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IRS Rejects Non-Profit Status For Open Source Organization, Because Private Companies Might Use The Software

Posted by BernardSwiss on · 3 comments
Techdirt; By Mike Masnick 		Mail this story
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Last year, as the IRS scandal blossomed over the IRS supposedly targeting "conservative" groups for extra attention concerning their non-profit status, we noted that the IRS had also been told to examine "open source software" projects more closely as well. We found that to be a bit disturbing -- and it appears that for all that focus on the scandal, the IRS hasn't quite given up on unfairly targeting open source projects. The Yorba Foundation, which makes a number of Linux apps for GNOME, has been trying to get declared a 501(c)(3) non-profit for over four years now... and just had that request rejected by the IRS for reasons that don't make any sense at all. Basically, the IRS appears to argue that because there might be some "non-charitable" uses of the software, the Foundation doesn't deserve non-profit status, which would make it exempt from certain taxes (and make donations tax deductible). Here was the key reason given:

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Comments (3)

BernardSwiss Story submitter ·
apparently, editing out the s in https doesn't work... (at least, not in the link field)

https://www.techdirt.com/articles/20140701/11470827745/irs-r...

http://www.techdirt.com/articles/20140701/11470827745/irs-re...

tuxchick ·
Sorry Bernard, what a nuisance! Alll fixed now.
notbob ·
Back to the subject of the post.....

" including the Apache Foundation, the Mozilla Foundation and more."

No doubt the IRS wishes they could recall that oversight and aren't about to let that flub occur, again. When you let the big boys slide, gotta hammer the little guys even harder to make up that revenue difference.



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