TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

A Member of the Law Professor Blogs Network

Friday, November 28, 2014

The IRS Scandal, Day 568

IRS Logo 2Wall Street Journal:  ‘Lost’ IRS Emails Found: An Investigator Locates What the Tax Agency Claimed Had Vanished:

The Democrats’ midterm shellacking was in part a referendum on competence, which leads, naturally, to the all but unreported news that the IRS never “lost” emails after all. IRS Commissioner John Koskinen is pulling off the impossible task of destroying what little credibility that bureaucracy has left.

Treasury Department Inspector General Russell George recently informed Congress that his forensic investigation has turned up as many as 30,000 emails from the account of former IRS Exempt Organizations Director Lois Lerner—emails the IRS has insisted were destroyed. The emails cover the crucial period from January 2009 through June 2011 when the IRS was ramping up its targeting of conservative nonprofits.

Mr. Koskinen—hired nearly a year ago to clean up the IRS—has been at the center of that delay. In June the IRS buried in a letter to the Senate Finance Committee the bombshell news that nearly two years of Lerner emails were missing because her hard drive had crashed. This malfunction conveniently happened about 10 days after Congress alerted the IRS that it was looking into claims the agency was harassing conservative groups.

It later emerged that Mr. Koskinen had known about these missing emails in April—but hadn’t told Congress. He informed Congress only after a court case revealed the Lerner email record was incomplete.

Mr. Koskinen claimed in June that his agency had done everything humanly possible to recover the pesky documents. ... We can only imagine Mr. Koskinen’s shock in September when the Treasury IG said it had found 760 tapes that might hold Lerner emails. Or his further surprise when it took only a few weeks to identify and extract the specific Lerner documents—out of 250 million backup emails.

And we can only imagine Mr. Koskinen’s apology for his agency’s email failure—since he hasn’t given one. In response to the emails’ miraculous reappearance, the IRS explained: “The IRS welcomes TIGTA’s independent review and expert forensic analysis. Commissioner Koskinen has said for some time he would be pleased if additional Lois Lerner emails from this time frame could be found.”

This is an extraordinary statement, in that it suggests the only way an agency can be held accountable for producing subpoenaed documents is if an outsider tosses the joint. Either the IRS didn’t bother to investigate these tapes or, more alarming, it did and chose not to produce the results.

The IG is turning over the emails to the IRS, which is supposed to redact sensitive tax information before sending them to Congress. Mr. Koskinen needs to end the IRS stonewalling and turn the records over with dispatch without covering up incriminating evidence.

Continue reading

November 28, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Thursday, November 27, 2014

The IRS Scandal, Day 567

IRS Logo 2CP Politics:  IRS Scandal a Priority for New House Oversight Committee Chair:

Rep. Jason Chaffetz, R-Utah, will focus on the IRS scandal as the House's new head executive watchdog. He was appointed as the next chairman of the House Oversight and Government Reform Committee on Tuesday.

Replacing the term-limited Rep. Darrell Issa, R-Calif., the 47-year-old Chaffetz will now chair the committee that has been a leading force behind the House investigation into the scandal involving the Internal Revenue Service's targeting of conservative and Christian groups. ...

Chaffetz' appointment could spell continued trouble for the IRS. Fox News reported that Chaffetz "vowed" to make the probe into the IRS's practice of stalling 501(c) tax-exempt applications of conservative and religious political action groups the "centerpiece of his chairmanship."

Along with Issa's leadership, Chaffetz has been an influential part of the Committee's IRS investigation. In the Spring, Chaffetz called for an independent special prosecutor when the IRS announced that emails from IRS Director of Exempt Organizations Unit, Lois Lerner, had been lost in a 2011 hard drive and no backup copies were made to turn over for review.

Chaffetz said he sees a pattern in the coincidental loss of evidence when it comes to federal agencies turning over documents when pressed in investigations.

"This is a recurring theme, from Fast and Furious, right down to Benghazi and now this IRS. It's the same basic drumbeat," Chaffetz told Sean Hannity earlier this year. "I think they are trying to play out the clock."

Numerous conservative political groups have accused the IRS of stalling their tax-exempt applications for political reasons. When a political action group does not receive tax-exempt status, potential donors can not be guaranteed that their donations will be eligible for tax write-offs. The IRS' stalling of the applications has cost groups thousands in donations and grants, while other groups have have not been able to survive. A communications director for a Texas-based conservative group told the Christian Post in October that the IRS's stalling cost his group $80,000 in donations and grants.

"The IRS, more than anybody else, cannot be a political organization. But is what it looks like it is has been like lately," Chaffetz told Fox News' Sunday Morning Futures with Maria Bartiromo in June. ...

The House Ways and Means Committee, which is also involved in the IRS investigation, will also have a new chair as Rep. Paul Ryan, R-Wis., was appointed as the committee's chairman on Tuesday. In a statement, Ryan said his committee will work to "hold the IRS accountable."

Continue reading

November 27, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Wednesday, November 26, 2014

The IRS Scandal, Day 566

IRS Logo 2Washington Examiner:  2,500 New Documents ID'd in White House-IRS Taxpayer Harassment Cases:

In a shocking revelation, the Treasury Inspector General has identified some 2,500 documents that “potentially” show taxpayer information held by the Internal Revenue Service being shared with President Obama’s White House.

The discovery was revealed to the group Cause of Action, which has sued for access to any of the documents. It charges that the IRS and White House have harassed taxpayers.

In an email from the Justice Department’s tax office, an official revealed the high number of documents, suggesting that the White House was hip deep in probes of taxpayers, likely including conservatives and Tea Party groups associated with the IRS scandal.

Power Line:  The IRS Scandal Rears Its Head:

The Obama Administration’s IRS scandal is multi-faceted. In addition to the persecution of conservative non-profits by Lois Lerner et al., the question has been percolating for some years whether Obama’s IRS has transferred confidential taxpayer information to Obama’s White House in violation of federal criminal laws. The issue first arose when Austin Goolsbee of the president’s Council of Economic Advisers told reporters that he had information about Koch Industries that could only have come, illegally, from confidential IRS files. When questions were asked, the administration immediately clammed up.

Years later, the judicial system may be poised to expose another layer of Obama corruption. A group called Cause of Action began a Freedom of Information Act lawsuit against the Department of the Treasury, and for several years, your taxpayer dollars have funded the administration’s cover-up.

But nothing lasts forever, and a federal court in Washington, D.C. has finally overruled the Treasury Department’s frivolous objections, and ordered Treasury to respond to Cause of Action’s request for documents. That request relates to the Department’s Inspector General’s investigation–which began a long time ago, and probably has long been concluded–and asks for “[a]ll documents pertaining to any investigation by [TIGTA] into the unauthorized disclosure of [26 U.S.C.] §6103 ‘return information’ to anyone in the Executive Office of the President.”

That is an extraordinarily narrow request for documents which, one would think, could have been responded to in a few hours. But the administration’s evasion has gone on for years. Now that the court has ordered the administration to respond, its lawyers have asked for more time

Cause of Action:  Press Release:

Monday the Treasury Inspector General for Tax Administration (TIGTA) informed Cause of Action that there exist nearly 2,500 potentially responsive documents relating to investigations of improper disclosures of confidential taxpayer information by the IRS to the White House. This disclosure, coming only after Cause of Action sued TIGTA over its refusal to acknowledge whether such investigations took place, and after the Court ordered TIGTA to reveal whether or not documents existed, signals that the White House may have made significant efforts to obtain taxpayers’ personal information. This disclosure, following on the heels of TIGTA’s admission that it recovered 30,000 “lost” Lois Lerner emails, renews Cause of Action’s concerns about the decaying professionalism of, and apparent slip into partisanship by, IRS’s senior leadership.

Cause of Action will continue to pursue the truth and to work for IRS accountability.

Continue reading

November 26, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Tuesday, November 25, 2014

The IRS Scandal, Day 565

IRS Logo 2Glenn Reynolds (Tennessee), More on Those 'Found' Emails From Lois Lerner:

I’m cynical enough to suspect that they’ve been found for a long time, and the delay was to (1) get past the midterms; and (2) allow someone to vacuum the archives of any truly incriminating material.

American Thinker:  The Zelig Presidency:

For those familiar with Woody Allen movies, one of his more unusual ones was Zelig, a movie done in a black & white, semi-documentary form about a man played by Woody Allen who has a rare chameleon-like disorder where he takes on the physical and personality traits of those who he is in close proximity. The movie stands out for its uniqueness but is also a commentary on personality, how a person gets one and how it is defined, and is it even possible to be original anymore, especially when it comes to political, artistic and intellectual greatness.

In the case of Obama, he seems to be the Zelig president. He's been taking on the characteristics and actions of past presidents while displaying no originality. He is Nixon using the IRS to target his political enemies. Here he succeeded where Nixon did not. Nixon's IRS director refused to carry out his orders when instructed to do his bidding but Lois Lerner perfected political targeting to an art. (Her problem was that she got caught.)

Continue reading

November 25, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Monday, November 24, 2014

The IRS Scandal, Day 564

IRS Logo 2Daily Caller:  How to Ensure The IRS Never Abuses Its Powers Again:

It is not so much whether or when or why the IRS abused its authority by targeting Tea Party and conservative groups. We know by now the answers are: of course, over a period of year, and to aid the re-election of President Obama.

Going forward, the most important question is: How can we prevent it from happening again? The answer may be more complicated than we think. ...

