TaxProf Blog

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

Friday, November 17, 2017

National Taxpayer Advocate Blog: Caring About “Sharing” — The IRS Should Do More For Participants In The Gig Economy

Taxpayer Advocate (2016)NTA Blog, Caring about “Sharing” – The IRS Should Do More for Participants in the Gig Economy:

In this blog post, I will discuss how the IRS has been dealing with a growing sector of our economy called the “sharing” economy (also known as the gig economy). Proponents of the sharing economy believe it promotes marketplace efficiency by enabling individuals to generate revenue from assets while the assets are not being used personally. For example, a vacation home owner may rent out her home while she is not using it. Airbnb (short-term home rentals) and Uber (shared car services) are two of the more prominent companies that facilitate a sharing economy.

Nearly a quarter of the U.S. population earns money from the sharing economy. Although it may be growing at a healthy rate, I want to make clear that not all sharing economy participants are finding it to be a very lucrative endeavor. On the contrary, data show that the vast majority – 85 percent – earn less than $500 per month from their gigs.

Furthermore, many of the service providers are simply unfamiliar with the tax filing and recordkeeping requirements. Service providers in the sharing economy may not fit the mold of the traditional employee who works “9 to 5” and receives a Form W-2 from one employer. Rather, a service provider in the sharing economy may have to take on multiple gigs to help make ends meet, making it difficult to track and allocate expenses among the various gigs. The majority of them do not receive any tax information from the sharing economy platform they use to earn their income. This demonstrates both the need for guidance from the IRS and the opportunity to create a culture of tax compliance among participants in the sharing economy from the outset. Establishing the tax compliance norms for this emerging industry in its infancy will assist the IRS as this segment of taxpayers grows. 

This leads us to the question, “What can the IRS do to help sharing economy participants comply with their tax obligations?” First, when looking at noncompliance, it is important to distinguish between the various types of noncompliance the IRS encounters. Not all noncompliant taxpayers are willfully noncompliant; many of them are tripped up by “unknowing” or “lazy” noncompliance. That is, some taxpayers are simply unaware of their tax compliance obligations. Many sharing-economy entrepreneurs and merchants have never operated a small business and need to understand certain basic tax obligations (i.e., making required quarterly estimated payments throughout the year to avoid penalties).

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November 17, 2017 in Gov't Reports, IRS News, News, Shuyi Oei, Tax | Permalink | Comments (0)

Monday, November 13, 2017

Frances Regan Receives Award For Her Work In Leadership Training In IRS Office Of Chief Counsel

ReganFederal News Radio, Would-be Pharmacist Turned IRS Lawyer Honored For Her Leadership Skills:

Growing up in a family of pharmacists, there was no question Frances Regan would end up working in healthcare, but as fate would have it, law school was the right prescription for Regan.

Three decades after graduating from St. John’s University School of Law, Regan works as the area counsel for the IRS’ Small Business Self Employed Division for Office of Chief Counsel, and her work hasn’t gone unnoticed.

Regan was one of two federal employees honored with the Roger W. Jones Award from the American University School of Public Affairs, for her leadership and “commitment to effective continuity of government.”

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November 13, 2017 in IRS News, Tax | Permalink | Comments (0)

Sunday, November 12, 2017

Facebook Sues IRS Seeking Access To Internal Agency Appeal

Facebook (2016)Law.com, Facebook Sues IRS Seeking Access to Internal Agency Appeal:

Facebook Inc. has sued the Internal Revenue Service seeking access to an internal IRS appeal process regarding a decision related to the social media giant’s tax bill.

In a 12-page complaint filed in U.S. District Court for the Northern District of California on Wednesday, Facebook claims that IRS counsel have stymied the company’s request to pursue an internal IRS appeal by citing a new and so far seldom-used rule that allows IRS exam teams to deny access to internal appeals when they determine such an appeal would not be in the interest of “sound tax administration.”

Facebook wants a finding that the IRS violated the Administrative Procedure Act by issuing the new rule — Revenue Procedure 2016-22, 2016-15 I.R.B. 1 — and by denying Facebook’s request for an internal appeal.

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November 12, 2017 in IRS News, Tax | Permalink | Comments (4)

Friday, November 3, 2017

$6.8 Billion Hedge Fund Tax Dispute Moves to IRS Appeals Office

RenaissanceFollowing up on my previous post, Senate Report Criticizes Hedge Funds' Use of Basket Options Tax Strategy:  Bloomberg, Mercer Hedge Fund Tax Dispute Moves to IRS Appeals Office:

A tax dispute involving Renaissance Technologies, the hedge fund firm whose co-chief executive officer is a prominent backer of President Donald Trump, is advancing to a new phase.

Members of the Internal Revenue Service’s Office of Appeals are scheduled to meet with lawyers for Renaissance in New York on Nov. 7, according to a person with knowledge of the matter. The meeting kicks off a review by an independent branch of the tax agency and suggests a resolution may be years away.

Although the dollar amount at issue has never been made public, Senate investigators estimated that Renaissance employees may have pocketed about $6.8 billion through what a bipartisan panel in 2014 called an “abusive” tax shelter. Renaissance executives maintain the transactions at issue were within the law and weren’t driven by tax savings.

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November 3, 2017 in IRS News, New Cases, Tax | Permalink | Comments (0)

Tuesday, October 31, 2017

Davis: Morrissey And The IRS's Hostility To Reproductive Choice

Following up on my previous posts:

Tessa Davis (South Carolina), Morrissey v. U.S. and the IRS's Hostility to Reproductive Choice:

I’ll begin with what the court of appeals got right. First, the court did not read a “disease” requirement into the “structure or function” route to a medical expense deduction. Second, the court did not summarily reason that ARTs are unrelated to a “function of the body.” The court of appeals thus avoided two errors that plagued the earlier Magdalin v. Comm’r  case (a Tax Court memorandum opinion summarily affirmed by the First Circuit, and which I’ve written about here).

Unfortunately, the court of appeals got just about everything else wrong.

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October 31, 2017 in IRS News, New Cases, Tax | Permalink | Comments (2)

Some Positive News About The IRS

IRS Logo 2The IRS does not have an easy job.  Remember, it's NOT the "IRS Code" because the IRS is just the agency stuck with the task of carrying out the will of Congress.   And the IRS must do this job all while being a political soccer ball — and since the mid-1990's the Republican team has hogged that ball, kicking with more enthusiasm than enlightenment.  So it was nice to see a positive story about tax administration picked up by USA Today, especially because USA stories also appear in little town newspapers, like the one I read here in Lubbock, Texas (the Lubbock Avalanche-Journal:  IRS: Public-private Crackdown Slashes Identity Theft, Tax Refund Fraud, the story comes from a press release by the IRS that explained:

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October 31, 2017 in Bryan Camp, IRS News, Tax, Tax Practice And Procedure | Permalink | Comments (1)

Friday, October 27, 2017

Trump Names Assistant Secretary Of The Treasury For Tax Policy David Kautter Acting IRS Commissioner, Effective Nov. 12

KautterFollowing up on previous posts (links below): President Trump has named David Kautter, Assistant Secretary of the Treasury for Tax Policy. to be the Acting Commissioner of the IRS when John Koskinen's term ends November 12.

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October 27, 2017 in IRS News, Tax | Permalink | Comments (0)

The IRS Scandal, Day 1632: Department Of Justice Settles Tea Party Targeting Cases For Millions And An Apology

IRS Logo 2Wall Street Journal, Administration Agrees to Settle Tea-Party Suits Against IRS:

The Trump administration on Thursday said it has agreed to pay between $1 million and $10 million to settle lawsuits against the Internal Revenue Service for targeting tea-party groups in the Obama era, saying in court documents that the IRS “admits that its treatment...was wrong.”

The Justice Department entered into proposed settlements with groups that alleged in 2013 they had been subject to discriminatory treatment in applying for tax-exempt status. The move largely puts an end to a saga that had engulfed the IRS for years.

In a settlement filed in federal court in Washington, which still must be approved by a judge, the Justice Department said the IRS “expresses its sincere apology” and was “fully committed” to not subjecting groups for additional review “solely on the name or policy positions of such entity.”

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October 27, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (12)

Wednesday, October 25, 2017

The IRS Scandal, Day 1630: The Real Scandal Is The IRS's Budget

IRS Logo 2Philip Hackney (LSU), The IRS Targeting Scandal Was Fake, but IRS Budget Woes Are a Real Problem:

Conservatives have been seething since 2013 over what they say was an unfair and imbalanced effort by the IRS to scrutinize right-leaning organizations more closely than other groups seeking nonprofit status.

As a new report from the Treasury Department’s inspector general for tax administration shows, the IRS did flag some conservative groups out of concern that they might be problematic. But it also paid the same kind of extra attention to liberal organizations with words like “occupy” and “progressive” in their names between 2004 and 2013.

So it’s now official. There was extra scrutiny but there was no liberal bias among the federal employees who determine whether new organizations that want to operate as nonprofits are legitimate – and therefore eligible for the tax-exempt status that goes with that designation.

As a former IRS lawyer who now researches nonprofit regulation, I am relieved to see the claim that the government exclusively targeted conservative organizations officially debunked. I believe this new report ought to usher in a serious discussion about a very real problem: The IRS is too cash-strapped to conduct its oversight of nonprofits of all kinds. ...

The Government Accountability Office, a nonpartisan congressional agency, recognized in 2014 that the tax agency’s budget and staff were too small to handle its nonprofit oversight responsibilities. The situation has only deteriorated since then.

