(0) Overview: IRS Rejection of Adversity.Net's Non-Profit Application           IRS designation as a 501(c)(3) tax-exempt organization is a powerful fund-raising tool.  Individuals and corporations who make contributions to such an organization are allowed to deduct the entire amount from their taxable income.

• First, Adversity.Net posted many of the news items which IRS found "objectionable" during 1997, 1998, and 1999 -- well before election 2000 rolled around.  Therefore we assert that the "objectionable" news items cannot possibly constitute an attempt to intervene in a current political campaign.

• Second, Adversity.Net posted balancing statements, i.e., statements that were equally "positive" toward Maxine Waters and Al Gore, and statements that were equally critical of George W. Bush, during the period under review.

• Third, Adversity.Net was not governed by IRS's non-profit rules during 2000 because we were not a non-profit organization!

• Fourth, IRS handed down it's adverse ruling on December 23, 2000 -- well after the election, at which time the "objectionable statements" were moot.

• Fifth, by denying us tax-exempt status IRS has guaranteed we will not be able to successfully appeal their decision because we cannot effectively raise funds for legal representation.  Catch-22.

• Sixth, IRS did not object in any way to our application (known as a Form 1023).  Our application passed all of the IRS tests.  Therefore we assert that if we had not had a web site up and running at the time of our application, IRS would have approved our application and we would have tax-exempt status today.   Another Catch-22.

          The IRS Tax Code governing non-profits is quite convoluted and contradictory, and successful negotiation of IRS's myriad regulations requires expensive legal representation.  By denying Adversity.Net's non-profit application the IRS virtually ensured that we would not be able to raise sufficient funds in order to afford competent legal representation.  Catch-22.

          Nonethless, Adversity.Net has filed an administrative protest and request for conference -- these are formalities provided by law after a rejection by IRS.  But without legal representation, our chances of navigating the treacherous shoals of IRS political censorship are slim to none.

          In the left index we have included the major documents, or relevant portions thereof, for your review.