IRS Attacks FLOSS

Despite the US government creating and distributing FLOSS (SELinux, Drupal and others) the IRS has rejected a FLOSS application for 501(c)3 status because, “The development and distribution of software is not a public work even if published under open source or creative commons compatible licences because software is not a facility ordinarily provided to the community at public expense.”. They also complain that publishing FLOSS source code and documentation is not educational because Yorba does not give classes…“Treas Reg 1.501(c)3-1(d)3 defines educational as the instruction or training of the individual for the purpose of developing or improving his capabilities;” as if books were not the best teachers…

Sheesh. When will the beast of bureaucracy figure out what it’s left and right hands are doing? I think this is a case where Obama should immediately sign an executive order declaring FLOSS organizations are charitable, educational, and scientific organizations contributing to the public good, rich or poor, a huge net benefit to society. Read the GPL! Is there anything not charitable about it?

See IRS Letter To The Yorba Foundation

See also, The new 501(c)(3) and the future of free software in the United States

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
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20 Responses to IRS Attacks FLOSS

  1. oiaohm says:

    Western Union is another group Yorba could apply to DrLoser. How to say tax haven. Western Union supports managing foundations. BTC and other on-line currency. Setting up with Western Union to become tax invisible. Or working with FSF, Apache and other existing open source fondations to have those existing either handle the money or assist with application. Are all options DrLoser and lpbbear.

    Sorry companies like Microsoft are known for using tax havens so they don’t have to pay tax. The western union option is copy Microsoft.

    DrLoser really there are many questions here.

    Like The Yorba Foundation could get tax free status by allowing FSF or Apache to be the money managers like GNU and other Open source project does.

    So DrLoser the question is why Yorba Foundation should not be allowed since they can get 503 access indirectly anyhow.

    Number 1 reason in my mind for making process complex and rejecting Yorba Foundation is if they cannot get past some complex exactly annoying paperwork they most likely don’t have the staff to properly manage the foundation anyhow.

    Thinking FSF exists so small open source groups can ask for assistance in this matter you have to worry about Yorba Foundation since they have failed to take advantage of existing resources.

  2. DrLoser says:

    Any counter to my two theories about Tim Draper, btw, Dougie?

    Remember. You were the one who brought the subject up in the first place. Rather like trolling an innocent blog, isn’t it, Dougie?

  3. DrLoser says:

    BTC definitely has six-figure potential by the end of the decade or less, it would advisable to obtain a few and stash them away on paper wallets.

    Has somebody hacked your identity, Dougie? Not a single word of that makes sense. It’s almost like you are parodying yourself.

    Six figures? What six figures?

    (You are allowed to take your shoes and socks off before you calculate the answer. Appalachian cousins might come in handy here.)

  4. dougman says:

    WTF does BTC have to do with the topic? Surely, you’re joking.

    For one to obtain 501c3, you must apply for a license, converting illegality to legality with said license. In doing so, the notion is wrought with headaches and many sleepless nights and governmental intrusions.

    BTC, allows one to bypass all of this mess. No more banks, no more government intrusions.

    BTC definitely has six-figure potential by the end of the decade or less, it would advisable to obtain a few and stash them away on paper wallets.

  5. DrLoser says:

    Bitcoins!? WTF do Bitcoins have to do with the topic????

    Good spot, ipbbear. Let us now turn to the topic at hand.

    Why should some random software company, with absolutely zilch evidence of either educational or scientific benefits, be allowed to claw back the tax that every other random software company out there has to pay?

    Correct me if I’m wrong, but that is the basic question here, isn’t it?

  6. DrLoser says:

    DrLoser exactly what really is the difference between using Western Union Transfer‎ or bitcoins.

    Did anybody bring Western Union Transfer into this discussion, oiaohm?

    I think not. You’re hallucinating again, aren’t you?

  7. lpbbear says:

    Bitcoins!? WTF do Bitcoins have to do with the topic????

  8. oiaohm says:

    DrLoser exactly what really is the difference between using Western Union Transfer‎ or bitcoins. From a abused point of view not much.

    DrLoser
    bitcoins are notoriously favoured by serious dodgy types
    You can swap western union transfer with bitcoins. Western union is allowed to remain trading. In fact western union does everything not to maintain a back traceable record. Bitcoins are in fact more back traceable than a western union transfer. In fact there is no reason why groups could not set up western union transfers for donations as well. Pure anonymous donations would be achieved by setting up western union. Yes western union supports direct to bank account or straight to cash in hand.

