WASHINGTON Feb 17, 2005 — An outside audit found nothing inappropriate in Internal Revenue Service examinations of allegations of improper political activity by churches, civic groups and charities.
But the Treasury Department's inspector general for tax administration said Thursday that an IRS committee formed to check out potentially improper political activity acted too slowly, creating the appearance of political motivations.
"We believe contacting organizations so close to the election and the late publicity about this project contributed to the allegations of improper motivation on the part of the IRS," the auditors said.
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"I think timing is a critical issue in this process, especially when we're talking about the right to speak freely," said Angela Ciccolo, the NAACP's interim general counsel. "The IRS itself even agrees many corrective actions need to be taken."
The IRS concurred with recommendations that the agency improve its review process and inform the public of its activities during the political season.
The NAACP announced in October that the group's tax-exempt status was under review after its chairman gave a speech criticizing President Bush.
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