'Terrorism Special Policy' Prevents Pro-Israel Group from Gaining IRS Tax Exempt Status

Z Street, the pro-Israel group that alleges the IRS has prevented it from gaining tax exempt status because its policy toward Israel is antithetical to the administration's, now says that the IRS is changing its tune. Instead, Z Street is being excluded because of a "a Terrorism Special Policy, and that Israel is included." Lori Lowenthal Marcus, in a short press release, briefly explains what's going on:

We now have the mind-numbing IRS defense for delaying (almost a year now!) Z STREET's application for tax exempt status.  In a signed affidavit, an IRS official explains that there is no "Israel Special Policy," instead it is a Terrorism Special Policy, and that Israel is included.  That's right, Israel is a terrorist state because terrorism happens there.  True, Israel is the victim, but why quibble with details?  This brings moral equivalency to a whole new level.  Every Zionist should be screaming from the rooftops.  The brief is here and the most significant of the IRS affidavits is here.  The affidavit of the agent in charge of Z STREET's application is here.  And you'll be shocked, shocked to learn that the government completely ignores having asked another organization whether that organization "supports the existence of Israel", and that organization's "religious beliefs about the land of Israel."  That doesn't quite fit into their new defense.  Nor, of course, the Constitution.