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IRS Tag

President Barack Obama’s administration has been one rife with scandals. Some pertain directly to the President himself and his own actions–like the recent immigration executive order that some say unconstitutionally side-stepped Congress–and some to members of his administration, like the targeting of conservative groups by the IRS and the Secret Service’s series of embarrassments. So in the spirit of March Madness and NCAA bracketology, I crafted an Obama Administration Scandal Bracket, originally published at The Cornell Review. Obama Scandal Brackets

Al Sharpton's tax problems are well known. It's a good thing he isn't a member of the Tea Party, otherwise he might be in real trouble with the IRS. Luckily for the good reverend, he's a liberal progressive and therefore subject to a different set of rules. What you may not have heard, is that some of Al Sharpton's financial records have unfortunately been destroyed by not one but two completely unsuspicious fires. Jillian Kay Melchior of National Review has written a very interesting report on the subject. Hat tip to the great Jazz Shaw of Hot Air:
Suspicious Fires Twice Destroyed Key Sharpton Records As Al Sharpton ran for mayor of New York City in 1997 and for president in 2003, fires at his offices reportedly destroyed critical financial records, and he subsequently failed to comply with tax and campaign filing requirements. The first fire began in the early hours of April 10, 1997, in a hair-and-nail salon one floor below Sharpton’s campaign headquarters at 70 West 125th Street. From the start, investigators deemed the fire “suspicious” because of “a heavy volume of fire on arrival” and because many of the doors remained unlocked after hours, according to the New York Fire Department’s fire-and-incident report... Top city officials, including then-mayor Rudy Giuliani, said initial suspicions centered on the hair-and-nail salon, not on Sharpton’s campaign, Newsday reported. The fire department sent the case as an arson/explosion investigation to the New York Police Department. By the time of publication of this report, the NYPD had not provided the records requested by National Review Online on December 16, 2014, but it confirmed that the investigation had been closed without an arrest. FDNY’s report references a “flammable liquid,” and firefighters’ photos of the scene show traces of an incendiary puddle. Another photo captures what appears to be a singed rag that someone is holding next to a fuse box, perhaps because that is where it was found.
Read it all. I look forward to Reverend Sharpton's well articulated response to this controversy.

Last week, we covered IRS Commissioner John Koskinen's testimony about the shocking tax consequences of Obama's executive amnesty plan. In previous testimony before Congress, Koskinen explained that illegal immigrants who were granted amnesty would be eligible to receive back-refunds in the form of the Earned Income Tax Credit (EITC)---but only if they had registered with an Individual Taxpayer Identification Number (ITIN.) This means that, although the person was here illegally, they were still working and paying taxes and thus eligible for a refund. It's a bogus loophole, but it stems from an existing IRS interpretation of their own rules, so at the end of the day it was a "fix this now" situation rather than an "end of the world" scenario." That was scandal enough, though, considering the divisive nature of illegal immigration itself; but this week's testimony from Koskinen just made things a whole lot worse. That's right---we've had a "clarification." From the Washington Times:
On Wednesday, he said even illegal immigrants who didn’t pay taxes will be able to apply for back-credits once they get Social Security numbers. The EITC is a refundable tax credit, which means those who don’t have any tax liability can still get money back from the government. “Under the new program, if you get a Social Security number and you work, you’ll be eligible to apply for the Earned Income Tax Credit,” Mr. Koskinen said. He said that would apply even “if you did not file” taxes, as long as the illegal immigrant could demonstrate having worked off-the-books during those years. That expands the universe of people eligible for the tax credit by millions. He said only about 700,000 illegal immigrants currently work and pay taxes using an Individual Taxpayer Identification Number, but as many as 4 million illegal immigrants could get a stay of deportation and work permits under the temporary amnesty, which would mean they would be eligible to claim back-refunds if they worked those years.

One year ago, Barack Obama told Bill O'Reilly that there wasn't even a smidgeon of corruption at the IRS. If that statement was true, why is the Obama administration refusing to share documents related to the IRS targeting scandal? Bob Cusack of The Hill reported yesterday:
Obama administration won’t release IRS targeting documents The Obama administration is refusing to publicly release more than 500 documents on the IRS’s targeting of Tea Party groups. Twenty months after the IRS scandal broke, there are still many unanswered questions about who was spearheading the agency’s scrutiny of conservative-leaning organizations. The Hill sought access to government documents that might provide a glimpse of the decision-making through a Freedom of Information Act (FOIA) request. The Hill asked for 2013 emails and other correspondence between the IRS and the Treasury Inspector General for Tax Administration (TIGTA). The request specifically sought emails from former IRS official Lois Lerner and Treasury officials, including Secretary Jack Lew, while the inspector general was working on its explosive May 2013 report that the IRS used “inappropriate criteria” to review the political activities of tax-exempt groups. TIGTA opted not to release any of the 512 documents covered by the request, citing various exemptions in the law. The Hill recently appealed the FOIA decision, but TIGTA denied the appeal. TIGTA also declined to comment for this article.
The Department of Justice, which hasn't been politicized in any way, may be partially to blame for the slowness of the investigation.

