The IRS recently released a document titled "Internal Revenue Service Announcement 2000-84," which seeks public comment regarding the application of the Internal Revenue Code to Internet activities of tax exempt entities, such as charities and think tanks, according to the Tech Law Journal.

According to the Tech Law Journal, the document poses several questions to be answered such as: "Does providing a hyperlink on a charitable organization's Web site to another organization that engages in political campaign intervention result in per se prohibited political intervention?"

The IRS document states that, "Exempt organizations use the Internet to carry on activities that otherwise can be conducted through other media, such as radio or television broadcasts, print publications, or direct mailings. The growing use of the Internet by exempt organizations raises questions regarding whether clarification is needed concerning the application of the Code to Internet activities," the Tech Law Journal reports.

A year ago, the Federal Election Committee issued a similar request for comment on whether things such as hyperlinks and discussion forums on Web sites brought those site operators within the regulatory purview of the FEC. Nearly all of the respondents voted against regulation of Internet speech and the FEC took no further action, the Tech Law Journal stated.

House Majority Leader Dick Armey (R-Texas) disagrees with the IRS's efforts.

 "This request raises many concerns," said Armey. "The IRS has no business getting involved in whether a think tank has links on its Web site, or how often a charity's site is updated. The idea of turning the tax man into a net cop would have a chilling effect on free speech on the Internet."

-- SmartPros News Staff

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