemies of the Muslim world: Israel and Iran.” These statements penetrate deep into the Arab consciousness and increase existing hatred toward Jews and Israel.

The Saudis, then, are playing a double game. Behind the scenes, they send the Israelis the message that Iran is a common enemy and goad them to fight Iran and Hizballah. At home, however, they say the enemy is first and foremost the state of Israel, followed by Iran. Their formula is clear: covert ties with Israel coupled with overt hostility to the Jewish state to satisfy the people, a majority of whom hate Israel.

The Saudi double game is reminiscent of the Egyptian model under President Gamal Abdel Nasser in that dozens of anti-Semitic articles are published daily, while the Israeli populace is not exposed to the phenomenon and the politicians close their ears. Following the signing of the 1994 Oslo Accords, the Palestinians asked Israel for permission to incite “moderately” against the Jewish state for “domestic needs.” This incitement turned deadly and was used as live ammunition for the boycott, sanctions, and divestment movement (BDS). We must not give in and accept the incitement against us, and that is also true when Saudi Arabia is concerned. Incitement translates into action, and that action comes at a price.

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More about: Iran, Israel & Zionism, Qatar, Saudi Arabia