Brace yourself for what could become #IRSscandal...3.0? 4.0? 10.0? I've lost track. A new report from the Treasury Inspector General for Tax Administration shows that the IRS rehired hundreds of problem employees over the course of three years. According to the report, four of those employees left the IRS after having serious performance problems---and were hired back to their exact same jobs. Hundreds others were rehired even though their records reflected less-serious problems. Via WaPo:
Among the four workers who returned to their previous positions, two were “failing critical job elements at the time they had separated from their prior employment with the IRS,” according to a report on the audit, released Thursday. The review raises questions about whether federal hiring standards are strict enough. Twenty percent of the 50 randomly selected rehires with prior problems at the IRS were involved in new conduct and performance issues after they returned to the agency, according to the report. TIGTA determined that the IRS followed federal hiring guidelines, which require checking for prior criminal activity or use of illegal drugs. But IRS officials told auditors that they barely consider prior conduct and performance issues while determining which applicants are best qualified for a job. Roughly 10 percent of the 73,000 employees that the IRS hired between October 2009 and September 2013 previously worked at the agency. TIGTA said that “most rehired employees do not have performance or conduct issues associated with prior IRS employment.”
Well, at least they aren't doing drugs, right?

Why fix what you can abolish? The scandal-laden IRS has found itself a new adversary in Senator Cruz. Last week, Senator Cruz called for abolishing the IRS while joking that sending the agencies 110,000 employees to the Southern border was a better use of their time. Fox News reports:
Sen. Ted Cruz (R-TX) emphatically denounced the IRS this week in a Heritage Foundation speech, saying that that the agency doesn't need to be reformed, it needs to be "abolished." Now that Republicans control Congress, Cruz said the party must seize on the opportunity to simplify the tax code and make it fairer. “The last two years have fundamentally changed the dynamics of this debate [on the tax code],” he said. “As we have seen the weaponization of the IRS, as we have seen the Obama administration using the IRS in a partisan manner to punish its political enemies.”

Since 2013, we have been investigating charges that the IRS deliberately targeted and discriminated against conservative organizations that applied for tax-exempt status. Now, watchdog group Judicial Watch has uncovered even more evidence that the Washington office had something to hide during the initial Congressional investigations. Today's document release by Judicial Watch includes evidence that then-IRS official Lois Lerner strongly objected to and attempted to prevent a visit by Tax Exempt and Government Entities (TE/GE) Division Deputy Director Joseph H. Grant to the embattled Cincinnati office, which spent time “smack dab in the middle” of Congressional investigations into the IRS targeting of conservatives. From Judicial Watch:
The newly released documents include an intense chain of emails in which Lerner pleads with Grant, who was a supervisor to her, to “put this [Grant’s planned visit to Cincinnati] off please” at the very time during which both the internal IRS watchdog and Congress were investigating whether the IRS had been inappropriately targeting conservative groups in the months leading up to the 2012 elections. The chain begins with an email from Lerner to Grant, apparently written in response to her learning of the Deputy Director’s planned visit to the Cincinnati office: • April 4, 2012 – 4:41 PM – Lois Lerner to Joseph Grant: We just gor an very extensive information request from Imraan [Imraan Khakoo, TE/GE official] –sure looks like op review material. I’m especially concerned that information about pipeline is being asked about … Add to that the fact tha cincinnati is smack dab in the middle of the c4 Congressional inqueries and is about to get a request from TIGTA on all of that, this is NOT a good time to be asking them for anything or to be talking to them about issue in their work. Everyone is stressed to the max and at their wits end, so can we put this off please? [Typos in originals] • April 4, 2012 – 5:17 PM – Joseph Grant to Lois Lerner: It is a visit, not an OP review … I am also interested in the questions Imraan sent to them. Some answers should be readily at hand. Others certainly won’t be … The questions just serve as a framework for a broader conversation about how things are going and what is on our respective minds. • April 4, 2012 – 5:26 PM – Lois Lerner to Joseph Grant: I get that–but timing would be bad if we have to go to Cincy now. So, I will assume we can go over this here as I get the information I’ve already asked for? Thanks.
Breathe, Lois, breathe!

