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IRS Tag

Oh boy. PAGING THE IRS! The list of wrongdoings with the Clinton Foundation continues to grow. Another Wikileaks dump shows one Clinton aide accusing Chelsea Clinton of using Clinton Foundation funds to pay for wedding among other things: Chelsea Foundation Wedding

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.

CBS News reports that criminals make an estimated 10,000 IRS scam phone calls each week and that the scammers are ruthless in preying on Americans' fear of the IRS's unique and expansive power. Not only is the IRS the "the most feared federal agency in the country," but it's also deemed by the majority of Americans as "frequently" abusing its power, an abuse with which Tea Party groups and conservatives are well aware. Happily, Indian police have busted a large IRS phone "scam center" located in three buildings on the outskirts of Mumbai.

I recently noted that President Obama's climate change edict for our national security strategists shows that he does not take warfare against American opponents seriously. However, the President takes citizen opposition very seriously. For example, he is unleashing one of his most potent tools against Americans opting out of purchasing Obamacare. Over 20 million Americans opted to pay a penalty rather that purchase health insurance. So, the Internal Revenue Service (IRS) has just sent them a formal letter suggesting they make a different choice.
...Getting a letter from the IRS can be a threatening and nerve-racking experience; it seldom is seen as a suggestion and more of a threat. But at President Obama’s direction, the IRS is “reaching out” to people who paid the tax penalty for not buying mandatory health insurance or who claimed an exemption in hopes of “attracting” more people to sign up for ObamaCare insurance. The government is particularly interested in compliance from healthy young people.

The House Freedom Caucus and Judiciary Committee Chairman Bob Goodlatte (R-VA) struck a deal to hold a hearing for IRS Commissioner John Koskinen, thus delaying a Thursday House vote to impeach him. The caucus had submitted a resolution to impeach Koskinen for impeding "Congress' effort to investigate the IRS for tough assessments of Tea Party groups that sought tax exemptions several years ago." Caucus members Members claim Koskinen failed to provide proper email documents and lied about deleting some emails. They also claim he has shown, “little effort to recover the lost documents.”

The House Freedom Caucus submitted a resolution to force a vote to impeach IRS Commissioner John Koskinen. They have accused him of hampering, "Congress' effort to investigate the IRS for tough assessments of Tea Party groups that sought tax exemptions several years ago." Caucus members Members claim Koskinen failed to provide proper email documents and lied about deleting some emails. They also claim he has shown, "little effort to recover the lost documents." To speed up the vote, Rep. John Fleming (R-LA) introduced the bill, "under a privileged motion," allowing the bill to bypass committee. The House could vote on the bill as early as Thursday.

What a shock. Judicial Watch discovered that top IRS officials, including Lois Lerner and Holly Paz, knew that the agency targeted conservative groups before they told Congress. Judicial Watch reported:
The FBI documents also reveal that IRS officials stated that the agency was targeting conservative groups because of their ideology and political affiliation in the summer of 2011. According to one senior tax law specialist, “The case seemed to be pulled because of the applicant’s political affiliation and screening is not supposed to occur that way … [Redacted] said he thought the cases were being pulled based upon political affiliations.” And IRS senior official Nancy Marks, appointed by [then-acting Commissioner Steven] Miller to conduct an internal investigation stated, “Cincinnati was categorizing cases based on name and ideology, not just activity.”

Have you noticed that many of Trump's critics accuse him of things he hasn't done yet but which other people have actually done already? The latest example comes from the presumptive Democratic nominee who warns President Trump could use the IRS to target his enemies. Imagine that. Allahpundit of Hot Air notes the irony:
Hillary: Can you imagine electing a vindictive man who might … send the IRS after his critics? You know what? I can imagine it. Pretty vividly, actually. Right down to the names of the “hypothetical” IRS officers involved.

Here's some change we can all believe in -- an appropriations bill that slices federal funding to the IRS. Passing the House yesterday, the bill trims the IRS' 2017 budget by $236 million and provides a total budget that's $2.7 billion below the budget President Obama requested.

Cleta Mitchell is a conservative activist who has been very vocal about the IRS scandal which involved the targeting of conservative Tea Party groups in the run-up to the 2012 election. She recently appeared on C-Span and an alleged IRS employee called into the show and explained to her that he would target these groups because they want to abolish the IRS. Ali Meyer reported at the Washington Free Beacon:
IRS Employee Admits He Would Go After, Target, and Try to End Conservative Groups A self-identified IRS employee admitted he would go after, target and try to end conservative groups who wanted to abolish the IRS, to Cleta Mitchell, an attorney representing those groups, on a Washington Journal segment on C-SPAN.