The overall IRS budget fell by about 18 percent in inflation-adjusted terms from 2010 to 2017, from US$14 billion to roughly $11.5 billion. Today, the agency employs fewer people than it did in 2010. The number of its employees dedicated to auditing and vetting the nonprofit sector fell about 5 percent from 2010 to 2013, the GAO found.

This long-term trend, which began two decades ago, has eroded oversight. The number of aspiring nonprofits gaining tax-exempt status rose over the past decade as rejections fell. The number of denials plummeted from 1,607 in 2007 to merely 37 in 2016.

Hackney

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October 25, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (10)

Monday, October 16, 2017

Head Of Tax Practice At BigLaw Firm Sentenced To 24 Months In Federal Prison For Tax Evasion: 'Everyone — Including Tax Lawyers — Must Be Truthful In Reporting Their Income'

LevineNew York Law Journal, Judge Hands Two-Year Sentence to Ex-Herrick Tax Head:

Four months after pleading guilty to tax charges, former Herrick Feinstein partner Harold Levine in New York was sentenced Wednesday to 24 months in federal prison for his role in a scheme to defraud the IRS.

U.S. District Judge Jed Rakoff of the Southern District of New York in Manhattan handed down the sentence against Levine, who was indicted a year ago this month on wire fraud and tax evasion charges.

U.S. Attorney’s Office for the Southern District of New York Press Release, Manhattan Tax Attorney Sentenced To Two Years In Prison For Participation In Multimillion-Dollar Tax Evasion Scheme And Lying To The IRS:

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October 16, 2017 in IRS News, Tax | Permalink | Comments (0)

Tuesday, October 10, 2017

Treasury Rolls Back Eight Tax Regulations

TreasuryTreasury Department, Second Report to the President on Identifying and Reducing Tax Regulatory Burdens (Executive Order 13789) (Oct. 2, 2017) (press release):

This Second Report recommends actions to eliminate, and in other cases mitigate, consistent with law, the burdens imposed on taxpayers by eight regulations that the Department of the Treasury (Treasury) has identified for review under Executive Order 13789. As stated in the order, it is the policy of the President that tax regulations provide clarity and useful guidance. Recent regulations, however, have increased tax burdens and impeded economic growth. The order therefore calls for immediate action to reduce tax regulatory burdens and provide useful and simplified tax guidance.

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October 10, 2017 in Gov't Reports, IRS News, Tax | Permalink | Comments (3)

Saturday, October 7, 2017

The IRS Scandal, Day 1612: Inspector General Debunks Ideological Targeting Of Conservative Groups By The IRS

IRS Logo 2New York Times, In Targeting Political Groups, I.R.S. Crossed Party Lines:

A federal watchdog investigating whether the Internal Revenue Service unfairly targeted conservative political groups seeking tax-exempt status said that the agency also scrutinized organizations associated with liberal causes from 2004 to 2013.

The findings by the Treasury Department’s inspector general mark the end of a political firestorm that embroiled the I.R.S. in controversy, led to the ouster of its commissioner and prompted accusations the tax collection agency was being used as a political weapon by the Obama administration.

The exhaustive report, which examined nine years worth of applications for tax-exempt status, comes after a similar audit in 2013 found that groups with conservative names like “Tea Party,” “patriot” or “9/12” were unfairly targeted for further review.

The new report found that the I.R.S. was also inappropriately targeting progressive-leaning groups. While the investigation does not specify the political affiliations of the groups, names that were flagged included the words “Progressive,” “Occupy,” “Green Energy,” and Acorn — the acronym for the now defunct Association of Community Organizations for Reform Now. ...

Ahead of the 2014 midterm elections, Republicans regularly used the scandal to bludgeon Democrats and paint the Obama administration as corrupt. But now it appears that the I.R.S. was an equal offender. “This report shows the I.R.S. deep scrutiny of political groups is in fact bipartisan, it is liberal and conservative groups that the I.R.S. has been targeting,” said Craig Holman, a government affairs lobbyist for the consumer advocacy group Public Citizen.

Rather than condemn the I.R.S. actions, Democrats on Thursday celebrated the findings as evidence that Republicans were wrong to claim bias at the I.R.S. Democrats had previously been critical of the 2013 Treasury report since it only looked at two years of applications. “After years of baseless claims and false accusations it is my hope Republicans will finally put an end to this witch hunt and admit that their attacks on the I.R.S. were nothing but political grandstanding on behalf of special interests at the expense of American taxpayers,” said Senator Ron Wyden of Oregon, the ranking Democrat on the Senate Finance Committee.

Republicans, however, are not prepared to let the I.R.S. off the hook and seized on the report as evidence that the agency must be reformed. “This report reinforces what government watchdogs and congressional investigators have confirmed time and time again: Bureaucrats at the I.R.S., such as Lois Lerner, arbitrarily and haphazardly administered the tax code and targeted taxpayers based on political ideology,” said Representative Kevin Brady of Texas, the Republican chairman of the Ways and Means Committee. “It’s no wonder the American people have lost faith in the I.R.S.”

The controversy over political targeting at the I.R.S. was the genesis of many congressional hearings and probes, and it has continued to haunt its current commissioner, John Koskinen, whom Mr. Obama tapped to stabilize the agency. As recently as April, House members called for the firing of Mr. Koskinen for the “gross mishandling” of its investigation into the targeting of political groups. Despite the uproar from Republicans, President Trump has not taken any steps to fire Mr. Koskinen, whose term ends next month.

Washington Post, Four Years Later, the IRS Tea Party Scandal Looks Very Different. It May Not Even Be a Scandal:

It all seemed to add up. At least it did then.

The Internal Revenue Service, according to outraged Republicans and many media accounts at the time, targeted tea party organizations and other conservative nonprofit groups that were seeking tax-exempt status between 2010 and 2012. Critics said the tax agency had subjected the targeted groups to extra scrutiny, questioning and long delays, largely because their names suggested they would be political opponents of the Obama administration and the Democratic Party.

The allegations formed one of the best-known scandals of former president Barack Obama’s administration and led to months of congressional hearings, official investigations and damning news coverage.

Now, it seems, it wasn’t so simple. ...

The new finding suggests Republicans and the media provided an incomplete or even misleading account of what the IRS was up to when it was reviewing political organizations that sought tax-exempt status. While not of the order of the news media’s credulous (and flawed) reporting about supposed weapons of mass destruction in Iraq before the U.S. invasion in 2003, the report offers a check on the prevailing narrative of the time.

It may also offer a measure of vindication to Obama, at least according to one of his senior advisers. “The Obama administration was often accused of Nixonian wrongdoing,” Eric Schultz, the former president’s spokesman and a deputy White House press secretary under him, said Thursday. “At some point, I lost track of how many Watergates we had. But we live in an environment where the more hyperbolic your allegation is, the more likely it will get headlines, no matter its veracity. This report substantiates our argument that our White House did not politicize the IRS, but those allegations, A1 material at the time, have lived online for four years and now that the public has moved on, they’re proven false.” ...

The issue might have become part of what Dartmouth political scientist Brendan Nyhan has called the “scandal attention cycle” — the rapid surge of attention as reporters race to cover an issue followed by a similar decline as the news media loses interest. “The problem is that it often takes time for the full set of facts to come out,” Nyhan has written. “By that time, the story is old news and the more complex or ambiguous details that often emerge are buried or ignored.”

Philip Hackney (LSU), IRS ‘Targeted’ Liberal Organizations and After All These Years TIGTA is Still Wrong:

The Treasury Inspector General for Tax Administration (TIGTA) just issued a new report four years and five months after rebuking the IRS for using “inappropriate” criteria to select applications for tax exempt status for scrutiny. In the first report, TIGTA rebuked the IRS for pulling the applications of conservative leaning organizations for greater scrutiny.

This time it considers the fact that the IRS over a period of 10 years used liberal leaning names such as ACORN, Emerge, and Progressive as criteria for pulling applications for greater scrutiny. This resulted in the IRS applying greater scrutiny to these organizations. Some might say the IRS targeted these organizations. Those organizations appear to have faced long wait times as well, and sometimes some questions of limited merit.

I write this piece to make two points: (1) had this information been in the initial report, I don’t think we would have had the “scandal” that shook the IRS and the political world of the time; and (2) the TIGTA report built its primary claim on a garbled faux legal postulate. The original report did terrible damage to the IRS and individuals by failing on both of these fronts.

Leandra Lederman (Indiana), The Real IRS Scandal:

[T]he new TIGTA report “identified 146 cases in which the IRS examined groups for suspicion of engaging in disallowed political activity using those criteria.” This finding is not a surprise. The fact that IRS employees were using keywords to identify progressive as well as conservative organizations doing too much political activity to qualify under 501(c)(4) should have been clear to anyone who dug into the public documents. But it wasn’t the message that the House Oversight Committee — and thus many media stories — disseminated. The real scandal was the d amage the resulting witch hunt did to the IRS. I wrote about that in [IRS Reform: Politics As Usual?, 7 Colum. J. Tax L. 36 (2016)] and in a related, short article I published in Tax Notes, The IRS, Politics, and Income Inequality, [150 Tax Notes 1329 (Mar. 14, 2016),] focused in part on IRS underfunding. I hope that TIGTA’s new report helps set the record straight.

