Posted on 10/19/2004 10:07:07 PM PDT by calif_reaganite
The Internal Revenue Service has begun an investigation of ASUCD after it was discovered that the association was in violation of an IRS regulation regarding nonprofit organizations at the beginning of this month.
The investigation was announced in a letter sent to ASUCD from the IRS agent assigned to the case that claimed the association -which currently has tax-exempt status - had been "intervening in a political campaign."
ASUCD Controller Cameron Menezes said the investigation was spurred by an informal investigation carried out by former UC Davis student Igor Birman. Menezes said Birman "disagreed with many of the political stances that ASUCD has taken in the past," and that he decided to pursue the case in the form of a formal complaint to the IRS.
According to Menezes, ASUCD is prohibited from endorsing candidates for public office because of its nonprofit status. Although the ASUCD Senate has passed several resolutions in support of various candidates and California state ballot measures, Menezes said the senate maintains it did not have full knowledge of the law when the resolutions were passed.
Menezes said ASUCD has made contact with the IRS to "establish our good faith in making sure this never happens again."
As a preemptive barrier to further IRS action against the association, ASUCD Vice President Paloma Perez had authored a senate bill - which was recently withdrawn - to add language to the senate standing rules "to prevent ASUCD from losing its tax-exempt status."
ASUCD President Kalen Gallagher said the bill was pulled because the IRS agent assigned to the case will soon be coming out to talk to members of the association. Associate Campus Counsel Deborah Allison said the group should wait to hear from the agent before they take any further action on the matter, according to Gallagher.
Gallagher said that the bill - or one similar to it - will definitely be re-introduced sometime during the next two academic quarters.
In the formal complaint he filed with the IRS Exempt Organizations Examination Division in March 2004, Birman cited five instances in which ASUCD passed resolutions in support of candidates and 10 in which they passed resolutions in support of California state ballot measures.
Among the candidates that ASUCD passed resolutions in support of were Lois Wolk, who ran as a representative for the 8th district, and Lamar Heystek, a UCD graduate student who ran for Davis City Council.
The resolution in support of Wolk was authored by former Internal Affairs Commission Chair Anthony Volkar, and was passed unanimously by the senate in November 2002. The resolution stated that Wolk had "actively been involved with ASUCD and its student leaders through numerous meetings, potlucks, and various speaking engagements."
As to the ban on ASUCD's intervening in political campaigns, Menezes said he had "never really thought about it before, but it makes sense."
"Birman prosecuted this case well, so we're taking action on it," he said.
At a recent senate meeting, Perez asked ASUCD Senator Donald Cohen-Cutler to remove a placard in support of the Kerry/Edwards presidential campaign that he had fastened in front of his place at the senate table. Menezes said that Perez was right to make the request.
"Right now, we're being cautious about everything, and it seems like the senators are very understanding of that," he said.
AIMEE THERON can be reached at campus@californiaaggie.com.
The text of the complaint is at http://www.igorbirman.com/complaint.pdf
Truth hurts. Davis is a hot spot of leftist activists. For miles on 80 before you get there, they have these ugly billboards declaring how green and nuclear free they are. Nevermind that they have a nuclear reactor in the city ...
ping
The IRS/DOJ/Treasury Dept. is in federal court with givemeliberty.org and the historian from the AG's staff of FL.has made his report.
The US Government has committed FRAUD.Case Closed,CHECKMATE Sammy.
With the passage of 12 years, I can understand your frustration at dumb college kids.
And that’s what we were. Dumb 19-21 year-olds. Once the implications of this were explained to us, we didn’t do it again.
Sorry for causing you grief over this.
Cameron Menezes
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