The evidence proves the IRS was used as an abusive political tool to hobble or destroy as many organizations as possible that opposed President Obama’s agenda. The partisan media may continue to suppress this fact, but the denial that it happened at all is growing more absurd by the day. Journalists raised to never trust anyone over the age of 30 now seem to accept any excuse – no matter how implausible – to explain away the scandal.

Once the problem came to light, the director of the IRS Exempt Organizations Division claimed to have “lost” her emails. At the same time, the IRS was known to sanction individuals for not maintaining seven years of receipts. Would the New York Times have accepted this excuse from the Koch Brothers? ...

[W]hat the IRS did to Tea Party organizations is tyranny personified and it cannot be ignored or forgiven, because it can happen to anyone who opposes the policies of the powerful. ...

This controversy presents us with an opportunity to remove the Internal Revenue Service from political influence altogether. Anyone who respects the separation of powers, regardless of whether they are conservative, liberal, moderate, libertarian or anything else, ought to see the wisdom in separating IRS enforcement and presidential appointments.

Appointments by the president are, by and large, intended to mirror his political decisions. The IRS, however, is different. Because of its massive power and essentially unlimited authority, it must be more than fair – it must be 100 percent non-political. Even if this is unattainable, every attempt must be made.

Continue reading

November 24, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Sunday, November 23, 2014

The IRS Scandal, Day 563

IRS Logo 2New York Post editorial:  Silence of the Schumer:

It wasn’t so long ago Chuck Schumer was obsessing over the idea that the tax code was being abused for partisan purposes.

Back in March 2012, he and six fellow Democratic senators wrote the IRS demanding more scrutiny for 501(c)4 groups who claimed they were involved in “social welfare” but were “devoted chiefly to political election activities who operate behind a facade of charity work.”

Later, the IRS started singling out conservative organizations for special treatment and delay.

But times have changed. Now we have a story in The New York Times about an individual deeply involved in politics who has a 501(c)4 that, as the Times puts it, appears to rank “among the most delinquent nonprofit organizations in the nation.”

The individual: the Rev. Al Sharpton. His organization: the National Action Network, which has failed to pay payroll taxes over the years. Sharpton says this wasn’t intentional but stemmed from a dispute on how to classify some independent contractors.

Nonetheless, Sharpton still flies first class and collects a nice salary from NAN as he zips between New York, Ferguson, Mo., and Washington, DC.

As the Times also reports, it’s the “kind of practice by nonprofit groups that the United States Treasury’s inspector general recently characterized as ‘abusive’ or ‘potentially criminal’ if the failure to turn over or collect taxes is willful.”

Considering how eager Sen. Schumer was to ensure 501(c)4’s weren’t gaming the tax system, we felt sure we would hear the senator thumping loudly for the IRS to take a hard look at the National Action Network.

Continue reading

November 23, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Saturday, November 22, 2014

The IRS Scandal, Day 562

Wall Street Journal:  IRS Finds Missing Emails of Former Top Official Lerner in Targeting Probe:

The watchdog agency for the Internal Revenue Service said it has found as many as 30,000 missing emails that could be relevant to a long-running congressional inquiry into alleged IRS targeting of conservative groups.

Investigators for the Treasury Inspector General for Tax Administration recently recovered the emails from IRS backup tapes, according to a spokeswoman for the watchdog agency. The emails belong to a former top IRS official, Lois Lerner, who has been a focus of congressional inquiries. ...

Top IRS officials had told lawmakers that backup tapes were routinely recycled and therefore weren't useful in the effort to find the missing email records. The agency said it had used other employees’ hard drives to recover thousands of the missing emails.

But TIGTA investigators succeeded in locating thousands of Ms. Lerner’s emails on the backup tapes. ...

The IRS said in a statement: “As Commissioner Koskinen has stated, the IRS welcomes TIGTA’s independent review and expert forensic analysis. Commissioner Koskinen has said for some time he would be pleased if additional Lois Lerner emails from this time frame could be found.”

The revelations promise to draw new attention to the targeting controversy, just before lawmakers return to Washington for the new Congress next year. TIGTA officials told lawmakers on Friday about the discovery of the missing emails, but congressional aides said it could take some weeks before the emails are sorted and in shape to examine. The emails must be decrypted and in some cases must be redacted to remove taxpayer-identifying information, aides said.

Continue reading

November 22, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (4)

Friday, November 21, 2014

The IRS Scandal, Day 561

IRS Logo 2Legal Insurrection:  IRS Fears Employees Being “Seized With Spontaneous Diarrhea”, by WIlliam Jacobson (Cornell):

Hey, remember the Reader Poll we did about whether it was okay to follow and try to interview Lois Lerner in her neighborhood? ... 

Someone noticed the comments to the blog post.  The IRS.  And it’s not happy.

In a federal FOIA lawsuit by Judicial Watch seeking records of Lerner emails and IRS efforts to retrieve the emails, the IRS used two of the comments to the Legal Insurrection Reader Poll post to justify the IRS no longer disclosing the identities of IRS personnel.

Think about that. The IRS is reading our comments. Don’t they have anything better to do, like hassle conservative groups seeking tax-exempt status? On second thought, keep reading our comments and leave conservative groups alone.It’s all set forth in the IRS’s opposition to Judicial Watch’s Motion to Compel Discovery. You can read the whole thing here.

The Legal Insurrection post is Exhibit D to the IRS affidavit. ...

Does the IRS really fear “public whipping with a buggy whip” and being in such fear its employees are “seized with spontaneous diarrhea”?

Continue reading

November 21, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Thursday, November 20, 2014

The IRS Scandal, Day 560

IRS Logo 2American Spectator:  The Lois Lerner Curve: How Anti-corruption Laws Cause Even More Corruption:

Corrupt countries, where the rule of law is weak and political pilfering is common, are poor countries. Entrepreneurs and investors cannot safely start or finance businesses in states that don’t respect property rights and honor contracts, or that use the levers of the government to go after political opponents. And it’s not as though America doesn’t have a corruption problem. On Transparency International’s Corruption Perceptions Index, the U.S. comes in at number 19, behind most of the rest of the First World.

For anyone following the Lois Lerner scandal, that’s not surprising. What should be surprising, perhaps, are her defenders. Lerner tampered with IRS nonprofit applications, and revealed them only when an Inspector General was about to report on them. Then the cover-up began. The IRS put out a story that blamed the shenanigans on low-level Cincinnati employees. We were told that the IRS hadn’t picked on conservative any more than liberal groups. All lies. Then Lerner pled the Fifth, and her emails mysteriously disappeared. ...

[T]here’s another reason why the Lois Lerner scandal was to be expected: we have an excess, not an insufficiency, of laws. Now, we do need laws to police corruption of the obvious sort, such as bribery and extortion. But anti-corruption laws can cause more corruption than they prevent when they rely on complicated five-point standards of the kind loved by Anthony Kennedy and law school professors, with balanced and nuanced rules that seek to apply a scalpel to tasks better suited to an earthmover. We end up giving politicized bureaucrats a weapon to use against their opponents. It’s like handing a match to a giddy pyromaniac.

I call this the Lois Lerner Curve. With few laws policing corruption, there’s a lot of it. Then, as law enforcement increases, corruption declines, down to point zero on the curve. Thereafter, however, additional laws result in more corruption, because citizens and bureaucrats alike become lost in the complexity and enforcement is unevenly applied. ...

Lerner

I think of this when I read about proposals for campaign finance reform. Sure, there’s room for cleaning up the pay-for-play politics of crony capitalism and the gerrymandering that makes most Congressional seats into fiefdoms for life. And there are well-meaning people, like Harvard’s Larry Lessig, who for honest motives want to limit campaign spending. Whatever their intentions, however, what they would do is take our election laws up the right-hand side of the Lois Lerner Curve, resulting in more corruption. Lurking behind them are Lois Lerner’s duplicitous partisans, the bare-knuckled street fighters who seek to end the scandal of Republican money in politics, and who would give us a country as free of corruption as Russia. They are scoundrels in the cause of honor, whores who clamor for morality, thieves in defense of property rights. 

Was that a little rough, just now? Then let me remind you about True the Vote, the conservative vote-monitoring organization led by Catherine Englebrecht. True the Vote trains volunteers to record and report on suspicious voter registrations. We’re not talking about the New Black Panthers with their baseball bats, but nevertheless Rep. Elijah Cummings opened up a congressional investigation into the group. His staffers wrote to Lois Lerner about it, and subsequently the IRS questioned its tax-exempt status. In in short order Engelbrecht’s business was visited by the FBI, ATF, and OSHA. She testified about this in February, and what’s interesting is how Democrats treated her. Cummings questioned her about her possible racist motives, and Gerry Connolly complained of McCarthyism and mocked her “paranoia” for thinking the audits might have been politically motivated.

Continue reading

November 20, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (6)

Wednesday, November 19, 2014

The IRS Scandal, Day 559

Tuesday, November 18, 2014

The IRS Scandal, Day 558

IRS Logo 2Town Hall, The IRS Hatchetmen:

[W]hen the Joint Committee on Taxation was started, it was a temporary committee and that was founded because the IRS (then called the BIR) was engaged in the same type of political bullying and illegality that conservatives have used against the Tea Party since 2010.

Senator James Couzens of Michigan, who helped found the JTC, was the Larry Ellison of his day. Like Ellison, who co-founded Oracle, Couzens made his money as the number two guy and management genius behind Henry Ford and Ford Motors. ... As a Republican from Michigan he was considered a progressive and opposed tax cuts, supported the graduated income tax and–like another rich guy, Warren Buffet—acted as the self appointed popular voice against rich corporations, railing against favorable tax treatment for companies.