    Drloser sometime walk into a western union with a twenty dollar note. Set up a cash to cash transfer. They give you a id code and password that is all you need to get that money back. No record will be kept of who gave them the money or who picked it up. This is vastly different to bit-coin monitoring all transfers around the bit-coin network is possible also most bit coin exchanges to cash in fact do demand a bank account.

    Lot of ways from a police point of view we are better off with bit-coins and regulated exchanges than western union.

    Stocks and Shares are not what you call a currency or a currency transfer method. bitcoin and their relations are either currency transfer methods or a currency legally disputed what one.

    Yorba could get around the IRS problem by using FSF or equal to manage the money. The existing authorized foundations is really what the IRS is forcing more to use to reduce the groups they have to audit. In fact applying for 503 is better done by FSF or equal bodies with legal departments who can write the application correctly.

    You must match the right information up with the right tax code information to get a charity set up.

  9. dougman says:

    I don’t owe anyone anything troll.

    Enjoy your fiat.

  10. DrLoser says:

    BTW, that 30,000 at $19 million equates to $633 each. (I did the math for you, Dougie. I know it’s tough when all the figures in your accounts are basically made up out of thin air.)

    There are two possible theories here.

    1) Tim Draper paid the going price, as of today. This is a fascinating theory. To start off with, if Tim Draper wanted to pay the going price, he hardly needed to pay it to the US Marshals Service in an auction, did he? After all, it’s the current market price. Which is roughly $50 higher than the market price a scant week ago.
    2) Tim Draper, for his own reasons, and I respect his privacy and his personal financial choices over the last three months or more, happens to have an ungodly stash of bitcoins purchased at a price below $633. Tim Draper knows that a headline event like this is going to spur speculation in what is still a very illiquid market. Tim Draper is aware of the obvious fact … what with Tim Draper having acquired, amongst other things, a High School Equivalency … that the PR value of this purchase in an illiquid market is going to drive the price of a bitcoin up to the point where his previous stash is worth a lot more than it was on Tuesday.

    Now, Dougie, now. Tim Draper is a successful Venture Capitalist. Some people would claim that Venture Capitalism is nothing more than Snake-Oil Salesmanship with an MBA from Stanford and an office on Sand Hill Road.

    Some people would claim that you, Dougie, are just a bloke who never went to college and admires the people who did to such an extraordinary degree that he hero-worships Snake-Oil Salesmen who have the chops to do it right and manufacture a fortune out of other people’s credulity.

    Some people would claim that, Dougie. But not me.

    My personal belief is that you are, and will remain, nothing but an ignorant fool, canting the opinions of successful commercial businessmen who you will never be able to emulate.

    Ah yes, that tulip thing. You owe us all an explanation as to the “obvious” distinction.

  11. DrLoser says:

    That lack of a High School Equivalency really hurt you when it came to reading comprehension, didn’t it, Dougie? Here: for your own personal benefit, I will repeat my two main points, neither of which you are capable of addressing.

    Let’s put your comment and Kurk’s comment together, shall we, Dougie?
    1) The US Marshals Service auctions off a passel of bitcoins.
    2) Bitcoins are notoriously favoured by seriously dodgy types.

    … and, a question you really need to answer considering your position on the subject of bitcoinage:

    I can get paid in pounds or dollars or euros. I can exchange that pay for any number of financial instruments. I can “invest” in stocks and shares.

    In what specific way are bitcoins more “free” than any of the above?

    Or, indeed, more free than tulip bulbs in 17th Century Holland?

  12. DrLoser says:

    Technically insolvent…

    I do not think that term means what you think it does, Dougie.

  13. dougman says:

    BTC is favoured by dodgy types? LOL… I suppose cash is dodgy too? Eh…

    You wanna know what’s dodgy? HSBC, Barclays, Lloyds and RBS, those banks are not worth the paper they are not printed on, as they are technically insolvent. This is why you continuously see scam after scam surfacing.

    Lets go thru the list shall we?

    – Libor rigging
    – Money Laundering
    – Banning customers for withdrawing cash
    – Forex Rigging
    – Currency Manipulation
    – and more yet to come!
    http://www.independent.co.uk/news/uk/politics/more-banking-scandals-to-come-admits-treasury-minister-andrea-leadsom-9582941.html

    With the UK government’s expanding debt and growing deficit, despite the alleged austerity and GDP expanding thanks to heroin addiction and prostitution, it makes perfect sense why they bought water cannons isn’t it?

    Paranoid about M$ and NSA? You should be, it is a known fact now that both spy on its users and people it deems of interest. For instance, you, I or anyone else leaves a digital paper trail across the web that pulled at some later date.

