Overview
Today, the Department of Justice (DOJ) announced that it has entered into a settlement with Z Street, pending approval by the U.S. District Court for the District of Columbia. Z Street, a pro-Israel group, alleged that the IRS applied heightened scrutiny to applications for tax-exempt status received from organizations connected in any way to Israel, including Z Street’s, resulting in a delay to the processing of Z Street’s application for tax-exempt status. According to a DOJ press release, the settlement agreement includes an apology from the IRS to Z Street for the delayed processing. A copy of the proposed consent order can be accessed here.