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Could the IRS Investigation into the Clinton Foundation be the Non-profit’s Downfall?

Could the IRS Investigation into the Clinton Foundation be the Non-profit’s Downfall?

Not even Al Capone could escape the long arm of the IRS

http://www.foxnews.com/politics/2016/11/02/fbis-clinton-foundation-investigation-now-very-high-priority-sources-say.html

An FBI investigation, investigation by Congressional committee, DOJ investigation into the Clinton Foundation, and now the IRS — yet, Hillary’s still polling above 50%.

A Dallas-based IRS office is digging into the Clinton Foundation and why the entity remains tax exempt.

While the foundation’s bookkeeping appears rather solid and above reproach, as Joe Pappalardo from the Dallas Observer reports, whether Hillary used the foundation to buy influence and favors as Secretary of State is where the story gets a bit sticky.

The piece is lengthy, but well worth the read. The CliffsNotes are beneath:

Why the Dallas Office?

As with anything tax related, the status of the foundation may be determined using rules few understand. And that makes understanding the work at 1100 Commerce St. in Dallas that much more important.

In Washington, D.C., many things start with words printed on congressional letterhead. Earlier this year, 64 GOP members of Congress asked the IRS to investigate why the foundation can keep its nonprofit status. The letter includes “media reports” claiming pay-to-play relationships between former President Bill Clinton, who received large speaking fees, and decisions made by Hillary Clinton to approve choices that benefited foundation donors. The sources of these reports range from The New York Times to hit-piece investigative books.

In July, the IRS sent letters back to the Congress informing members the review had begun. The letter also noted that the Tax Exempt and Government Entities Division (TE/GE) office in Dallas would be conducting the review.

IRS spokespeople in Dallas and Washington won’t say why the review is being conducted in Dallas. Spokespeople claim even this information would violate rules — Code 6103, staff make sure to cite — that stop them from discussing ongoing examinations. IRS officials declined to provide details about the Dallas office, including its size, or comment on the TE/GE work in general.

Why are they looking?

The strategy is focused on big money charities: “Our examinations will cover all gross wage categories but with an emphasis on entities with gross wages of $10 million or more; approximately 75 percent of examination closures will be of these returns.”

In 2014, the Clinton Foundation tallied its salaries at more than $26 million, according to IRS filings. So that puts the Clinton Foundation square in the middle of the Work Plan’s enforcement strategy.

Why is the Clinton Foundation tax exempt?

The case against the Clinton Foundation is multifaceted. One common attack is that the foundation has overextended its original mandate. “The Foundation’s original application to the IRS in 1997 advised that it was formed to construct a library, maintain a historical site with records, and engage in study and research,” said Tennessee Republican Rep. Marsha Blackburn in an email to the Observer. “It did not indicate an intent to conduct activities outside of the United States, which was on one of the codes included in the IRS ‘Application for Recognition for Exemption’ in effect at the time. This would appear to prohibit much of the overseas work the Foundation has performed.”

Is there a case against the Clinton Foundation?

Using a nonprofit group for personal enrichment — called inurement — is one sure-fire way to gain IRS scrutiny.

In the case of the Clinton Foundation, it’s not exactly a matter of stealing from the cookie jar. The bookkeeping — with documents available for public as well as IRS scrutiny — appears sound since the IRS has not raised any red flags. The foundation spends a solid 88 percent of its money on actual programs, according to the group Charity Tracker. That’s pretty good ratio of overhead to actual charity work.

But the Clinton Foundation problem is more nebulous. The central question is not exactly one the IRS can easily track: Did the founding members trade influence for donations, especially while Hillary Clinton was secretary of State?

Clinton and her staff have consistently denied any conflicts of interest or improper enrichment and cite reporting holes in the media stories and books claiming pay-to-play relationships. But since July, more information has been revealed, via hacked email correspondences of Clinton adviser John Podesta released by Wikileaks.

The emails reveal that Chelsea Clinton ordered an audit of the foundation and “some interviewees reported conflicts of those raising funds or donors, some of whom may have an expectation of quid pro quo benefits in return for gifts.”

Given this language, citing “gifts” and “quid pro quo benefits” in emails is a pretty bad move for anyone involved in a nonprofit group. Another bad move: When senior Clinton advisers like Doug Bland call the intersection of the foundation fundraising and the former president’s personal activities “Bill Clinton Inc.”

It’s hard to imagine a chink in the Clinton Empire armor. They’ve escaped unscathed from investigation after investigation, but not even Al Capone could escape the long arm of the IRS.

Follow Kemberlee on Twitter @kemberleekaye

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Comments

Sure, the IRS will bring down the Clintons… they’ll put Lois Lerner in charge of the investigation.

    Bruce Hayden in reply to Kaffa. | November 4, 2016 at 3:39 pm

    Be fair. Lerner is retired, on full pension, after taking the 5th Amit and destroying evidence (via her hard drive crash).

I pray, for the sake of this country, that something finally sticks to these snakes!

Seeing that photo of those two giggling grifters reminds me of the reports of Hillary Clinton’s first morning in the White House after Bill was first elected president. She reportedly turned to him, laughing, and said something like “We did it! I can’t believe we did actually it! We got away with it! We f-cking won the White House!”

If she wins next week, despite being under multiple federal and state criminal investigations, she will likely be even more giddy at the enormity of what they have gotten away with this time.

She must be defeated.

not even Al Capone could escape the long arm of the IRS

But Scarface wasn’t a Washington “insider”. Hillary is.

There have been several lessons of this election season. One of them has been the mound of evidence showing that pervasive corruption is a hallmark of current government at all levels. I see no reason whatever to expect that the IRS is immune to Clintonian rot and decay.

The problem is the Clinton Crime Family has spent 40 years getting their operatives into positions of power. And to put all of the criminals involved with the Clinton Crime Family away would require a new SET of Federal prisons.

With Obama’s weaponized IRS I doubt that they’ll find anything.

Don’t think the IRS is the angle that gets them. Weiner’s laptop is the key. If SAP programs were indeed found there then this becomes a massive corruption case.

The question becomes how corrupt is Loretta Lynch? Will she allow a grand jury to be convened? If not, will Comey defer to the NYPD and let them go public with what they have.

There are multiple “chink(s)in the Clinton Empire armor”, But all are protected by the Obama Justice Department & the MSM. In the end, it’s not the Clintons that are the problem. It’s the Democrat lawlessness covered up by the media that’s the problem; plus a progressive/socialist infested Hollywood and academia.

Hillary is polling above 50%?

I don’t remember many if any polls where Hillary is above 50%.

You really seem to have earned your Obamacare fate, since you are working for more.

The IRS is wholly owned by the Dems.

Why isn’t New York’s tax division investigating the Clinton Foundation? They’re more aggressive and rapacious than the IRS is and New York’s law on tax fraud and influence peddling is probably stricter than the Federal.

Not remotely the same IRS that brought down major criminals like capone. The IRS now functions as a wholly owned subsidiary of the political criminal class.

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