An Internal Revenue Service watchdog testified Friday that he told Obama administration officials in June that he was looking into allegations the IRS targeted conservative groups for extra scrutiny when they applied for tax-exempt status.
The revelation by Inspector General Russell George came at the first congressional hearing on the IRS misconduct, which has generated a political firestorm since it was disclosed a week ago.
.
George’s testimony represented the first evidence that officials in the Obama administration knew of the allegations as long as a year ago, during the presidential campaign.
Appearing Friday before the House Ways and Means Committee, George said he told the Treasury Department’s general counsel of his investigation on June 4, in a routine briefing of what his office was working on.
George said he did not disclose that he had concluded the targeting was improper.
But his testimony that knowledge of the allegations was not limited to the IRS is likely to fuel efforts by Republicans to link the scandal to the White House and congressional Democrats.
Treasury Secretary Jacob Lew said Friday that he was briefed in March that an investigation was underway of IRS screening of conservative groups – though he didn’t learn the substance of the findings until last week.
In an interview with Bloomberg Television, Lew said he had “a getting-to-know-you conversation” with George in mid-March, a couple of weeks after he was sworn in as treasury secretary, and the investigation “was one of the things he briefed me was ongoing.”
“I didn’t know any of the details of it until last Friday,” Lew said.
Lew also disclosed that he has ordered Danny Werfel, whom President Obama named Thursday to take over as acting IRS commissioner, to come up with an action plan within 30 days to address the handling of applications for tax-exempt status.
Obama also has said he first learned of the matter last Friday – when a Treasury Department official, Lois Lerner, revealed during an American Bar Association conference that IRS workers in a Cincinnati office had subjected groups with “Tea Party” or “patriots” in their names for extra scrutiny to determine if they should be tax exempt.
During yesterday’s testimony, Steven Miller, who was forced to resign this week week as the IRS acting commissioner, revealed that Lerner made her disclosure in response to a planted question at the bar association conference.
“We talked about what would be said and how we might do it,” he said.
The revelation irked lawmakers already angry the IRS never told them it had been improperly targeting conservative groups, despite numerous inquiries by members of Congress.
Reps. Joe Crowley (D-Queens) and Sandy Levin (D-Mich.) demanded Lerner resign or be fired.
.
During a House Ways and Means Committee hearing today, Rep. Aaron Schock, R-Ill., grilled outgoing IRS commissioner Steven Miller about the IRS targeting a pro-life group in Iowa.
“Their question, specifically asked from the IRS to the Coalition for Life of Iowa: ‘Please detail the content of the members of your organization’s prayers,’” Schock declared.
“Would that be an inappropriate question to a 501 c3 applicant?” asked Schock. “The content of one’s prayers?”
“It pains me to say I can’t speak to that one either,” Miller replied.
After Schock pressed him further, Miller explained that although he couldn’t comment on the specific case, it would “surprise him” if that question was asked.
The report comes from the Thomas More Society, a national public interest law firm for religious liberty.
Coalition for Life of Iowa found itself in the IRS’s crosshairs when the group applied for tax exempt status in October 2008. Nearly ten months of interrogation about the group’s opposition to Planned Parenthood included a demand by a Ms. Richards from the IRS’ Cincinnati office unlawfully insisted that all board members sign a sworn declaration promising not to picket/protest Planned Parenthood. Further questioning by the IRS requested detailed information about the content of the group’s prayer meetings, educational seminars, and signs their members hold outside Planned Parenthood.
In House testimony Friday, former Acting IRS Commissioner Steven Miller explained that the IRS mistakes in handling applications for non-profit status from tea party groups were due, in large part, to a flood of applications following the Citizens United decision. Miller said the targeting was a botched attempt to centralize the process to account for the increased workload. There were fewer applications in 2010, when the IRS began targeting conservative groups, than the year before, however.
In 2009, before IRS began targeting tea party organizations, 1,751 groups applied for 501 (c)4 status. That number dropped in 2010 to 1,735. In fact, applications were down across all areas in the Tax Exempt division’s jurisdiction. So, they had more staff available for processing. While the number of applications did increase in 2011 and 2012, there was no increase in applications when the IRS began isolating tea party groups.
Moreover, the IRS reportedly abandoned the targeting in early 2012. It presumably had little trouble handling the increased number of applicants in advance of the 2012 election.
For whatever reason the IRS chose to target tea party organizations for special scrutiny, it wasn’t due to a flood of new applications.
The Obama IRS demanded that several Tea Party groups provide back-end access to their websites.
And, from reliable sources: This happened to several Tea Party groups!
The source has this in writing. It states they wanted access to everything the members had access to, which would be chats, email, contact information, etc. The group raised less than $600. She was targeted as early as October 2010.
Central Texas 912 President, Maria Acosta joined Kristina Ribali from FreedomWorks to discuss being singled out by the Feds.
The IRS asked for back-end access to the group’s website.
And this is a tax question?
Here is the latest creepy story of IRS harassment and abuse.
.
UPDATE: The IRS also demanded the Richmond Tea Party in Virginia to provide access to the back-end of their website.
The Internal Revenue Service on Friday issued a statement to ProPublica saying that the agency’s release of pending confidential tax-exempt applications from conservative groups last year had been found to be “inadvertent and unintentional disclosures by the employees involved.”
In the statement, the IRS said the cases had been referred to and reviewed by the Treasury Inspector General for Tax Administration.
“When these two issues were previously raised concerning the potential unauthorized disclosures of 501(c)(4) application information, we immediately referred these cases to TIGTA [Treasury Inspector General for Tax Administration] for a comprehensive review,” the statement said. “In both instances, TIGTA found these instances to be inadvertent and unintentional disclosures by the employees involved.”
This is not my country. The Chicago thugocracy we have in the White House is every bit what Michelle Malkin has always said it was, using government to target and oppress political ‘enemies’.
In this segment, Frank Vandersloot tells BillO that after he gave Romney one million to help his campaign, he was then targeted by the Obama campaign on their official website along with seven others. Shortly after that he received a letter from the IRS saying he would be audited. And then on top of that, he also had the Labor Dept. come calling because they wanted to look at his books.
Your Obamacare tax money is being poured into community organizations so they can enroll the uninsured in Obamacare. The obvious end-result is that they will enroll people into the Democratic Party as well.
.
……….
The Senate immigration bill does the same thing. It pays community organizations to educate immigrants on their path to citizenship and to the Democratic Party.
Sebelius did an end-run around Congress last week and solicited funds from organizations like Enroll America to help publicize Obamacare. Enroll America management is purely political. President Anne Filipic is a White House insider who networks with community organizers. She was a DNC official before she worked on Obama’s 2008 campaign in Iowa.
She manages messaging for the very community organizations who are taking our money – ACORN (exposed as corrupt but still functioning), LaRaza (the radical open borders group) and MoveOn (a radical socialist organization) are some of them. Filipic also manages the messaging for 39 Democratic members of Congress.
Obamacare requires these far-left community organization be hired as “navigators” to enroll the uninsured. Union members are also being hired as navigators and we know where they stand.
The corruption doesn’t stop there. Community Organizations like ACORN are also involved in taking our money to set up Obamacare CO-OPs.
Obamacare allows for the establishment of Consumer Operated and Oriented Plan (CO-OP). A CO-OP is a federal program created to assist in the development of non-profit, member-run health insurance issuers. The issuers will offer qualified health plans in the individual and small group markets. Organizations participating in CO-OP programs must be non-profit entities.
Once formed at great expense to the taxpayer, they can put the co-op into the healthcare exchange to compete even though it is known they can’t compete.
Many of the people starting up the exchanges have no experience. One has experience providing the poorest service in New York. [Greta Van Susteren expose April 4]
Co-ops are fatally flawed. They can’t compete with the government-subsidized option and they can’t compete with large insurance companies. Enrollees are in charge of decisions affecting costs – no conflict of interest there. They can succeed if they move beyond what they are and join forces with other co-ops and the moon and the stars are correctly aligned in the heavens. [rwjf research]
The government has given co-ops $3.8 billion taxpayer dollars to start up though the failure rate could be about 35% to 40%. No one expects it to be 40% but they’re just mentioning it as a possibility. [The Hill]
The House Committee on Oversight and Government Reform under Darrell Issa would like information on the co-ops to see where our money is going. They asked in February but Sebelius failed to comply. They asked again at the end of March and have greatly expanded their probe. [Washington Examiner]
Immediately after Obamacare passed, slews of ACORN-like (Alinsky-style) co-ops formed. Heavily subsidized with tax dollars, the co-ops need not be set up by anyone who has any experience or record of success. With all the rules being thrown out by HHS, they didn’t feel the need to have any rules about this?
One of these co-ops is The Common Ground Healthcare Cooperative, an Alinsky-style ACORN group. It formed in August, 2011 at the same time the tax dollar incentive became known.
Obama gave this co-op $56 million to start up their health insurance company even though they have basically no experience in the area.
The Alinsky group is an operation out of Chicago.
…A Saul Alinsky-tied group has been awarded a $56 million federal loan to start up a nonprofit health insurance company – one of several organizations across the country this week tapped to launch a new network of insurers under the sponsorship of the federal health care overhaul.
The Wisconsin group, Common Ground Healthcare Cooperative, was awarded the funding on Tuesday. According to the Department of Health and Human Services, the group is expected to provide coverage statewide within five years after starting on a smaller scale in early 2014… Read more: Fox News
If this isn’t ripe for corruption, I don’t know what is. This is what happens when a community organizer becomes president.
The Department of Homeland Security, which under Secretary Janet Napolitano has shown a keen interest in monitoring and warning about outspoken conservatives, takes a very different approach in monitoring political Islamists, according to a 2011 memo on protecting the free speech rights of pro-Shariah Muslim supremacists.
In a checklist obtained by The Daily Caller entitled “Countering Violent Extremism Dos and Don’ts” the DHS’s Office of Civil Rights and Civil Liberties notifies local and national law enforcement officials that it is Obama administration policy to consider specifically Islamic criticism of the American system of government legitimate.
The advice of the Dos and Don’ts list is far more conciliatory. “Don’t use training that equates radical thought, religious expression, freedom to protest, or other constitutionally-protected activity, including disliking the U.S. government without being violent,” the manual’s authors write in a section on training being “sensitive to constitutional values.”
The manual, which was produced by an inter-agency working group from DHS and the National Counterterrorism Center, advises, “Trainers who equate the desire for Sharia law with criminal activity violate basic tenets of the First Amendment.”