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October 7, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (4)

Friday, October 6, 2017

The IRS Scandal, Day 1611: TIGTA Report, Review Of Selected Criteria Used To Identify Tax-Exempt Applications For Review

IRS Logo 2Treasury Inspector General for Tax Administration, Agency Statement On Audit Report: “Review of Selected Criteria Used to Identify Tax-Exempt Applications for Review”:

In May 2013, the Treasury Inspector General for Tax Administration (TIGTA) published an audit report in which we reported that between May 2010 and May 2012, the Internal Revenue Service (IRS) used inappropriate criteria to identify for review organizations’ applications for tax-exempt status. TIGTA’s 2013 audit found that the IRS inappropriately selected organizations for scrutiny based on their names or policy positions, instead of indications of significant potential political campaign intervention. Further, TIGTA found that the IRS made requests for unnecessary information and delayed, in some cases for years, making decisions on the organizations’ applications.

This audit was initiated based on bipartisan interest expressed by Members of Congress regarding the IRS’s use of other criteria to select tax-exempt applications for further review. Today, we are releasing a 115-page audit report that provides a historical account of the IRS’s use of 17 additional selection criteria going back as far as 2004. These 17 selection criteria were chosen based on bipartisan input from congressional committees of jurisdiction over the IRS, input from the IRS, and training materials that were not provided to TIGTA during the 2013 audit.

TIGTA found that, between 2004 and 2013, the IRS potentially used more than 250 criteria to identify for further review the applications of organizations seeking tax-exempt status. In our 2013 audit, we found that the process for review of applications for potential political advocacy from May 2010 to May 2012 involved the IRS’s use of a tracking sheet identifying the potential political cases selected for further review; however, the IRS was unable to identify what specific cases, if any, were selected for further review under 16 of the 17 criteria in our current report. Without case selection tracking sheets for the 16 criteria, TIGTA used various other sources to identify 146 cases related to the 17 criteria with indications of political activity, and confirmed that 83 of them were selected for review based on the 17 criteria.

This report is divided into 17 sections, one for each of the 17 criteria. Due to the unique nature of the 17 criteria, it is difficult to compare the criteria to each other, or to compare in aggregate to the criteria reviewed in the 2013 audit. However, TIGTA did find that, while the number of organizations impacted is significantly less than the number detailed in the 2013 report, some organizations in the current report also experienced significant delays and received requests for unnecessary information. In addition, in the 2013 report the majority of cases we reviewed were from organizations applying for I.R.C. § 501 (c)(4) status. In contrast, the majority of the 146 cases in the current report were organizations applying for I.R.C. § 501 (c)(3) status.

Our 2013 report made several recommendations for process improvements and all of them were implemented by the IRS, which we verified in a follow-up audit in 2015. As a result of our 2013 report, the IRS completely revamped the process for reviewing tax-exempt applications, including the elimination of criteria listings, known as “Be On the Lookout” listings, in June 2013. According to the IRS, the revamped process has totally eliminated the backlog of applications and reduced processing cycle times for cases. Since the review process in place when the 17 criteria were potentially used by the IRS is no longer in effect, TIGTA did not make any recommendations for improvement in this audit report.

Treasury Inspector General for Tax Administration, Review of Selected Criteria Used to Identify Tax-Exempt Applications for Review (2017-10-054) (Sept. 28, 2017):

IMPACT ON TAXPAYERS
In a prior audit, TIGTA determined that the IRS used inappropriate criteria to select tax‑exempt applications for further review. Moreover, ineffective management resulted in substantial delays in processing certain applications and allowed unnecessary information requests to be issued. It is critical that tax laws are administered in a fair and impartial manner.

WHY TIGTA DID THE AUDIT
In the prior review, TIGTA audited criteria that the IRS stated it used to select potential political cases for additional review from May 2010 through May 2012. The overall objective of this audit was to provide a historical account of the IRS’s development and use of 17 select criteria from 259 criteria used to identify tax‑exempt applications for review. The 17 criteria discussed in this report were selected based on input from staff of various congressional committees of jurisdiction and the IRS as well as from training documents that were not provided to TIGTA in the prior audit.

WHAT TIGTA FOUND
TIGTA found that, from August 2004 through June 2013, the IRS potentially used 259 criteria to identify tax-exempt applications for further review. Most of these criteria involved issues besides political campaign intervention, such as potential fraud, abuse, and links to terrorism.

In the prior audit, TIGTA found that the IRS used a tracking sheet to show which potential political cases were selected for further review; however, IRS management stated that case listings such as the one provided in the prior audit were not required. Due to the lack of case listings for all but one of the 17 criteria, TIGTA used various sources to identify more than 900 cases that could potentially have been selected for review based on the 17 criteria. However, TIGTA could not verify whether all relevant cases were identified.

Based on TIGTA’s review of case documentation, 181 of the more than 900 cases had evidence of political activities or indications of significant potential political campaign intervention (the subject of the prior audit). Thirty-five of these cases were not processed while the applicable criteria were in use and did not appear to be processed based on the criteria. For the remaining 146 cases, TIGTA determined that 83 were processed based upon the criteria and 63 were processed while the criteria were in use, but TIGTA could not confirm these 63 cases were selected based upon the criteria. Analysis of the 146 cases is shown in each of the 17 sections of the report with information for each of these unique criteria.

Figure 4

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October 6, 2017 in Gov't Reports, IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Thursday, October 5, 2017

Hickman: Chamber of Commerce v. IRS — The Post-Mayo Shake Out Continues

Hickman (2017)Following up on Monday's post, U.S. District Court Strikes Down Obama-Era Anti-Inversion Regulation, Limiting IRS's Power To Make Rules That Skirt The APA:

TaxProf Blog op-ed:  Chamber of Commerce v. IRS:  The Post-Mayo Shake Out Continues, by Kristin Hickman (Minnesota):

Here we go again.  In 2011, the Supreme Court in the Mayo Foundation case declared that it was “not inclined to carve out an approach to administrative review good for tax law only.”  Since then, courts and scholars have been engaged in an ongoing enterprise of debating just how far to take that suggestion.  Last week, in Chamber of Commerce v. IRS, a federal district court in Texas offered up the latest installment in the ongoing post-Mayo shake out when it invalidated a set of Treasury regulations —this time, Temp. Treas. Reg. 1.7874-8T regarding inversion transactions — on Administrative Procedure Act (APA) grounds.  The court’s opinion addressed several issues concerning the relationship between the IRC and general administrative law principles.  And, as with Cohen, Home Concrete, Altera, and other cases in this line, the Chamber of Commerce decision has inspired cheers from some, hand wringing by others, and a great deal of curiosity as tax specialists and administrative law generalists again try to understand one another.

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October 5, 2017 in IRS News, New Cases, Tax | Permalink | Comments (0)

The IRS Scandal, Day 1610: Inspector General Says IRS Gave Extra Scrutiny To Liberal Groups, Undermining GOP Claims Of Ideological Targeting Of Conservative Groups By IRS

IRS Logo 2Washington Post, Liberal Groups Got IRS Scrutiny, Too, Inspector General Suggests:

A federal watchdog has identified scores of cases in which the Internal Revenue Service may have targeted liberal-leaning groups for extra scrutiny based on their names or political leanings, a finding that could undermine claims that conservatives were unfairly targeted under President Barack Obama.

The Treasury Inspector General for Tax Administration (TIGTA) reviewed cases between 2004 and 2013, which includes the period TIGTA previously examined in a 2013 report that faulted the IRS for using inappropriate political criteria to select groups for heightened scrutiny.

That earlier report found that 96 groups with names referencing “Tea Party,” “Patriot” or “9/12” were selected for intensive review between May 2010 and May 2012, and the House Ways and Means Committee later identified another 152 right-leaning groups that were subjected to scrutiny. Those findings fueled accusations by Republican lawmakers that the Obama administration engaged in politically motivated targeting of conservatives.

But Democrats have long challenged those claims, arguing that liberal-leaning groups were given close scrutiny alongside the conservative groups. The 2013 TIGTA report, they argued, was based on selective criteria that omitted numerous nonconservative groups that were also subjected to close IRS review.

The new report examines a broader range of criteria used by the IRS. It does not characterize the politics of the groups that were selected for scrutiny, a TIGTA spokeswoman emphasized Wednesday. But many of the 17 criteria the report examined had obvious political overtones — including affiliation with the now-defunct Association of Community Organizations for Reform Now (ACORN), as well as names referencing “Progressive,” “Green Energy,” “Medical Marijuana,” and “Occupy.”

Together, the watchdog identified 146 cases in which the IRS examined groups for suspicion of engaging in disallowed political activity using those criteria. Eighty-three of those were definitively chosen for scrutiny because of the selection criteria, the inspector general found; the report could not definitively determine how the other cases were chosen.

The Washington Post reviewed a version of the TIGTA report dated Sept. 28 that has been circulated to various lawmakers and committees on Capitol Hill. The full report is set to be released to the public Thursday.

The new report reiterates the inspector general’s earlier criticism of the IRS review process at the time, calling it “inappropriate” to target groups for scrutiny based on their names rather than on actual evidence of illicit political activity that would leave them ineligible for tax exemptions.

Groups that were selected for review waited months — years, in some cases — for their applications to be reviewed and were subjected to onerous and, in some cases, improper requests for information on their donors and activities. ...

Brady said in a statement Wednesday that the new TIGTA report “reinforces what government watchdogs and congressional investigators have confirmed time and time again: bureaucrats at the IRS, such as Lois Lerner, arbitrarily and haphazardly administered the tax code and targeted taxpayers based on political ideology.” He pledged to “continue holding the IRS accountable for their actions.”

