Tuesday, February 21, 2023

Pirates With a 501(c)(3)

Front Page, The Court Says They’re Pirates, the IRS Says They’re a Nonprofit "Is there anything a leftist group can do to lose its tax deductible status?"

Every time we dive deeper into these investigations, someone asks if there’s anywhere that the IRS will draw the line. A few weeks ago, someone suggested pirates. Surely there couldn’t be nonprofit pirates with tax deductible donations that the IRS has decided is a legitimate charity.

Not only is there a pirate nonprofit, but it’s been denounced by the court, described as eco-terrorists by the FBI, and has shown up on Interpol’s Red Notice while being the subject of international incidents without ever persuading the IRS to drop its 501(c)(3) status.


A decade ago, the Court of Appeals for the Ninth Circuit ruling stated that, “you don’t need a peg leg or an eye patch. When you ram ships; hurl glass containers of acid; drag metal-reinforced ropes in the water to damage propellers and rudders; launch smoke bombs and flares with hooks; and point high-powered lasers at other ships, you are, without a doubt, a pirate.”

The group in question was Sea Shepherd: a trendy anti-fishing organization whose celebrity supporters included Pamela Anderson, Martin Sheen and Sean Penn. And a decade after the Court of Appeals stated that Sea Shepherd’s alleged acts were “clear instances of violent acts for private ends, the very embodiment of piracy”, Sea Shepherd maintains a presence on Facebook, Amazon, YouTube and other Big Tech platforms that purged conservations for “extremism”,where it sells merchandise featuring its version of the skull and bones pirate flag.


And it has retained its status with the IRS as a nonprofit 501(c)(3) charity for over 40 years.

In 2002, the Domestic Terrorism Section Chief of the FBI told the House Resources Committee that Sea Shepherd was an example of “eco-terrorism”. The IRS took no action even when it was caught harboring a nonprofit that federal law enforcement had described as eco-terrorists.

Unlike many of the other leftist groups we previously profiled, the IRS did begin an audit of Sea Shepherd a few months after the Court of Appeals ruling. The token IRS effort was likely in response to pressure from Japan whose whaling ships faced harassment from the group.


While the IRS has ignored conservative protests over tax deductible status being granted to domestic terrorist groups, the Japanese government spent years lobbying to suspend Sea Shepherd’s nonprofit status. After a court ruling described the group as pirates, the Japanese could not believe that the Obama administration still refused to take action. Finally the Japanese embassy turned directly to the IRS, including contacting Lois Lerner, who would become infamous for her role in the IRS targeting of conservative and Jewish opponents of Obama.

The IRS went through the motions of auditing Sea Shepherd, then it dispatched a letter claiming that “our examination of the information return(s) indicated above disclosed that your organization continues to qualify for exemption from Federal income tax.” The Internal Revenue Service does not however seem to have consulted the Court of Appeals, the FBI or the law.

As the Freedom Center’s pamphlet, Internal Radical Service by David Horowitz and John Perazzo, discusses, regulations state that “exempt purposes may generally be equated with the public good, and violations of law are the antithesis of the public good”. They warn that, “violation of constitutionally valid laws is inconsistent with exemption under IRC 501(c)(3)” and that “planned activities that violate laws are not in furtherance of a charitable purpose”.

Is piracy not the antithesis of the public good? Which part of ramming ships or hurling containers of acid would the IRS consider to be in the furtherance of a charitable purpose?

The Wombat has Rule 5 Monday: Lana Turner up at The Other McCain.

No comments:

Post a Comment