The checklist also advised against using moderate Muslim “trainers who are self-professed ‘Muslim reformers’” because they “may further an interest group agenda instead of delivering generally accepted, unbiased information.”
The Homeland Security document also seems to discount evidence unearthed by the Justice Department about the aims of some mainstream Muslim organizations, warning law enforcement not to rely on “unsubstantiated theories” and “conspiracies,” such as the belief that “many mainstream Muslim organizations have terrorist ties” or are “fronts for Islamic political organizations whose true desire is to establish Sharia law in America.”
The manual advises trainees not to assume Muslim Americans are “using democratic processes, like litigation and free speech, to subvert democracy and install Sharia law.”
In fact, the Justice Department proved that some very prominent Muslim organizations do have terror ties in a 2009 case and that they share the Muslim Brotherhood’s goal of Shariah law. “The government has produced ample evidence to establish the associations of CAIR [Council on American-Islamic Relations], ISNA [Islamic Society of North America], NAIT [North American Islamic Trust], with the Islamic Association for Palestine, and with Hamas,” U.S. District Court Judge Jorge Solis said in the July 1, 2009 ruling.
Tim Clemente, a former FBI agent who hunted Anwar Al-Awlaki and who has worked with Muslims to help stop terrorist plots, told The Daily Caller the government overdoes its sensitivity. Clemente says that the Muslim community “needs a realization, not necessarily a reformation,” that only it can stop terrorist attacks.
“Muslims are the ones that should notice this and should nip it in the bud,” Clemente told TheDC. “When you see the guy radicalizing and yelling at an imam, do more. Take it to the next level. Don’t go turning a blind eye.”
“While it is true that the vast majority of Muslims, especially in America, will never ever be radicalized, the greatest percentage of those that will commit terrorist acts happen to Muslim,” continued Clemente, who was critical of DHS’s 2009 report on rightwing groups.
Although the two reports originated from different wings of Napolitano’s vast Homeland Security bureaucracy, the contrast in their deference to constitutional rights and presumption of innocence is striking.
The “Rightwing Extremism” report warned that the economic recession, Barack Obama’s election, and the “return of military veterans facing significant challenges reintegrating” might lead to a rise in white-power domestic terrorist activity — a threat that, unlike the threat posted by radical Islam, has failed to materialize in the four years since the report was issued.
The 2009 report also defined “rightwing extremism in the United States” as including not just racist or hate groups, but also those who reject federal authority in favor of state or local authority and who “are dedicated to a single issue, such as opposition to abortion or immigration.”
The 2009 report’s authors conceded that DHS “has no specific information that domestic rightwing terrorists are currently planning acts of violence.”
The Internal Revenue Service scandal would be bad enough if the IRS just handled issues like collecting income taxes and granting nonprofit status. But the immensely powerful federal agency is about to become even more powerful with the arrival of national health care, and that makes the still-unfolding scandal even more troubling.
.
“When I hold town meetings, a great deal of distrust comes through about the size and increasing power of government,” says Republican Sen. Charles Grassley of Iowa. “The IRS targeting crystallizes that distrust in a very big way because of the IRS’ reach into taxpayer information. What’s happened heightens fears about how the IRS will handle taxpayer information and wield its power when it enforces Obamacare starting next year.”
The IRS is critical to Obamacare. The structure created by the Affordable Care Act requires the government to know about both the health care coverage (or lack of it) and the financial resources of every American. The IRS, which already knows the latter, was the only agency with the reach to do the job.
A look at the text of the health care law reveals that much of it consists of amending the Internal Revenue Code to give the IRS more power. When Obamacare goes fully into effect in January, every American will have to prove to the IRS that he or she has “qualifying” health coverage, meaning coverage with a list of features approved by Health and Human Services Secretary Kathleen Sebelius. That will be done by submitting a document to the IRS, something like a W-2, to confirm coverage.
The IRS will also decide who is, and who is not, eligible for Obamacare’s subsidies. The law authorizes the IRS to share confidential taxpayer information with the Department of Health and Human Services for the purpose of determining those subsidies. And since subsidies don’t just apply to a relatively small number of the nation’s poorest citizens – under the law, they can go to a family of four with a household income of nearly $90,000 – they will affect a huge segment of the population.
In addition, the IRS will keep track of even the smallest changes in Americans’ financial condition. Did you get a raise recently? You’ll need to notify the IRS; it might affect your subsidy status. Have your hours been reduced at work? Notify the IRS. Change jobs? Same.
Last August, IRS official Nina Olson testified before Congress on the changes Obamacare will bring to Americans’ dealings with the nation’s tax collector. “Do you believe that most Americans are going to update the IRS or state exchanges when they change jobs, get married, move states, whatever?” Michigan Republican Rep. Tim Walberg asked Olson.
“I think it’s going to be a very great learning curve,” Olson answered. If Americans don’t keep the IRS up to date on their financial status, they might incur penalties, which the IRS will collect by withholding income tax refunds. “I think it will be a surprise to taxpayers if they don’t update their information,” Olson said.
And now the IRS has been exposed abusing its authority for apparently partisan purposes. At the height of the Tea Party movement, IRS officials applied special scrutiny to organizations with “Tea Party” or words like “patriot” in their names when those groups applied for tax-exempt status.
At his brief news conference Monday, President Obama sought to assure Americans that he will correct the situation. “If, in fact, IRS personnel engaged in the kind of practices that had been reported on and were intentionally targeting conservative groups, then that’s outrageous and there’s no place for it,” Obama said before heading to New York City for a series of fundraisers.
In the next few weeks, the details of the IRS’ apparent misconduct will be spelled out in a series of hastily arranged congressional hearings. Most of the discussion will focus on political nonprofits and the selective treatment they received from the IRS. For millions of Americans, the hearings will do what Charles Grassley noticed at those town meetings in Iowa: reduce their faith that the federal government will treat them fairly.
And that will mean even more anxieties about the coming of Obamacare. “Now every American understands there are elements of the IRS that go off on their own,” former House Speaker Newt Gingrich told MSNBC Monday morning. “Why would you trust the bureaucracy with your health if you can’t trust the bureaucracy with your politics?”
For months, conservative media has been howling over the falsehood that the Accountability Review Board (ARB) offered a thorough investigation into the September 11 terror attack in Benghazi. The most frustrating part is that in order to ignore the legions of unanswered questions surrounding Libya, Obama and his media (most famously Slate’s Dave Weigel, who used the report to say GOP claims of a cover up were “pure fiction”) have hid behind the ARB’s report as though it were definitive. For months, conservative media has been howling over the falsehood that the Accountability Review Board (ARB) offered a thorough investigation into the September 11 terror attack in Benghazi. The most frustrating part is that in order to ignore the legions of unanswered questions surrounding Libya, Obama and his media (most famously Slate’s Dave Weigel, who used the report to say GOP claims of a cover up were “pure fiction”) have hid behind the ARB’s report as though it were definitive.
.
On Monday, President Obama tried this ruse again. But now that the media has finally woken up from a five-year infatuation, he isn’t getting away with it. PolitiFact has labeled as “mostly false,” Obama’s claim that…
Over the last several months, there was a review board headed by two distinguished Americans, Mike Mullen and Tom Pickering, who investigated every element of [the Benghazi incident.]
Here is PolitiFact’s reasoning:
While the [ARB] did investigate numerous angles of the security issues, it didn’t look at who perpetrated the attack, nor did it probe the administration’s public communications afterward. No less an authority than the board’s co-chairman undercut Obama’s sweeping claim that the board “investigated every element” with repeated comments on three Sunday shows. On balance, we rate Obama’s claim Mostly False.
Oh how times have changed. Back in December Weigel could get away with using the ARB report to falsely claim the Administration had been cleared of a cover up even though the ARB didn’t even look into the possibility of a cover up.
Today, Obama can’t even get away with it.
By the way, this is the second falsehood the President of the United States has been caught telling this week.
The Internal Revenue Service is now facing a class action lawsuit over allegations that it improperly accessed and stole the health records of some 10 million Americans, including medical records of all California state judges.
.
According to a report by Courthousenews.com, an unnamed HIPAA-covered entity in California is suing the IRS, alleging that some 60 million medical records from 10 million patients were stolen by 15 IRS agents. The personal health information seized on March 11, 2011, included psychological counseling, gynecological counseling, sexual/drug treatment and other medical treatment data.
“This is an action involving the corruption and abuse of power by several Internal Revenue Service agents,” the complaint reads. “No search warrant authorized the seizure of these records; no subpoena authorized the seizure of these records; none of the 10,000,000 Americans were under any kind of known criminal or civil investigation and their medical records had no relevance whatsoever to the IRS search. IT personnel at the scene, a HIPPA facility warning on the building and the IT portion of the searched premises, and the company executives each warned the IRS agents of these privileged records,” it continued.
According to the case, the IRS agents had a search warrant for financial data pertaining to a former employee of the John Doe company, however, “it did not authorize any seizure of any healthcare or medical record of any persons, least of all third parties completely unrelated to the matter,” the complaint read.
The class action lawsuit against the IRS seeks $25,000 in compensatory damages “per violation per individual” in addition to punitive damages for constitutional violations. Thus, compensatory damages could start at a minimum of $250 billion.
The Internal Revenue Service already has confessed to targeting and trying to injure tea party, Constitution and patriot organizations, by demanding answers to arbitrary questions and delaying their applications for a tax status so they could operate.
Now WND has learned that the IRS also put an organization in its bull’s-eye that wanted to do nothing more than share its pro-life message with churches.
Cherish Life Ministries was created to be a non-profit under the IRS 501(c)3 provision so that churches would feel comfortable working together…
…Shinn said the IRS contacted him regarding his application for nonprofit status, and was told he didn’t qualify.
“The representative was telling me I had to provide information on all aspects of abortion, I couldn’t just educate the church from the pro-life perspective,” he said. “Every time I pressed her on this issue and asked her to clarify her position, she would state that it wasn’t what she was saying, and then, she would repeat it almost the same way.”
The IRS agent did not respond to a WND request for comment on the ministry’s position.
But Shinn said he was accused of setting up a political organization.
“I asked her why she said we were political organization and she said it was because we had said in our application that we did less than 5 percent political activity. I explained to her that this was what was stated in the application and all we were doing was acknowledging that we were doing less than 5 percent political activity,” he said.
