The IRS is doing its job. Complaining about the IRS requires ignorance of the real culprits: our elected representatives.
And we are the ones responsible for electing them.
So go ahead and blame the IRS if you want, I guess its easier than taking responsibility for our own government.
The right thing to do is to change the horrid tax code we have inflicted upon ourselves rather than scapegoating the people we hire to enforce it.
The penalty was ludicrously out of proportion to the offense.
The only problem with this is the IRS is a very arrogant orginization all on its own. This story makes no logical sense and chances are once it gets a little publicity the idiot who levied this penalty will back off and have to admit that he or she is being overly aggressive against a non-profit orginization. This type of thing slips thru the cracks all the time and generally gets corrected once it sees the light of day with the public and their congressmen. Some people down at the IRS can make Scrooge look more like Tiny Tim. They are A$$holes to the Nth power.