At the time Secretary of the Treasury, Andrew Mellon, himself one of the richest men in America was advocating a scientific basis for taxation, “the use of economic theory to identify the tax rates that would maximize revenue yet burden productive capital as little as possible,” according to George K. Yin at the University of Virginia Law School. In short he was proposing an infant Laffer curve.

Mellon noted that tax policy was distorting the distribution of capital with companies less willing to pay dividends to shareholders because of the hostile tax treatment dividends received. He also noted that wealthy people were more inclined to invest in tax-free municipal securities because of the different tax treatment that cities and states had versus corporations.

As a progressive Republican Couzens argued against Mellon, using his own status as a rich man to make his point. His argument—in a preview of Warren Buffet’s own stupidity—was that tax treatment made little difference in what types of investments rich people made. ...

By inviting scrutiny of his tax situation, however, Couzen challenged Mellon publicly and also admitted that the tax treatment of investments changed his behavior. The result eventually was an examination in 1925 of Couzen’s tax liability for the sale of his Ford Motor stock in 1913, according to Yin, which was supposed to amount to 73 percent of the gains from the stock, a tax that Couzen said he supported.

The affair became unseemly with both sides using private tax records as weapons against the other. And when Couzens made the affair public in the Senate, the Senate was outraged that a sitting Senator would be subject to retaliation by an adinistration.

Thus was born the Joint Committee on Taxation whose expressed aim was to "investigate and report upon the operation, effects, and administration of the Federal system of income and other internal revenue taxes and upon any proposals or measures which in the judgment of the Commission may be employed to simplify or improve the operation or administration of such systems of taxes,” according to the JTC’s website.

In reality however it was there to stop internal revenue from being used as a political weapon.

Continue reading

November 18, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

Monday, November 17, 2014

The IRS Scandal, Day 557

Sunday, November 16, 2014

The IRS Scandal, Day 556

Saturday, November 15, 2014

The IRS Scandal, Day 555

IRS Logo 2Yahoo! Finance:  Politicization of the IRS: Full Disclosure Network Special Video Report:

Watch this 8 minute FDN Video where it is revealed that Obama Administration officials were directing the IRS campaign against political groups critical of the President's policies according to the documents obtained by Paul Orfanedes, Director of Litigation for the public interest law firm Judicial Watch. Orfanedes reveals the tactics used by IRS Director Lois Lerner that deceived the media by where public documents had been withheld from Freedom of Information Act Requests (FOIA) filed by Judicial Watch. He also explains why Judicial Watch is determined to find all the missing Lois Lerner emails and how the IRS was able to shut down Patriot and Tea Party organizations by denying them Tax Exempt Status. 

Continue reading

November 15, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (5)

Friday, November 14, 2014

The IRS Scandal, Day 554

IRS Logo 2Breitbart, The IRS-Benghazi Congress:

Benghazi and the IRS dominated the news this year thanks to Judicial Watch’s work in exposing smoking gun documents in both scandals – work that left Congress and much of the other media looking feeble. JW’s work can change history. Our intent is to get the truth, and we spared neither party from criticism. But voters were outraged at our findings and the scandals were a major factor in the election. 

Almost half, 49 percent, said the results of the 2012 presidential election would have been different if the public knew the facts then that it knows now about the Obama administration’s initial, misleading story about what happened in Benghazi and the targeting of conservative groups through the IRS. 

In no small way, this new Congress is the Benghazi-IRS Congress. The expanded House majority, which has a historic number of Republican members, and the massive wave that led to the Republican takeover of the Senate were the result of voter concerns about Obama’s IRS abuse and the Benghazi deaths and cover-up. 48 percent of voters said the IRS scandal influenced their vote, and of those concerned Americans, 71 percent voted for Republicans to take over the Senate. The numbers are similar for Benghazi; 39 percent said the scandal influenced their vote and 64 percent who were concerned about the terrorist attack this president lied about to get reelected say they voted for Republicans in the Senate. ...

The new Congress has a strong mandate to pursue Obama’s abuse of power in the IRS scandal, hold him accountable for the Benghazi lies, protect our borders, close the door on amnesty, end Obamacare, confront government secrecy, and ensure the integrity of our elections. Judicial Watch has been happy to do the job of Congress, the establishment media, and the Justice Department for six years. Again, this election shows that Americans want Congress to follow our lead and get Washington back under the rule of law.

Continue reading

November 14, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (3)

Thursday, November 13, 2014

The IRS Scandal, Day 553

(Click on YouTube button on bottom right to view video directly on YouTube to avoid interruption caused by blog's refresh rate.)

Continue reading

November 13, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

Wednesday, November 12, 2014

The IRS Scandal, Day 552

Continue reading

November 12, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Tuesday, November 11, 2014

The IRS Scandal, Day 551

IRS Logo 2Wall Street Journal:  At Last, a Chance to Get to the Bottom of the IRS Mess, by Cleta Mitchell (Foley & Lardner, Washington, D.C.):

The day after Republicans won solid majorities in the House and Senate, House Speaker John Boehner and Senate Majority Leader-to-be Mitch McConnell outlined priorities for the newly elected Congress. High on the list is fundamental tax reform. In addition to overhauling the federal tax code, however, Congress should rein in the Internal Revenue Service.

Much has already been learned about the arrogance of the IRS from the House investigations of the agency’s targeting of conservatives. The revelations emerged despite strenuous efforts by Democrats in Washington and by the IRS itself to block inquiries and deny the existence of political targeting—targeting that the former head of the IRS Exempt Organizations Unit, Lois Lerner, eventually acknowledged and apologized for in May 2013.

Bringing the IRS to heel can start with re-energizing and expanding congressional investigations and holding accountable those responsible for the targeting and other abuses. To serve notice that the IRS’s thumbing of its nose at Congress by ignoring multiple congressional subpoenas will no longer be tolerated, the House GOP Steering Committee should elect Rep. Jim Jordan as the new chairman of the House Oversight and Government Reform Committee (where current chairman Darrell Issa is term-limited). ...

Since 2012, House investigators have been subjected to an IRS rope-a-dope game by the refusal of the agency and various officials to respond to subpoenas or to answer questions fully and forthrightly. The House should now reissue the subpoenas that will expire at the end of this Congress and proceed to federal court to enforce all outstanding subpoenas previously issued to the IRS and its personnel during the course of the investigations.

More important, the House should ask the federal courts to enforce its May 2014 contempt resolution against Ms. Lerner for refusing to answer questions from Congress about her role in the targeting of conservatives. It is clear that the Obama Justice Department has willfully failed to file an enforcement proceeding in federal court. There also are strong separation-of-powers arguments against allowing the executive branch to unilaterally disregard congressional disciplinary actions taken against an executive-branch official like Ms. Lerner for refusing to testify before Congress.

Beyond all this, Republicans now have the opportunity to expand their inquiries into other areas of IRS misconduct. ... As Congress shines a light on these and other unacceptable IRS practices, public support for fundamental tax reform will only increase. The new Republican-controlled Congress will thus have a rare opportunity to overhaul a tax policy and a tax-collecting agency that both desperately need it.

Continue reading

November 11, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (7)

Monday, November 10, 2014

The IRS Scandal, Day 550

IRS Logo 2Washington Examiner:  Congress' To-do List: Major Unsolved Scandals Top the List for New U.S. Congress:

The pending 114th Congress needs to dig into some serioius issues without delay because they are concerns that the Democratic Senate led by Sen. Harry Reid refused to investigate during the most recent Senate. ...

The IRS scandal that still leaves many stones unturned. While persons in the Obama administration have been investigating to a small degree, there is obvious a need to conduct more of an investigation into this concern. The assertions of lost emails by persons involved, such as Lois Lerner, is still unsettled. ...

Needless to say, the IRS scandal remains and has not settled well with Americans who want to know the truth. After all, targeting conservative groups prior to the 2010 election when the Democrats fared well, wasn’t right. Naturally, the whole truth needs come out, and those who were involved need to be held accountable – and punished as need be.

Continue reading

November 10, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Sunday, November 9, 2014

The IRS Scandal, Day 549

IRS Logo 2Wall Street Journal editorial:  Overseeing Obama:

Election Day is over. But if Americans ever hope to get to the bottom of the IRS scandal, they’ll be hoping for victory in a more obscure campaign. The House Republican leadership will soon select the next chairman of the Oversight and Government Reform Committee. In a crowded field, Rep. Jim Jordan (R., Ohio) is the candidate best equipped to conduct thorough and credible investigations of federal waste, fraud and abuse. ...

Current Oversight Chairman Darrell Issa is stepping down due to GOP term limits for committee heads. Mr. Jordan has done as much as anyone to shine a light on IRS abuse of the President’s philosophical opponents, both in hearings and behind the scenes.

More than a year before the public learned the name of Lois Lerner, Mr. Jordan was seeking answers from the IRS’s tax-exempt organizations chief on political targeting allegations. He then requested an inspector general’s audit at the Treasury Department. Cleta Mitchell, a lawyer representing various IRS targeting victims, tells us that if not for Mr. Jordan there would have been no Treasury investigation “and no public admission that, indeed, conservative groups were being subjected to unprecedented scrutiny and mistreatment.” ...

Speaker John Boehner and other members of the elected GOP House leadership should elevate Mr. Jordan and send a clear message of reform and accountability.