When a Tennessee lawyer asked the IRS for tax-exempt status for a mentoring group that trained high school and college students about conservative political philosophy, the agency responded with a list of 95 questions in 31 parts, including an ultimatum for a list of everyone the group had trained, or planned to train.
‘Provide details regarding all training you have provided or will provide,’ the IRS demanded. ‘Indicate who has received or will receive the training and submit copies of the training material.’
‘Can you imagine my responsibility to parents if I disclosed the names of their children to the IRS?’ he asked MailOnline.
It’s ‘an impossible question to answer fully and truthfully,’ he said, ‘without disclosing the names of anyone I ever taught, or would ever teach, including students.’
Like the leaders of many tea party-affiliated groups whose tax-exemption applications have become the subject of angry complaints, Kookogey called the IRS’s inquisition an overreach, ‘especially considering that my organization mentors high school and college students.’
It ‘should send chills through your spine,’ he told MailOnline, ‘that the government would ask me to identify those I teach, and to provide details of what I teach them.’
The 13-month delay, while burdensome, was far shorter than those some other groups endured. According to a report released late Tuesday by the IRS’s Office of Inspector General, the average delay at one point was 574 days.
But Kookogey said a $30,000 grant was canceled as a result of the IRS’s months-long radio silence, when he couldn’t tell his donor that Linchpins had earned its 501(c)(3) tax-exempt status.
That money would have made a significant difference to the group, judging from its public filings in Tennessee. In 2011, Linchpins of Liberty reported collecting just $3,460 in contributions, and spending $7,328 on its programs.
The group’s online materials refer to it as ‘an American leadership development enterprise.’ Its stated purpose is to mentor high school and college students, placing an emphasis on Western civilization and an old-style core curriculum – what previous generations called the ‘great books.’
‘Our ideas are opposed to the Obama administration, but we’re not tea party,’ Kookogey told The Tennessean.
It’s that lack of a tea party connection, he said, that makes his predicament so maddening.
He told MailOnline that nothing about his group – ‘not our name or our description or our website, or anything’ – should have placed it among the organizations the IRS chose to scrutinize closely by using key words like ‘tea party,’ ’9/12,’ and ‘patriots’ as qualifiers.
‘I’m not a Tea Party group. I’m not a Patriot group by name’ he told NewsChannel 5 in Nashville.
‘We mentor high school and college students in conservative political philosophy. It’s a one on one relationship.’
Kookogey summed it up in an interview with MailOnline as ‘unethical, unconstitutional, and unfair,’ later asserting in an email that ‘[w]e were targeted by the IRS based on our political beliefs and the content of our speech.’
The American Center for Law and Justice, which represents 27 conservative groups including Linchpins of Liberty, is planning to file suit against the IRS.
Jay Sekulow, that organization’s chief counsel, wrote on Tuesday that ‘the IRS abuse is ongoing.’
‘Even though the IRS admitted wrongdoing,’ Sekulow wrote in an essay for FoxNews.com, even though the Inspector General’s report indicates that wrongdoing was widespread, the IRS still hasn’t withdrawn its overbroad and unconstitutional questions, and it still hasn’t granted the exemptions it should grant, despite the fact that some applications have been pending for more than two years.’
The Inspector General’s report includes a list of ‘the seven questions’ the IRS asked right-wing groups that were later ‘identified as being unnecessary.’
Its request for the list of students trained by Linchpins of Liberty was not among them.
The report also largely exonerates political appointees in the Treasury Department and at the top of the IRS, instead blaming mid-level bureaucrats for providing ‘ineffective management’ and using ‘inappropriate criteria’ to red-flag conservative groups.
It makes no mention of anyone in the White House directing the IRS to play political favorites. But The Washington Post has reported that ‘senior IRS officials’ in Washington, D.C. were notified of the practice in 2011.
In December of that year, Kookogey says, he called the IRS’s nonprofit evaluation arm in Cincinnati, Ohio, to find out why his group’s application had taken so long.
The agent on the other end of the line, he said, told him, ‘We are waiting on guidance from our superiors as to your organization and similar organizations.’
Attorney General Eric Holder has said that he ordered the FBI to initiate a criminal probe on Friday, when he learned about the IRS’s practices.
The IRS’s actions, he said, were, ‘certainly outrageous and unacceptable, but we are examining the facts to see if there were criminal violations.’
Holder is expected to testify in a House Judiciary Committee hearing on Wednesday in Washington. On Friday the House Ways and Means Committee will hear testimony from acting IRS Commissioner Steven Miller and Treasury Inspector General J. Russell George.
Florida Republican Senator Marco Rubio has called for Miller to lose his job.
‘At a bare minimum, those involved with this deeply offensive use of government power have committed a violation of the public trust that has already had a profoundly chilling effect on free speech,’ Rubio wrote Monday in a letter to Treasury Secretary Jack Lew. ‘Such behavior cannot be excused with a simple apology.’
‘It is clear the IRS cannot operate with even a shred of the American people’s confidence under the current leadership,’ Rubio continued. ‘Therefore, I strongly urge that you and President Obama demand the IRS Commissioner’s resignation, effective immediately.’
On Friday, Sekulow demanded that the IRS immediately approve the tax-exempt status applications of his organization’s 10 legal clients, including Linchpins of Liberty, that are still waiting. He issued the agency an ultimatum: Grant the requests by noon on May 17, or prepare to fight in court.
‘We are demanding that the IRS grant our remaining clients tax-exempt status immediately,’ Sekulow said in a statement. ‘If that does not occur by Friday, we will advise our clients of their right to sue the IRS for the redress of their grievances.’
Lois Lerner, the senior executive in charge of the IRS tax exemption department and the person at the center of the exploding scandal over the IRS targeting conservative, evangelical and pro-Israel non-profits, has been given $42,531 in bonuses since 2009.
That figure was included in data provided by the IRS in response to a Freedom of Information Act request by The Washington Examiner. Lerner is director of the IRS exempt organizations division, which processes and approves or denies applications from groups seeking tax-exempt status.
Lerner received $17,220 for 2009, $24,691 for 2010 and $10,620 for 2011, the most recent year for which the I(RS said data was available.
The Treasury Inspector General’s damaging report on the IRS-Tea Party scandal has destroyed the administration’s claim that low-level workers in a Cincinnati, Ohio office are to blame, revealing that 10 of 12 agency offices referenced in the affair are in Washington.
The report repeatedly references actions taken by the Washington-based Exempt Organizations unit and guidance specialists also in Washington. What’s more, the report was researched in the Exempt Organizations offices and the Cincinnati-based Determinations Units, which has received the blame for targeting Tea Party groups.
The audit, for example, probes into how the Cincinnati-based Determinations Unit developed its plan to pay attention to groups with the words “Tea Party,” “Patriot,” and other phrases used by anti-Obama groups during the 2010 election.
Washington-based offices denied involvement, but did change the “criteria” for groups to target in July 2011. Instead of looking for “Tea Party” groups seeking tax exempt status to investigate, the criteria was broadened to “political, lobbying or [general] advocacy.”
However, “the team of specialists subsequently changed the criteria in January 2012″ back, apparently without telling their bosses. “Specialists” are both Washington- and Ohio- based.
Popular talk radio host Mark Levin, one of the first to post the IG report online, suggested that the House committees investigating the scandal use the IG’s “High-Level Organization Chart of Offices Referenced in this Report” on page 29 in picking who should testify. He suggested that the heads of all 12 be called to testify.
In the midst of the Internal Revenue Service (IRS) scandal, individuals and groups, alike, are continuing to come forward with ever-startling allegations. On Wednesday, Dr. Anne Hendershott, a devout Catholic and a noted sociologist, professor and author, exclusively told TheBlaze that she believes she may have been one of the IRS’s targets.
According to Hendershott, the IRS audited her in 2010 and demanded to know who was paying her and “what their politics were.”
It all started with a phone call she received at her home in May of that year – a call during which Hendershott was told she would be audited. A letter that followed on May 19, 2010 solidified the IRS’s request to meet her in person two months later in July. While IRS investigations are certainly not uncommon occurrences, the professor believes that the situation surrounding hers was more-than-curious.
“The IRS calls my house and says… ‘I just wanted to let you know that we’re going to be auditing your business’ and I said ‘My businesses?’ and he said, ‘You know the expenses you take off for writing,” the academic recalls.
Hendershott was surprised she was being audited on business grounds considering she does not operate an entrepreneurial endeavor in the traditional sense. In addition to her academic work, she told TheBlaze that she occasionally freelances for Catholic outlets and for the Wall Street Journal. But can this really be considered “business” activity?
“I don’t make a lot of money from writing. In fact most years I don’t show a profit,” she told TheBlaze.
Hendershott said some of the outlets and organizations she has written for haven’t paid her a cent.
But the circumstances surrounding the irregular nature of the experience don’t end there. Hendershott noted it was particularly surprising that she, alone, was audited. Her husband, who brings in the vast majority of the family’s income, was not included in the IRS’s inquiry – even though the Hendershotts always files jointly.
So when the agent explained that she would need to come alone and in person to discuss her “business” activity in July of 2010, the professor was perplexed.
“[The IRS agent] didn’t even let me decide when it would be good for me… He didn’t want my husband to come,” she said of the meeting, which was held at an IRS office in New Haven, Connecticut.
The process was a grueling one, including many questions that Hendershott felt were political in nature. Numerous records were requested before the in-person meeting, as well as during and after.
“Every question had to do with bank deposits we made. Every single question,” she said. “What is this money? And I didn’t know a lot of it. We had to go to our bank and get deposits back. We had to get records showing where the money came from.”
While asking about the deposits, the agent wanted to know if the monies came from groups and, if so, what the organizations’ politics were.
The mention of groups, Hendershott notes, is particularly interesting, as she had been writing for numerous Catholic outlets and organizations at the time. In addition to Catholic World Report and the Catholic Advocate, she also penned op-eds for the Wall Street Journal. Many of these writings were critical of President Barack Obama and his policies.
And the plot thickens. Among the organizations she targeted in her writings were progressive groups highly supportive of Democratic causes, including: Catholics in Alliance for the Common Good, Catholics United, and Catholic Democrats.