Rep. Sander M. Levin (D-Mich.), who served as the top Democrat on the Ways and Means Committee during the height of the IRS scandal, said Wednesday that the report confirmed “political manipulation by the Republicans.” “They were trying to squeeze whatever political juice they could out of this,” he said. “Incompetence is different than a political witch hunt. There never was one, at least one that anybody could identify.”

DeBonis

Brunson

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October 5, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (5)

The IRS Scandal, Days 1501-1600

October 5, 2017 in IRS News, IRS Scandal | Permalink | Comments (0)

Wednesday, October 4, 2017

Democrats And Republicans Blast IRS's Decision To Award Equifax $7.25m No-Bid Contract To Prevent Taxpayer Identity Theft: 'I Thought I Was Reading The Onion'

EIRSPolitico, IRS Awards Multimillion-Dollar Fraud-Prevention Contract to Equifax:

The IRS will pay Equifax $7.25 million to verify taxpayer identities and help prevent fraud under a no-bid contract issued last week, even as lawmakers lash the embattled company about a massive security breach that exposed personal information of as many as 145.5 million Americans.

contract award for Equifax's data services was posted to the Federal Business Opportunities database Sept. 30 — the final day of the fiscal year. The credit agency will "verify taxpayer identity" and "assist in ongoing identity verification and validations" at the IRS, according to the award. ...

Lawmakers on both sides of the aisle blasted the IRS decision.

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October 4, 2017 in IRS News, Tax | Permalink | Comments (0)

Tuesday, October 3, 2017

TIGTA: IRS Must Ensure That Volunteer Income Tax Assistance Is Given Only To Eligible Taxpayers (200,000 Returns Were Prepared For Ineligible Taxpayers, Including Four With AGIs > $1 Million)

TIGTAThe Treasury Inspector General for Tax Administration has released Improvements Are Needed to Ensure That the Volunteer Income Tax Assistance Grant Program Extends Tax Return Preparation to Underserved Populations (2017-40-088):

TIGTA’s review of the almost 4.5 million tax returns prepared by grantees during Grant Years 2014 through 2016 identified that: 1) volunteers prepared 201,572 (4 percent) returns with an Adjusted Gross Income amount that exceeded the income threshold set for free tax return preparation, including 34,371 returns with an Adjusted Gross Income greater than $100,000 and 11 returns with an Adjusted Gross Income exceeding $1 million; 2) the IRS could not verify if 456,220 (10 percent) tax returns with complex tax schedules were prepared by volunteers with advanced certifications; and 3) 15,402 returns were out of scope. Finally, some guidelines and procedures were not current or consistent.

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October 3, 2017 in Gov't Reports, IRS News, Tax | Permalink | Comments (1)

Monday, October 2, 2017

U.S. District Court Strikes Down Obama-Era Anti-Inversion Regulation, Limiting IRS's Power To Make Rules That Skirt The APA

Chamber of Commerce v. IRS, No. 1:1 6-CV-944 (W.D. TX Sept. 29, 2017) (citations omitted):

In April 2016, the Internal Revenue Service and the United States Department of the Treasury (the "Treasury Department") (together, the "Agencies") issued a rule identifying stock of foreign acquiring corporations that is to be disregarded in determining an ownership fraction relevant to categorization for federal-tax purposes because the stock is attributable to prior domestic-entity acquisitions. 26 C.F.R. § 1 .7874-8T (the "Rule"). The Rule was simultaneously issued as a temporary regulation effective immediately and as a proposed regulation subject to notice and comment. 26 C.F.R. § 1.7874-8T(j); Prop. Treas. Reg. § 1.7874-8.

Plaintiffs, the Chamber of Commerce of the United States of America (the "Chamber") and the Texas Association of Business, now bring this lawsuit asserting Defendants, the Internal Revenue Service, Treasury Department, John A. Koskinen, and Jacob J. Lew, violated the Administrative Procedures Act (the "APA") by promulgating the Rule.

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October 2, 2017 in IRS News, New Cases, Tax | Permalink | Comments (1)

Friday, September 22, 2017

The IRS Scandal, Day 1597: New Details Of Targeting Of Conservative Groups Emerge In Tea Party Lawsuits

IRS Logo 2Cincinnati Enquirer, New Details Emerge in Tea Party Suit Against IRS:

The IRS used the political views of conservative "tea party" groups trying to get nonprofit status as a reason for extra scrutiny and continued delaying applications until 2013 — long after they said they'd stopped — new federal court filings allege.

The new accusations counter previous IRS claims that agents did not consider political beliefs when slowing down tax-exempt applications from right-leaning groups in the months leading up to the 2012 presidential election.

The IRS had instead argued that it was merely monitoring whether the groups were conducting more political activity than was allowed.

The filings by conservative groups suing the IRS also state the agency continued the practice after IRS officials said it had stopped in 2011. ...

"By trying to make this about whether this was done to help Obama win is setting the goalpost artificially too high," Eddie Greim, a lawyer representing conservative groups in the class-action suit, said in an interview with The Enquirer. "All we have to prove is whether they had the intent and if they indeed treated a set of groups differently based on their ideology. ...

U.S. Sen. Rob Portman, R-Terrrace Park, who was one of the first in Congress to publicly complain in 2012 about the IRS' possible discrimination against conservative nonprofit groups, said that the practice was "an appalling abuse of power" in a statement to The Enquirer. “It’s clear that the Obama administration’s IRS illegally and intentionally targeted conservative groups for their ideological beliefs, and those responsible ... need to be held accountable," Portman said. ...

[O]thers testified in depositions that Lerner ordered IRS agents to send requests for additional information from the affected groups following that 2011 meeting. That included requests for donor information, normally considered off-limits. Lerner "wanted everyone to know that we are handling the cases as we should," testified Cindy Thomas, the top nonprofit official in Cincinnati at the time.

"So after they were told that this was possibly improper, they doubled down and kept going," Greim said. "This goes well beyond the narrative of what's been reported before."

Greim also said that the IRS removed two Washington agents who had raised questions about the extra scrutiny on the tea party cases. "These two found that ideology was indeed being used, raised questions about it and told their superiors about it and that it was going to cause delay," Greim said. "And wouldn't you know it, they were moved off the matter soon thereafter."

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September 22, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (5)

Thursday, September 21, 2017

IRS FAQs Are A Trap For The Unwary

IRSFAQMarketWatch, What the IRS Does on its Website That’s Unfair to Taxpayers:

Taxpayers can’t rely on Frequently Asked Questions (FAQs) and answers and other “unofficial” guidance that the IRS posts on its website, National Taxpayer Advocate Nina Olson recently explained in a blog post [IRS Frequently Asked Questions Can Be a Trap for the Unwary]. While tax professionals already know about this issue, you may find it unsettling. Here’s what you need to understand.

Unofficial guidance
The IRS puts out what it calls unofficial guidance in many forms. Unofficial guidance includes IRS tax forms and instructions (believe it or not), press releases, online publications, website articles, and website FAQs and answers. Such unofficial guidance is generally not subject to careful internal review or public commentary before being released. Worse yet, the IRS takes the position that taxpayers cannot rely on unofficial guidance even though the IRS has put it out there for public consumption. For example, FAQs and answers that are posted at www.irs.gov can be changed at any time and without any public notice. Ditto for information in IRS publications that are posted on its website. So if you rely on unofficial IRS guidance in taking a position on a federal tax return, the IRS can potentially audit you and assess additional taxes, interest, and even penalties because you did not “follow the rules” even though what you did was consistent with what the IRS said at the time. Not good!

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September 21, 2017 in IRS News, Tax | Permalink | Comments (0)

Friday, September 15, 2017

TIGTA: 64% Of The IRS's Information Technology Is Beyond Its Useful Life

TIGTAThe Treasury Inspector General for Tax Administration has released Sixty-Four Percent of the Internal Revenue Service's Information Technology Hardware Infrastructure Is Beyond Its Useful Life (2017-20-051):

The overall objective of this review was to determine the efficiency and effectiveness of key ongoing or planned activities aimed at addressing the IRS operational challenge of replacing its aged hardware infrastructure.

While the Sustaining Infrastructure Program spends on average nearly 99.7 percent of its allocated budget each year, the IRS has not yet achieved its stated objective of reducing its aged information technology hardware to an acceptable level of 20 to 25 percent. In fact, this percentage has steadily increased from 40 percent at the start of Fiscal Year 2013 to 64 percent at the start of Fiscal Year 2017. The IRS estimates that the current replacement cost for its aged information technology hardware is approximately $430 million.

Figure 1

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September 15, 2017 in Gov't Reports, IRS News, Tax | Permalink | Comments (1)

Thursday, September 14, 2017

The IRS Scandal, Day 1589: The Better IRS Reform

IRS Logo 2

Wall Street Journal editorial, The Better IRS Reform:

The long saga of Lois Lerner is coming to a close. Ms. Lerner was the infamous Obama Administration cat’s paw at the Internal Revenue Service, which harassed conservative political groups in the Tea Party era. Now the Trump Justice Department has decided there is no cause to pursue criminal charges against Ms. Lerner, and Congressional Republicans are howling. ...

Republicans are furious. But this mess happened because the Obama Administration used federal bureaucracies for raw political purposes. If Mr. Sessions’s Justice Department has found no way to prove criminal intent beyond a reasonable doubt, Republicans could begin the road back to accountability by respecting that decision.