Continue reading

November 9, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Saturday, November 8, 2014

The IRS Scandal, Day 548

IRS Logo 2Forbes:  What If Lois Lerner Was Right About The Tea Party?, by Peter J. Reilly:

The e-mails I have been getting from Jenny Beth Martin, Chairman of the Tea Party Patriots Citizens Fund, have me thinking about Lois Lerner and  Teapartygate.  I went back and took another look at a report prepared by the staff of Darrell Issa’s Committee on Oversight and Government.  The report is titled Lois Lerner’s Involvement in the IRS Targeting of Tax-Exempt Organizations.  It is well worth reading the whole report and I recommend it.  I still don’t think it adds up to some sort of crusade against conservatives, but that’s just me. You can read it yourself. It seems that Lerner was strongly against money in politics and sensitive to the criticism that IRS was letting 501(c)(4) organizations get away with too much political activity.  And along comes the Tea Party, which Lerner sees as “very dangerous”.

One GD thing after another and now we are on Day 542 of the IRS Scandal, by TaxProf count, with no end in sight. Here is the question that is troubling me right now thanks to the e-mails I have been getting from Jenny Beth Martin.  If there is a pretty compelling case that Tea Party Patriots Inc was intended from day 1 to be a political organization, rather than a social welfare organization, would that make any difference in how we view Lois Lerner? ...

The IRS has to collect over two trillion dollars, which is a pretty big job, so it would be better if it did not get caught up in side issues.  Still Lois Lerner was in charge of exempt organizations and there are rules that the IRS was accused of ignoring.  There is a lot of diversity in the grassroots Tea Party groups, but I have a hard time seeing the self proclaimed flagship as anything but a political organization based on how it has been behaving lately.  Does that make the scandal any more or less scandalous?  What do you think?

Continue reading

November 8, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (3)

Friday, November 7, 2014

The IRS Scandal, Day 547

IRS Logo 2Legal Insurrection:  Judicial Watch:  IRS “Did Not Undertake Any Significant Efforts to Obtain” Missing Lerner Emails:

Democrats who had hoped for at least a week to sleep off their election night hangovers are getting no rest after the latest disclosure of court documents by advocacy group Judicial Watch.

Judicial Watch has spent a great deal of time and resources seeking information about the IRS targeting of conservative groups.

In September, Judicial Watch asked the court for permission to conduct discovery into how “lost and/or destroyed” records might be recovered; the IRS is fighting transparency efforts, but their latest response to the discovery request contains inconsistencies that could pull the rug out from under IRS officials responsible for the cover up.

Via Judicial Watch:

Judicial Watch lawyers reviewed the IRS court filings and concluded that the agency “did not undertake any significant efforts to obtain the emails.”

IRS attorneys conceded that they had failed to search the agency’s servers for missing emails because they decided that “the servers would not result in the recovery of any information.” They admitted they had failed to search the agency’s disaster recovery tapes because they had “no reason to believe that the tapes are a potential source of recovering” the missing emails. And they conceded that they had not searched the government-wide back-up system because they had “no reason to believe such a system … even exists.”

But what’s this? The inconvenient truth, documented for all time courtesy of court filings? [Emphasis in bold mine:]

The IRS admitted to Judge Sullivan that the agency failed to “submit declarations about any of the foregoing items because it had no reason to believe that they were sources from which to recover information lost as a result of Lerner’s hard drive failure.” [Emphasis added] Department of Justice attorneys for the IRS had previously told Judicial Watch that Lois Lerner’s emails, indeed all government computer records, are backed up by the federal government in case of a government-wide catastrophe. The Obama administration attorneys said that this back-up system would be too onerous to search. In the October federal court filing, the IRS does not deny that the government-wide back-up system exists, and acknowledges to the court that 760 other email “servers” have been discovered but had not been searched.

The IRS also refuses to disclose the names of the IRS officials who may have information about the IRS scandal, citing unspecified threats. The IRS says it pulled documents about the scandal from various employees into a “Congressional database” and that it has only searched this one “database” for missing records. Incredibly, the IRS has not searched any of the IRS’s regular computer systems for any missing records and admits that it has only searched a “database” that it knows does not contain the missing records being sought by the court, Judicial Watch, and Congress.

After two years of fighting, it has become clear to the attorneys at Judicial Watch and to the public that this administration is not interested in transparency as to the IRS targeting of conservatives.

Continue reading

November 7, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (3)

Thursday, November 6, 2014

The IRS Scandal, Day 546

IRS Logo 2Forbes, IRS Memo Claims Forbes Story Influenced Tax Exempt Decision Involving Billionaire, by Janet Novack:

A newly uncovered Internal Revenue Service memo lends support to billionaire investor Peter R. Kellogg’s claim that the IRS tax exempt division may have improperly taken press coverage –and specifically a Forbes cover story–into account before making a decision that cost him a bundle.

Kellogg K +0.22% and IAT Reinsurance Co. Ltd, the Bermuda-based insurance company his family owns, are suing the IRS for refunds of $186 million in taxes and interest they paid after the IRS revoked IAT’s qualification as a tax exempt 501(c)(15) insurance company retroactively. The lead of a March 2001 Forbes cover story on the proliferation of edgy tax shelters exposed Kellogg’s use of IAT to shield hundreds of millions in capital gains from tax. At that time, promoters were pushing the 501(c)(15) ploy to small business owners, particularly car dealers, as a tax shelter. After the Forbes story appeared, the IRS listed the Producer Owned Reinsurance Company (PORC) as a potentially abusive tax shelter and began an enforcement project.

The surprising IRS memo is disclosed in filings in the U.S. Court of Federal Claims where Kellogg and the government are battling over whether internal IRS documents and IRS officials’ thought processes and motivations are subject to discovery and can be used as evidence in his refund suits. The memo, a January 2010 Appeals Case Memorandum (ACM) from three IRS appeals officers, argues the IRS should reconsider the Technical Advice Memoranda (TAMs) that retroactively revoked IAT’s tax exemption and that of another Kellogg owned insurance company.

The ACM asserts that originally the TAMs were favorable to Kellogg and that then Tax Exempt Commissioner Steven Miller was persuaded “to go adverse because of the ramifications” to the PORC project “to no-change the very taxpayer (Kellogg) that started this project because of the Forbes article.” The memo adds: “We believe a `fresh-look’ is needed as to the facts of these cases in applying the laws as is without regard to the outside publicity.’’

Miller went on to become Acting IRS Commissioner and resigned from the agency in May 2013 amid the ongoing controversy over IRS targeting of Tea Party and certain other groups for extra scrutiny in the tax exemption process. Internal IRS documents suggest that Tea Party groups were first flagged because of media attention to political groups’ use of the 501(c)(4) exemption. Lois Lerner, a central figure in the exempt scandal who has been held in contempt of Congress by the Republican controlled House, was particularly sensitive to criticism that the IRS was letting 501(c)(4) organizations get away with too much political activity.

Continue reading

November 6, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

Wednesday, November 5, 2014

The IRS Scandal, Day 545

IRS Logo 2Breitbart:  Read: Jeanne Shaheen-IRS Memos on Conservative Group Targeting:

The IRS memos to and from incumbent Democratic Sen. Jeanne Shaheen (D-NH) indicate she was involved in the actual investigative activities targeting Tea Partiers.

The memos, obtained by Breitbart News and published here, show a series of letters Shaheen and other Democratic Senators exchanged with then IRS commissioner Doug Shulman and then IRS deputy commissioner for services and enforcement Steven Miller—not just the one memo published by The Daily Caller’s Patrick Howley late Monday evening right before the election.

The memos are responses to two different letters Shaheen and a whole group of Democrats such as Sen. Chuck Schumer (D-NY), Al Franken (D-MN), Michael Bennet (D-CO), and Tom Udall (D-NM), among others. The responses are directed specifically to Shaheen, seemingly indicating that she was the point person for the Senate Democrats’ efforts to leverage the IRS into targeting conservative and Tea Party groups. ...

The letters Shaheen and her Democratic colleagues sent to the IRS have long been public, but the detailed responses from the IRS to her are brand new—and came out just before the election. They seem to indicate that Shaheen was kept apprised of, and was involved in, the intricate layers of the IRS targeting of Tea Partiers—which has since been widely panned in the wake of several congressional investigations. Basically, the fact that Democratic senators – especially Shaheen – were deeply involved in the targeting scandal has always been suspected but never confirmed—until now.

Continue reading

November 5, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Tuesday, November 4, 2014

The IRS Scandal, Day 544

IRS Logo 2Recent filings in the U.S. District Court for the District of Columbia in Judicial Watch v. IRS, No. 13-1559-EGS:

Continue reading

November 4, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Monday, November 3, 2014

The IRS Scandal, Day 543

Sunday, November 2, 2014

The IRS Scandal, Day 542

IRS Logo 2Press Release:  Wetumpka TEA Party Continues Call for Accountability After Unacceptable IRS Court Ruling:

AL-Becky Gerritson, President of the Wetumpka TEA Party, called Thursday's US District Court’s ruling to dismiss two lawsuits against the IRS by dozens of TEA Parties and other conservative groups , “outrageous” .

The IRS’s targeting of conservatives first came to the public’s attention in May of 2013, when Lois Lerner, then head of the IRS’s Tax Exempt Office, tried to minimize the seriousness of their despicable action when she answered a planted question from the audience while speaking to the American Bar Association. The targeting of conservatives began in 2009 and reached its height during the 2012 election cycle. Some conservative groups have still not received their well-deserved tax exempt status even to this day. In 2013 the Wetumpka TEA Party along with 40 other conservative groups filed a law suit with the American Center for Law and Justice, (ACLJ) against the IRS for its illegal targeting of conservatives.