At the time, one of the founders of Catholics United, Chris Korzen, had become a target of her work, as she exposed, in her view, his true leftist agenda and some of the complicated theological stances the left-of-center organizations he associated with were taking. Plus, there were alleged financial ties with billionaire liberal George Soros. Here’s just two paragraphs from an article she wrote in March 2010, just months before her meeting with IRS officials:
On its website, Catholics United describes itself as a 501(c) (4) non-profit organization – eligible to accept donations. But, Catholics in Alliance for the Common Good emerged in 2005 as a kind of sister organization to Catholics United. A 501(c) (3) organization, donors can claim a deduction against personal income tax when they donate money to Catholics in Alliance. Reviewing the 2007 IRS 990 forms for both Catholics in Alliance for the Common Good and Catholics United raises some questions, because Chris Korzen is listed as having received $84,821 in compensation for 40 hours per week from Catholics in Alliance on the group’s 990 Form – even though the Catholics United website claimed he was the director there during the same time period. [...]
Despite their inability to engage in extensive lobbying, Catholics in Alliance has been extremely successful in attracting large donors. Never a friend to the Catholic Church, George Soros, one of the earliest donors, contributed $50,000 to Catholics in Alliance in 2005 and another $100,000 in 2006 through his Open Society Institute. Likewise, Smith Bagley, a major Democratic donor and fundraiser, whose wife, Elizabeth Frawley Bagley, is Chairman of the Board of Catholics in Alliance, came close to matching Soros with grants from his family’s Arca Foundation. With a long history of supporting progressive organizations like ACORN, the Gamaliel Foundation, People for the American Way, and Planned Parenthood, Arca contributed $50,000 to Catholics in Alliance in 2007 and another $75,000 in 2008.
Hendershott can’t help but wonder if her writings against progressive groups played a role in her audit. It’s obvious that before she was notified by the IRS she was commenting regularly about matters of faith and politics and, in particular, Obamacare. While she doesn’t have proof that the IRS investigation was political in nature, she has strong suspicions that it was.
“I started writing articles like crazy saying these are fake Catholic groups,” she said of the aforementioned organizations, noting that Korzen would often target her work and rail against her assertions.
Hendershott noted that the progressive leader once called into a radio show she appeared on to challenge her contention that he had accepted Soros money.
“I had the tax return in front of me and read off the amounts that Chris Korzen was getting paid from Catholics in Alliance for the Common Good – a Soros supported fake Catholic group,” she told TheBlaze, noting that, through Catholics in Alliance, he had received $85,000.
While Korzen denied this on the air, Hendershott read from the 990 form in an effort to prove he wasn’t telling the truth. This, she believes, may have sparked – or played a role – in spawning the IRS audit.
“He was getting paid by one organization and working for another,” the professor said of Korzen. ”The IRS should have gone after them.”
Her writings for the Catholic Advocate soon ceased because, Hendershott admits, the IRS audit silenced her. If her suspicions are true, this may have been its chilling intention.
“I haven’t written for them since the audit, because I was so scared,” she said (records show her last article for the organization was on July 10, 2010 – the same month the IRS audit unfolded).
So far, she has only shared her story with friends and those close to her, but in light of the recent IRS scandal, she has decided to speak out.
“It was clear they didn’t like me criticizing the people who helped pass Obamacare,” she said of the audit,” later adding, ”The IRS is very frightening.”
In addition to creating stress and fear, Hendershott said that the experience came at a great emotional and financial expense for the family, noting that even after the audit the government sought more information from her.
“It was like they just couldn’t find what they wanted because they wanted more and more and more,” she said.
In March of 2012 Democratic Senators sent a letter to the Internal Revenue Service demanding that Tea Party groups get extra scrutiny (harassment). The Democrats even threatened legislative action if the IRS did not act.
A group of seven Senate Democrats urged the Internal Revenue Service on Monday to impose a strict cap on the amount of political spending by tax-exempt, nonprofit groups.
The senators said the lack of clarity in the IRS rules has allowed political groups to improperly claim 501(c)4 status and may even be allowing donors to these groups to wrongly claim tax deductions for their contributions. The senators promised legislation if the IRS failed to act to fix these problems.
“We urge the IRS to take these steps immediately to prevent abuse of the tax code by political groups focused on federal election activities. But if the IRS is unable to issue administrative guidance in this area then we plan to introduce legislation to accomplish these important changes,” the senators wrote.
The letter was signed by Senators Charles E. Schumer, Michael Bennet, Sheldon Whitehouse, Jeff Merkley, Tom Udall, Jeanne Shaheen and Al Franken. It follows an earlier letter, sent to the IRS by the same of group of senators last month, that also urged the IRS to better enforce rules pertaining to 501(c)4 organizations.
A copy of the letter is here.
This week Senate Finance Committee Chairman Max Baucus of Montana vowed congressional hearings and called the IRS actions “an outrageous abuse of power.” But, over the last three years, Democratic senators repeatedly and publicly pressured the IRS to engage in the very activities that they are only now condemning today.
UPDATE: Inspector General: The IRS targeted EVERY group with Tea Party in its name.
Conservative groups seeking information from the Environmental Protection Agency have been routinely hindered by fees normally waived for media and watchdog groups, while fees for more than 90 percent of requests from green groups were waived, according to requests reviewed by the Conservative Enterprise Institute.
.
CEI reviewed Freedom of Information Act requests sent between January 2012 and this spring from several environmental groups friendly to the EPA’s mission, and several conservative groups, to see how equally the agency applies its fee waiver policy for media and watchdog groups. Government agencies are supposed to waive fees for groups disseminating information for public benefit.
“This is as clear an example of disparate treatment as the IRS’ hurdles selectively imposed upon groups with names ominously reflecting an interest in, say, a less intrusive or biased federal government,” said CEI fellow Chris Horner.
For 92 percent of requests from green groups, the EPA cooperated by waiving fees for the information. Those requests came from the Natural Resources Defense Council, EarthJustice, Public Employees for Environmental Responsibility, The Waterkeeper Alliance, Greenpeace, Southern Environmental Law Center and the Center for Biological Diversity.
Of the requests that were denied, the EPA said the group either didn’t respond to requests for justification of a waiver, or didn’t express intent to disseminate the information to the general public, according to documents obtained by The Washington Examiner. CEI, on the other hand, had its requests denied 93 percent of the time. One request was denied because CEI failed to express its intent to disseminate the information to the general public. The rest were denied because the agency said CEI “failed to demonstrate that the release of the information requested significantly increases the public understanding of government operations or activities.”
Similarly, requests from conservative groups Judicial Watch and National Center for Public Policy Research were approved half the time, and all requests from Franklin Center and the Institute for Energy Research were denied. “Their practice is to take care of their friends and impose ridiculous obstacles to deny problematic parties’ requests for information,” said Horner. Freedom of Information Act requests from CEI forced the EPA to release emails under the the “Richard Windsor” alias former EPA administrator Lisa Jackson used to conduct government business.
CEI has also filed FOIA requests for emails, text messages and instant messages from Jackson and EPA nominee Gina McCarthy. Horner said he believes the EPA has denied CEI’s requests because his think tank is the most active group seeking to hold the agency accountable. “This is a clear pattern of favoritism for allied groups and a concerted campaign to make life more difficult for those deemed unfriendly,” he said. “The left hand of big government reaches out to give a boost to its far-left hand at every turn. Argue against more of the same, however, and prepare to be treated as if you have fewer rights.” Update: An earlier version incorrectly called the Natural Resources Defense Council the “National Resources Defense Council.”
In response to reports that the Federal government may be spying on private citizens’ electronic communications, the American Civil Liberties Union decided to get to the bottom of the story by filing a Freedom of Information Act (FOIA) request.
And their request didn’t go unnoticed. Oh, they got a response alright – but probably not what they were expecting.
Here, let’s play a game. After reading through the following FOIA request, head on over to the comments section and tell us know how many pages of actual information you count.
The Justice Department secretly obtained two months of telephone records of reporters and editors for The Associated Press in what the news cooperative’s top executive called a “massive and unprecedented intrusion” into how news organizations gather the news.
.
The revelation comes just days after it was first reported that the Internal Revenue Service has been “inappropriately” targeting conservative political groups and that Benghazi whistle-blowers (Gregory Hicks, Mark Thompson, and Eric Nordstrom) were instructed by White House officials to keep quiet about the deadly Sept. 11, 2012, attacks.
The records obtained by the Justice Department listed incoming and outgoing calls, and the duration of each call, for the work and home phone numbers of individual reporters, general AP office numbers in New York, Washington and Hartford, Conn., and the main number for AP reporters in the House of Representatives press gallery, according to attorneys for the AP.
In all, the government seized those records for more than 20 separate telephone lines assigned to AP and its journalists in April and May of 2012. The exact number of journalists who used the phone lines during that period is unknown but more than 100 journalists work in the offices whose phone records were targeted on a wide array of stories about government and other matters.
In a letter of protest sent to Attorney General Eric Holder on Monday, AP President and Chief Executive Officer Gary Pruitt said the government sought and obtained information far beyond anything that could be justified by any specific investigation. He demanded the return of the phone records and destruction of all copies.
“There can be no possible justification for such an overbroad collection of the telephone communications of The Associated Press and its reporters. These records potentially reveal communications with confidential sources across all of the newsgathering activities undertaken by the AP during a two-month period, provide a road map to AP’s newsgathering operations, and disclose information about AP’s activities and operations that the government has no conceivable right to know,” Pruitt said.
“We regard this action by the Department of Justice as a serious interference with AP’s constitutional rights to gather and report the news,” the letter continues.
The government would not say why it sought the records. U.S. officials have previously said in public testimony that the U.S. attorney in Washington is conducting a criminal investigation into who may have leaked information contained in a May 7, 2012, AP story about a foiled terror plot. The story disclosed details of a CIA operation in Yemen that stopped an al-Qaida plot in the spring of 2012 to detonate a bomb on an airplane bound for the United States.
In testimony in February, CIA Director John Brennan noted that the FBI had questioned him about whether he was AP’s source, which he denied. He called the release of the information to the media about the terror plot an “unauthorized and dangerous disclosure of classified information.”
Prosecutors have sought phone records from reporters before, but the seizure of records from such a wide array of AP offices, including general AP switchboards numbers and an office-wide shared fax line, is incomparable.
In the letter notifying the AP Friday, the Justice Department offered no explanation for the seizure, according to Pruitt’s letter and attorneys for the AP. The records were presumably obtained from phone companies earlier this year although the government letter did not explain that. None of the information provided by the government to the AP suggested the actual phone conversations were monitored.
Among those whose phone numbers were obtained were five reporters and an editor who were involved in the May 7, 2012 story.
