Washington, D.C. – U.S. Sen. Jeff Flake (R-AZ) today delivered remarks upon joining Sen. Pat Roberts (R-KS) to introduce S. 2011, the Stop Targeting of Political Beliefs by the IRS Act. The bill is cosponsored by 37 additional senators, including U.S. Sens. Mitch McConnell (R-KY), John Cornyn (R-TX), John Thune (R-SD) and Orrin Hatch (R-UT).

The bill would protect the free-speech rights of 501(c)(4) organizations by prohibiting for one year the finalization of a proposed Internal Revenue Service (IRS) regulation that would significantly limit the advocacy and educational activities of these groups. The bill would also prevent additional targeting of 501(c)(4) organizations by restoring the IRS 501(c)(4) standards and definitions that were in place before the start of the agency’s targeting of conservative groups in 2010.  

 “The Stop Targeting of Political Beliefs by the IRS Act will prevent this rule or any other that seeks to continue the targeting of groups based on their ideology. It’s time to end the intimidation and harassment,” said Flake. “Let’s preserve the First Amendment rights of all groups, regardless of their ideology, especially those that commit themselves to improving our society. And let’s restore the public’s faith in the ability of the IRS to fairly administer our nation’s tax laws.”

More information on S. 2011, the Stop Targeting of Political Beliefs by the IRS Act can be viewed here.

Text of Flake’s remarks can be viewed below

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“Mr. President, I rise today to bring attention to the latest installment concerning political targeting by the IRS.

Last spring, we learned of the IRS’s targeting of conservative groups applying for 501(c)(4) tax-exempt status thanks to a report by the IRS’s inspector general.

This report detailed how the IRS singled out conservative groups for excessive scrutiny, which caused some applications to lie pending for more than 3 years and another 28 organizations to actually give up on their unanswered applications. 

The President claims this targeting was due solely to “boneheaded decisions.” 

Unfortunately, with the head of the exempt-organizations unit at the agency, Lois Lerner, choosing to plead the Fifth and resign rather than answer questions before Congress, we may find that the source of the problem is a little more troubling.

Thankfully, multiple investigations are taking place to answer lingering questions such as this one.  I look forward to their findings – wherever they may lead. 

Uncovering who directed and participated in the inappropriate targeting and why will allow us to bring justice to the groups affected and ensure no such targeting occurs ever again.

So imagine my surprise when, over the Thanksgiving holiday, I learned that the IRS had diagnosed the problem and offered its regulatory solution despite the fact that the multiple investigations were far from complete.

On Friday, November 29th,  and without warning, the IRS published a proposed rule that would restrict the activities of 501(c)(4) organizations, effectively limit their speech, and curtail their civic participation – bringing a whole new meaning to Black Friday. 

The rule singles out the same conservative groups that were previously targeted by the IRS and threatens to shut them down.

It further attempts to legitimatize the targeting of organizations that hold ideological views in contrast to the Administration’s.

It should be no surprise since critics of these conservative organizations have openly called for their extinction. 

At the least, some would like to force 501(c)(4) organizations into ill-fitting structures devised more appropriately for political committees in order to require the disclosure of conservative supporters.

The IRS and the White House claim innocently that the proposed rule is meant to clear up confusion about how to process the applications of 501(c)(4) organizations involved in political activities.

Over the past several months, we’ve heard this Administration tell the public multiple times how confusing these applications are.

Yet, 501(c)(4) applications have been processed for years without the excessive complaints of confusion that have occurred in recent months.

In fact, before the IRS began flagging the applications of conservative groups in February 2010, these types of applications were being processed within three months.

Email traffic between IRS employees shows that the applications of conservative organizations were not flagged out of confusion but rather because of media attention and potential interest to Washington.

So let’s call this rule what it is – an attempt to silence the voices of conservative organizations.

To be clear – 501(c)(4)s are permitted to engage in the political process and in political discourse.  And they should continue to be allowed to do so.

But, this regulation seeks to limit their participation in a host of advocacy and education activities, even non-partisan voter registration and education drives.

These activities have a clear role in promoting civic engagement and social welfare – the precise purpose of the 501(c)(4) structure.

Unfortunately, the rule would suppress conservative voices by forcing organizations to quit these activities or be shut down.

Such a gag order on conservative groups has been long-desired by this Administration.

In fact, according to evidence collected by House Ways and Means Committee Chairman Dave Camp, the Administration has been working on this rule since 2011.

Not surprisingly, the Treasury Department kept quiet of its plans.

In fact, it neglected to mention consideration of this rule in the agency’s 2011 or 2012 priority guidance plans, which detail upcoming projects.

Sound suspicious?  It should.

Just three months after the IRS abuse surfaced, the Treasury Department listed in its 2013 plan the development of guidance related to the political activities of 501(c)(4)s.

Conveniently, the publicity of the IRS abuse provided an opportunity to finally roll out the agency’s rule as a solution to its “boneheaded” decisions.

But this Administration is not fooling anyone.

Over 20,000 people have already submitted comments to this proposed rule.

According to the new IRS Commissioner, John Koskinen, this is the largest number of comments ever received by any agency.

Clearly, the public sees through the Administration’s veiled attempt to squash free speech and shut down opposition to its priorities.

This is not the way to win back the trust of the American people.

Just this past December, John Koskinen – known for his ability to turn around organizations – was confirmed as the new IRS commissioner.

He promised to work toward restoring trust in the scandal-riddled agency.

But he has yet to turn things around and is allowing this politically-charged rule to move forward.

So, I come to the floor today along with my friend from Kansas, Senator Roberts, and with the support of 34 additional members of this body, to introduce legislation to stop this rule’s implementation.

The Stop Targeting of Political Beliefs by the IRS Act will prevent this rule or any other that seeks to continue the targeting of groups based on their ideology.

It’s time to end the intimidation and harassment.

Let’s preserve the First Amendment rights of all groups, regardless of their ideology, especially those that commit themselves to improving our society.

And let’s restore the public’s faith in the ability of the IRS to fairly administer our nation’s tax laws.

I hope the rest of the Senate will join us in this effort.

I look forward to coming back to the floor later this week to ask unanimous consent to pass this legislation outright.

Mr. President, I yield to my friend from Kansas – Senator Roberts.”

 

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