The IRS Scandal, Day 1322: Government Denies That It Continues To Harass Tea Party Group

Following up on my previous posts on NorCal Tea Party Patriots v. IRS, No 1:13-cv-00341 (S.D. Ohio):

• The IRS Scandal, Day 983: U.S. District Court Certifies Class Action Against the IRS by Tea Party Groups (Jan. 17, 2016)
• The IRS Scandal, Day 986: Tea Party Class Action Against IRS Abuse May Proceed (Jan. 20, 2016)
• The IRS Scandal, Day 998: NorCal Tea Party Patriots v. IRS — Grassroots Or Astroturf? (Feb. 1, 2016)
• The IRS Scandal, Day 1061: IRS Foot-Dragging (Apr. 4, 2016)
• The IRS Scandal, Day 1279: WSJ — Another Federal Court Says The IRS Continues To Harass Conservative Groups (Nov. 8, 2016)
• The IRS Scandal, Day 1281: Another Federal Court Says The IRS Continues To Harass Conservative Groups (Nov. 10, 2016)

United States' Response to Plaintiff's Motion to Clarify Preliminary Injunction (Dec. 14, 2016) (citations & footnotes omitted):

In its Motion, Plaintiff Texas Patriots Tea Party states that the relief it seeks is for the IRS to “finish developing TPTP as it was prepared to do in 2013 with any additional inquiry limited to (1) what the IRS had then identified as new issues raised in, or still to be clarified from, TPTP’s response to the second development letter; and (2) facts regarding TPTP’s activities on or before March 2013.” Prior to the filing of this Motion, TPTP did not inform the United States of the relief sought. Had TPTP done so, the United States would have been amenable to that relief and the parties likely would have been able to resolve the issue extra-judicially. In fact, on November 14, 2016, during a meet-and-confer telephone call regarding the TPTP development questions, counsel for the United States inquired whether TPTP’s concerns may be addressed by limiting the time frame of the questions to lessen the burden on TPTP. TPTP’s counsel dismissed the suggestion and, prior to the filing of the Motion, did not indicate any renewed interest in pursuing that avenue of resolution. However, the United States is still amenable to resolving this issue by limiting the requested information to the time period prior to March 2013. The United States is also amenable to resolving this matter by agreeing to allow TPTP to submit the additional information it believes would be relevant to establish whether it is entitled to tax exempt status. While the IRS issued the development letter in the ordinary course, TPTP can decide whether to respond fully, incompletely, or with different information. However, the United States requests that any Court order along those lines clarify that it is not in the ordinary course but is an accommodation for TPTP and require that any additional information be submitted within 30 days.

In the event TPTP is not amenable to the accommodations the United States is willing to make to resolve this Motion, the IRS is justified in pursuing answers to the questions it has posed to TPTP. TPTP argues that, by seeking additional information, the IRS is not processing its application in the “ordinary course,” but this argument rests on two faulty assumptions: (1) that TPTP’s application was complete and “on the path to approval” in August 2013 and (2) that the IRS does not ordinarily ask applicants to provide information about their activities covering a time frame of more than six to nine months. Neither of these assumptions is correct. Prior to the stay requested by TPTP, the IRS was processing its application in the ordinary course, and contrary to TPTP’s assertions, TPTP now seeks extraordinary treatment.

TPTP also seeks to poison the well by misrepresenting the facts of its case and falsely implying, without any basis, that Department of Justice (DOJ) counsel and IRS Chief Counsel (IRS Counsel) attorneys improperly influenced the processing of TPTP’s application. Plaintiff’s allegations break down under the weight of false assumptions and misleading recitations. Specifically, whether by design or mistake, TPTP makes two fundamentally incorrect factual assertions in telling its story. First, TPTP erroneously claims that it was “on the path to approval” in August 2013. This claim is based on a mischaracterization of the roles of Tax Law Specialist Emily Mangrum and IRS Counsel Preston Quesenberry in processing TPTP’s application and ignores the then-current process used to review applications. Second, and more disturbingly, TPTP makes false assumptions regarding material withheld under the attorney-client and work product privileges, incorrectly filling in the gaps to infer that the IRS Office of Chief Counsel and the Department of Justice inappropriately attempted to influence the processing of TPTP’s application. These inferences are demonstrably false. As a result of the severity of these accusations, the United States is compelled to release the unredacted documents, as the actual redacted text is both banal and consistent with the government’s position throughout this litigation. Reviewing these materials in their entirety establishes that TPTP’s interpretation of the timeline is without any basis in fact. Furthermore, TPTP’s argument that it was “on the path to approval” does not withstand scrutiny in light of the merits of TPTP’s application under 26 U.S.C. § 501(c)(4). Simply put, TPTP has not met its burden of showing that its campaign intervention activity falls within permissible limits, and that it qualifies for tax exempt status under § 501(c)(4). As a result, the IRS is within its rights to seek additional information to determine whether TPTP qualifies for tax exempt status. Finally, both the scope of the development questions and the nature of the timeframe are adapted from the template questions that the IRS uses for all organizations that raise issues similar to those raised by TPTP’s application. The IRS is processing TPTP’s application in the ordinary course and in compliance with this Court’s Order on TPTP’s Motion for Preliminary Injunction. No further “clarification” is needed. ...

