IRS Yanks Democratic Leadership Council Tax Status

Long overdo, now time to set their sights on the NAACP.

The Internal Revenue Service has revoked the tax-exempt status of the Democratic Leadership Council on the grounds it mainly benefited a private group – Democrats running for office – rather than the community at large.

The DLC has countered with a lawsuit in federal court, and the outcome could affect the increasing use of tax-exempt organizations by politicians and lobbyists, according to a Forbes magazine article headlined "The Democrats’ Little Tax Secret.”

The conflict is not without its ironic twists. For one, the DLC’s chairman during the years the IRS claims it wasn’t bipartisan enough was Sen. Joe Lieberman, recently rejected by primary voters in Connecticut as being too pro-Bush.