Thursday, April 25, 2024

Ways and Means Republicans Decry Chinese Influence in Exempt Organizations

I swear, the people on Ways and Means sure have a lot of time to write letters these days.  I told you about one in a different post today regarding a bipartisan groups of Ways and Means backbenchers pretty much demanding that Treasury scrap the proposed DAF regulations.  Well late yesterday, all the Republicans on Ways and Means -- I don't know whether they invited Democrats to sign or just excluded them -- sent another letter.  This time to Danny Werfel.  That letter demands the IRS sniff out and revoke tax exemption for organizations associated with China.  Here is a picture of the first page:

Waysandmeanschina letter_Page_1

Green energy as an insidious Chinese plot?  And that's not all.  The letter goes on to state that Chinese-sympathetic domestic tax exempt entities are behind anti-Semitism on college campuses and rigged elections, too.  The letter singles out Neville Roy Singham, a major donor from Shanghai who is generally viewed as sympathetic to China's socialist policies, and two other organizations. 

But here is a really interesting tidbit.  In the information request section of the letter, the members want to know whether the IRS has "a definition of antisemitism in place that it considers when evaluating the claimed exempt purpose of a tax-exempt organization?" The members also want to know whether 'if in practice a tax-exempt organization operates to promote conduct that is counter to public policy, is that grounds for revocation of tax-exempt status?"  I wonder if these folks understand they are writing to the same agency that got skewered for appearing to focus on conservative political groups a few years back. What, they should be on the lookout now for green energy and geopolitical issues too?  If there is a definition of antisemitism somewhere, the Service better not admit it.  That's a no win hot potato, a definition either over- or undercooked, I bet.  Besides it ain't just any public policy that can get you revoked.  It has to be super duper, well-established, settled, strong and near universally accepted public policy.  I am not so sure about green energy.  

darryll k. jones

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