What House Republicans should do now is create a structure that will stop assaults by bureaucrats on political activity. They’ve been putting riders in spending bills to bar the IRS from imposing restrictions on nonprofit speech. But this thumbs-in-the-dike approach does nothing about powers that IRS functionaries already have over political activity.

The solution is to get the IRS out of the political arena by limiting its role to the most basic administrative task of giving initial approval to nonprofits. Transfer to the Federal Election Commission the job of deciding whether a nonprofit is abiding by the existing rules governing political spending. The FEC’s commissioners would decide if complaints against the political activities of nonprofits had merit.

Democrats will rebel because the design of the FEC makes it difficult to sic the commission on political enemies. That’s why they made the IRS their political enforcer. Legislators designed the FEC to prevent partisans from turning it into a political weapon.

It takes a majority vote among its six bipartisan FEC commissioners to proceed with a judgment. Commissioners are confirmed by the Senate and operate in the open. The status quo gives this job—and power—to the IRS’s unconfirmed, unseen federal bureaucrats.

Campaign-finance fights make Republicans nervous, but they’ve got a political self-interest in permanently transferring this job to the FEC. Once back in power, Democrats will mobilize a crackdown against their single biggest obsession—“dark money.” Meaning the conservatives who fund their opposition.

Lois Lerner’s IRS operation was the swamp at its worst. The GOP would do the country’s politics a favor by draining these bureaucrats of partisan political power.

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September 14, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (3)

Wednesday, September 13, 2017

Reforming Tax Administration

The current discussion about tax reform is focused on reforming substantive tax law and not tax administration.  Last April, however, a group of tax practitioner organizations put out a paper calling for tax administration reform.  You can find the proposal on the AICPA website here.

The nine practitioner organizations include the AICPA, the National Association of Enrolled Agents, and the National Association of Tax Professionals.  Notably absent from the list of practitioner groups are the main tax lawyer organization, the ABA Section on Taxation.

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September 13, 2017 in ABA Tax Section, Bryan Camp, IRS News, Tax, Tax Practice And Procedure | Permalink | Comments (1)

Tuesday, September 12, 2017

The IRS Scandal, Day 1587: Judicial Watch Says Trump Should Overrule His DOJ And Order A Full Review Of The IRS Scandal

IRS Logo 2

Town Hall, Judicial Watch: DOJ Giving Lerner a Pass is Bogus and Trump Should Order a Full Review of the Scandal:

Last week the Department of Justice, led by Attorney General Jeff Sessions, announced prosecutors will not pursue charges against former IRS official Lois Lerner. Lerner is infamous for her deliberate targeting of conservative tea party groups between 2010 and 2012 while leading the tax exempt department inside the agency.

The news was immediately met with outrage by House Ways and Means Chairman Kevin Brady, who said the failure to reopen the case against Lerner (which was closed without charges under the Obama administration) only proves that Washington bureaucrats are held to a much lower standard than every day Americans living outside the protective D.C. bubble. ...

Judicial Watch, which is still pursuing documents related to the IRS targeting scandal and has for years, proving Lerner was at the heart of the targeting, is buying none of it and calling on President Trump to intervene.

"I have zero confidence that the Justice Department did an adequate review of the IRS scandal. In fact, we’re still fighting the Justice Department and the IRS for records about this very scandal. Today’s [Friday's] decision comes as no surprise considering that the FBI collaborated with the IRS and is unlikely to investigate or prosecute itself," Judicial Watch President Tom Fitton released in a statement. "President Trump should order a complete review of the whole issue. Meanwhile, we await accountability for IRS Commissioner Koskinen, who still serves and should be drummed out of office."

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September 12, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (6)

Saturday, September 9, 2017

The IRS Scandal, Day 1584: Trump’s DOJ Won’t Pursue Criminal Charges Against Lois Lerner

IRS Logo 2

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September 9, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (9)

Thursday, September 7, 2017

Dealing With IRS Scammers (And How To Tell They Are Not Private Debt Collectors)

Readers will recall that Congress, in §32102 of the 2015 (FAST) Act, amended IRC §6306 to force the Service to outsource some collection inventory to private collection agencies.

Now, I have no doubt that readers of this blog are totally compliant in their taxes.   And if any happen to be delinquent in their taxes, I have no doubt they are not in the category of delinquent taxpayers who face collection from private collection agencies.   But I also suspect many readers have received questions about the program from clients, friends, family members, workplace colleagues, neighbors, and others.

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September 7, 2017 in Bryan Camp, Gov't Reports, IRS News, Tax, Tax Practice And Procedure | Permalink | Comments (0)

The IRS Scandal, Day 1582: Is The IRS Scandal About To Break Wide Open?

IRS Logo 2PJ Media, Is the IRS Scandal About to Break Wide Open?:

Lost emails, destroyed hard drives, foot dragging, stonewalling, and a smirking, sneering IRS commissioner doing his best to obscure the truth -- this has largely been the response by the Internal Revenue Service to investigations by Congress and FOIA requests from conservative groups trying to discover the truth about the IRS targeting scandal.

But one federal judge appears to be just as curious as the rest of us about what exactly the IRS was up to when it targeted conservative groups for special scrutiny in approving their tax-exempt status. ...

Although the arrogance of the IRS is breathtaking, it looks like they may have more than they can handle with Judge Walton. With the agency already proving that it tried to hide documents directly related to a FOIA request, how much nonsense will Walton put up with? He better have a low tolerance for word games and shenanigans by the IRS.

More names means more witnesses to be deposed under oath. Perhaps some promises of immunity are in order so that the truth can be wrung out of an agency that has been used to target the political opponents of a president and materially affect the ability of conservative groups to exercise their rights.

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September 7, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (4)

Wednesday, September 6, 2017

The (Lack Of) Human Touch In Collecting Taxes

The National Taxpayer Advocate Nina Olsen has a blog post here that is well worth your time to read.  It's about the Service's automated levy program called FPLP (Federal Levy Payment Program).  

One way the Service tries to collect unpaid taxes is by looking for people who owe the delinquent taxpayer money and snagging those payments.  That's called a levy.    FPLP is a computer program designed to snags payments owed by the federal government to delinquent taxpayers.  Now, some people consider it an irony that one hand of the federal government actually sends payments to many delinquent taxpayers who owe the federal government money. Notably, however, FPLP hits what are commonly viewed as "safety net" payments from Social Security and Federal Retirement programs.  So other people consider it an irony that one hand of the federal government would partially undo the safety net payments made by the other hand.

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September 6, 2017 in Bryan Camp, Gov't Reports, IRS News, Tax, Tax Practice And Procedure | Permalink | Comments (0)

Tuesday, September 5, 2017

The Tax Consequences Of Hurricane Harvey (And Other Natural Disasters)

Hurricane HarveyThe Service has put up a very useful and comprehensive webpage titled "Help for Victims of Hurricane Harvey."  The page contains excellent information about all the different actions the Service takes in response to a natural disaster and has links to all kinds of useful sites. 

The Texas State Comptroller has a similarly useful webpage that describes the state and local tax relief (such as exemption from hotel taxes).

 

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September 5, 2017 in IRS News, Tax, Tax Practice And Procedure | Permalink | Comments (2)

The IRS Scandal, Day 1580: Conservative Group Hoping For 'Perp Walks' After Breakthrough In IRS Lawsuit

IRS Logo 2Washington Examiner, Conservative Group Hoping for 'Perp Walks' After Breakthrough in IRS Lawsuit:

One of the groups that sued the Internal Revenue Service over its targeting of conservative and Tea Party groups believes there has been a breakthrough that will help them draw a more complete picture of what went on behind the scenes at the agency, four years after it took its case to court.

In a lawsuit involving True the Vote, Judge Reggie B. Walton of the U.S. District Court for the District of Columbia ordered the IRS last week to release the names of employees involved in targeting conservative and Tea Party groups. Walton also told the IRS to explain why groups were targeted and search for additional records in agency databases from May 2009 to March 2015.

The IRS has until Oct. 16 to complete its records search.

Walton's order was a turning point for True the Vote President Catherine Engelbrecht in her legal battle with the IRS that began in 2013.

"We've come so far, and I believe that we are going to bring this thing to a head," Engelbrecht told the Washington Examiner. "I believe we will see the IRS correct its ways, and as to accountability, I'd love to see some perp walks." ...

Engelbrecht ... said just learning the names of those involved isn't enough for her. Instead, she wants the IRS to enact a policy prohibiting viewpoint discrimination. "That's our whole goal — it's to make sure this viewpoint discrimination can never occur again. It is procedurally prohibited," Engelbrecht said. "That they admit what they did was unconstitutional and won't happen to an organization, an individual, doesn't matter your political party preference. The IRS has been weaponized and needs to be put back in the box."

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September 5, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (5)

Friday, September 1, 2017

The IRS Scandal, Day 1576: Will Justice Come For IRS Lawbreakers At Last?

IRS Logo 2Investor's Business Daily editorial, Will Justice Come For IRS Lawbreakers At Last?:

The IRS scandal seemingly has lain dormant now for months, all but forgotten amid the spate of recent anti-Trump media spasms, the ongoing violent antics of the antifa leftists and, now, Hurricane Harvey's devastation. But even if much of Washington has forgotten about it, a Washington judge hasn't.