“When you look at the allegations in our lawsuit along with evidence uncovered by Congressional committees and Judicial Watch, it is undeniable that the IRS is guilty of wrongdoing. However, Judge Walton basically said that since we finally received our tax status (after almost 2 years of waiting) that we now have no case. That’s like a judge telling a burglary victim, that even though she was robbed 2 years ago; since she does not currently have the thieves in her house, she has no case. This ruling is unbelievable! It’s so much more than just a delay of a tax exempt status; it’s about the IRS, a government agency, being used as a weapon against its citizens, i.e. violating our constitutional rights, invading our privacy, bullying and intimidating us, mishandling and leaking our confidential taxpayer information etc., not to mention the ensuing cover-up; and we cannot fight back…we have no recourse.”

Gerritson continued, “The judge did not base his decision on the merits of the case. In fact, he did not deny wrong doing by the IRS but dismissed the case on procedural grounds. He wrote in a footnote: "The court's opinion should not be interpreted as an assessment of the propriety of the alleged conduct by the defendants." It’s unfathomable that the IRS, one of the most feared government agencies in America, was able to engage in a massive, years-long illegal targeting scheme against everyday American’s and get away with it scot-free. This is a huge blow to Americans’ liberty. If the IRS was allowed to target and harass Americans on such a large scale with no repercussions then what will stop them in the future?”

Gerritson concluded by saying, “This isn’t over for us. We will not be silent. We commend and support the ACLJ‘s plan to appeal the ruling. We will continue to do everything we can to stand up for citizens’ rights, expose government’s abuse of power and hold them accountable for their actions.”

Continue reading

November 2, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Saturday, November 1, 2014

The IRS Scandal, Day 541

IRS Logo 2Press Release:  ACLJ Files Suit Against IRS For Failing To Release Records Between IRS And U.S. Senator Jeanne Shaheen Of New Hampshire Who Demanded IRS Probe Conservative Organizations:

The American Center for Law & Justice (ACLJ) today filed a federal lawsuit in New Hampshire against the Internal Revenue Service (IRS) on behalf of the group, Citizens for a Strong New Hampshire, claiming the IRS is unlawfully delaying the release of records between the IRS and U.S. Senator Jeanne Shaheen (D-NH) who demanded the IRS investigate conservative organizations for engaging in "political activities."

Citizens for a Strong New Hampshire filed a request under the Freedom of Information Act (FOIA) demanding the IRS release the correspondence between the tax agency and Sen. Shaheen and Congresswoman Carol Shea-Porter (NH-01). The lawsuit was filed today in U.S. District Court for the District of New Hampshire, in Concord, NH. The lawsuit contends the IRS is unlawfully delaying the release of information until after next week's mid-term elections – a move that the complaint argues "has deprived Strong NH of the opportunity to obtain and effectively convey to the voting public vital information about those seeking re-election."

Continue reading

November 1, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Friday, October 31, 2014

The IRS Scandal, Day 540

IRS Logo 2Legal Times:  IRS Official Fights Video Depo, Citing Fear of Harassment:

An Internal Revenue Service employee caught up in the controversy over tax-exempt groups wants a federal judge to block a subpoena for her videotaped testimony. The official, Holly Paz, cites privacy and safety fears.

A group that applied for tax-exempt status in 2012, Citizen Awareness Project Inc., sued the agency in Colorado federal district court, claiming officials wrongfully released its application to the media. Federal officials admitted there was an “unauthorized disclosure,” but they disagreed it was willful or that the group was entitled to damages.

In a 2013 report, the Treasury Inspector General for Tax Administration found that IRS officials had improperly flagged organizations perceived to have conservative or Tea Party ties for additional scrutiny when they applied for tax-exempt status. The Colorado lawsuit is focused on the disclosure issue, not the broader scandal. However, the plaintiff claimed that because of a media report about its application, the group may have been subjected to additional scrutiny by the IRS—an allegation the government denied.

Paz served as the agency’s director of exempt organizations rulings and agreements. She isn’t a defendant in the Colorado case, but lawyers for Citizen Awareness Project subpoenaed her to provide videotaped deposition testimony on Oct. 28.

In court papers filed on Oct. 23 in the U.S. District Court for the District of Columbia, Paz’s lawyers at Steptoe & Johnson LLP asked for an order barring the deposition from being videotaped. Alternatively, they've asked for an order that would keep any videotaped deposition confidential.

Steptoe partner Brigida Benitez wrote that after Paz’s name became publicly associated with the larger IRS scandal, she faced “continued harassment, oppression and intimidation, including threats of bodily harm to her and her family, including her young children.”

Paz didn’t object to testifying, Benitez wrote, but she feared that a video of her speaking, if publicly disclosed, could be used “as another means of harassment and intimidation.”

Continue reading

October 31, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (5)

Thursday, October 30, 2014

The IRS Scandal, Day 539

IRS Logo 2Investor's Business Daily editorial:  IRS Is A Unique Troublemaker Among Federal Agencies:

It's also been used as a political weapon. President Obama may owe his 2012 re-election to the IRS, which blocked the formation of groups that opposed him.

The IRS-Tea Party scandal entered Day 536 on Monday by the TaxProf blog's count, and it appears that the scandal will go on much longer without resolution.

Bob Woodward suggests that the media investigate it as it did Watergate. We laud his bravery. He's opened himself up to attacks from two vicious and unaccountable adversaries: the IRS and the mainstream media.

Continue reading

October 30, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (4)

Wednesday, October 29, 2014

The IRS Scandal, Day 538

IRS Logo 2National Review:  The Tea Party Isn’t Giving Up Against the IRS, by Mark Meckler (Founder, Sue the IRS):

Thursday, Judge Reggie Walton of the U.S. District Court of the District of Columbia dismissed almost all counts in two major lawsuits brought by conservative groups against the IRS.

So why would Judge Walton — a George W. Bush appointee — make this decision?

Believe it or not, he says that claims for injunctive relief are moot because there is “no reasonable expectation” that the IRS would continue to target conservative organizations based on their viewpoint.

But this defies what we know to be true. The IRS has repeatedly insisted its actions were for “tax-administration purposes” and were otherwise legitimate functions to determine the groups’ tax-exempt status. The IRS has concealed evidence, obscured facts, and — evidence shows — still harassed conservative groups after their scheme was revealed

Judge Walton also missed the mark by dismissing the claims against the IRS for its unauthorized inspection and disclosure of taxpayer information. In reaching his decision, Judge Walton embraced a flimsy dichotomy promoted by the IRS that distinguishes between an improper acquisition of taxpayer information and an improper inspection of the information. By focusing on how the information was obtained, Judge Walton failed to consider or appreciate the actual reasons IRS employees inspected the taxpayer information. Although inspecting an application for tax exemption may be lawful for some IRS employees, it certainly was not lawful for those employees whose inspections occurred because of unconstitutional viewpoint discrimination.

Continue reading

October 29, 2014 in IRS News, IRS Scandal | Permalink | Comments (2)

Tuesday, October 28, 2014

The IRS Scandal, Day 537

IRS Logo 2Biz Pac Review:  IRS Scandal Is This Generation’s Watergate, Woodward Says; So Why Knock Fox News?:

As the 40th anniversary year of President Nixon’s resignation draws to an end, one of the newspapermen who helped bring it about said the Obama administration’s IRS scandal — which has faded from the headlines in recent weeks — should be this generation’s answer to Watergate.

In fact, Washington Post associate editor Bob Woodward told Fox News’ Howard Kurtz in an interview, it would be just the kind of job a much younger Woodward might tackle himself, along with Watergate investigative partner Carl Bernstein.

“The reality now in my view is that in the Obama administration, there are lots of unanswered questions about the IRS, particularly,” Woodward said in an interview broadcast Sunday.

“If I were young, I would take Carl Bernstein and move to Cincinnati where that IRS office is and set up headquarters and go talk to everyone.”

House Committee on Oversight and Government Reform:  Time for the Truth and an End to IRS Targeting Once and For All:

House Oversight and Government Reform Committee Chairman Darrell Issa (R-CA) said: “We have stopped an IRS targeting effort that treated conservatives differently and we have put the brakes on a new Administration effort to target political participation through regulation. But we have not fixed the IRS or finished our investigation of targeting that started under Lois Lerner. This IRS, this Treasury Department, and this White House have not given Congress the cooperation they promised – they have attempted to stonewall us. This new presentation should remind Americans that this is not over: the House of Representatives continues our investigation, our demand for a credible criminal probe, and to protect the rights of all Americans to participate freely and openly in the political process.”

Continue reading

October 28, 2014 in IRS Scandal, Tax | Permalink | Comments (4)

Monday, October 27, 2014

The IRS Scandal, Day 536

IRS Logo 2The Atlantic:  The House GOP's New War on Incompetence: The Republicans Want to Overhaul Scandal-Plagued Federal Agencies in 2015, the Majority Leader Says:

House Republicans haven't officially locked down their majority for next year, but they're already sketching out a legislative agenda for when they do.

In a memo to lawmakers on Wednesday, Majority Leader Kevin McCarthy said the party would target the federal bureaucracy with an eye toward restoring "competence" across a range of scandal-plagued departments and agencies. He cited the well-documented problems at the Veterans Administration, the Secret Service, the IRS, last year's launch of the federal health insurance exchanges, and the more recent response to Ebola, along with several other missteps that haven't garnered as much attention.

Real Time with Bill Maher Blog:  Tax the Charities:

Obama’s IRS "scandal” comes down to whether Tea Party groups should pay taxes or not, and the angels-dancing-on-the-head-of-a-pin distinction between an organization that raises money for politicians and one that “promotes social welfare.” (… by raising money for politicians.) One has to pay taxes and one doesn’t. ...

