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IRS, Tea Party Settlement Proposed

NorCal Tea Party PatriotsA cash settlement of $3.5 million has been proposed in a class action suit brought by the Tea Party against the Internal Revenue Service. The litigation by the NorCal Tea Party Patriots was brought against the agency alleging the IRS discriminated and retaliated against certain group when they applied for tax-exempt status.

 The suit also alleges the IRS violated taxpayer privacy by inspecting the tax returns of members of these groups without having a valid tax administration reason. A final approval hearing is set for July 10.

 The proposed settlement was reached in the United District Court for  the Southern  District  of  Ohio. The amount would cover damages to class members, copy of notice and administration, attorneys’ fees and expenses and incentive award payments to class representatives.

Terms of the settlement can be found at www.NorCalTeaPartyvIRS.com. The opt-in and objection filing deadlines are May 21; the claim filing deadline is May 9.

The original suit included 428 class members. The Department of Justice settled in October a suit brought by the 41 plaintiffs in the Linchpins of Liberty vs. the United States, which also alleged that the IRS improperly delayed applications such groups filed during the 2010 and 2012 elections.

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