.
The Obama administration has aggressively investigated disclosures of classified information to the media and has brought six cases against people suspected of leaking classified information, more than under all previous presidents combined.
Justice Department published rules require that subpoenas of records from news organizations must be personally approved by the attorney general but it was not known if that happened in this case. The letter notifying AP that its phone records had been obtained though subpoenas was sent Friday by Ronald Machen, the U.S. attorney in Washington.
Spokesmen in Machen’s office and at the Justice Department had no immediate comment on Monday.
The Justice Department lays out strict rules for efforts to get phone records from news organizations. A subpoena can only be considered after “all reasonable attempts” have been made to get the same information from other sources, the rules say. It was unclear what other steps, in total, the Justice Department has taken to get information in the case.
A subpoena to the media must be “as narrowly drawn as possible” and “should be directed at relevant information regarding a limited subject matter and should cover a reasonably limited time period,” according to the rules.
The reason for these constraints, the department says, is to avoid actions that “might impair the news gathering function” because the government recognizes that “freedom of the press can be no broader than the freedom of reporters to investigate and report the news.”
News organizations normally are notified in advance that the government wants phone records and enter into negotiations over the desired information. In this case, however, the government, in its letter to the AP, cited an exemption to those rules that holds that prior notification can be waived if such notice, in the exemption’s wording, might “pose a substantial threat to the integrity of the investigation.”
It is unknown whether a judge or a grand jury signed off on the subpoenas.
.
The May 7, 2012, AP story that disclosed details of the CIA operation in Yemen to stop an airliner bomb plot occurred around the one-year anniversary of the May 2, 2011, killing of Osama bin Laden.
The plot was significant because the White House had told the public it had “no credible information that terrorist organizations, including al-Qaida, are plotting attacks in the U.S. to coincide with the (May 2) anniversary of bin Laden’s death.”
The AP delayed reporting the story at the request of government officials who said it would jeopardize national security. Once government officials said those concerns were allayed, the AP disclosed the plot because officials said it no longer endangered national security. The Obama administration, however, continued to request that the story be held until the administration could make an official announcement.
The May 7 story was written by reporters Matt Apuzzo and Adam Goldman with contributions from reporters Kimberly Dozier, Eileen Sullivan and Alan Fram. They and their editor, Ted Bridis, were among the journalists whose April-May 2012 phone records were seized by the government.
Brennan talked about the AP story and leaks investigation in written testimony to the Senate. “The irresponsible and damaging leak of classified information was made … when someone informed the Associated Press that the U.S. Government had intercepted an IED (improvised explosive device) that was supposed to be used in an attack and that the U.S. Government currently had that IED in its possession and was analyzing it,” he said.
He also defended the White House’s plan to discuss the plot immediately afterward. “Once someone leaked information about interdiction of the IED and that the IED was actually in our possession, it was imperative to inform the American people consistent with Government policy that there was never any danger to the American people associated with this al-Qa’ida plot,” Brennan told senators.
Investigative reporter Carl Bernstein on Tuesday called the scandal involving the Department of Justice securing telephone records of Associated Press reporters and editors a “nuclear event.”
“This is outrageous,” Bernstein said on MSNBC’s “Morning Joe.” “It is totally inexcusable. This administration has been terrible on this subject from the beginning.
“The object of it is to intimidate people who talk to reporters,” he said. “This was an accident waiting to become a nuclear event, and now it’s happened.”
The AP reported late Monday afternoon that the “Justice Department secretly obtained two months of telephone records of reporters and editors for The Associated Press.”
The organization was not told the reason for the seizure. But the timing and the specific journalistic targets strongly suggest they are related to a continuing government investigation into the leaking of information a year ago about the CIA’s disruption of a Yemen-based terrorist plot to bomb an airliner, The New York Times reported.
The development represents the latest collision of news organizations and federal investigators over government efforts to prevent the disclosure of national security information, and it comes against a backdrop of an aggressive policy by the Obama administration to rein in leaks, according to The New York Times.
Under President Barack Obama, six current and former government officials have been indicted in leak-related cases, twice the number brought under all previous administrations combined.
“The numerical thing doesn’t matter,” said Bernstein, a former Washington Post reporter who, along with Bob Woodward, broke the Watergate scandal that brought down President Richard Nixon. “What matters is, this is a matter of policy. It is known to the president of the United States that this is the policy. To say that there was no knowledge, in quotes, specifically about this in the White House is nonsense.”
“This is a policy matter, and this does go to the president and the people around him,” he said. “The idea is to try and make an example of those people who talk to reporters, especially on national security matters. National security is always the false claim of administrations trying to hide things that people ought to know.”
That the Justice Department sought records of phone calls made over congressional phone lines could also raise a separation of powers issue between the administration and legislative branches of government.
“The First Amendment is first for a reason,” House Speaker John Boehner spokesman Michael Steel tells Newsmax. “If the Obama administration is going after reporters’ phone records, they better have a damned good explanation.”
Angry Republicans won’t have to wait long for their chance to question Attorney General Eric Holder about his role in the Justice Department’s snooping on Associated Press journalists.
Long before news broke on Monday that Justice had gathered extensive phone records from reporters and editors at The AP, Mr. Holder already had been scheduled to appear before the House Judiciary Committee on Wednesday afternoon.
The hearing, ironically titled “Oversight of the U.S. Department of Justice,” now will become the first forum for House Republicans to hammer Mr. Holder over what critics are calling another stunning abuse of power by an administration that’s being crushed under the growing weight of multiple running scandals.
Judiciary Committee Chairman Rep. Robert Goodlatte, Virginia Republican, says he plans to ask Mr. Holder “pointed questions” about the issue when he testifies on Wednesday.
Rep. Darrell Issa, the chairman of the House Oversight and Government Reform Committee who has frequently clashed with the Department over the long-running “Fast and Furious” gunrunning scandal, also is demanding answers.
“Americans should notice that top Obama administration officials increasingly see themselves as above the law and emboldened by the belief that they don’t have to answer to anyone,” Mr. Issa, California Republican, said in a statement. “I will work with my fellow House chairmen on an appropriate response to Obama administration officials.”
Rep. Frank Wolf, Virginia Republican, told The Hill newspaper that the incident is reminiscent of Watergate.
“It is the arrogance of power and paranoia. I think it’s shocking. It reminds me of the Nixon days,” he said. ‘If they can do it to The AP, they can do [it] to any news service in the country.”
The AP broke the news Monday that the Justice Department had gathered two months of telephone records from April and May 2012. The records included incoming and outgoing calls, how long each call lasted, the phone numbers of various reporters and editors and other information.
The federal government reportedly was seeking information on a May 7, 2012, AP article detailing how the CIA had derailed a planned al Qaeda-linked group. The story was published a day before President Obama planned to publicly announce the attack had been foiled, the AP said.
Much like the response to recent revelations that the Internal Revenue Service targeted conservative groups, even Democrats are taking aim at the White House over the AP phone scandal.
Senate Judiciary Committee Chairman Patrick Leahy, Vermont Democrat, said he’s “very troubled” by the news and questions whether the Justice Department truly needed to resort to secretly gathering phone records.
“The burden is always on the government when they go after private information — especially information regarding the press or its confidential sources,” he said. “I want to know more about this case, but on the face of it, I am concerned that the government may not have met that burden.”
President Barack Obama issued a statement heralding World Press Freedom Day in May 2012, at the same time his Department of Justice was secretly obtaining phone records from Associated Press reporters and editors.
“On this World Press Freedom Day, the United States honors the role of a free press in creating sustainable democracies and prosperous societies,” Obama said in a statement on May 3, 2012. “We pay special tribute to those journalists who have sacrificed their lives, freedom or personal well-being in pursuit of truth and justice.”
The AP disclosed on Monday that the Justice Department obtained telephone records of 20 separate lines, including all outgoing calls and personal phone numbers, in April and May of 2012. The AP is the world’s largest wire service serving newspapers, websites and broadcast media.
“We call on all governments to protect the ability of journalists, bloggers, and dissidents to write and speak freely without retribution and to stop the use of travel bans and other indirect forms of censorship to suppress the exercise of these universal rights,” Obama said in the May 3, 2012 statement.
Obama issued a similar statement for World Press Freedom Day in 2011, 2010 and 2009, but not for 2013.
Obama did not issue a written statement this year, but referenced it while in Costa Rica on May 3.
“I’m proud to be here as you host World Press Freedom Day,” Obama said on May 3, 2013 at a joint press conference with Costa Rican President Laura Chinchilla. “So everybody from the American press corps, you should thank the people of Costa Rica for celebrating free speech and an independent press as essential pillars of our democracy.”
World Press Freedom Day is an event sponsored by the United Nations Educational, Scientific and Cultural Organization (UNESCO).
“In some cases, it is not just governments threatening the freedom of the press,” the president said in last year’s statement. “It is also criminal gangs, terrorists, or political factions. No matter the cause, when journalists are intimidated, attacked, imprisoned, or disappeared, individuals begin to self-censor, fear replaces truth, and all of our societies suffer. A culture of impunity for such actions must not be allowed to persist in any country.”
Outrage at the DOJ information-trolling is coming from both conservatives and many liberals, including the American Civil Liberties Union.
“The media’s purpose is to keep the public informed and it should be free to do so without the threat of unwarranted surveillance,” said Laura W. Murphy, director of the American Civil Liberties Union Washington Legislative Office. “The Attorney General must explain the Justice Department’s actions to the public so that we can make sure this kind of press intimidation does not happen again.”
White House spokesman Jay Carney on Monday issued a statement saying, “Other than press reports, we have no knowledge of any attempt by the Justice Department to seek phone records of the AP.” He directed further questions to the Justice Department.
Outraged Bay State Democrats are blasting President Obama for exhibiting a Nixonian abuse of power after the stunning news that the Department of Justice secretly obtained Associated Press phone records and the IRS targeted conservative groups – new scandals emerging against the backdrop of heightened Benghazi criticism.
.
“There’s no way in the world I’m going to defend that. Hell, I spent my youth vilifying the Nixon administration for doing the same thing. If they did that, there should be hell to pay,” U.S. Rep. Michael E. Capuano (D-Somerville) said about the IRS scandal. “Not only is it bad government and bad to society, it is horrendous politics. The worst thing you can do is give your opponent an easy hammer with which to hit you.”