As reported by the Washington Examiner, Judge Reggie B. Walton of the Washington, D.C., District Court last week revived legal attention to the scandal, telling the IRS it has to reveal the names of IRS employees who targeted conservative, libertarian and Tea Party groups.

But Walton didn't stop there. He also gave the IRS until Oct. 16 to find all the records in IRS databases from May 2009 to March 2015 that are relevant to the case and to explain just why these groups were targeted.

All of this is the result of a suit against the IRS brought in 2013 by True the Vote and 38 other groups. The groups have doggedly pursued the IRS for four years after the tax agency held up their tax-exempt status before and during the 2012 election year for what appear to be blatantly political reasons. In their search for justice, the groups have had little help from the mostly apathetic, left-leaning media that wish conservative groups would just go away. ...

Paul Caron, dean of the Pepperdine University School of Law and himself a tax lawyer, has kept a lonely vigil at his blog on the IRS' questionable actions in all this, running a virtually day-by-day account of the news behind the scandal, which as of Monday by his count was in its 1,572nd day (and counting).

With so little action, on Monday Caron wondered plaintively, "Why did it go away?" Well, we've wondered that too.

Caron quotes a piece from the Nonprofit Quarterly that notes that since May 2013 there have been "several congressional and other investigations but no criminal indictments or known personnel actions against  anyone involved in the targeting. ... The U.S. Justice Department launched an investigation, but in the midst of that investigation, they announced there would be no indictments." ...

By seeking maximum disclosure, Walton is doing yeoman's duty in making the IRS accountable. We wish him success in prying open the IRS' chest of dirty secrets.

But that's not enough. At the very least, it's time the U.S. Department of Justice stopped defending the indefensible, and started forcing the rogue tax-collection agency and its former executives to answer for its politically motivated crimes. As the old saying goes, justice delayed is justice denied.

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September 1, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

Thursday, August 31, 2017

Karen Hawkins Named Chair Of ABA Tax Section

HawkinsNews Release, Former IRS Official Karen L. Hawkins to Chair ABA Section of Taxation:

Karen L. Hawkins of Yachats, Ore., has been selected to chair the American Bar Association’s Section of Taxation, the nation’s largest organization of tax lawyers. Hawkins will serve a one-year term, to be succeeded by Eric Solomon, of Washington, D.C., who will serve this year as chair-elect.

Hawkins served as the director of the IRS Office of Professional Responsibility (OPR), where she oversaw the standards of practice for tax professionals. Prior to government service, she was a partner in the San Francisco law firm of Taggart & Hawkins PC, where she specialized in civil and criminal tax controversy. ...

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August 31, 2017 in ABA Tax Section, IRS News, Tax | Permalink | Comments (2)

Wednesday, August 30, 2017

The IRS Scandal, Day 1574: Why Are Trump’s Justice Department Appointees Protecting The IRS?

IRS Logo 2The Daily Signal, Why Are Trump’s Justice Department Appointees Protecting the IRS?

Various media sources have reported that federal District Court Judge Reggie Walton has ordered the IRS to finally respond to various legal requests for information and documents made by the conservative tea party organizations that sued the agency.

But the question that no one is asking is why that order was even necessary, and why the Justice Department, which is now supposedly under the control and authority of the new administration, hasn’t reversed its obstinate, inflexible, and stubborn defense of the IRS. ...

[T]he Tax Division of the Justice Department, which is currently headed by acting Assistant Attorney General David A. Hubbert, has put up a mulish fight defending the IRS, including doing everything it can to prevent the IRS from having to provide any of the information and documentation that the plaintiffs are seeking about the targeting.

[T]he IRS — after four years of delays — is going to finally have to tell us who (in addition to Lerner) planned, organized, and participated in the abuse of the government’s tax power to target Americans for their participation in the political process, their opposition to Obama and liberal policies, and their support for the Constitution and the rule of law.

Walton’s order is a significant victory for the plaintiffs in this lawsuit. But why were this hearing and this order even necessary in the first place?

As soon as President Donald Trump was inaugurated and the first members of the Trump transition team landed at the Justice Department, one of the first steps they should have taken was to order the Tax Division to stop its deliberate litigation strategy of fighting all attempts to ferret out what exactly happened at the IRS, and who was responsible for it.

Instead, the Justice Department has continued to obstruct discovery in this lawsuit that has been going on for four long years, resulting in Walton’s Aug. 17 order against the IRS and the Justice Department. ...

What are the political appointees at the Justice Department doing? Why are they continuing to protect the IRS? Why are they trying to stop the efforts to find out who at the IRS was responsible for this abusive behavior?

And while we are on the subject of the IRS scandal, why haven’t Trump’s political appointees at the Justice Department reversed the refusal of Ronald Machen, former U.S. attorney for the District of Columbia, (who was an Obama appointee) to enforce the contempt citation issued by the House of Representatives against Lerner for her refusal to cooperate with the congressional committee investigating this abusive conduct?

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August 30, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (3)

Monday, August 28, 2017

The IRS Is Mining Taxpayer Data On Social Media In Violation Of Federal Privacy Law

Social Media IRSKimberly Houser & Debra Sanders (Washington State), The Use of Big Data Analytics by the IRS: Efficient Solutions or the End of Privacy as We Know It?, 19 Vand. J. Ent. & Tech. L. 817 (2017):

This Article examines the privacy issues resulting from the IRS’s big data analytics program as well as the potential violations of federal law. Although historically, the IRS chose tax returns to audit based on internal mathematical mistakes or mismatches with third party reports (such as W-2s), the IRS is now engaging in data mining of public and commercial data pools (including social media) and creating highly detailed profiles of taxpayers upon which to run data analytics. This Article argues that current IRS practices, mostly unknown to the general public are violating fair information practices. This lack of transparency and accountability not only violates federal law regarding the government’s data collection activities and use of predictive algorithms, but may also result in discrimination.

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August 28, 2017 in IRS News, Tax | Permalink | Comments (10)

The IRS Scandal, Day 1572: Why Did It Go Away?

IRS Logo 2Nonprofit Quarterly, Whatever Happened to the IRS Tax Exemption Scandal?:

On Friday, May 10, 2013, IRS Exempt Organizations Director Lois Lerner told a stunned audience of tax attorneys in Washington that the IRS had delayed and obstructed the tax exemption applications from conservative-sounding organizations. Later that month, the U.S. Treasury Inspector General made public a report confirming and detailing the nature of the targeting. What began as a governmental investigation had become a legal battle between nonprofits seeking what they believed to be information and resolution on the one hand and the federal government asserting claims of protecting taxpayer and employee confidentiality on the other.

As NPQ has chronicled in dozens of articles, the ensuing four years and counting since May 2013 have included several Congressional and other investigations but no criminal indictments or known personnel actions against anyone involved in the targeting. ... The U.S. Justice Department launched an investigation, but in the midst of that investigation, they announced there would be no indictments. Various Congressional committees attempted to ferret out what happened and who did it but were stymied by the IRS’s slow responses to records requests and, in some cases, destruction of computer media which might have contained important information.

The Congressional investigations rapidly became partisan, with Republicans insistent that crimes had been committed and that senior officials had to be held accountable for actions which affected hundreds of organizations and may have even affected the conduct of the 2012 elections. Democrats saw the GOP-led investigations as a partisan witch hunt targeting career IRS employees and used as a political talking point to harass President Obama specifically. Democrats also objected to the continued use of the IRS budget as a coercive tool to force IRS officials to cooperate in the investigations, and justifying decreasing funding for IRS operations by pointing to what Republicans said was obstruction. The investigations didn’t so much end as they petered out as politicians moved on to other topics. ...

Meanwhile, nonprofit organizations like Judicial Watch, Cause for Action, the American Center for Law and Justice (ACLJ), and others have used Freedom of Information Act (FOIA) requests and legal challenges to aggressively pursue the facts and circumstances surrounding the actions of IRS personnel. In addition, many of the targeted nonprofit organizations (most were eventually approved for tax exemption after awaiting a decision for up to seven years) have pursued their own legal cases in federal court.

Bloomberg BNA recently published a status report on the litigation. The text of the article has since been removed in favor of an audio report, but Paul Caron’s TaxProf Blog includes snapshots of the key cases: ...

Détente in this intergovernmental cold war will likely come only when change and accommodation comes from the IRS or when Congressional control switches parties. In the meantime, the continuing lawsuits and the long memories (not to mention political interests) of some elected officials portend more budgetary and regulatory stress at the IRS for the indefinite future.

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August 28, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (3)

Thursday, August 24, 2017

The IRS Scandal, Day 1568: (Still) Seeking IRS Accountability

IRS Logo 2Wall Street Journal editorial, (Still) Seeking IRS Accountability:

The Obama Justice Department dismissed the IRS political targeting scandal as no big deal, and the Trump Administration hasn’t been any better. At least the judiciary is still trying to hold someone to account for this government abuse.

In a little noticed decision last week, federal Judge Reggie Walton ordered the IRS to answer a series of questions by Oct. 16. Notably, the tax agency must finally explain the specific reasons for the specific delays in approving each of dozens of conservative nonprofit applications—delays that stifled free speech during a midterm and presidential election. Judge Walton is also requiring the IRS to name the specific individuals that it holds responsible for the targeting.

These are basic questions of political accountability, even if the IRS has stonewalled since 2013. President Obama continued to spin that the targeting was the result of some “boneheaded” IRS line officers in Cincinnati who didn’t understand tax law. Yet Congressional investigations have uncovered clear evidence that the targeting was ordered and directed out of Washington. ...

