Z STREET

Z STREET INC.,
      Plaintiff,
                                             No: 2:10-cv-O4307-CMR
v.

DOUGLAS H. SHULMAN,
IN HIS OFFICIAL CAPACITY AS
COMMISSIONER OF
INTERNAL REVENUE,
      Defendant.


I, Diane M. Gentry, pursuant to 28 U.S. C. § 1746, do hereby declare as follows:

1. I am a Determinations Specialist with the Internal Revenue Service, assigned to the Exempt Organizations Division. I have been in this position since August 31, 1998.

2. On May 12,2010, I was assigned to review the Form 1023 application of Z Street.

3. On May 15,2010, I wrote a letter to Z Street requesting more information in order to complete the IRS' consideration of Z Street's application for exemption.

4. On June 18, 2010, I received Z Street's response to my May 15, 2010, letter  from its attorney, Donna Johnson Bullock.

5. On July 20, 2010, I discussed Z Street's application with my manager, William Angner.  At the time, I was concerned that Z Street might be an action organization. Mr. Angner kept the case file and indicated that the case might be transferred to E.O. Technical or the Touch and Go (TAG) group.

6. On July 23, 2010, Mr. Angner emailed me informing me that the case had been referred to the TAG group. He asked that I   contact Z Street to let them know of the referral [ZST WAS NEVER INFORMED THAT IT WAS REFERRED TO THE TAG GROUP/ Z ST]

7. Although I had telephone conversations with Ms. Bullock on July 19, 2010 and July 27, 2010, I never told her that the IRS had a special concern about organizations whose positions contradict the Obama Administration's Israel policy or that cases are sent to a special unit in the Washington, D.C. office to determine whether an organization's activities contradict the Administration's  public policies. [AGENT GENTRY SPOKE WITH ATTORNEY BULLOCK ON JULY 19th. DURING THAT COMMUNICATION, AGENT GENTRY INFORMED BULLOCK THAT THE Z STREET EXEMPTION WAS DELAYED BECAUSE THE IRS HAD TO GIVE SPECIAL SCRUTINY TO ANY ORGANIZATION CONNECTED TO ISRAEL.  AGENT GENTRY TOLD BULLOCK THAT SOME ORGANIZATIONS ARE SENT TO A SPECIAL UNIT IN WASHINGTON DC TO DETERMINE WHETHER THE POSITIONS CONTRADICT THOSE OF THE ADMINISTRATION.  Z STREET HAS NEVER CLAIMED THAT GENTRY MENTIONED THE OBAMA ADMINISTRATION BY NAME, SHE SIMPLY SAID "THE ADMINISTRATION" NOT "THE OBAMA ADMINISTRATION," NOR DID WE CLAIM THAT SHE SAID THE WORDS "ISRAEL SPECIAL POLICY," THAT WAS OUR SHORTHAND FOR THE STATEMENT THAT SHE MADE THAT THE IRS WAS GIVING SPECIAL SCRUTINY TO ORGANIZATIONS CONNECTED TO ISRAEL. PER Z STREET]

8. I never told Ms. Bullock that the IRS has an “Israel Special Policy” governing the processing of applications for tax exemption by organizations that are believed to be operated by persons holding political views inconsistent with those espoused by the Obama administration. [SEE ANNOTATION TO PARAGRAPH #7. PER Z STREET]

9. I am unaware of an "Israel Special Policy" that mandates that Form 1023 applications by organizations that are believed to be operated by persons holding political views inconsistent with those espoused by the Obama administration be scrutinized differently and at greater length; that such applications take longer to process than those made by organizations without that charactgeristics; or that Form 1023 application might be denied
altogether on that basis. [SEE ANNOTATION TO PARAGRAPH #7. PER Z STREET]

I declare under penalty of perjury that the foregoing is true and correct.

Executed on: _____                                                                   _[ORIGINAL DATED AND SIGNED]

                                                                                                  DIANE M. GENTRY

                                                                                                  Determinations Specialist

                                                                                                  Internal Revenue Service