January 2017 – Under court scrutiny, the IRS has backtracked its discrimination against politically conservative nonprofits. Tea Party groups and other conservative groups have long been delayed or denied the tax-exempt status routinely allowed to nonprofits. A lawsuit was filed three years ago, represented by American Center for Law and Justice, and some conservative organizations have been waiting seven years for their tax-exempt status.
In August, the federal appellate court for the District of Columbia Circuit ruled that there were sufficient allegations against the IRS in the case Linchpins of Liberty, et al v United States, et al, and the case was sent back to the district court.
“District Judge Reggie B. Walton ordered that the IRS cease delaying determinations on any outstanding tax-exempt applications of Tea Party groups and other grassroots organizations,” said ACLJ Chief Counsel Jay Sekulow. The court required that the IRS provide accounting for its treatment of the plaintiffs, as well as evidence of having made reparations.
Since then, an October 23 decision of the D.C. District Court under Judge Walton dismissed the case, saying that the IRS had taken steps to ensure organizations are not being politically targeted and granted 501(c)(3) tax exemption to two of four plaintiffs that had been awaiting tax exempt status.