The simple solution is to stop asking the IRS to make value judgments about what’s a legitimate charity called “Patriots for the Violent Overthrow of the Negro Usurper” and what’s just a family sex party, like the kind the Palins would crash. Make them all pay taxes.

Washington Post:  Obama, The Bewildered Bystander, by Charles Krauthammer:

The president is upset. Very upset. Frustrated and angry. Seething about the government's handling of Ebola, said the front-page headline in The New York Times last Saturday.

There's only one problem with this pose, so obligingly transcribed for him by the Times. It's his government. He's president. Has been for six years. Yet Barack Obama reflexively insists on playing the shocked outsider when something goes wrong within his own administration.

IRS? “It's inexcusable, and Americans are right to be angry about it, and I am angry about it,” he thundered in May 2013 when the story broke of the agency targeting conservative groups. “I will not tolerate this kind of behavior in any agency, but especially in the IRS.”

Except that within nine months, Obama had grown far more tolerant, retroactively declaring this to be a phony scandal without “a smidgen of corruption.”

Continue reading

October 27, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Sunday, October 26, 2014

The IRS Scandal, Day 535

IRS Logo 2The Hill:  GOP: Majority Would ‘Get to Truth’ on IRS:

Republicans vow to put the clamps on the IRS if they sweep to power in November.

GOP lawmakers and aides believe that House-passed legislation to limit the IRS’s reach would have a better shot at making it to President Obama’s desk if Republicans win control of the Senate on Nov. 4.

Full Republican control of Congress would give the GOP added leverage over the IRS, doubling the panel’s oversight of an agency that drew conservative ire by improperly scrutinizing Tea Party groups seeking tax-exempt status.

Continue reading

October 26, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Saturday, October 25, 2014

The IRS Scandal, Day 534

IRS Logo 2Letter From Dave Camp (Chair, House Ways & Means Committee) to Jacob Lew (Secretary, U.S. Treasury Department) (Oct. 22, 2014):

Some of the key questions remaining in the investigation into the IRS' targeting of conservatives groups are: who at the White House knew what was going on; when did they know it; and, what action did they take upon learning about it? Your office is now refusing to make available until after the election the very person that could unlock that mystery. This is completely unacceptable , especially for an Administration that once pledged to be the most open and transparent ever.

On September 16, 20 14, five weeks ago, I first requested that you make available for an interview Hannah Stott-Bumstead, a Treasury Department counsel, who, based on transcribed interviews ofIRS perso1mel, appears to be the first person at Treasmy to be told by the IRS that it had lost Lois Lerner's emails. Notwithstanding President Obama 's pledge to "work with Congress as it performs its oversight role ...[a]nd...make sure that we are working hand in hand with Congress to get this thing fixed," to date your Department has refused to allow the Committee to directly question Ms. Stott-Bumstead. 1 In addition to reiterating my request to interview Ms. Stott-Bumstead without delay, I am requesting additional information about what Ms. Stott-Bumstead and others at Treasury did with this information, including how the White House was informed, and why the decision was made to not infonn Congress until months later.

Continue reading

October 25, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

Friday, October 24, 2014

The IRS Scandal, Day 533

IRS Logo 2USA Today:  Tea Party Loses Court Battle Over Targeting to IRS:

A federal court dismissed two lawsuits against the Internal Revenue Service Thursday, ruling that the tax agency is no longer targeting conservative tax-exempt groups for greater scrutiny.

True the Vote v. IRS Ruling

Linchpins of Liberty v. IRS

"Unless an actual, ongoing controversy exists in this case, this court is without power to decide it," U.S. District Court Judge Reggie Walton ruled, dismissing one lawsuit brought by True the Vote, a conservative vote-monitoring organization.

True the Vote, an offshoot of the Tea Party-affiliated King Street Patriots, had its application as a social welfare group help up because the IRS suspected it was engaging in direct political election campaigning, which is forbidden under section 501(c)(4) of the tax code. IRS agents found that its web site contained "Democratic attacks and Republican/conservative response," according to confidential IRS documents obtained by USA TODAY. 

Walton said the IRS has assured the public that they're no longer screening applications for tax exemptions based on its political leanings, a practice that led to the dismissal of several top IRS officials when it was disclosed by Treasury inspectors last year.

"Thus, the allegedly unconstitutional governmental conduct, which had delayed the processing of the plaintiffs' tax-exempt applications and spawned this litigation, is no longer impacting the plaintiffs," Walton said in a second opinion dismissing a lawsuit brought by Linchpins of Liberty and 40 other groups in 22 states. ...

In a footnote, the judge did leave open the possibility that two groups -- Patriots Educating Concerned Americans Now of Redding, Calif. and the suburban Cincinnati Liberty Township Tea Party -- could still sue because the IRS failed to rule on their tax exemption application within 270 days. The judge gave the IRS 14 days to argue why that element of the lawsuit cannot go forward.

Because he dismissed the lawsuits on procedural grounds, Walton did not rule on the merits of the case. He wrote in a footnote: "The court's opinion should not be interpreted as an assessment of the propriety of the alleged conduct by the defendants."

True the Vote:  Press Release:

"The Court today correctly acknowledged that the IRS targeted True the Vote because of its perceived political beliefs," True the Vote President Catherine Engelbrecht said. “Such conduct is reprehensible and should never be acceptable in a free society. Despite this critical finding, we are stunned and disappointed in the court’s ruling which nevertheless dismisses our case. We will be evaluating our legal options and will announce our intent in that regard soon.”

Continue reading

October 24, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (6)

Thursday, October 23, 2014

The IRS Scandal, Day 532

IRS Logo 2Independent Journal Review:  Former Newsweek Editor Gives 4 Solid Reasons Why Women No Longer Feel Safe Under President Obama:

Appearing on MSNBC’s Morning Joe, former Newsweek editor Tina Brown said women no longer feel safe under Obama’s leadership. She gave four areas in which she feels this is the case: ...

#4 – “What they feel unsafe about is the government response to different crises and I think that they’re beginning to feel a bit that Obama’s like that guy in the corner office who’s too cool for school: calls a meeting, says this has to change, doesn’t put anything in place to make sure it does change, then it goes wrong and he’s blaming everybody.”

Yes, he has been blaming others when things have gone wrong. In particular, he’s been blaming the women around him. Hillary Clinton, Susan Rice, Cheryl Campbell, Lois Lerner, and Kathleen Sebelius all come to mind as women who have taken the fall for Obama.

WND:  Tina Brown Scorches Obama on Live TV:

One of the top feminists in America blasted Barack Obama’s handling of numerous crises Monday, claiming the president is actually making women feel unsafe. During an appearance on MSNBC’s “Morning Joe” program, Tina Brown, the founder and former editor of the Daily Beast and Newsweek as well as current head of Tina Brown Live Media, explained support for Democrats among women in recent polls has been plummeting because Obama is making women feel “unsafe.” ...

She continued, “More recently women felt unsafe when Lois Lerner wielded the IRS like a mighty weapon and targeted thousands of innocent civilians who were deemed ‘enemies’ of the Obama administration. No one has been held accountable and because of evidence that was ‘mysteriously’ destroyed, no one probably ever will. Women have seen innocent people punished and/or killed while criminals have been lauded.

Continue reading

October 23, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Wednesday, October 22, 2014

The IRS Scandal, Day 531

IRS Logo 2Barrow Journal:  Losing Faith as Dysfunction Clouds Our Institutions:

We Americans seem to have lost faith in our major institutions. All around us we see dysfunction dominating the news. To wit: ...

The IRS openly, and without apology, targeted a small number of conservative groups for special scrutiny in what can only be seen as a political move designed to silence those organizations. When called in before Congress to testify, the IRS’ chief administrator smirked and dithered, basically flicking his middle finger to Congress. His agency is above the law, he seemed to be saying. The IRS has become the stereotypical ruthless tax collector. Adding a political agenda to that only makes that powerful agency more suspect. Unfortunately, nobody seems interested in reeling in the IRS and making sure it doesn’t become a gunslinger for either political party.

Continue reading

October 22, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Tuesday, October 21, 2014

The IRS Scandal, Day 530

IRS Logo 2Wall Street Journal editorial:  Defining Dismissal Down: The VA Gives Officials an Opening to Retire Before They’re Fired:

The common theme in the many failures of President Obama’s second term is government incompetence, and a corollary is lack of accountability. Both themes came together in the news late last week that the Veterans Affairs department can’t even successfully fire officials it wants to dismiss.

President Obama and Congress agreed this summer on a bill that made it easier for the VA to fire incompetent officials in return for $16 billion in additional spending to address long patient waiting lines caused by the agency’s incompetence. That looked like another case of government rewarding government failure, and now we learn that two officials targeted for dismissal as part of the VA investigation are retiring instead.

The law gave new secretary Robert McDonald the ability to fire immediately, but the VA says it gave the targeted employees a five-day period to respond so the dismissals would hold up in court. Two of the targets took the opening to retire, including Susan Taylor, the VA’s deputy chief procurement officer in Washington who was the subject of an inspector general report alleging years of misconduct for personal gain. Ms. Taylor declined to comment to a Journal query.

The VA retirees follow the example set by Lois Lerner, who retired from the IRS before she could be dismissed for her role in targeting conservative groups seeking tax-exempt status. They will all presumably suffer no reduction in federal retirement benefits.

Continue reading

October 21, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Monday, October 20, 2014

The IRS Scandal, Day 529

IRS Logo 2Forbes:  UnFair: Exposing The IRS -- Does Not Make Strong Case Or Decent Documentary, by Peter C. Reilly:

[H]ere is my report on UnFair: Exposing the IRS.  I am reacting to both the film and the companion book, which pretty much cover the same ground in the same order. The bottom line is that Craig Bergman's argument does not make a lot of sense.

