IRS routes pro-Israel groups' tax-exempt status applications to anti-terrorism unit

For an administration that claims to have won the war on terrorism, the Obama administration is certainly paranoid about terrorism. Or maybe they just wanted to give pro-Israel groups who were applying for tax-exempt status a hard time. Either way, a Cincinnati-based IRS agent has testified to Congress that applications for tax-exempt status by pro-Israel groups are 'routinely' routed to an anti-terrorism unit.

Asked whether Jewish or pro-Israel applications are treated differently from other applications, Gary Muthert told House Oversight Committee investigators that they are considered “specialty cases” and that “probably” all are sent to an IRS unit that examines groups for potential terrorist ties.

Muthert, who served as an application screener before transferring to the agency’s antiterrorism unit, was interviewed in connection with the committee’s investigation into the IRS’s discrimination against conservative groups. As a screener, Muthert flagged tea-party applications and passed them along to specialists for further scrutiny.

Asked by investigators whether “all pro-Israel applicants went to the terrorism unit,” Muthert responded, “Probably . . . foreign activity, pro-Israel — if it is any type of foreign activity, it will go to the antiterrorism area.” Screeners like Muthert must consult the list of the Office of Foreign Assets Control, the Treasury Department office that enforces economic and trade sanctions, and “the terrorist list . . . because a lot of organizations will create charities to funnel the money to terrorist countries.” In further questioning, Muthert was more categorical, saying that pro-Israel groups get “not so much additional scrutiny, just more procedures.”

“More review?” an investigator asked.

“Clearly, correct,” Muthert responded.

Now Muthert claims it's not just Israel.

The policy that the applications of pro-Israel groups be examined by the IRS’s antiterrorism unit was instituted “probably years ago,” according to Muthert in his testimony. That testimony leaves unclear whether the news coverage in 2009 and 2010 prompted the scrutiny to which groups like Z Street say they have been subjected, or whether every nonprofit group whose application indicates it may engage in foreign activity, regardless of the country, is put under the microscope.

According to Muthert, it’s the latter, and he denies that pro-Israel applications are treated differently from those of other groups that claim they plan to engage with foreign countries. “It has to do with money laundering and things, because a lot of organizations will create charities to funnel the money to terrorist countries,” he explained. “So it is not so much Israel. It is just foreign countries.”

 Really? Name another one that's a US ally....

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