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.

Read more at JNS

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

What’s Happening with the Hostage Negotiations?

Tamir Hayman analyzes the latest reports about an offer by Hamas to release three female soldiers in exchange for 150 captured terrorists, of whom 90 have received life sentences; then, if that exchange happens successfully, a second stage of the deal will begin.

If this does happen, Israel will release all the serious prisoners who had been sentenced to life and who are associated with Hamas, which will leave Israel without any bargaining chips for the second stage. In practice, Israel will release everyone who is important to Hamas without getting back all the hostages. In this situation, it’s evident that Israel will approach the second stage of the negotiations in the most unfavorable way possible. Hamas will achieve all its demands in the first stage, except for a commitment from Israel to end the war completely.

How does this relate to the fighting in Rafah? Hayman explains:

In the absence of an agreement or compromise by Hamas, it is detrimental for Israel to continue the static situation we were in. It is positive that new energy has entered the campaign. . . . The [capture of the] border of the Gaza Strip and the Rafah crossing are extremely important achievements, while the ongoing dismantling of the battalions is of secondary importance.

That being said, Hayman is critical of the approach to negotiations taken so far:

Gradual hostage trades don’t work. We must adopt a different concept of a single deal in which Israel offers a complete cessation of the war in exchange for all the hostages.

Read more at Institute for National Security Studies

More about: Gaza War 2023, Hamas