For a little more than a month now, we've been reporting on the IRS's flagging of Tea Party and conservative groups for extra scrutiny. Through it all, some basic questions remain: Who ordered the targeting? And why?
We don't have any satisfying answers to those questions yet — and it seems neither do the congressional investigators. But along the way, as new revelations have trickled out, we've noticed some surprising and even puzzling facts about the situation that haven't gotten much attention.
Here are four of them:
1. Most of the groups flagged by the IRS for extra scrutiny didn't actually have to apply for tax-exempt status.
For the Tea Party groups that were forced to jump through hoops, this will be a head-slapper.
As it turns out, the 501(c)(4) tax-exempt "social welfare" groups aren't required to get approval from the IRS to carry on their activities, and in most cases, these groups had no tax liability anyway. For some groups, government certification as a social welfare group could serve as a kind of good housekeeping seal, making it easier to attract donations. This allows them to assure donors their names will remain secret and the only thing the groups actually have to do is file an annual tax return.
Of the nearly 300 groups singled out for extra scrutiny, just 89 actually had to apply. Those groups were seeking 501(c)(3) charitable status. They can offer their donors a tax deduction in addition to anonymity and have to apply.