After a spate of requests by Democrats and campaign finance groups for an IRS investigation of a number of section 501(c) organizations accused of abusing their
“„Such a review threatens to “chill the legitimate exercise of First Amendment rights,” wrote two Republican senators, Orrin G. Hatchof Utah and Jon Kylof Arizona, in a letter sent to the I.R.S. on Wednesday.
“„Republicans were quick to point out that the I.R.S. was put under tight restrictions about access to Americans’ tax returns as a result of political shenanigans by the Nixon administration involving tax audits.
“„Mr. Grassley called the matter “a very serious allegation.” The White House said it was a simple misunderstanding.
“„It grew out of a briefing that officials held for reporters in August in discussing possible changes in the tax code for corporations.
“„A administration official, speaking on the condition of anonymity in the background briefing, pointed to Koch Industries as an example of “multibillion-dollar businesses that are structured as partnerships in ways that allow them to avoid paying sizable corporate taxes.”
“„Mr. Grassley, in requesting an investigation, said that the official’s statement implied “direct knowledge of Koch’s legal and tax status,” in possible violation of taxpayers’ privacy laws, and may have been “politically motivated.” The White House, in a statement, denied any improper accessing of confidential taxpayer information. “The official’s statement was not based on any review of tax filings and we will not use this example in the future,” the White House said.