The Trump Administration also has a duty to provide some answers. The Justice Department and IRS have continued to resist the lawsuits as doggedly as they did in the Obama era. Attorney General Jeff Sessions can change that by ordering government attorneys to quickly and fully comply with Judge Walton’s orders. Seven years is too long to wait for answers over abuses of the government’s taxing power.

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August 24, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

Saturday, August 19, 2017

The IRS Scandal, Day 1563: Judge Orders IRS To Disclose Names Of Employees Who Targeted Conservative Groups And To Prove That It Has Stopped The Practice

IRS Logo 2Washington Times, Lay It on the Line’: Judge in Tea Party Case Orders IRS to Disclose Employee Names, Reasons:

A federal judge on Thursday ordered the IRS to name the specific employees the agency blames for targeting tea party groups for intrusive scrutiny and said the government must prove it has ceased the targeting.

Judge Reggie B. Walton also said the IRS must explain the reasons for the delays for 38 groups that are part of a lawsuit in the District of Columbia, where they are still looking for a full accounting of their treatment.

Judge Walton approved another round of limited discovery in the case and laid out six questions that the IRS must answer, including the employees’ names, why the groups were targeted and how the IRS has tried to prevent a repeat.

At a hearing earlier this week, Judge Walton said it was time to get everything on the table. “Lay it on the line. Put it out there,” he told attorneys for the IRS, who are continuing to fight some tea party groups’ demands for full disclosure. ...

Judge Walton came down in the middle, writing his own set of inquiries for the IRS. “Why hide the ball?” he asked the tax agency. “If there’s nothing there, there’s nothing there.” Mr. Walton told the IRS to go beyond searching a basic agency database for records and ordered it to scour “other relevant resources containing documents from the relevant time period.”

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August 19, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (4)

Thursday, August 17, 2017

The IRS Scandal, Day 1561: Why Hasn't Trump Drained The IRS/DOJ Swamp?

IRS Logo 2Wall Street Journal:  Trump’s IRS Swamp: Obama-era Lawyers Are Still Obstructing Lawsuits to Hold the Agency Accountable, by Kimberley A. Strassel:

Donald Trump promised to drain the swamp, and here’s a seven-month progress report: The Washington bog is still as wide and fetid as ever. Consider that Mr. Trump’s Justice Department has inexplicably continued to defend the IRS’s misdeeds under President Obama.

Voters put a Republican in the White House in part to impose some belated accountability on the scandal-laden Obama administration. And the supreme scandal was the IRS’s assault on tea-party groups—a campaign inspired by congressional Democrats, perpetrated by partisan bureaucrats like Lois Lerner, and covered up by Mr. Obama’s political appointees. This abuse stripped the right to political speech from thousands of Americans over two election cycles. To this day, no one has answered for it.

The groups targeted are still doggedly trying to obtain justice through lawsuits that have dragged on for years. They believed Mr. Trump’s election would bring an end to the government obstruction. It hasn’t. “The posture of the DOJ and the IRS under the Trump administration is identical to the posture under the Obama administration,” Mark Meckler, president of Citizens for Self-Governance, tells me. “Nothing has changed.” ...

The problem is that the same old Obama-era lawyers have been left to run these cases in the same old hostile ways. Who are these people? Laura Beckerman, one of the lead lawyers defending the IRS in the Ohio class action, left government only this month. Her LinkedIn profile says she is now pro bono coordinating counsel at Citizens for Responsibility and Ethics in Washington. CREW is among the most liberal outfits in the capital, fanatically devoted to taking down conservatives. That’s the type still calling the shots in Mr. Trump’s bureaucracy.

The Justice Department’s job is to defend the government, but it is also supposed to pursue justice. And there is no question the IRS did wrong. It has been documented by the Treasury Department’s inspector general and admitted by the IRS itself. It’d be one thing if the plaintiffs were demanding a billion-dollar payout, but they aren’t. Their main request is that the IRS come clean on what happened, and the government is resisting with all its power. The real question is why the Justice Department is even fighting this suit, when it ought to be leading a renewed investigation into what happened and how it got covered up.

It’s time for some judgment. Senior leaders in the Justice Department may be wary of replacing or redirecting attorneys on the IRS cases, fearing it might provoke another round of media caterwauling. The White House may be wary of canning Mr. Koskinen, thinking it would be cast as another high-profile firing. But Mr. Trump was hired to impose exactly that sort of accountability. If he’s going to get rapped for dramatic moves, it might as well be for doing something that serves justice.

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August 17, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Wednesday, August 16, 2017

Death Of Harry Grubert

GrubertHarry Grubert, longtime Senior Research Economist in the Office of Tax Analysis at the U.S. Treasury Department, has died at age 81 after a long illness.  From Dan Shaviro:

Harry had more knowledge about U.S. international taxation than any other living individual. I'm not referring to legal knowledge, of course, as he was an economist — albeit, an exceptionally well-informed one about the law. But his long years of research and study regarding U.S. multinational firms, based on tax data that he understood better than anyone else, made him an extraordinary resource, almost like a public utility in light of his kind generosity and willingness to share what he knew.

He was also a leading scholar who developed a number of interesting and important international tax reform ideas (often in coauthored work with Rosanne Altshuler), and one whose research yielded innumerable consequential empirical findings — for example, regarding the costs associated with U.S. multinationals keeping their funds tied up abroad.

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August 16, 2017 in IRS News, Obituaries, Tax | Permalink | Comments (0)

Tuesday, August 15, 2017

The IRS Scandal, Day 1559: Checking In On IRS-Tea Party Lawsuits

IRS Logo 2Bloomberg BNA, Checking in on IRS-Tea Party Lawsuits:

Republicans continue to call for restricting IRS funding and restructuring the agency to ensure there isn’t a repeat of a scandal caused when IRS employees stalled some applications of conservative groups seeking tax exemptions. The IRS has said it worked to resolve the issue.

Still, several lawsuits are pending between the agency and conservative groups seeking tax-exempt status. The IRS declined to comment on them. As part of occasional updates on the status of the disputes, here is where some high-profile cases stand now:

NorCal Tea Party Patriots  The IRS Aug. 2 defended its actions in the class action, saying it was within its rights to review exemption applications carefully, but it also acknowledged that it delayed some applications inappropriately (NorCal Tea Party Patriots v. IRS, S.D. Ohio, No.1:13-cv-00341, 8/2/17). ... A trial is set for Feb. 5, 2018.

True the Vote   ... True the Vote in April withdrew two discovery requests: evidence of the IRS using viewpoint-based criteria in tax administration and evidence of the political positions of IRS employees (True the Vote, Inc. v. IRS, D.D.C., No. 1:13-cv-00734, 4/5/17).

Linchpins of Liberty  An Aug. 15 hearing is scheduled on a motion requiring the government to release documents the Linchpins groups requested (Linchpins of Liberty v. United States, D.D.C., No. 1:13-cv-00777, 7/26/17). ...

Freedom Path  The Freedom Path case is set for a June 18, 2018, trial (Freedom Path, Inc. v. IRS, N.D. Tex., No. 3:14-cv-01537, 8/9/17). ... The IRS initially said Freedom Path didn’t qualify as a social welfare group, exempt under Section 501(c)(4) because it didn’t operate just to promote social welfare. The group applied for its exemption in 2011 and sued the IRS in 2014.

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August 15, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Sunday, August 13, 2017

WSJ: Number Of Americans Caught Underpaying Estimated Taxes Surges 40%

Wall Street Journal Tax Report, Number of Americans Caught Underpaying Some Taxes Surges 40%:

Attention gig workers, retirees, business owners and investors: Double-check your estimated-tax payments to Uncle Sam.

For reasons that aren’t clear, a growing number of people who pay taxes quarterly are getting their payments wrong and incurring penalties as a result. These taxpayers often owe estimated taxes because they have income that’s not subject to the same withholding as wages earned by employees.

According to Internal Revenue Service data, the number of filers penalized for underpaying estimated taxes rose nearly 40% between 2010 and 2015 — to 10 million from 7.2 million. 

WSJ

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August 13, 2017 in IRS News, Tax | Permalink | Comments (0)

Thursday, August 10, 2017

The IRS Scandal, Day 1554: Why Is Trump's Justice Department Still Fighting Disclosure Of Documents Revealing IRS Targeting Of Conservative Groups?

IRS Logo 2Wall Street Journal op-ed:  Obama IRS Abuse Should Unite Trump and Sessions, by Jerome Marcus:

[H]ere’s an issue on which Messrs. Trump and Sessions should be able to find common ground: The Justice Department should stop defending Obama administration corruption.

I’m referring to the cases, still on file today, challenging or seeking to expose Internal Revenue Service policies that delayed applications for tax-exempt status from conservative groups. That’s viewpoint discrimination, a clear First Amendment violation.

The Obama Justice Department fought these cases intensely. It tried to get them thrown out of court before the plaintiffs had the chance to gather evidence. When that failed, Justice lawyers resisted discovery, to prevent disclosure of documents showing what the Obama administration was really doing.

That’s normal behavior for a defendant in a lawsuit. But since Jan. 20, the Justice Department has reported to Mr. Trump, who denounced each of the corrupt policies at issue in these cases.

