Report: IRS Used Donor Lists to Target Conservatives for Audits

Report: IRS Used Donor Lists to Target Conservatives for Audits

President Obama appeared on the Daily Show this week and claimed that the IRS never targeted the Tea Party.

Yet according to an explosive new report from Judicial Watch, the IRS used donor lists from certain organizations to target specific people for audits:

Judicial Watch: New Documents Show IRS Used Donor Lists to Target Audits

(Washington, DC) – Judicial Watch announced today that it has obtained documents from the Internal Revenue Service (IRS) that confirm that the IRS used donor lists to tax-exempt organizations to target those donors for audits.  The documents also show IRS officials specifically highlighted how the U.S. Chamber of Commerce may come under “high scrutiny” from the IRS.  The IRS produced the records in a Freedom of Information lawsuit seeking documents about selection of individuals for audit-based application information on donor lists submitted by Tea Party and other 501(c)(4) tax-exempt organizations (Judicial Watch v. Internal Revenue Service (No. 1:15-cv-00220)).

A letter dated September 28, 2010, then-Democrat Senate Finance Committee Chairman Max Baucus (D-MT) informs then-IRS Commissioner Douglas Shulman: “   I request that you and your agency survey major 501(c)(4), (c)(5) and (c)(6) organizations …”  In reply, in a letter dated February 17, 2011, Shulman writes: “In the work plan of the Exempt Organizations Division, we announced that beginning in FY2011, we are increasing our focus on section 501(c)(4), (5) and (6) organizations.”

Lois Lerner, who has repeatedly denied any wrongdoing, is mentioned four times in the report:

On May 13, 2011, former IRS Director of Legislative Affairs Floyd Williams discusses compliance with “interest” from Capitol Hill: “Not surprisingly, interest on the hill is picking up on this issue … with Majority Leader Reid’s office, has suggested the possibility of a briefing for the Senate Finance Committee staff on general issues related to section 501(c)(4) organizations I think we should do it as interest is likely to grow as we get closer to elections.”

Later that day, then-Director of the Exempt Organizations Lois Lerner weighs in with an email that confirms that she supported the gift tax audits.  Lerner acknowledges that “the courts have said specifically that contributions to 527 political organizations are not subject to the gift tax–nothing that I’m aware of that about contributions to organizations that are not political organizations.” Section 501(c)(4) organizations are not “political organizations.”  [Emphasis in original]

Lerner’s involvement and support for the new gift tax contradicts the IRS statement to the media at the time that audits were not part of a “broader effort looking at donations 501(c)(4)’s.”

Judicial Watch President Tom Fitton summed it up in this way:

These documents tell the truth – his IRS hated conservatives and was willing to illegally tax and audit citizens to shut down opposition to Barack Obama’s policies and reelection.

The FOX Business Network covered the story as it broke:

Glenn Reynolds of Instapundit has frequently reminded his readers:

In 2009, Barack Obama “joked” about having the IRS audit his enemies.

That seems especially relevant now.

Featured image via YouTube.

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