Z Street amends lawsuit
...Z Street has maintained that its request for a tax exemption has been delayed due to IRS concerns that the group's activities might conflict with White House policies on Israel.
In an amended complaint filed Friday, Z Street said the IRS, using apparently circuitous logic, has sought to justify its actions by noting that "Z Street deals with Israel, and Israel is a country 'with' a heightened risk of terrorism."
Ironically, the complaint continued, "the government claims to be investigating intensively an organization whose charter opposes terrorism, and which is devoted exclusively to speaking in support of a country victimized by terrorism, on the theory that such intensive review is necessary to prevent terrorism, because such an organization might be funding terrorism."
Contacted Monday, Z Street founder Lori Lowenthal Marcus said she found the IRS' rationale to be "bizarre and offensive."