So why is the department handling the cases as if it were still run by Eric Holder or Loretta Lynch? Because many of the career lawyers who were put on these cases by Obama Justice Department officials continue working on them, with no supervision from this administration. Those lawyers are still doing now what they have always done: fighting as hard as they can to prevent disclosure of what the Obama IRS, and the rest of the Obama administration, was doing to the country. ...

The government lawyers in all these cases are working hard to prevent anyone from finding out what the Obama administration was doing. Cleta Mitchell, who has represented tea-party organizations in the IRS viewpoint-targeting scandal, says Justice Department lawyers “have been stalling, obfuscating and doing all they can in these cases to avoid holding the IRS accountable.”

That’s true even though all these lawyers now work for President Trump. And it’s true even though Mr. Trump knows full well that the Obama IRS violated the Constitution by discriminating against opposing viewpoints. ...

Messrs. Trump and Sessions, as well as Deputy Attorney General Rod Rosenstein and Associate Attorney General Rachel Brand, should all be able to agree on this. The executive branch, through the Justice Department, can on its own agree to release the desired information and end these cases, without any permission from Congress or CNN. That would lighten the workload at Justice and shine sunlight on clearly improper Obama policies.

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August 10, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (5)

Wednesday, August 9, 2017

TIGTA: The IRS Continues To Rehire Hundreds Of Former Employees With Conduct And Performance Issues

TIGTAThe Treasury Inspector General for Tax Administration has released The Internal Revenue Service Continues to Rehire Former Employees With Conduct and Performance Issues (2017-10-035):

From January 1, 2015, through March 31, 2016, the IRS hired nearly 7,500 employees, of which more than 2,000 had been previously employed by the IRS. ... The IRS has not effectively updated or implemented hiring policies to fully consider past IRS conduct and performance issues prior to making a tentative decision to hire former employees, including those who were terminated or separated during an investigation of a substantiated conduct or performance issue.

While most employees who are rehired do not have prior conduct or performance issues, TIGTA found that more than 200 (approximately 10 percent) of the more than 2,000 former employees who were rehired between January 2015 and March 2016 were previously terminated from the IRS or separated while under investigation for a substantiated conduct or performance issue.

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August 9, 2017 in Gov't Reports, IRS News, Tax | Permalink | Comments (0)

Tuesday, August 8, 2017

GAO: IRS Provides Only 'Minimal Oversight' Of Low Income Housing Tax Credit Program, Refuses To Collect Data That Would Allow It To Impose 'Basic Accountability'

GAO (2016)NPR, Housing Program Worth Billions Lacks 'Basic Accountability':

An $8 billion federal program to build housing for the poor is so lacking oversight that virtually no one in government knows how it is working, a government auditor testified before Congress today [Low-Income Housing Tax Credit: Actions Needed to Strengthen Oversight and Accountability (GAO-17-784T) (Aug. 1, 2017)].

IRS and no one else in the federal government really has an idea of what's going on," said Daniel Garcia-Diaz, an auditor with the Government Accountability Office while testifying before the U.S. Senate Committee on Finance. "These are basic accountability requirements we would expect of any program, especially one as important as this one."

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August 8, 2017 in Gov't Reports, IRS News, Tax | Permalink | Comments (1)

The IRS Scandal, Day 1552: The IRS's Email Retention Policies Still Do Not Ensure That Emails Are Retained And Produced When Requested

IRS Logo 2Treasury Inspector General for Tax Administration, Electronic Record Retention Policies Do Not Consistently Ensure That Records Are Retained and Produced When Requested (2017-10-034):

IRS policies do not comply with certain Federal requirements that agencies must ensure that all records are retrievable and usable for as long as needed. For example, IRS e-mail retention policies are not adequate because e-mails are not automatically archived for all IRS employees. Instead, the IRS’s current policy instructs employees to take manual actions to archive e-mails by saving them permanently on computer hard drives or network shared drives.  

This policy has resulted in lost records when computer hard drives are destroyed or damaged. In addition, a recently instituted executive e-mail retention policy, which should have resulted in the archiving of e-mails from specific executives, was not implemented effectively because some executives did not turn on the automatic archiving feature.

For certain cases that TIGTA reviewed, IRS policies were not implemented consistently to ensure that all relevant documents were searched and produced when responding to external requests for records. TIGTA’s review of 30 completed Freedom of Information Act requests found that in more than half of the responses, the IRS did not follow its own policies that require it to document what records were searched. TIGTA also found that IRS policies for preserving records from separated employees were not adequate.

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August 8, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (5)

Monday, August 7, 2017

Senate Confirms David Kautter As Assistant Treasury Secretary For Tax Policy

KautterFollowing up on previous posts (links below):  the Senate has confirmed David Kautter as Assistant Secretary of the Treasury for Tax Policy.  From President Trump's nomination announcement:

Mr. Kautter currently serves as Partner-in-Charge of the Washington National Tax practice for RSM, an audit, tax, and consulting services firm. He was also previously the Managing Director of the Kogod Tax Center and Executive-in-Residence at the Kogod School of Business at American University (AU).

Prior to his work at AU, Mr. Kautter spent over 30 years at Ernst and Young, including serving as Director of National Tax for over 13 years. Mr. Kautter also worked on Capitol Hill as Tax Legislative Counsel for former Senator John C. Danforth of Missouri. He is a high honors graduate of the University of Notre Dame and received his J.D. from Georgetown Law Center. 

From his webpage at American University's Kogod Tax Center:

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August 7, 2017 in Congressional News, IRS News, Tax | Permalink | Comments (0)

Monday, July 31, 2017

The IRS Scandal, Day 1544:  How Lois Lerner Begat Robert Mueller

IRS Logo 2Wall Street Journal:  Mueller Is Trumping Congress, by William McGurn:

Did Congress learn anything from Lois Lerner? Judging from Capitol Hill’s self-abasing deference to Special Prosecutor Robert Mueller, the answer is no.

You remember Ms. Lerner. She was the official at the center of an Internal Revenue Service effort that denied conservative political advocacy groups tax-exempt status, or at least held up approval long enough that these groups could not be a factor in the 2012 election.

Back when Republicans were holding hearings on the matter, time and again they were lectured not to do anything that might affect the FBI’s investigation — which eventually ended with no charges against anyone. Though Ms. Lerner was found in contempt by the House for her refusal to testify, it proved all for show.

The tip-off came when then-Speaker John Boehner, rather than use Congress’s inherent contempt power to jail Ms. Lerner until she talked, opted for classic swamp symbolism — by passing the buck to an Obama Justice Department everyone knew would never prosecute her.

The result? Ms. Lerner avoided having to answer any hard questions. The IRS merrily continued to lose or destroy crucial documents. And John Koskinen, the awful replacement IRS commissioner who stonewalled and misled, remains in office.

The Lois Lerner fiasco offers a sobering lesson for a Congress whose various committees are holding hearings on Russia’s intervention in last year’s elections as Mr. Mueller investigates the same. While Mr. Mueller’s office is a watered-down version of Ken Starr’s or Lawrence Walsh’s , it remains true that special prosecutors corrupt even if they don’t corrupt as absolutely as independent counsels. The main headlines of the past week — Is Donald Trump attempting to undermine Mr. Mueller? Will Trump Fire Mueller? — all speak to the challenge a special prosecutor poses to the constitutional authority of the president.

Far less scrutiny has been devoted to the challenge Mr. Mueller poses to the authority of the legislative branch. In this case, ironically, the challenge stems less from the aggressiveness of the special prosecutor than from the meekness of Congress. In between their public tributes to Mr. Mueller’s sterling character, too many in Congress seem to worry more about how they might be affecting his investigation than about what his investigation might be doing to theirs.

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July 31, 2017 in IRS News, IRS Scandal, Tax | Permalink | Comments (6)

Tuesday, July 4, 2017

One Of The Best Investments The Government Can Make: Give More Money To The IRS

Fiscal Times, One of the Best Investments the Government Can Make: Give More Money to the IRS:

The Internal Revenue Service is the agency of the federal government that most people love to hate. As a result, it has been used as a political punching bag on and off for almost as long as it has been in existence. The most recent trend in politicians demonstrating their contempt for the national tax collector — other than trying to get its commissioner impeached — is to starve the agency of funding.

However, despite major budget reductions — or perhaps partly because of them — the agency had been doing more with less over the past several years. One of the metrics the IRS uses to measure its performance is by comparing the amount of money the agency receives from Congress to the amount it collects in taxes due, expressing the result in the cost to collect $100.

In 2015 and 2016, that figure stood at $0.35 per $100, down from $0.53 as recently as 2010. It’s also the lowest cost per $100 collected that the agency has recorded since at least 1981, according to the IRS 2016 Data Book.

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July 4, 2017 in IRS News, Tax | Permalink | Comments (2)

Friday, June 30, 2017

National Taxpayer Advocate Releases 2018 Objectives Report To Congress

NTA 2National Taxpayer Advocate Nina Olson has released her FY 2018 Objectives Report To Congress:

Ms. Olson states that the IRS ran a generally successful filing season. But she says taxpayers who require assistance from the IRS are continuing to face significant challenges obtaining it. While taxpayer services and enforcement activities are both essential for effective tax administration, Ms. Olson says taxpayer services require more emphasis than they are currently receiving. She recommends the IRS expand its outreach and education activities and improve its telephone service and that Congress both provide the IRS with sufficient funding to provide high quality taxpayer service and conduct more oversight to ensure the IRS is spending the funding as intended.

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June 30, 2017 in IRS News, Tax | Permalink | Comments (0)