IRS Can't Dodge Israel-Centric Org's Discrimination Suit

Law360, New York (May 29, 2014, 5:21 PM EDT) -- The Internal Revenue Service must continue to fight a lawsuit claiming the agency unconstitutionally applies extra scrutiny to Israel-related organizations seeking 501(c)(3) tax-exempt status, after a D.C. federal court on Tuesday said the IRS cannot bar lawsuits challenging its internal processes.

The IRS had argued that Z Sreet Inc.'s suit couldn't survive because sovereign immunity bars individuals from suing the government, and because two laws — the Anti-Injunction Act and Declaratory Judgment Act — prevent taxpayers from filing suits that interfere with tax collections. But U.S. District Judge Ketanji Brown Jackson refused to dismiss the case, saying the case strikes at...

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