He discusses IRS abuses in the last several years and proposes that we repeal the income tax, abolish the IRS and enact the Fair Tax. A lmost all the abuses he discusses concern the qualification of organizations for exempt status. It turns out that the same issues exist under the Fair Tax.

The filmmaker I brought along did not think that it was much of a documentary. His biggest issue was that he was expecting an expose` and instead experienced a reiteration of a political and cultural platform. If this review is any indication, he is not alone in his judgement. ...

It is not an exaggeration to say that the film is seeking to make the case that the IRS is a criminal organization . The tip off is the clip of 1930s gangsters with guns. A significant portion of time is spent on Teapartygate. We get brief clips from news programs hearing from George Will, Governor Mike Huckabee, Congressman John Linder, and Bill O’Reilly among others. Craig Bergman, the narrator, then tells us that he put together a crew of talented filmakers to travel across America to talk one-on-one with those affected by the abuses. Craig starts at the Tea Party “Audit The IRS” rally, has an extensive treatment of Lois Lerner including her campaign against the Christian Coalition while working for the Federal Election Commission and moves on to an interview with Jim Jess of the Georgia Tea Party. There is a lot of network footage, most of it from Fox News. There is r eally nothing new in this part if you have been following the scandal. The treatment is entirely one sided. ...

Jonathan Schwartz did not think that UnFair cut it as a documentary. He did not even think that it was very effective propaganda.  It was more of a rally the troops type of piece that would only work on those who were already convinced of the viewpoints expressed.

Continue reading

October 20, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

Sunday, October 19, 2014

The IRS Scandal, Day 528

IRS Logo 2The Hollywood Reporter:  'Unfair: Exposing the IRS': Film Review:

Delivering an attack against the Internal Revenue Service is like shooting fish in a barrel. You'd be hard-pressed to find anyone, whatever their political affiliation, who has anything good to say about this much-reviled government agency. So it seems a bit of a waste that Judd Saul's documentary Unfair: Exposing the IRS, shown as a one-night event in some 680 screens around the country, should have resorted to such relentless overkill.

Before your angry online comments come pouring in accusing this reviewer of being a godless, unpatriotic communist, please be advised that this is a film review, not a political tract. Any criticisms to follow are meant to address the film on cinematic terms, and in that regard it falls woefully short of being convincing to anyone who isn't already fully aligned with its impassioned message. Devoid of thoughtful analysis or divergent opinions, it's little more than agitprop … which is not to say that many of the films emanating from the other side of the political spectrum are any better. ...

Beginning with the usual barrage of inflammatory news clips, it naturally spotlights the recent uproar over the IRS' alleged targeted persecution of Tea Party organizations — President Obama is repeatedly seen denouncing it as a "phony scandal" — and the subsequent embarrassing spectacle of its leaders haplessly testifying before Congress that they had somehow managed to lose over two years' worth of relevant emails. Couple that with evidence of the agency's wild overspending, such as video clips of their bizarre comic sketches performed at lavish getaways, and it's certainly hard not to get one's dander up. ...

Featuring commentary by such usual suspects as Mike Huckabee, Ted Cruz, Glenn Beck, Michele Bachmann and, of course, Grover Norquist, Unfair: Exposing the IRS is not so much an expose as predictable preaching to the choir.

Continue reading

October 19, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Saturday, October 18, 2014

The IRS Scandal, Day 527

IRS Logo 2American Center for Law and Justice: Finally: IRS Approves Two More Tea Party Groups:

It’s taken years, but IRS approvals are still slowly—very slowly—rolling in.

The ACLJ first sounded the alarm against the Obama Administration’s unlawful targeting of grassroots conservative groups in the spring of 2012. It was not until the following year, in May of 2013, when Lois Lerner admitted that the IRS had in fact singled out and targeted hundreds of tea party and conservative groups. Shortly afterwards, the ACLJ filed suit against the IRS on behalf of 41 groups in 22 states.

Some of those groups are still being targeted and delayed, even today.

Yet we’re still winning victories, even while the case is ongoing.

Today, two more conservative groups received approval of their tax-exempt applications. Laurens County Tea Party of Laurens, South Carolina and Allen Area Patriots from Frisco, TX, both seeking 501(c)(4) status, were just approved.

Laurens County Tea Party and Allen Area Patriots both applied for tax-exemption in July of 2010. It took the IRS more than four years to review their applications and approve these groups.

Of our 41 clients, 28 have now been approved, and seven groups are still awaiting approval. One of these seven groups, Albuquerque Tea Party is less than two months away from “celebrating” five years since they originally applied for tax-exemption. To date, they have still not been approved.

While the mainstream media gave the Administration the benefit of the doubt and ignored, if not completely dismissed the targeting as nothing more sour grapes from angry conservatives, vindication of these groups has come time and time again as the public learns more information from Congressional investigators of how wide scale this scandal really was.

Continue reading

October 18, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Friday, October 17, 2014

The IRS Scandal, Day 526

IRS Logo 2Statesman Journal:  Wehby Attempts to Tie Sen. Jeff Merkley to IRS Scandal:

Republican Senate candidate Monica Wehby released a web video Thursday with the goal of tying Sen. Jeff Merkley to the scandal surrounding the Internal Revenue Service targeting tax-exempt groups for their political leanings.

The 35-second video entitled "Corrupt" explains that Merkley was one of several Democratic Senators who wrote a letter to the IRS in 2012 requesting the agency "immediately change the administrative framework for enforcement of the tax code as it applies to groups designated as 'social welfare' organizations." ... The ad lays that targeting of conservative groups at Merkley's feet and asks whether voters can trust him.

Continue reading

October 17, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Thursday, October 16, 2014

The IRS Scandal, Day 525

Wednesday, October 15, 2014

The IRS Scandal, Day 524

IRS Logo 2Forbes:  President Obama, Audit Threats, And Rogue IRS Employees, by Robert W. Wood:

The fallout from the IRS targeting flap isn’t over. The key lost emails could be the result of bona fide, unanticipated, and irreversible computer crashes. Yet some still see finger-prints of a cover-up. It provides fodder for the online equivalent of jawing around the water-cooler. Either way, conservative groups are outraged.

More broadly, there is a general malaise about the IRS and our tax system. It is not enough for the IRS to do a good job of enforcing the tax laws in a fair and non-discriminatory way. As important, the IRS needs to be perceived as fair. If profiling is a dirty word, it should be equally dirty when the IRS does it. Truly, audit targeting is scary. ...

Don’t forget President Obama’s audit quip in 2009 in a commencement speech. The President joked about Arizona State University’s decision not to award him an honorary degree:

“I really thought this was much ado about nothing, but I do think we all learned an important lesson. I learned never again to pick another team over the Sun Devils in my NCAA brackets. . . . President [Michael] Crowe and the Board of Regents will soon learn all about being audited by the IRS.”

It was an innocent remark, but some pundits didn’t see any humor. Comedians joke about such things, not Presidents, especially not with the history this charged issue has had. It would only be a few years before the ‘rogue employees’ excuse could be used about IRS targeting. In the meantime, a clever remark can go a long way.

‘Gee, I thought you wanted me to ice that guy,’ a mafia button man might say. With plausible deniability, the don might get off scot free. Presumably, though, we can’t see what Ms. Lerner told her exempt organization subordinates in Cincinnati. If there were truly rogue employees, might they have misunderstood their mission and gotten overzealous?

Continue reading

October 15, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

Tuesday, October 14, 2014

The IRS Scandal, Day 523

IRS Logo 2Town Hall:  The White House Dogs, by Erick Erickson:

There are two dogs living in the White House other than the Obamas' pet dog. The first of the two dogs is the one that eats all the homework. It has been let loose across government agencies.

The Internal Revenue Service had an encounter with the dog. Lois Lerner, in charge of the division accused of harassing conservative groups, suddenly had her hard drive crash. All her emails were gone. Then six other employees mysteriously had their emails vanish. All seven were relevant to the congressional probe of the IRS.

The emails appear not to be on any servers. They do not seem to have been backed up, or the back ups were destroyed too. The emails have simply vanished. It is just awfully convenient that they were emails involved in a congressional probe.

Once the dog finished eating emails at the IRS, it moved over to the Environmental Protection Agency. The Competitive Enterprise Institute filed a request for certain emails and text messages from or to EPA administrator Gina McCarthy. According to the Washington Times last Wednesday, the EPA now says thousands of text messages related to Ms. McCarthy have simply disappeared. Her emails too are gone. The Competitive Enterprise Institute and the EPA are involved in a lawsuit, making the disappearance of the emails even more serious.

Now it is not just congressional Republicans looking at disappearing data. A federal judge is involved, too. Congressional Republicans can be dismissed far more easily than a federal judge in a black robe with a gavel.

It seems the IRS and EPA are not the only government agencies visited by this hungry dog. The Securities and Exchange Commission has lost hundreds of computers with information on them that could be used for insider trading purposes. ...

That leads us to the other dog living in the Obama White House. In "Silver Blaze," a short story about Sherlock Holmes by Sir Arthur Conan Doyle, a prized racehorse went missing the night before a major race. Holmes, investigating the disappearance and the related death of the horse's trainer, refers "to the curious incident of the dog in the nighttime." The curious incident was that the dog did not bark. The dog at the stables made no sound as the thief stole the horse because the dog knew the thief.