“It doesn’t seem to be a couple rogue employees. This appeared to be a systemic issue,” said U.S. Rep. Stephen F. Lynch (D-South Boston), who wants to investigate the matter as a member of the Committee on Oversight and Government Reform. The committee already has scheduled a hearing on the issue for this week, Lynch said, adding, “No American should find themselves the target of the IRS or any other federal organization because of their political beliefs.”
Both U.S. Rep. Edward J. Markey (D-Malden) and the GOP’s Gabriel Gomez, rivals in the Senate special election, slammed the administration’s actions, as new reports emerged yesterday that the Department of Justice seized two months’ worth of phone records from Associated Press reporters and editors. Gomez called it “another troubling example of overzealous federal agencies restricting our First Amendment rights.”
Markey said in a statement: “The Justice Department has many questions it now must answer as to why this sweeping request for information was ever necessary. As we work to prevent terrorist attacks against our country, we must continue to respect our laws and uphold our constitutional rights, including freedom of the press.”
Obama yesterday called the IRS actions “outrageous” if true, saying those responsible must be held “fully accountable.”
“I’ve got no patience with it,” he added. “I will not tolerate it, and we will find out exactly what happened.”
The Treasury Department apologized Friday for “inappropriate” targeting of groups seeking tax-exempt status with “Tea Party” or “patriot” in their names, and others that stated their purpose was to question government spending or power. The IRS initially blamed low-level employees, but emails have since shown top officials knew as early as 2011.
“I’m old enough to remember Watergate, and I’m not saying this is another Watergate, but when the IRS is involved, it really hits home,” said U.S. Rep. Peter King (R-N.Y.). The references to the Nixon administration recalled the massive abuse of power scandals such as the bugging of the Democratic National Committee headquarters at the Watergate complex in Washington, D.C. Nixon aides also directed so-called “plumbers” to plug leaks – operatives digging up dirt on people such as Pentagon Papers whistleblower Daniel Ellsberg.
Nixon’s aides maintained a so-called “enemies list,” with the intent of turning the IRS on them. A congressional investigation later found undue IRS audits were not carried out under Nixon.
Democratic Montana Senator Max Baucus is leading an investigation into why the Internal Revenue Service targeted conservative nonprofit groups for extra scrutiny despite the fact that Baucus once wrote a letter urging the IRS to do exactly that.
Baucus, chairman of the Senate Finance Committee, will head the committee’s investigation into the IRS, which apologized Friday for targeting groups with the terms “Tea Party” and “Patriot” in their titles for extra scrutiny of their nonprofit status as early as 2011.
However, Baucus once wrote a letter requesting that the IRS engage in that very conduct.
“With hundreds of millions of dollars being spent in election contests by tax-exempt entities, it is time to take a fresh look at current practices and how they comport with the Internal Revenue Code’s rules for nonprofits,” Baucus wrote in the letter.
“I request that you and your agency survey major 501(c)(4), (c)(5) and (c)(6) organizations involved in political campaign activity to examine whether they are operated for the organization’s intended tax exempt purpose and to ensure that political campaign activity is not the organization’s primary activity,” Baucus wrote in the letter.
“The tax exemption given to non-profit organizations comes with a responsibility to serve the public interest and Congress has an obligation to exercise the vigorous oversight necessary to ensure they do,” Baucus said in a 2010 statement accompanying his letter.
Though Baucus identified 501 (c) (5) groups – or labor unions – as worthy of investigation, the only organizations cited in his request were conservative, pro-Republican groups.
Baucus specifically named Americans for Job Security, which is described as a “pro-Republican organization,” as a specific target for the IRS to investigate.
Crossroads GPS, co-founded by Karl Rove, and American Action Network, chaired by former Republican senator Norm Coleman, were also cited in press coverage related to Baucus’ letter as pro-Republican groups helping to elect GOP congressional candidates in 2010.
Those organizations appeared in a September 16, 2010 TIME article by writer Michael Crowley titled, “The New GOP Money Stampede.” Baucus cited that piece in his letter to the IRS.
Whatever the fallout might be from such a conflict of interest, Baucus won’t be around too much longer to deal with it.
He’s already announced his retirement from the Senate, and won’t run for re-election in 2014.
A Baucus spokesperson did not immediately return a request for comment.
From the White House near the height of the mid-term campaign in 2010:
Remarks by the President at a DNC Finance Event in Austin, Texas
August 09, 2010
Four Seasons Hotel, Austin, Texas
THE PRESIDENT: …Right now all around this country there are groups with harmless-sounding names like Americans for Prosperity, who are running millions of dollars of ads against Democratic candidates all across the country. And they don’t have to say who exactly the Americans for Prosperity are. You don’t know if it’s a foreign-controlled corporation. You don’t know if it’s a big oil company, or a big bank. You don’t know if it’s a insurance company that wants to see some of the provisions in health reform repealed because it’s good for their bottom line, even if it’s not good for the American people.
A Supreme Court decision [Citizens United] allowed this to happen. And we tried to fix it, just by saying disclose what’s going on, and making sure that foreign companies can’t influence our elections. Seemed pretty straightforward. The other side said no.
This is the same blatant lie that Supreme Court Justice Alito shook his head about and said ‘no,’ during Obama’s State Of The Union address in January 2010. Citizens United does not allow foreigners to contribute to campaigns.
They don’t want you to know who the Americans for Prosperity are, because they’re thinking about the next election. But we’ve got to think about future generations. We’ve got to make sure that we’re fighting for reform. We’ve got to make sure that we don’t have a corporate takeover of our democracy…
This is nothing short of Obama’s ‘dog-whistle’ to his his supporters at the IRS. After all, Obama doesn’t need to give his bureaucrats a direct, written (and therefore traceable) order.
He merely has to express his displeasure with some group and his lackeys will know what they have to do. And we now know how much these ‘low level workers’ have done for his administration over the years. (Fast & Furious, Benghazi, the releasing of illegal alien criminals.)
.
.
But now we fast forward to yesterday, where Obama expressed outrage that the IRS would be seeking the names of donors to conservative groups. In fact, Obama even denied knowing that the IRS was even interested in such things until he read about it in the papers back on Friday. A claim even his spokes-flack, Jay Carney, undercut.
Carney: White House lawyers knew of IRS investigation in April
By Justin Sink | May 13, 2013
Press secretary Jay Carney acknowledged Monday that the White House was informed in April that the Treasury Department’s Inspector General was investigating the IRS’s Cincinnati field office, which is accused of targeting conservative political groups for extra scrutiny.
“My understanding is that the White House Counsel’s Office was alerted in the week of April 22 of this year, only about the fact that the IG was finishing a review about matters involving the office in Cincinnati,” Carney told reporters aboard Air Force One…
President Obama said earlier in the day that he first heard about the allegations that the IRS had specifically targeted Tea Party groups last week. “I first learned about it from the same news reports that I think most people learned about this. I think it was on Friday,” Obama told reporters at a joint press conference with British Prime Minister David Cameron.
While Carney insisted that nobody in the White House knew of the specific allegations of improper targeting, the news nevertheless drew fresh questions from Republican critics.
Why only Republican critics? Doesn’t the news media object to be lied to? (This is a rhetorical question.)
“Who else in the White House knew about the IRS scandal but didn’t tell the president?” tweeted Brendan Buck, a spokesman for Speaker John Boehner (R-Ohio)…
In his press conference Monday, the president pledged to hold accountable those responsible. “I can tell you that if you’ve got the IRS operating in anything less than a neutral and non-partisan way, then that is outrageous, it is contrary to our traditions,” Obama said.
So is he going to hold himself accountable? (This is another rhetorical question.)
The IRS scandal is growing by leaps and bounds in a way that must be terrifying to an Administration already dealing with fallout from the uncovering of their Libya lies and the knowledge that the Department of Justice seized the phone records of 20 Associated Press reporters. Tuesday morning, ABC News revealed what might have been the political motivation behind the IRS’s decision to target Tea party groups – to ensure they weren’t as effective in 2012 as they were in 2010.
In the 2010 midterms, even the media that despises the Tea Party will admit that the nationwide grassroots movement was a major factor behind record GOP electoral gains. By the time the smoke cleared, Obama had lost the House and his filibuster-proof majority in the United States Senate.
Is it just a coincidence that it was only after these 2010 victories that the IRS decided to single out Tea Party groups for special scrutiny? And not just scrutiny, but the kind of scrutiny that bogged these groups down with paperwork and restricted their political activities.
The Narrative some in the media, like JournOlist founder Ezra Klein of The Washington Post, are desperate to spin is that this was a single Midwest IRS office concerned with political groups abusing a new tax exempt status. The isolation of Tea Parties was merely “discriminatory.”
Already this morning, though, Klein’s spin is falling apart. Chris Good of ABC News reports that Jennifer Stefano of Philadelphia was so intimidate by the IRS that she closed her Tea Party down:
“In the documents that were sent to me, if you did not tell the whole truth by not putting all your personal information out there by Facebook, by Twitter, of your personal relationship with candidates and parties… it could be considered perjury and perjury carried jail time,” Stefano, 39, told ABC News.
“That was frightening and that’s why I shut it down. I shut my group down.”
Tom Zawistowski, former president of the Ohio Liberty Coalition, told ABC News that, “The reason for this attack by the IRS on the tea party was to make sure we were not as effective in 2012 as we were in 2010, and that’s what they did[.]“
Zawistowski also believes that the ridiculous amount of information and documents requested by the IRS was “opposition research,” having nothing to do with whether or not a group would qualify as tax exempt.
The IRS asked another Ohio tea party organization, the Liberty Township Tea Party, about its political views and relationships with an individual and another group.
“Provide a list of all issues that are important to your organization. Indicate your position regarding each issue,” the IRS commanded in a letter with 35 questions, many including between three and six bullet-pointed subquestions.
ABC News adds:
In letters obtained by ABC News, the Internal Revenue Service asked detailed questions of local tea party groups from 2010 to 2012.
Other Tea Party groups interviewed complained of getting bogged down by the paperwork. One group claims that “500 pages of stuff” went “back and forth” between them and the IRS:
There was kind of a cloud over us… It did curtail the things we could do. We could not go outside the IRS rules. Tax-exempt status allows you to do certain things, and we did not go outside them.
These groups say they didn’t hear from the IRS until after their 2010 victories. Then, before they could recreate that success against Obama in 2012, all of a sudden they are intimidated, restricted from certain political activities, and bogged down in a bureaucratic nightmare – all at the hands of the IRS.
