SOURCE: Garza & Harris, LTD

Garza & Harris, LTD

May 31, 2013 13:36 ET

Prominent Texas Tax Lawyer Joe B. Garza Underscores Importance of IRS Scandal & the Dangerous Precedent It Sets

DALLAS, TX--(Marketwired - May 31, 2013) - Texas Lawyer Joe Garza (http://www.garzaharris.com) has seen nearly every type of tax case that can be brought before the court system on both a state and a federal level. Rarely is the IRS brought under scrutiny. It is typically only the business, the estate or the taxpayer in question. Needless to say, the world's largest collection agency has not made many friends over the years. The most recent IRS scandal rocking the White House has already tarnished the reputation of an entity that is unloved by many. Alleged targeting of tax exempt entities based upon their political affiliations has highlighted the need for tax reform and further oversight of government agencies -- setting an awkward precedence that could undermine the supposedly transparent veil that the IRS is mandated to apply to individual and corporate taxation.

Lois Lerner, director of the IRS's Exempt Organizations division, is at the center of a controversy over whether the IRS targeted certain conservative groups for political reasons when these organizations applied for tax-exempt status. These organizations were prospective 501(c)(4) organizations, named after the relevant portion of the U.S. tax code; they are tax-exempt and may participate in political campaigns as long as that is not their primary activity. 

"There is often confusion with 501(c)(4)'s," explained Texas lawyer Joe B. Garza, a tax and estate planning attorney. "One of the key differences between 501(c)(4) organizations and the more common 501(c)(3) organizations is that contributions to 501(c)(4) organizations are not tax deductible." 

The IRS compounded its inappropriate behavior when Lerner attempted to preempt the Inspector General's report at a conference of lawyers on May 10th. Shortly after, on May 15th, Steven Miller, then Acting Commissioner of the IRS, resigned. Attorney General Eric Holder has said that the FBI will investigate whether the IRS violated any laws. 

"These kinds of violations are very disconcerting," noted Garza. "This scandal sets a dangerous new precedent for the IRS and its already blemished reputation. Every American deserves to keep as much of their money as is legally possible. Yet come every April 15th, it feels like it is you versus the IRS. With this breach of public trust, they have proven that individuals require every tool at their disposal to protect their assets. In essence, it's because of the IRS that tax attorneys such as I have a full time job helping to protect individual's rights in the face of a scrutinizing organization that should, perhaps, take a good look at its own operations before clamping down on people's rights as citizens of this great nation."

About:
Texas lawyer Joe B. Garza has been practicing tax law for more than 30 years, specializing in the areas of asset protection, estate planning and complex tax transactions for businesses. He is the senior partner of Garza & Harris, Ltd., proudly serving clients in Texas and nationwide.

Learn more about Garza & Harris, Ltd. by visiting: http://www.garzaharris.com

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