TPTP bases its arguments on false assumptions bolstered by improper and demonstrably false insinuations of inappropriate involvement by DOJ and IRS counsel attorneys. However, the facts show that the IRS’s development questions are in the ordinary course. Accordingly, the IRS is in the process of complying with this Court’s Order to process TPTP’s application in the ordinary course. The United States is amenable to resolving this issue by limiting the time period of the information requested. The United States is also amenable to resolving this matter by agreeing to allow TPTP to submit the additional information it believes would be relevant to establish whether it is entitled to tax exempt status. While the IRS issued the development letter in the ordinary course, TPTP can decide whether to respond fully, incompletely, or with different information. However, the United States requests that any Court order along those lines clarify that this is an accommodation for TPTP, not the ordinary course, and require that TPTP submit any additional information within 30 days.

• The IRS Scandal, Day 1321: Maureen Dowd, Donald Trump, And The IRS Scandal (Dec. 20, 2016)
• The IRS Scandal, Day 1320: How The GOP Establishment Teamed With Nancy Pelosi To Table Impeachment Vote On IRS Commissioner (Dec. 19, 2016)
• The IRS Scandal, Day 1319: How Will The Koskinen Saga End? (Dec. 18, 2016)
• The IRS Scandal, Day 1318: More On Koskinen And Trump (Dec. 17, 2016)
• The IRS Scandal, Day 1317: Koskinen Says He Is Willing To Serve Another Term As IRS Commissioner If Trump Wants To Reappoint Him (Dec. 16, 2016)
• The IRS Scandal, Day 1316: IRS Commissioner Koskinen Says Resignation Did Not Come Up In Meeting With Trump Transition Team (Dec. 15, 2016)
• The IRS Scandal, Day 1315: Bureaucratic Bumbling Or Targeting Of Conservatives? (Dec. 14, 2016)
• The IRS Scandal, Day 1314: How The Trump Administration Can Stop IRS Abuse of Political Groups (Dec. 13, 2016)
• The IRS Scandal, Day 1313: The Koskinen-Trump Connection (Dec. 12, 2016)
• The IRS Scandal, Day 1312: Impeachment Averted, But Will Koskinen Resign Or Be Fired By President Trump? (Dec. 11, 2016)
• The IRS Scandal, Day 1311: The IRS 'Scandal' Was Part Of GOP's Strategy To Bog Down Obama Administration (Dec. 10, 2016)
• The IRS Scandal, Day 1310: Rep. Jim Jordan Is 'Frustrated' By House Passing On IRS Chief Koskinen's Impeachment (Dec. 9, 2016)
• The IRS Scandal, Day 1309: How Trump Got Yanked Into GOP's IRS Impeachment Fight (Dec. 8, 2016)
• The IRS Scandal, Day 1308: House Votes To Send Koskinen Impeachment Back To Judiciary Committee (Dec. 7, 2016)
• The IRS Scandal, Day 1307: Group Seeks Summary Judgment On Claim That Rev. Rul. 2004-6 Is So Vague That It Allows The IRS To Target Conservative Groups (Dec. 6, 2016)
• The IRS Scandal, Day 1306: Government Rejects Claim That Rev. Rul. 2004-6 Allows The IRS To Target Conservative Groups (Dec. 5, 2016)
• The IRS Scandal, Day 1305: Group Seeks Summary Judgment On Claim That Rev. Rul. 2004-6 Is So Vague That It Allows The IRS To Target Conservative Groups (Dec. 4, 2016)
• The IRS Scandal, Day 1304: 'The IRS Has Never Stopped Targeting Conservatives' (Dec. 3, 2016)
• The IRS Scandal, Day 1303: Group Sues IRS For Failure To Produce Communications With Joint Committee on Taxation (Dec. 2, 2016)
• The IRS Scandal,  Day 1302: The 'Corrupt' IRS Is Still Persecuting The Tea Party (Dec. 1, 2016)
• The IRS Scandal, Day 1301: If Koskinen Is Impeached Or Fired, Trump Could Appoint New IRS Commissioner To Go Easy On His Taxes (Nov. 30, 2016)
• The IRS Scandal, Days 1201-1300 (Aug. 22, 2016 - Nov. 29, 2016)
• The IRS Scandal, Days 1101-1200 (May 14, 2016 - Aug. 21, 2016)
• The IRS Scandal, Days 1001-1100 (Feb. 4, 2016 - May 13, 2016)
• The IRS Scandal, Days 901-1000 (Oct. 27, 2015 - Feb. 3, 2016)
• The IRS Scandal, Days 801-900 (July 19, 2015 - Oct. 26, 2015)
• The IRS Scandal, Days 701-800 (April 10, 2015 - July 18, 2015)
• The IRS Scandal, Days 601-700 (Dec. 31, 2014 - April 9, 2015)
• The IRS Scandal, Days 501-600 (Sept. 22, 2014-Dec. 30, 2014)
• The IRS Scandal, Days 401-500 (June 14, 2014 - Sept. 21,2014)
• The IRS Scandal, Days 301-400 (Mar. 6, 2014 - June 13, 2014)
• The IRS Scandal, Days 201-300 (Nov. 26, 2013 - Mar. 5, 2014)
• The IRS Scandal, Days 101-200 (Aug. 18, 2013 - Nov. 25, 2013)
• The IRS Scandal, Days 1-100 (May 10, 2013 - Aug. 17, 2013)