Sorry, Ezra Klein, that doesn’t sound “discriminatory” to me – that sounds like a political tactic. Moreover, if it was a political tactic, we already know that it was not one confined to a single office in the Midwest. Klein’s own Post reports Tuesday that…
Internal Revenue Service officials in Washington and at least two other offices were involved with investigating conservative groups seeking tax-exempt status, making clear that the effort reached well beyond the branch in Cincinnati that was initially blamed, according to documents obtained by The Washington Post.
We now know that the IRS targeted Obama’s political enemies, and either by accident or design, made them less effective during his reelection campaign in 2012. W also now know that Administration officials are lying about what they knew about this scandal and when they knew it.
The only question that matters now is whether or not anyone in the Obama re-election campaign is in any way tied to this. And at this point, that is a perfectly reasonable question to ask.
President Obama knows he’s in trouble when Andrea Mitchell – Andrea Mitchell! – proclaims the IRS and AP scandals to be among “the most outrageous excesses I’ve seen” in all her years in journalism [which pre-date Watergate]. The strength of Mitchell’s statement drew gasps from Scarborough and Brzezinski. Then Ron Fournier, former AP editor now with the National Journal, darkly described the White House being “consumed” if it turns out someone there or in the Obama campaign had been aware of the IRS targeting of conservative groups. It happened on Morning Joe today.
But hey, President Obama still has his hangers-on. Take good old Carl Bernstein. As we reported, on yesterday’s Morning Joe Bernstein blathered that he “can’t imagine” that President Obama coudl be involved in the IRS mess. And there was Bernstein again today. When Fournier spoke of consequences of White House or Obama campaign knowledge of the IRS targeting, Bernstein quickly burped out that “we have no evidence of that whatsoever.” Joe Scarborough had to remind the former Watergate reporter: “that’s why you have investigations. You know that.” View the video after the jump.
.
…………………….Click on image above to watch video.
.
Watch the clouds gather over the White House. And when among your few umbrellas are the likes of Carl Bernstein…
Note: The screencap brings Hollywood Squares to mind. PRESIDENT OBAMA: I’ll take the joker in the upper left-hand corner for the block!
ANDREA MITCHELL: Yes, they did have to look and see whether some of these groups were political rather than pro bono. But not in any kind of non-neutral way. The test had to be neutral. The fact they went after the Tea Party here as David said earlier feeds the Republican critics -
MIKA BRZEZINSKI: It really does.
MITCHELL: And this is one of the most outrageous excesses that I’ve seen in all my years in journalism.
BRZEZINSKI: Oh my gosh.
JOE SCARBOROUGH: Wow.
MITCHELL: We knew about the past national security probes, but I think this Associated Press investigation just rises to that standard, as well. The press is not popular, we are not popular. But this is, I think, an outrageous invasion of constitutional rights.
SCARBOROUGH: Andrea, it’s remarkable. As long as you’ve been a reporter at the top of your game, to say that a scandal that broke on Friday is one of the most outrageous excesses, the IRS scandal, and then for us to talk about what happened yesterday that most reporters agree with Ron and you, it rises to that level as well. To have two of these falling in two successive business days is going to require a dramatic reset inside the White House, is it not?
MITCHELL: And I don’t see why they don’t get that yet.
RON FOURNIER: The IRS thing, to me, I think that’s the one that has the most chance to be a game changer. If we find out in these hearings that somebody in the White House, especially in the political shop, or somebody in the campaign knew about this political targeting of conservative groups, I think that could be something that could consume the White House for the rest of his second term.
SCARBOROUGH: I agree. That is the key.
FOURNIER: I’m not pleased to say that.
CARL BERNSTEIN: We have no evidence of that whatsoever.
SCARBOROUGH: How could we, Carl? Of course we don’t have any evidence of that, but that’s why you have investigations. You know that. I know that.
The same IRS office that deliberately targeted conservative groups applying for tax-exempt status in the run-up to the 2012 election released nine pending confidential applications of conservative groups to ProPublica late last year.
.
The IRS did not respond to requests Monday following up about that release, and whether it had determined how the applications were sent to ProPublica.
In response to a request for the applications for 67 different nonprofits last November, the Cincinnati office of the IRS sent ProPublica applications or documentation for 31 groups. Nine of those applications had not yet been approved – meaning they were not supposed to be made public. (We made six of those public, after redacting their financial information, deeming that they were newsworthy.)
On Friday, Lois Lerner, the head of the division on tax-exempt organizations, apologized to Tea Party and other conservative groups because the IRS’ Cincinnati office had unfairly targeted them. Tea Party groups had complained in early 2012 that they were being sent overly intrusive questionnaires in response to their applications.
That scrutiny appears to have gone beyond Tea Party groups to applicants saying they wanted to educate the public to “make America a better place to live” or that criticized how the country was being run, according to a draft audit cited by many outlets. The full audit, by the Treasury Department’s inspector general for tax administration, will reportedly be released this week. (ProPublica was not contacted by the inspector general’s office.)
Before the 2012 election, ProPublica devoted months to showing how dozens of social-welfare nonprofits had misled the IRS about their political activity on their applications and tax returns. Social-welfare nonprofits are allowed to spend money to influence elections, as long as their primary purpose is improving social welfare. Unlike super PACs and regular political action committees, they do not have to identify their donors.
In 2012, nonprofits that didn’t have to report their donors poured an unprecedented $322 million into the election. Much of that money – 84 percent – came from conservative groups.
As part of its reporting, ProPublica regularly requested applications from the IRS’s Cincinnati office, which is responsible for reviewing applications from nonprofits.
Social welfare nonprofits are not required to apply to the IRS to operate. Many politically active new conservative groups apply anyway. Getting IRS approval can help with donations and help insulate groups from further scrutiny. Many politically active new liberal nonprofits have not applied.
Applications become public only after the IRS approves a group’s tax-exempt status.
On Nov. 15, 2012, ProPublica requested the applications of 67 nonprofits, all of which had spent money on the 2012 elections. (Because no social welfare groups with Tea Party in their names spent money on the election, ProPublica did not at that point request their applications. We had requested the Tea Party applications earlier, after the groups first complained about being singled out by the IRS. In response, the IRS said it could find no record of the tax-exempt status of those groups – typically how it responds to requests for unapproved applications.)
Just 13 days after ProPublica sent in its request, the IRS responded with the documents on 31 social welfare groups.
One of the applications the IRS released to ProPublica was from Crossroads GPS, the largest social-welfare nonprofit involved in the 2012 election. The group, started in part by GOP consultant Karl Rove, promised the IRS that any effort to influence elections would be “limited.” The group spent more than $70 million from anonymous donors in 2012.
Applications were sent to ProPublica from five other social welfare groups that had told the IRS that they wouldn’t spend money to sway elections. The other groups ended up spending more than $5 million related to the election, mainly to support Republican presidential candidate Mitt Romney. Much of that money was spent by the Arizona group Americans for Responsible Leadership. The remaining four groups that told the IRS they wouldn’t engage in political spending were Freedom Path, Rightchange.com II, America Is Not Stupid and A Better America Now.
The IRS also sent ProPublica the applications of three small conservative groups that told the agency that they would spend some money on politics: Citizen Awareness Project, the YG Network and SecureAmericaNow.org. (No unapproved applications from liberal groups were sent to ProPublica.)
The IRS cover letter sent with the documents was from the Cincinnati office, and signed by Cindy Thomas, listed as the manager for Exempt Organizations Determinations, whom a biography for a Cincinnati Bar Association meeting in January says has worked for the IRS for 35 years. (Thomas often signed the cover letters of responses to ProPublica requests.) The cover letter listed an IRS employee named Sophia Brown as the person to contact for more information about the records. We tried to contact both Thomas and Brown today but were unable to reach them.
After receiving the unapproved applications, ProPublica tried to determine why they had been sent. In emails, IRS spokespeople said ProPublica shouldn’t have received them.
“It has come to our attention that you are in receipt of application materials of organizations that have not been recognized by the IRS as tax-exempt,” wrote one spokeswoman, Michelle Eldridge. She cited a law saying that publishing unauthorized returns or return information was a felony punishable by a fine of up to $5,000 and imprisonment of up to five years, or both.
In response, ProPublica’s then-general manager and now president, Richard Tofel, said, “ProPublica believes that the information we are publishing is not barred by the statute cited by the IRS, and it is clear to us that there is a strong First Amendment interest in its publication.”
ProPublica also redacted parts of the application to omit financial information.
Jonathan Collegio, a spokesman for Crossroads GPS, declined to comment today on whether he thought the IRS’s release of the group’s application could have been linked to recent news that the Cincinnati office was targeting conservative groups.
Last December, Collegio wrote in an email: “As far as we know, the Crossroads application is still pending, in which case it seems that either you obtained whatever document you have illegally, or that it has been approved.”
This year, the IRS appears to have changed the office that responds to requests for nonprofits’ applications. Previously, the IRS asked journalists to fax requests to a number with a 513 area code – which includes Cincinnati. ProPublica sent a request by fax on Feb. 5 to the Ohio area code. On March 13, that request was answered by David Fish, a director of Exempt Organizations Guidance, in Washington, D.C.
In early April, a ProPublica reporter’s request to the Ohio fax number bounced back. An IRS spokesman said at the time the number had changed “recently.” The new fax number begins with 202, the area code for Washington, D.C.
Internal Revenue Service officials in Washington and at least two other offices were involved with investigating conservative groups seeking tax-exempt status, making clear that the effort reached well beyond the branch in Cincinnati that was initially blamed, according to documents obtained by The Washington Post.
IRS officials at the agency’s Washington headquarters sent queries to conservative groups asking about their donors and other aspects of their operations, while officials in the El Monte and Laguna Niguel offices in California sent similar questionnaires to tea-party-affiliated groups, the documents show.
.
IRS employees in Cincinnati told conservatives seeking the status of “social welfare” groups that a task force in Washington was overseeing their applications, according to interviews with the activists.
Lois G. Lerner, who oversees tax-exempt groups for the IRS, told reporters Friday that the “absolutely inappropriate” actions were undertaken by “front-line people” working in Cincinnati to target groups with “tea party,” “patriot” or “9/12” in their names.
In one instance, however, Ron Bell, an IRS employee, informed a lawyer representing a conservative group focused on voter fraud that the application was under review in Washington. On several other occasions, IRS officials in Washington and California sent conservative groups detailed questionnaires about their voter outreach and other activities, according to the documents.
