They have thusfar refused to grant 501c3 status to an organization which, based on the legal complaint on 'not being compliant with Administration policy'.
From news article:16. On July 19, 2010, Z STREET’s corporate counsel called again, and this time spoke with IRS Agent Gentry who advised Z STREET’s counsel that she had two concerns regarding the Application: (1) the advocacy activities in general, and (2) the IRS's special concern about applications from organizations whose activities are related to Israel, and that are organizations whose positions contradict the US Administration's Israeli policy.
17. Furthermore Agent Gentry advised Z Street’s counsel that she questioned whether Z STREET's activities were educational as described under Section 501(c)(3) of the Code, but instead might be lobbying, or that Z STREET might be an “action organization,” which is the case when the only way to accomplish the purpose of the organization is through legislation. In fact, none of Z STREET’s purposes can be accomplished through legislative action.
18. IRS Agent Gentry also informed Z STREET’s counsel that the IRS will look to the method used by the organization to develop and present its views. She stated further that the method is not educational if it fails to provide: (a) a factual foundation for the viewpoint being advocated; or (b) a developed presentation of the relevant facts that would materially aid a listener or reader in a learning process.
19. To the extent that this concern is actually animating the IRS’s response to Z STREET’s application for 501(c)(3) status, it is baseless. Z STREET’s application provides eminent, factual, proof that the organization’s website, public awareness campaigns, and other activities are educational ones conducted in conjunction with advocacy. The application makes clear and all the evidence supports that Z STREET does and will provide a full and fair exposition of the pertinent facts as to permit an individual or the public to form an independent opinion or conclusion, and that Z STREET’s positions are and will be supported by research, original documents, facts, and opinions from recognized academic and other knowledgeable sources.
http://www.zstreet.org/index.php?opt...id=5&Itemid=30
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