The Obama administration has not barked in these cases. Internal Revenue Service emails from employees under investigation by Congress have been deleted. The Obama administration's best guess is that there was just an unfortunate coincidence of timing with an obligatory reference to "partisan witch hunts." The same holds for the EPA and now the SEC.

The Obama administration has expressed little concern, mostly taking the opportunity to blame Republicans. Government data has been deleted, and no one in the White House seems concerned. The dog is not barking. ...

The matters on which the White House dogs are willing to bark and be quiet should direct the attention of an objective press. The silence on the IRS and EPA is very telling.

Continue reading

October 14, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Monday, October 13, 2014

The IRS Scandal, Day 522

IRS Logo 2New York Observer:  Sex, Lies, and . . . White House Counsel; Ruemmler Blunders Into Secret Service Mess, by Sidney Powell:

Enter Kathryn Ruemmler, former White House Counsel, repeatedly discussed on the “short list” for Attorney General. ...

As we reported previously, not only was Ms. Ruemmler in the middle of the IRS email scandal, the Benghazi cover-up, and the most vigorous “protector” of a president while increasing government secrecy and violating the rights of others, the Post places her squarely in the middle of the cover-up of the Cartagena sex scandal for which the Secret Service and the military took the sole blame for having several prostitutes spend the night before the President arrived. ...

According to Mr. Obama, those involved in the “Hookergate” scandal were just “a couple of knuckleheads” in the Secret Service. Wait, that sounds familiar. Oh yes, the IRS targeting of conservative political groups was just “a couple of boneheads” in the Cincinnati office of the IRS, and there wasn’t a “smidgeon of corruption” in Mr. Obama’s IRS.

Anyone still buying that must have been comatose for the last several months, during which we learned of the ever increasing number of computer crashes, and that the IRS deliberately destroyed Lois Lerner’s blackberry—a fact the IRS tried to hide from federal judge Emmet G. Sullivan. These developments may have a role to play in Mr. Holder’s departure—the real reasons for which I believe are yet to surface.

Our entire government is imploding in deceit and dishonesty. The United States has become the laughingstock of the world, and the vacuum in leadership of this country is sucking the very air we breathe. Nero fiddled while Rome burned. Mr. Obama golfs while ISIS beheads. Meanwhile, Kathryn Ruemmler’s on his short list for Attorney General.

There are reasons for his “trust” in her that are obvious to him, but she “ain’t no friend of mine.”

Continue reading

October 13, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Sunday, October 12, 2014

The IRS Scandal, Day 521

IRS Logo 2Forbes:  Lois Lerner And The Terrible, Horrible, No Good, Very Bad Day, by Robert W. Wood:

Lois Lerner–the former IRS official at the heart of Tea Party targeting–is retired from the IRS. Despite being held in contempt of Congress for refusing to testify, she hasn’t been prosecuted. Yet after her long silence, her exclusive interview with Politico was anything but reticent and reserved. In it, Ms. Lerner said she did nothing wrong and considers herself  the victim.

Ms. Lerner bristled at any suggestion she had anything to do with destroying emails, switching to texts, letting her own liberal views influence her treatment of Tea Party a_holes, crazies. etc. Yet in a curious turn of events, journalist and Crapitalism author Jason Mattera showed up in her nice Bethesda neighborhood to pepper her with questions. They included such zingers as “Do you feel bad about turning the government into a weapon to crush political dissent?”

This time, Ms. Lerner wasn’t flanked by lawyers and facing softball questions at Politico. And who can blame her for not wanting to answer these questions. So she scurried to a neighbor’s house and started knocking on the door, begging to be admitted. Ms. Lerner’s day got worse when her neighbors seemed to, well, ‘Take the Fifth’ about letting her in. She  stood there on the porch, while Jason Mattera probes with barbs like, ‘it doesn’t feel good to be targeted does it?’

AlexanderOK, this may not be journalism’s finest hour, nor does it necessarily mean much that Ms. Lerner didn’t want to answer these questions. It may not even mean much that the neighbor has probably had enough, and didn’t want to be involved. That’s so no matter how much the neighbor may like Ms. Lerner, or her dogs for that matter.

I’m not saying that anyone wants to be hounded (excuse the pun), either. But being hounded and asked questions of this sort cannot be entirely unexpected and may not even be unfair, especially after Ms. Lerner’s exclusive interview with Politico. It all sounds a little like Alexander and the Terrible, Horrible, No Good, Very Bad Day, based on the book by Judith Viorst. Just like Lois Lerner’s day, from the moment Alexander wakes up, everything goes wrong. ...

Want even more terrible, horrible, no good items? How about those rogue employees in Cincinnati doing things they shouldn’t. I’ll bet all those missing emails would prove once and for all that those confused rogue Cincinnatians did all the targeting non-biased and careful review with no help from the boss. Too bad the hard drive is gone destroyed buried not available despite best efforts. Maybe Alexander had something. Maybe moving to Australia wouldn’t be such a bad idea after all?

Continue reading

October 12, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Saturday, October 11, 2014

The IRS Scandal, Day 520

IRS Logo 2Forbes: Is IRS A Smidgen Corrupt? Ask Lois Lerner, NetJets, Buffett & 150 Million Taxpayers, by Robert W. Wood:

[A]ny dealings with the IRS today may be more unsettling than in the past because many have less confidence today that the system is fair and impartial. It is hard to overstate how important this is. Some of it comes back to the last 18 month who’s-on-first routine on display from the IRS.

Lois Lerner wouldn’t talk to Congress, although she is collecting a nice pension. Despite being held in contempt of Congress for refusing to testify, she hasn’t been prosecuted. Maybe her refusal is constitutionally protected, maybe not. Yet after her long silence, in an exclusive interview with Politico, Ms. Lerner said she did nothing wrong and she considers herself the victim.

She bristled at any suggestion she had anything to do with destroying emails, switching to texts to avoid being traced, letting her own liberal views influence her treatment of tea party a_holes, etc. It isn’t only Ms. Lerner who comes off as above the law. IRS Commissioner Koskinen did his share of testifying about the email mess. Sadly, he somehow managed to seem arrogant, uninformed, and perhaps even a tad dismissive that his organization had any explaining to do.

The IRS and its thousands of dedicated employees deserve far better. Yet given the IRS’s current image problem, might some taxpayers feel justified in cheating on their taxes? I hope not, but I’ll bet some might think of this. Some of the public may not be able to get past the apparent stonewalling. Some of the public may wonder if they would get a pass from the IRS if their hard drive ate their tax records.

Some taxpayers may go beyond fudging their taxes and take their distrust to the courts. It already happened with True the Vote’s lawsuit against the IRS. But you can’t win without evidence. See Judge sides with IRS in search for Lerner emails. More suits could be impacted too. As noted in The Lois Lerner App, NetJets has asserted that the IRS “wiped clean a number of computer hard drives containing e-mails and other electronic documents that the government was required to produce.” ...

Will some taxpayers cheat after seeing this kind of behavior? I hope not, but some might justify it to themselves. When thousands of emails go missing from the key time period? And, when no one said anything about the emails being missing until one year into a federal investigation? Might some taxpayers cheat after seeing this kind of behavior? ...

Whatever one’s political views, politics are not supposed to matter to the IRS. Taxes and tax administration can’t be even remotely based on politics. We all need to believe that, and more generally, in the fairness of the system. One’s tolerance for coincidence should not have to be work overtime to be convinced.

Continue reading

October 11, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Friday, October 10, 2014

The IRS Scandal, Day 519

IRS Logo 2New York Sun:  Department of Injustice, by Conrad Black:

This brings us to the excruciating and horrifying saga of the Internal Revenue Service. It is clear, despite an administration effort to muddy the waters and strangle the congressional investigation, that the president and his party’s leaders in Congress launched a Herculean effort to bully the IRS to silence conservative organizations critical of the administration, and that the IRS, led by the head of the tax-exempt-organizations section, Lois Lerner, did its best to comply with this request. The extent of the collusion has been made difficult to fix with precision because Ms. Lerner’s hard drive disappeared and she has declined to answer congressional questions, exercising her right to avoid self-incrimination.

No one believes that her e-mails vanished accidentally, but let us note the contrast between the complacency with which the Democratic national media have assimilated this news with the hysteria that followed the revelation that Rose Mary Woods, Richard Nixon’s assistant, had lost only 18 minutes of a Watergate tape. Because of synchronized IRS non-cooperation and the likely destruction of evidence, it is hard to be sure of the extent of the contact between Democratic eminences and the national tax collector, but the existence of many meetings and e-mail exchanges has been established. (Senator Schumer had publicly urged the IRS to crack down on the “extraordinary influence” of the Tea Party and other Republican groups.) Ms. Lerner eventually took leave from her position and was accused of contempt of Congress. It is hard not to be contemptuous of the Congress, but that does not excuse refusal to answer amid the heavy suspicion of destruction of evidence.

President Obama installed John Koskinen, a “turn-around” expert from Fannie Mae, to clean up the IRS. But he has construed his role to be the obstruction of the congressional investigation, in appearances that were sanctimonious filibusters to explain the IRS’s conduct by standing on what he fancies to be his dignity and fuming with righteousness when the committee members suggested that he is not cooperating (which, of course, he isn’t). The administration’s own investigation has been a slapstick farce, largely led by Ms. Lerner’s chief associate in persecuting Republican political organizations, Jack Smith, now head of the public-integrity unit of the Justice Department. The administration is determined to kill the whole investigation, and there is little doubt that a thorough airing of the matter would show the conduct of much of the senior levels of the administration to be, to say the least, discreditable.

Continue reading

October 10, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)