TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Tuesday, August 14, 2018

The IRS Scandal, Day 1921: Federal Judge Approves $3.5 Million Payout From IRS To >100 Tea Party Groups To Settle Targeting Claims

IRS Logo 2Washington Times, Tea Party Groups Get Revenge Against IRS as Judge Approves $3.5 Million Payout:

A judge late Wednesday signed off on the settlement between the IRS and hundreds of tea party groups, closing out the last major legal battle over what all sides now agree was unwarranted and illegal targeting for political purposes.

The IRS agreed to pay $3.5 million to groups that were wronged by the intrusive inspections, and insists it’s made changes so that political targeting can’t occur in the future.

A few issues are still being fought over in the courts — including whether former IRS senior executive Lois G. Lerner will be allowed to forever shield her deposition explaining her behavior from public view, and whether the IRS should pay attorney fees — but this week’s decision closes out five years of litigation over the targeting itself. ...

The $3.5 million closely approximates the fines the IRS would have had to pay in damages for each intrusive scrutiny of tea party groups, had the agency been found in violation of the law. The money will be split with half going to the lawyers who argued the case and the other half to more than 100 tea party groups, which will get a cut of about $17,000 each.

Judge Michael R. Barrett called the settlement “fair, reasonable and adequate.”

The settlement doesn’t actually include an admission of wrongdoing by the IRS.

http://taxprof.typepad.com/taxprof_blog/2018/08/the-irs-scandal-day-1920-federal-judge-approves-35-million-payout-from-irs-to-100-tea-party-groups-t.html

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Comments

Does any of this come out of the IRS budget? Too bad Lois didn't get hit for part of it.

Posted by: Smitty | Aug 14, 2018 8:09:04 AM

And yet no prosecutions for abuse of power and civil rights, go figure.
WASHINGTON THEATER PRESENTS- "TRUMP V THE DEEP STATE!" a never ending distraction.
http://12160.info/forum/topics/the-mueller-probe-fraud-to-keep-you-supporting-trump-while-he

Posted by: Chuck Smith | Aug 14, 2018 12:02:06 PM

The IRS is nothing more than a private debt collection agency. It has no authority at all to enforce anything in the IRC, and that criminal organization needs to be tossed down a 10 mile-deep well, with a three million-ton boulder thrown in after it.

Of course, the IRS mainly gets away with the crap it pulls because the treasonous criminals in DC ALLOW IT TO. There's lots of money in this biz, get it?

Anybody who fills out and signs a 1040, and hands it over to the IRS, is worse than a fool.

Posted by: Big M | Aug 14, 2018 12:59:13 PM

"The settlement doesn’t actually include an admission of wrongdoing by the IRS."

Which is the closest anybody will ever get to an admission of wronging by the government.

If Mr. Publius is still around, would he care to have a slice of crow pie?

Posted by: MM | Aug 14, 2018 8:02:30 PM

Just remember, the IRS didn't just go after Tea Party groups but also pro-life and Jewish groups. This clearly illustrates that the actions of the IRS didn't happen in a vacuum, they supported the broader goals of the Obama administration and the orders came straight from the White House.

Posted by: wodun | Aug 14, 2018 11:09:08 PM

Lois Leaner, then head of the IRS, did this with the blessings of her boss. Both of them are still walking free. Nothing will ever be done to either of them.

Posted by: Rocky | Aug 15, 2018 11:34:36 AM

People don't need to be ordered to do what they would do anyway. They merely need to be confident of getting away with it.

Posted by: AMTbuff | Aug 15, 2018 12:25:55 PM

This little dabble of money is an insult to these patriotic groups. Just think of the IRS harassment and threats they endured.

Posted by: Wendell Fountain | Aug 15, 2018 1:35:54 PM