Do you trust the federal government to prepare your taxes for you? Elizabeth Warren thinks so. Should the Tea Party activists and others who have been harassed by the IRS for political reasons in recent years be expected to trust the agency with preparing their returns? Isn't it bad enough that the IRS can use its power of audit? Boston.com reported:
Elizabeth Warren thinks the IRS should fill out your tax returns With Monday’s tax filing deadline looming over many Americans’ weekends, Sen. Elizabeth Warren’s new bill may seem like a godsend. The Massachusetts Democrat introduced legislation Wednesday that would allow U.S. taxpayers to have the government do their taxes for them—for free.

The Sixth Circuit Court of Appeals issued a blistering rebuke of the IRS today in Tea Party groups' suit against IRS targeting. The opinion by Chief Judge Raymond Kethledge on behalf of a three-judge panel opens:
Among the most serious allegations a federal court can address are that an Executive agency has targeted citizens for mistreatment based on their political views. No citizen—Republican or Democrat, socialist or libertarian—should be targeted or even have to fear being targeted on those grounds. Yet those are the grounds on which the plaintiffs allege they were mistreated by the IRS here. The allegations are substantial: most are drawn from findings made by the Treasury Department’s own Inspector General for Tax Administration. Those findings include that the IRS used political criteria to round up applications for tax-exempt status filed by so-called tea-party groups; that the IRS often took four times as long to process tea-party applications as other applications; and that the IRS served tea-party applicants with crushing demands for what the Inspector General called “unnecessary information.”

In early 2014, the Internal Revenue Service launched a new feature on its website referred to as 'Get Transcript.' This feature allowed taxpayers to view and download their transcript, or a document that lists most line items on a tax return and includes accompanying forms and schedules. In May of last year, the IRS announced its Get Transcript feature had been hacked by criminals using taxpayer information that was obtained by different means. At this time, the IRS had determined that a little over 114,000 taxpayers' returns were accessed and the Get Transcript feature was taken offline. By August, the IRS revised the original number to 334,000 breached or targeted tax returns. As of last Friday, however, the IRS added another 390,000 taxpayers to the list, upping the number of accounts effected to over 700,000. Not included in this number are 500,000 accounts the hackers targeted but were unable to obtain.

Tea Party groups won a major victory last week, when Judge Susan J. Dlott of the United States District Court for the Southern District of Ohio certified a class of Tea Party organizations that allege the IRS intentionally delayed their applications for preferential tax treatment based on their political viewpoints. Winning class certification in NorCal Tea Party Patriots v. Internal Revenue Service is a big deal, because it means the Court has already made several determinations, all of which favor the class.  The Court has determined that the number of Tea Party groups effected by the IRS's alleged behavior is so numerous that they can proceed together as a class.  The Court has also determined that all of the Tea Party groups have valid legal claims against the IRS which share common legal issues; in other words, that the IRS has treated them all the same way. Having survived the hazardous class certification step, the Plaintiffs will now get substantive discovery from the IRS and from third parties.  As the Washington Times summarized:

CNN Reports:
The Justice Department notified members of Congress on Friday that it is closing its two-year investigation into whether the IRS improperly targeted tea party and other conservative groups. There will be no charges against former IRS official Lois Lerner or anyone else at the agency, the Justice Department said in a letter. The probe found "substantial evidence of mismanagement, poor judgment and institutional inertia leading to the belief by many tax-exempt applicants that the IRS targeted them based on their political viewpoints. But poor management is not a crime."
Despite incriminating evidence and findings by IRS inspectors that Tea Party and conservative groups were treated worse than other groups, DOJ found no support for the view that Lerner and others were politically motivated, as CNN further reported:

Last week, in an August 24, 2015 Status Report, the Internal Revenue Service disclosed that Lois Lerner used a secret personal email account denominated as "Toby Miles." The filing was in a FOIA case filed by Judicial Watch. In a filing last night of an August 31, 2015 Status Report, the IRS revealed that  Lerner also used "a second personal email account" that, unlike the Toby Miles account, "does not appear to be associated with a denomination; only the email address itself appears." The IRS refuses to disclose the email address for either the Toby Miles or the newly discovered account. (added) Tom Fitton, President of Judicial Watch, commented on this latest disclosure:
“It is disturbing that the Obama administration’s explanations to a federal judge about Lois Lerner’s emails become inoperative after only one week. Last week, the court was told that that Lois Lerner had a second alias email account under the name “Toby Miles”. This week the court is told that the “Toby Miles” account isn’t a separate account but that that there still is a second Lerner account, address unrevealed, with IRS-related emails. This game of cat and mouse shows that both the Obama IRS and Justice Department continue with their contempt for Judge Sullivan’s orders that Ms. Lerner’s emails about this scandal be disclosed as the law requires.”
The August 31 status report reads, in part (full embed at bottom of post):