Why the special scrutiny for pro-Israel groups? A New York Times article in July 2010 provided a clue: Tax-exempt groups were donating to West Bank settlers, and State Department officials wanted the settlers out. “As the American government seeks to end the four-decade Jewish settlement enterprise and foster a Palestinian state in the West Bank,” the Times wrote, “the American Treasury helps sustain the settlements through tax breaks on donations to support them.”
Did the T-men take their political cues from such stories, or did Administration officials give them orders? Either explanation would be a violation of public trust.
This would also suggest a pattern: Washington officials sent a message for tougher scrutiny of certain 501(c) groups, and the IRS coincidentally adjusted its enforcement regime. That’s what happened in 2010 and 2012 when Democrats Max Baucus and Chuck Schumer encouraged the IRS to tighten the screws on conservative tax-exempt groups.