Originally published on Forbes.com Aug 1st, 2014
There are a lot things I worry about – global warming, the crippling of the IRS, how many pageviews I’m getting- but I have not been worried about “involuntary microwave attack, “organized stalking and direct mind control attack of its various forms”. There was an organization dedicated to dealing with issues like that, but I have just learned that the IRS has denied them tax exempt status. You can read all about it in Private Letter Ruling 201430014.
Private Letter Rulings are redacted. When the rulings concern denials of exempt status, I am often able to penetrate the redaction, but I had no luck with this one, so I was not able to contact them. Here are some of the high points. (Note: The way the IRS redacts is by substituting letters for identification numbers. So the founder of the organization is “E”. We’ll call him Ernie. The special type of weapon that is used for the attacks is M. I’ll leave it at that, as M sounds ominous enough. I’m going to call the organization “Defender” in honor of one of my favorite arcade games of the 1980s.)
Ernie founded Defender because he like many other people was a victim of M attacks. Defender operates in State G, but chose to incorporate in State D, “due to their advantageous tax strategies for business owners and entrepreneurs and also corporate veil protection for business”. (I think D might be Delaware, but would not rule out Nevada). Ernie had exhausted his personal investments paying expenses for equipment, supplies, consulting services, and start-up costs. He contacted a company F (Let’s call them Funhouse) which provided a consultant for marketing, an asset protection planner, and a nonprofit specialist. The Funhouse team took care of registration and the application for exempt status (Form 1023). The Funhouse team also agreed to “find grant funds and compile a list of possible donors” that would be sympathetic to the cause. The Funhouse group would also help Defender get a line of credit.
Why This is Important?
The ruling gives some more discussion about the purposes of Defender.
Your website and exempt application describe M attacks as electronic radio or microwave transmissions from governmental agencies and others who are working on projects that manipulate or control human behavior.
You state, * The use of M weapons and supporting structures implement torture to humans, mostly to the brain, have been also used on the heart and genital area. These acts are perpetrated by intelligence agencies, individuals, defense contractors, mental health agencies, and clandestine crime watch organizations who also work with organized crime syndicates; * These weapons are used on unwilling targets based upon surveillance that skips all privacy laws; and * Involuntary continuous exposure to directed-energy systems, electronic radiation and complex manipulation and scanning of the human mind are damaging, dangerous and a public hazard.
To combat M weapons, you will, * Educate the public about involuntary mind control, especially within the area related to M weapons; * Develop anti-M weapons that “cancel attacks” against human targets by electronic jamming methods; and * Implement counter M attacks for particular victims on a case-by-case basis.
And Then There Is The Proposed Legislation
Ernie has also written proposed legislation that would prohibit or regulate the use of M weapons. There would also be a fund set up to compensate victims of M attacks. Defender would serve as the trustee of the victim compensation fund.
Why Defender Is Not Exempt?
The IRS is precluded from saying that they think Ernie is a wackadoodle. Here is what they said instead.
Your balance sheet reports more than $40,000 in liabilities. Since these liabilities are expenses paid by E prior to your formation, you plan is to reimburse approximately $35,000 of those expenses to E after F has successfully procured grants for you.
Grants and contributions you receive will be used in the following priority order:
1. To buy necessary test equipment, tools and accessories;
2. Support business expenses, and3. Repay expenses paid by E prior to your formation.
You also stated “anonymous donations, contributions, gifts, or benevolence not so specified can be used for a private inurement refund up to but not over $50,000.” Any income left over will be used to make expenditures to influence legislation.
The ruling indicated that Defender had not established itself as being charitable.
The fund has not been established. You have no application form, defined selection criteria, selection committee or other information which demonstrates an unbiased selection.
Nonetheless, it was determined that Ernie would be eligible.
The organization also was not educational.
You educate by posting information on your web site. Your web pages state in pertinent part: “This website is an open effort for the protection of the human rights of defenseless victims from involuntary microwave and M attack, organized stalking or direct mind control attack of its various forms and to compensate such targets from the associated damage.” Your website requests readers to contact their representatives and senators to recommend legislative change, includes a blog page and solicits contributions for acquisition or leasing of test equipment.
There was also a problem with inurement since much of the money proposed to be raised would go to reimburse Ernie and the victim compensation fund that the organization is lobbying for would also benefit Ernie.
The ruling also indicated that Defender was an “action organization” that was too focused on getting legislation passed.
Is The Ruling Right?
I’m thinking that there might be a little bit of bias in the ruling that Defender is not educational and the notion that because Ernie is one of the victims of M attacks working for compensation for M victims constitutes inurement. If Ernie is right, you would think that the IRS is one of the first places the people doing the mind control would take over, so that might account for the adverse ruling. Of course, I would also not rule out Funhouse running a scamming operation and Ernie being a wackadoodle. Just saying.
You can follow me on twitter @peterreillycpa.
Afternote
In my search for Defender, I did find a few links about the dangers of mind control technologies. You can check out this one and this one – or not.