Tuesday, June 21, 2005
Tax mavens have already come across the case of Tax Analysts v. Internal Revenue Service and Christian Broadcasting Network, which has wandered up and down the halls of the courts for some seven years. Tax Analysts had wanted access to the "CBN-IRS closing agreement regarding taxes due for previous taxable years" during some of which "CBN allegedly engaged in political activities in support of presidential candidate and CBN founder Pat Robertson. The IRS audited CBN regarding CBN's past and continued eligibility for tax-exempt status." Tax Analysts filed a FOIA request in order to obtain the document in 1998. "Citing FOIA exemption 3..., the Service declined to disclose any of the requested information except for the February 1998 form 1023 filing and the March 1998 determination letter. On July 20, 1998, TA sent a letter to CBN requesting the same information. CBN, like the IRS, declined to produce any document except for the Form 1023 and the determination letter. Shortly thereafter, TA filed this action...."
After examining TA's arguments against the district court's dismissal of its suit, the appellate court upheld the dismissal. For more, see Paul Caron's discussion on TaxProf Blog here. Read the case here.