    BTW: The article you posted says that the winner is unknown, while mine does…….at least the writer did do a follow up, and stated who won the coins.

    http://www.ibtimes.co.uk/silk-road-bitcoin-auction-winner-revealed-tim-draper-1455049

    Then he builds a case from a personal blog of one Izabella Kaminska, that tries to define that the whole auction was a sham, but she updates the story later and states, My logic above meanwhile was totally flawed. Not sure what I was thinking.” Again…LOL.

    If I have to explain to you how MORE free BTC is then you must be incredibly ignorant, go read Satoshis paper.

  14. DrLoser says:

    Let’s put your comment and Kurk’s comment together, shall we, Dougie?
    1) The US Marshals Service auctions off a passel of bitcoins.
    2) Bitcoins are notoriously favoured by seriously dodgy types.
    Do you see the possible connection here? It’s funny how you lot get intensely paranoid about the NSA and M$, but completely lose all capability for rational thought when it comes to something arbitrarily labelled “free as in speech.”

    Want a recent reference? There you go.

    And no, thank you, I do not want to be paid in bitcoin — the most fiat of fiat currencies — considering that it has varied between $400 and $600 over just three months. I have a feeling my boss would be more likely to pay me a $600 bitcoin and let me take the $200 hit.

    As for this “enjoy freedom” drivel, I already do that.

    I can get paid in pounds or dollars or euros. I can exchange that pay for any number of financial instruments. I can “invest” in stocks and shares.

    In what specific way are bitcoins more “free” than any of the above?

    Or, indeed, more free than tulip bulbs in 17th Century Holland?

  15. dougman says:

    Black money?….. but what about red, white and blue money? You must be referring to illegal uses, which if so, then cash is used the same manner too. What was your point>

    Salaries for some individuals and goods (NewEgg/Overstock) are already priced in BTC, obvious you don’t know what you are talking about either. Obviously you you information is outdated, go do some reading.

    BTC can be valued in any other currency besides U.S. dollar and yes, the price is determined by an aggregated exchange rate worldwide. Just like any other financial instrument today.

    Hey, being paid in stock is a VERY viable thing! I bet you would not mind being paid in Apple or Google stock 14 years ago.

    Eh.

  16. kurkosdr says:

    “Bitcoin is the finest opportunity to arise for snake-oil salesmen and IT incompetents since, well, since you opened up for business.”

    Bitcoin is a method for transfering black money.

    Oh, and some online shops accept bitcoin, with the catch that the price of bitcoin is determined by the price in dollars and the “exchange rate”. Aka the price in bitcoin goes up and down constantly.

    Despite that, there are dudes out there who think one day salaries and goods will be priced in bitcoin, which makes as much sense as being paid in Twitter stock.

  17. kurkosdr says:

    “Read the GPL! Is there anything not charitable about it?”

    It’s charitable if your view of freedom coincides with Stallman’s “4 freedoms”.

    If not, for example if you don’t agree with the “we have to take some of your freedoms to protect you”, then GPL software is software encumbered by a legally binding contract full of arbitary terms the contract author defined.

    In fact, the Windows CE kernel is more free than the Linux kernel. The Windows CE kernel allows modification and redistribution of the modified product, without having to release any of the modifications to the public, and without having to share the modifications with MS. All you have to do is pay Microsoft a license per device sold.
    Compare and contrast with the GPL, where you must give up the freedom to keep your fricking cards close to your chest, and publish all changes for the world to see.

  18. dougman says:

    LOL, thats a wee bit dated article, eh? At least pretend to have some resemblance of knowing what you are talking about shall we?

    Its a shame, you missed out at .10, $1 and $75, points at which I bought some and now the going price is ~$650 each. Obviously you do not own any nor do you have any understanding of its implications.

    How about we discuss the article that talks about the U.S. Marshall services auctioning off 30K BTC for +19M dollars?

    http://dealbook.nytimes.com/2014/07/02/venture-capitalist-tim-draper-wins-bitcoin-auction/

    There is even a 402 Payment Required code for micropayments, thats falls in nicely with BTC.

    Go get yourself a BTC address and enjoy freedom.

  19. DrLoser says:

    Absolutely, Dougie.
    Bitcoin is the finest opportunity to arise for snake-oil salesmen and IT incompetents since, well, since you opened up for business.
    Nice to see you recommending this entirely trustworthy method of storing and retrieving value.

  20. dougman says:

    Bah… Yorba just needs to set up a Bitcoin donation address, problem solved.

    One does not need permission…remember “The Obstacle is the Way”

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