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Why the IRS is Targeting Open Source Software Groups

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Re: Why the IRS is Targeting Open Source Software Groups

#21

Post by ghjm »

jpdoctor wrote: post #12
ryanisinallofus wrote: post #8

If huge corporations are hiding parts of their operations under a 501c status it SHOULD be looked into. Don't fall into the trap that Tea Party members fell into. This is not a scandal. Don't cry about it. No big deal.

It's a bit bizarre honestly. Operations are all deductions, and so write off against revenue. Why would somebody take expenses off they P&L?

They want to be able to take large donations from wealthy contributors, without (a) having to pay tax on them as income, or (b) having to follow the normal reporting requirements for political groups.

Re: Why the IRS is Targeting Open Source Software Groups

#22

Post by dpeck »

temphn wrote: post #6
jbooth wrote: post #4

I wonder if this was an intended consequence of cutting IRS funding or whether those doing the cutting literally didn't think about it beyond "fuck'em!". And now I'm wondering which scenario is more dissapointing.

Why is the response to incompetence to increase funding? Incompetent businesses go out of business, they don't get more money. Others could do this job better - assuming we even want the job being done. The US became one of the most powerful nations in the world without any IRS for its first hundred plus years, gaining most of its revenue through tariffs rather than taxes: http://en.wikipedia.org/wiki/Tariffs_in_Unit…

The US really didn't have much to do on the world stage in its first 100 years. Separated from the rest of the "civilized" world by a few thousand miles of ocean in each direction it was able to be the biggest player in the western hemisphere, but the game was much smaller.

Re: Why the IRS is Targeting Open Source Software Groups

#23

Post by sigzero »

adestefan wrote: post #15
ryanisinallofus wrote: post #8

If huge corporations are hiding parts of their operations under a 501c status it SHOULD be looked into. Don't fall into the trap that Tea Party members fell into. This is not a scandal. Don't cry about it. No big deal.

People complain that government doesn't do a good enough job, but then people complain when government tries to do a better job.

"targeting" equals "tries" now? Okie dokie.

Re: Why the IRS is Targeting Open Source Software Groups

#24

Post by malandrew »

ryanisinallofus wrote: post #8

If huge corporations are hiding parts of their operations under a 501c status it SHOULD be looked into. Don't fall into the trap that Tea Party members fell into. This is not a scandal. Don't cry about it. No big deal.

I think a lot of things the government does would not be a big deal, if they at least told us about what they are doing and why.

Transparency goes a long long long way to resolve confusion and concern and prevent abuse.

Re: Why the IRS is Targeting Open Source Software Groups

#25

Post by newbie12 »

ryanisinallofus wrote: post #8

If huge corporations are hiding parts of their operations under a 501c status it SHOULD be looked into. Don't fall into the trap that Tea Party members fell into. This is not a scandal. Don't cry about it. No big deal.

To be fair, in the case of the Tea Party they delayed applications through the election, and there's also evidence the IRS handed donor information to outside groups.

Re: Why the IRS is Targeting Open Source Software Groups

#26

Post by casual_slacker »

newbie12 wrote: post #25
ryanisinallofus wrote: post #8

If huge corporations are hiding parts of their operations under a 501c status it SHOULD be looked into. Don't fall into the trap that Tea Party members fell into. This is not a scandal. Don't cry about it. No big deal.

To be fair, in the case of the Tea Party they delayed applications through the election, and there's also evidence the IRS handed donor information to outside groups.

If there "is evidence", you should provide it.

Re: Why the IRS is Targeting Open Source Software Groups

#27

Post by jpdoctor »

ghjm wrote: post #21
jpdoctor wrote: post #12

Earlier quoted context omitted.

It's a bit bizarre honestly. Operations are all deductions, and so write off against revenue. Why would somebody take expenses off they P&L?

They want to be able to take large donations from wealthy contributors, without (a) having to pay tax on them as income, or (b) having to follow the normal reporting requirements for political groups.

> without (a) having to pay tax on them as income,

But that is my point: The expenses write off against the revenue in the biz, so there's no point in creating a separate org. There can't be sizeable income left in the separate org, or they get nailed for having assets.

> (b) having to follow the normal reporting requirements for political groups.

That's different, but I got the sense from the article that it was more about advertising than politics. FTA: In short, the IRS is concerned that some of these organizations exist simply to market companies' software, and perhaps the associated services sold alongside them.

Re: Why the IRS is Targeting Open Source Software Groups

#28

Post by ryanisinallofus »

malandrew wrote: post #24
ryanisinallofus wrote: post #8

If huge corporations are hiding parts of their operations under a 501c status it SHOULD be looked into. Don't fall into the trap that Tea Party members fell into. This is not a scandal. Don't cry about it. No big deal.

I think a lot of things the government does would not be a big deal, if they at least told us about what they are doing and why . Transparency goes a long long long way to resolve confusion and concern and prevent abuse.

Yeah, Obama seems to have promised more of that than he was able/willing to deliver.

Re: Why the IRS is Targeting Open Source Software Groups

#29

Post by _delirium »

temphn wrote: post #6
jbooth wrote: post #4

I wonder if this was an intended consequence of cutting IRS funding or whether those doing the cutting literally didn't think about it beyond "fuck'em!". And now I'm wondering which scenario is more dissapointing.

Why is the response to incompetence to increase funding? Incompetent businesses go out of business, they don't get more money. Others could do this job better - assuming we even want the job being done. The US became one of the most powerful nations in the world without any IRS for its first hundred plus years, gaining most of its revenue through tariffs rather than taxes: http://en.wikipedia.org/wiki/Tariffs_in_Unit…

If you think of how private-sector companies manage their internal divisions, sometimes the answer to problems in a division is to increase funding. For example, if your products have major safety problems, it might be because your quality-control and risk-assessment groups are understaffed, and increasing the funding you allocate to that task, rather than decreasing it, might be a rational response.

Re: Why the IRS is Targeting Open Source Software Groups

#30

Post by sliverstorm »

adestefan wrote: post #15
ryanisinallofus wrote: post #8

If huge corporations are hiding parts of their operations under a 501c status it SHOULD be looked into. Don't fall into the trap that Tea Party members fell into. This is not a scandal. Don't cry about it. No big deal.

People complain that government doesn't do a good enough job, but then people complain when government tries to do a better job.

Totally. Just earlier today I was reading something about how the IRS taxes citizens who have their wealth abroad. People were very angry! But these are the same people who want more taxes on the rich. All I could think was, 'Hold up a second guys, aren't you familiar with the key ways the rich avoid taxes?'
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