The correct action would have been to take the tag off and then come into the forums requesting that I make an official decision on the matter.

As for that matter, his tag is fine. As the rules state he is not using the tag to try to offend anyone he is just using it because that happens to be the name of the clan he is in. Now in the rules it states that admins can leave this to their discretion unless I have made an official ruling on the individual matter. Thus the admin was in his right to do what he did.

However, let it be known that the KKK tag is fine for members of that clan. If the admin decides to change his punishment in light of this then that is his decision. Note that the admin in this incident has done nothing wrong and that the player failed to listen and make a formal confirmation of the rule in the forums.