Comment Concerning precedent (Score 1) 228
The logic used by the IRS is dubious and daunting. That someone could potentially use something you are giving away for a commercial purpose... does not make sense as reason to deny exemption status.
The propagating effects could be devastating, even beyond open source software. This is basically a blank cheque for them to deny exemption arbitrarily and extrajudicially; if you dig far enough and raise the threshold for degrees of separation as high as you want, you could come up literally any reason you want.
I'm also curious what IRS stands to gain from this decision. An organization that makes no profits pays no taxes. So, what's in it for them to decide this way?