Tax season is right around the corner and this year brings another consequence of the Affordable Care Act. Many Americans are going to discover that instead of getting a tax refund, they will owe money to the IRS. Tami Luhby of CNN Money reports:
Obamacare tax surprise looming Obamacare enrollees who received subsidies to help pay for coverage will soon have to reconcile how much they actually earned in 2014 with how much they estimated when they applied many, many months ago. This will likely lead to some very unhappy Americans. Those who underestimated their income either will receive smaller tax refunds or will owe the IRS money. That's because subsidies are actually tax credits and are based on annual income, but folks got their 2014 subsidy before knowing exactly what they'd make in 2014. So you'll have to reconcile the two with the IRS during the upcoming tax filing season. It won't be surprising if many enrollees guessed wrong. The sign up period began in October 2013 and many people did not know what they'd earn in 2014. Some went off what they earned in 2012... Those who underestimated their earnings could owe thousands of dollars, though there is a $2,500 cap for those who remain eligible for subsidies. The threshold for eligibility is based on income - $45,900 for an individual and $94,200 for a family in 2014.
Isn't it great how Democrats have tied our healthcare system to our tax system?

Yesterday, the House Committee on Oversight and Government Reform released a report on the IRS targeting of conservative organizations. Republican Representative Darrell Issa (CA-49), the outgoing Committee Chair, released the report that reviewed over 1.3 million pages of documents and 52 transcribed interviews. The report is the most extensive to date. The report's conclusion found:
Conservative organizations were not just singled out because of their political beliefs—they were targeted by IRS officials and employees who expressed a general loathing toward them even while begrudgingly admitting that those organizations were in compliance with the only thing the IRS should care about: the federal tax code. Documents and interviews show IRS officials failed to limit their professional judgments to enforcing the tax code and instead inserted their own beliefs and judgments into federal matters to influence outcomes and decisions. One IRS agent wrote about an organization applying for 501(c)(4) status that donated to other organizations that engaged in political activity, “I’m not sure we can deny them because, technically, I don’t know that I can deny them simply for donating to another 501(c)(4).” Another agent responded, “This sounds like a bad org . . . This org gives me an icky feeling.”
The most concerning piece of information gleaned from the report is that targeting individuals or groups for ideological reasons appears to be a widely accepted tactic among IRS employees, not simply a directive from above. Based on some of the emails included in the report, it seems as though individuals were actively looking for reasons to deny conservative applications. One employee wrote in an email, “It appears that the org is funneling money to other orgs for political purposes. However, I’m not sure we can deny them because, technically, I don’t know that I can deny them simply for donating to another 501(c)(4). . . . Any thoughts or feedback would be greatly appreciated.” 

Rep. Jim Jordan of Ohio appeared on Greta Van Susteren's program last night to discuss a new fold in the ongoing scandal at the Internal Revenue Service. Would it surprise you to learn that the IRS shared confidential taxpayer information with the White House? Video courtesy of the Gretawire blog: Not to worry America. We're living under the most transparent administration in American history. Or maybe not.

Hey, remember the Reader Poll we did about whether it was okay to follow and try to interview Lois Lerner in her neighborhood? Do you approve of media confronting Lois Lerner in her neighborhood? (Reader Poll):
Jason Mattera of the Daily Surge recently filmed an unannounced confrontation with former IRS employee Lois Lerner in her own neighborhood. Lerner fled his camera and tried (unsuccessfully) to seek refuge in a neighbor’s home: ... This may seem invasive and inappropriate, but as Jason Mattera asks her in so many words, is it any more inappropriate than the way Lerner used her position at the IRS to target average Americans? So what do you think. After viewing the video, and considering how it must feel for any controversial public figure (do unto others?) to be confronted where s/he lives, was the questioning of Lerner a good thing?
The result of the Reader Poll was overwhelming:

Democrats who had hoped for at least a week to sleep off their election night hangovers are getting no rest after the latest disclosure of court documents by advocacy group Judicial Watch. Judicial Watch has spent a great deal of time and resources seeking information about the IRS targeting of conservative groups. In September, Judicial Watch asked the court for permission to conduct discovery into how "lost and/or destroyed" records might be recovered; the IRS is fighting transparency efforts, but their latest response to the discovery request contains inconsistencies that could pull the rug out from under IRS officials responsible for the cover up. Via Judicial Watch:
Judicial Watch lawyers reviewed the IRS court filings and concluded that the agency “did not undertake any significant efforts to obtain the emails.” IRS attorneys conceded that they had failed to search the agency’s servers for missing emails because they decided that “the servers would not result in the recovery of any information.” They admitted they had failed to search the agency’s disaster recovery tapes because they had “no reason to believe that the tapes are a potential source of recovering” the missing emails. And they conceded that they had not searched the government-wide back-up system because they had “no reason to believe such a system … even exists.”
But what's this? The inconvenient truth, documented for all time courtesy of court filings? [Emphasis in bold mine:]

