FC: IRS may muzzle what nonprofit groups do on the Net

[Declan McCullagh <declan () well com>]

----- Forwarded message from Twila Brase <twila () cchc-mn org> -----

From: Twila Brase <twila () cchc-mn org>
Subject: ALERT:Public comments needed:IRS to Muzzle Internet Speech?
To: Recipient List Suppressed: ;
Date: Tue, 28 Nov 2000 11:22:27 -0600

IRS TO MUZZLE INTERNET SPEECH?

The IRS is threatening to hold non-profit organizations (like
CCHC)liable for the comments made by visitors to their websites
and by the actions of organizations to which the websites have
links. "Guilty" organizations would be stripped of their tax-exempt
status. The IRS is now seeking public comments on their intentions
(see address below). Commenters may also send a copy of their
comments to Senators and Representatives in Congress where concern
has been expressed (see below). The deadline for public comments
is February 13, 2001. Freedom of speech and the freedom of non-
profit organizations to dispense valuable information depends on
citizen response.

Twila Brase, R.N.
President, CCHC

-------------------
The Internal Revenue Service (IRS) acting on its own initiative,
without legislative authorization, is considering "the necessity
of issuing guidance that would clarify the application of the
Internal Revenue Code to use of the Internet by [tax] exempt
organizations. In short, the IRS wants to monitor and regulate
free speech on the Internet.

Organizations may be held liable for the activities of
other organizations over whom they have neither control
or internal knowledge of operations. Organizations may
also be held liable for the speech of individual comments
made online at the website.

Tax-exempt (non-profit) organizations are required by law to
restrict lobbying activities to a minimum, or lose their tax-exempt
status. Those that take the IRS (h) election are allowed to allocate
a small percentage of their revenues to lobbying activities.

Clarifying an intention to regulate speech, the IRS announcement
includes many questions under consideration regarding regulation of
the use of the Internet by non-profit, tax exempt organizations.
These are a few:

* To what extent are statements made by subscribers to a forum, such
as a listserv or newsgroup, attributable to an exempt organization
that maintains the forum?

* Does providing a hyperlink on a charitable organization's website
to another organization that engages in political campaign
intervention result in per se prohibited political intervention?

* Does providing a hyperlink to the website of another organization
that engages in lobbying activity constitute lobbying by a charitable 
organization?

* Unlike other publications of an exempt organization, a website may
be modified on a daily basis. To what extent and by what means should
an exempt organization maintain the information from prior versions
of the organization's website?

The effect of IRS regulation and monitoring of Internet sites--no
doubt with the threat of hefty fines for infringements--will seriously
limit public discourse and freedom of speech. Even if the website
is eventually found to be innocent of an IRS charge, damage to the
organization will be extensive: in lawyer fees, temporary or long-
term loss of the website, and energy directed away from operations
to focus on securing exoneration.

Members of Congress are also concerned. Rep. Dick Armey chastised the
IRS' request for comments saying, "The IRS has no business getting
involved in whether a think tank has links on its website, or how
often a charity's site is updated. The idea of turning the tax man
into a net cop would have a chilling effect on free speech on the
Internet" (Tech Law Journal, 10/26/00)

---Citizens' Council on Health Care
    November 28, 2000

----------------------------------
TO COMMENT:

Send public comments to:

Internal Revenue Service
1111 Constitution Ave., NW
Washington, DC 20224
Attn: Judith E. Kindell

Regarding Document: IRS Announcement 2000-84, Dated October 16.
DEADLINE: February 13, 2001.

View IRS document at: 
http://www.techlawjournal.com/agencies/irs/internet/20001016.asp








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