Our reader poll turned up strong support for Jason Mattera confronting Lois Lerner in her neighborhood, including following her to a neighbor's door. Based on the comments to that post, I think the general reasoning in favor was that Lerner deserves to have to answer questions, they do it to us (60 Minutes ambush interviews anyone? SEIU?), and we lose when we don't fight back and hold them to their own standards. The general reasoning against was that we are not like the other side, we need to be better, and it was creepy to follow her onto a neighbors' lawn and to the front door. Asking her questions on the street might be one thing, but running after her is too much. Poll Results Lois Lerner Jason Mattera But Greg Gutfeld on The Fives was not impressed with Mattera's performance, viewing it as counterproductive. Bob Beckel went further (surprise!) and challenged Mattera to a fight. TPM reports:
Conservative author Jason Mattera's ambush of former IRS official Lois Lerner has earned plaudits from certain conservative circles, but it was too much for the gang on Fox News Channel's "The Five." Co-host Greg Gutfeld said Wednesday that the video — in which Mattera chased Lerner around a suburban Washington, D.C. neighborhood as she walked her dogs — pulled off the impossible. "Seriously, that even made me feel bad for Lerner, and I can't stand her," Gutfeld said.... In fact, Beckel was so incensed that he's apparently willing to throw down with Mattera.

(Reader Poll at bottom of post) Jason Mattera of the Daily Surge recently filmed an unannounced confrontation with former IRS employee Lois Lerner in her own neighborhood. Lerner fled his camera and tried (unsuccessfully) to seek refuge in a neighbor's home:
VIDEO: Lois Lerner Tries Barging Into Neighbor’s Home To Evade Questions Lois Lerner attempted to bust into a neighbor’s home uninvited, in a desperate attempt to avoid answering questions about her involvement in the targeting of conservative groups. Jason Mattera, author of the explosive new book CRAPITALISM: Liberals Who Make Millions Swiping Your Tax Dollars, recently caught up with the disgraced former IRS official in her ritzy neighborhood outside Washington, D.C. Mattera, who publishes the Daily Surge, asked Lerner if she had any regrets for her role in the ongoing IRS corruption case, and if she wanted to take the opportunity to give a genuine apology to conservatives for using the force of government to harass and single them out. But, similar to her testimony before Congress where she pleaded the fifth, Lerner didn’t show any remorse, and, on a more latent level, showed her disregard for people’s privacy rights in general. In the video above, you can see Lerner fleeing from Mattera as she rushes through what appears to be a random person’s front yard.
Here's the video: This may seem invasive and inappropriate, but as Jason Mattera asks her in so many words, is it any more inappropriate than the way Lerner used her position at the IRS to target average Americans? In fact, this is a tactic the left has been using for quite a while.

Lois Lerner broke her silence in an interview at Politico, according to Politico: Exclusive: Lois Lerner breaks silence. More properly framed, Lerner repeated to Politico the same broad denials she made on the record in a House hearing just before pleading the 5th to avoid having those broad denials subjected to questioning. Here's her House statement, just before pleading the 5th for the first of two times: Here's an excerpt from Lerner's Politico interview: [___________]. That blank is there for a reason -- the Politico article was less an interview than a characterization of an interview. No transcript or even extensive quotation, other than some snippets, most of which concern Lerner's hurt feelings rather than the facts of what she did, what she knew, and when she knew it. Here's the conclusion to the Politico article:

Just when you thought that the IRS scandal couldn't get any worse, the editors of Investor's Business Daily have a new bombshell to offer. It seems the Department of Justice has been working with Maryland Democrat Elijah Cummings, but not to uncover the truth:
DOJ Working With Elijah Cummings To Protect The IRS An aide to the attorney general accidentally calls the office of the House Oversight Committee chairman, asking for help in spinning the defense of the agency whose head just said they obey the law when they can. We have commented many times of the all-too-cozy relationship between the IRS and Democratic members of the House and Senate, with members writing to the agency demanding that specific conservative groups and political action committees they find particularly irritating be subject to the "special scrutiny" that the Tea Party and other conservative and religious groups were subjected to in the ongoing scandal. Of particular interest to us has been Rep. Elijah Cummings, D-Md., ranking member on Rep. Darrell Issa's House Government Reform and Oversight Committee, who has made every effort to keep the committee from finding out the true extent of IRS corruption and abuse of power in its targeting of conservatives...