“For the IRS to say it was some low-level group in Cincinnati is simply false,” said Cleta Mitchell, a partner in the law firm Foley & Lardner who sought to communicate with IRS headquarters about the delay in granting tax-exempt status to True the Vote.
Moreover, details of the IRS’s efforts to target conservative groups reached the highest levels of the agency in May 2012, far earlier than has been disclosed, according to Republican congressional aides briefed by the IRS and the Treasury Inspector General for Tax Administration (TIGTA) on the details of their reviews.
Then-Commissioner Douglas Shulman, a George W. Bush appointee who stepped down in November, received a briefing from the TIGTA about what was happening in the Cincinnati office in May 2012, the aides said. His deputy and the agency’s current acting commissioner, Steven T. Miller, also learned about the matter that month, the aides said.
The officials did not share details with Republican lawmakers who had been demanding to know whether the IRS was targeting conservative groups, Republicans said.
“I wrote to the IRS three times last year after hearing concerns that conservative groups were being targeted,” Sen. Orrin G. Hatch (Utah), the ranking Republican on the Senate Finance Committee, said in a statement Monday. “In response to the first letter I sent with some of my colleagues, Steven Miller, the current Acting IRS Commissioner, responded that these groups weren’t being targeted.”
“Knowing what we know now,” he added, “the IRS was at best being far from forth coming, or at worst, being deliberately dishonest with Congress.”
In a news conference Monday, President Obama said he learned of the investigating in media reports on Friday and has “no patience with it.”
“If in fact IRS personnel engaged in the kind of practices that have been reported on, and were intentionally targeting conservative groups, then that’s outrageous,” Obama said. “And there’s no place for it. And they have to be held fully accountable.”
White House spokesman Jay Carney told reporters Monday that the White House counsel’s office learned of an upcoming IRS inspector general’s report on April 22 as part of a routine notification but had not received access to the report.
On Capitol Hill, two Senate panels – the Finance Committee and the Permanent Subcommittee on Investigations – announced Monday that they will investigate. The House Oversight and Government Reform Committee and the Ways and Means Committee have been looking into reports of IRS attempts to single out organizations on the right for heightened scrutiny. Ways and Means has called IRS officials to testify Friday.
“These actions by the IRS are an outrageous abuse of power and a breach of the public’s trust,” said Senate Finance Committee Chairman Max Baucus (D-Mont.). “The IRS will now be the ones put under additional scrutiny.”
Separately, Sen. Marco Rubio (R-Fla.) and Rep. Mike Turner (R-Ohio) introduced companion bills Monday that would require the IRS to fire any employee found “willfully” violating “the constitutional rights of a taxpayer,” according to statements by both lawmakers. The bills also would make them criminally liable for their actions.
Even as Obama vowed that his administration “will make sure that we find out exactly what happened on this,” however, the IRS offered no new information on how it selected which groups to single out for scrutiny.
The White House is legally barred from contacting the IRS about a tax matter, under a prohibition adopted after the Watergate scandal. And although it can contact the Treasury Department about tax issues, neither Treasury nor the IRS can disclose specific taxpayer information. The IRS can release information about a petition for tax-exempt status only after it has been approved.
Obama is not in a position to remove Lerner, a career official who can be terminated for cause only under normal civil service proceedings. The IRS has two political appointees: the commissioner, who serves a five-year term, and the chief counsel.
As the IRS came under broader political attack Monday, more details surfaced on how the exempt-organizations division struggled to determine which nonprofits should receive “social welfare” status after the 2010 Citizens United v. Federal Election Commission ruling. That decision, which allowed corporations and unions to raise and spend unlimited amounts of money on elections, opened the door for groups to accept undisclosed contributions as long as their “primary purpose” was not politics.
In a Jan. 9, 2012, letter to the Richmond Tea Party, IRS specialist Stephen Seok asked questions including “the names of the donors, contributors and grantors,” as well as the size of the contributions and grants, and when they were given.
Richmond Tea Party President Larry Nordvig, whose group applied for tax-exempt status in December 2009 and received it in July 2012, said the extended inquiry had “a very chilling effect” on how much money the group could raise because its donors preferred anonymity.
The Wetumpka Tea Party of Alabama experienced a two-year delay after submitting its initial application.
Becky Gerritson, a 44-year-old stay-at-home mother and the group’s president, said the IRS sent a questionnaire asking for the names of all volunteers, donor identification and contribution amounts, the names of any legislators its members had communicated with directly or indirectly, and the contents of all speeches its members had made, among a long list of other details.
“I was outraged,” Gerritson said. “Being an election year, I felt like it was intimidation.”
The group did not provide the information. Approval came only after the group sought help from the American Center for Law and Justice, which threatened a lawsuit against the IRS, Gerritson said.
Although some of the groups were explicitly labeled “tea party” or “patriot,” others that came under intense scrutiny were focused on challenging the Affordable Care Act – known by many as Obamacare – or the integrity of federal elections.
In a June 3, 2011, letter to the IRS, Mitchell questioned the agency’s motivations for delaying recognition of one of her clients who had filed nearly two years earlier, writing, “Is the [group’s] opposition to Obamacare and the takeover of America’s healthcare system by the government the reason that this application has been held up and not approved?”
Catherine Engelbrecht, president of the Houston-based True the Vote, first filed for tax-exempt status in July 2010. At one point, Engelbrecht – who is still awaiting a determination from the IRS regarding her voting rights organization and a separate tea party group, King Street Patriots – said an IRS employee informed her: “I’m just doing what Washington is telling me to do. I’m just asking what they want me to ask.”
The IRS did not respond to requests for comment Monday.
At various points over the past two years, Internal Revenue Service officials targeted nonprofit groups that criticized the government and sought to educate Americans about the U.S. Constitution, according to documents in an audit conducted by the agency’s inspector general.
The documents, obtained by The Washington Post from a congressional aide with knowledge of the findings, show that on June 29, 2011, IRS staffers held a briefing with senior agency official Lois G. Lerner in which they described giving special attention to instances where “statements in the case file criticize how the country is being run.” Lerner, who oversees tax-exempt groups for the agency, raised objections and the agency revised its criteria a week later.
But six months later, the IRS applied a new political test to groups that applied for tax-exempt status as “social welfare” groups, the document says. On Jan. 15, 2012 the agency decided to target “political action type organizations involved in limiting/expanding Government, educating on the Constitution and Bill of Rights, social economic reform movement.,” according to the appendix in the IG report, which was requested by the House Oversight and Government Reform Committee and has yet to be released.
The new revelations are likely to intensify criticism of the IRS, which has been under fire since agency officials acknowledged they had deliberately targeted groups with “tea party” or “patriot” in their name for heightened scrutiny.
This cannot possibly be. As someone who has gone through IRS certification (due to the off chance we may encounter taxpayer data during investigations), I can attest for the extensive rigor and controls that prevent such low level activities. For instance, the mere act of someone pulling up a neighbor’s tax data would set off numerous alarms; investigation and prosecution would be inevitable. Cases are distributed in a manner that a low-level worker would not have access to all “tea party” and “patriot” filings.
This means one of two things. Either ALL low-level employees in the IRS are operating in collusion, conspiring to attack all citizens of a particular political orientation (which would be necessary to cause low level employees randomly assigned and supervised with such extensive controls to consistently flag and punish people of that political interest), or senior level IRS employees who are able to pull up files of a particular interest (“patriot” “tea party”) were involved. Furthermore, if it was low-level employees, they would be investigated and disciplined as a matter of routine process. Only senior level IRS executives are able to bypass those controls.
And that IRS spokespersons are lying suggests how far up the conspiracy goes. I’m rather confident that a competent investigation would show White House political appointees had directed these actions, in collusion with senior level IRS officials. Nobody down below would be able to have such a broad reach and get by without being terminated and criminally prosecuted.
“There is little question that one or more employees at the IRS stole our confidential tax return and leaked it to our political enemies, in violation of federal law.” – Brian Brown, NOM president -
The National Organization for Marriage (NOM) today renewed its demand that the Internal Revenue Service reveal the identity of the employee or employees responsible for stealing the organization’s confidential Form 990 tax return and leaking it to the Human Rights Campaign (HRC). At the time of the theft, the HRC had long-sought to know the identity of NOM’s major donors and its chief executive was a co-chair of President Obama’s reelection campaign. The Form 990 that was leaked to the HRC contained the identity of numerous major donors to the organization.
“There is little question that one or more employees at the IRS stole our confidential tax return and leaked it to our political enemies, in violation of federal law,” said Brian Brown, NOM’s president. “The only questions are who did it, and whether there was any knowledge or coordination between people in the White House, the Obama reelection campaign and the Human Rights Campaign. We and the American people deserve answers.”
In March 2012 the Human Rights Campaign and the Huffington Post published NOM’s Form 990 Schedule B from 2008 containing the identity of dozens of donors. The HRC claimed the tax return was provided by a ‘whistleblower.’ For months previous to the publication, the HRC had been demanding that NOM publicly release this confidential information even though federal law protects the identity of contributors to nonprofit groups. The publication of NOM’s tax return occurred just a few months after Joseph Solmonese, then president of the HRC, was appointed a national co-chair of the Obama reelection campaign. An analysis of the published documents shows that they could only have originated with the IRS.
“We’ve seen in recent days an admission that the IRS intentionally targeted conservative groups for harassment and scrutiny,” Brown said, “but what NOM has experienced suggests that problems at the IRS are potentially far more serious than even these latest revelations reveal.”
Following publication of NOM’s confidential tax return and a complaint to the IRS, investigators with the Treasury Inspector General for Tax Administration (TIGTA) interviewed NOM officials about the theft. Nothing has come of the investigation if there is indeed one, and the agency has refused to answer any questions about the status of its examination.
Brown concluded, “No group should ever be subjected to the IRS leaking its confidential tax return to its political enemies. But when the recipient of the stolen information is a group headed by a co-chair of the President’s reelection campaign, serious concerns arise. We have no way of knowing if people within the White House, the Obama reelection campaign or the HRC had any role in the crime, but we call on the Congress to investigate. So far, we’ve heard nothing from the federal government even though they’ve had all the facts for over a year.”
To schedule an interview with Brian Brown, President of the National Organization for Marriage, please contact Elizabeth Ray (x130), eray@crcpublicrelations.com, or Jennifer Campbell jcampbell@crcpublicrelations.com, at 703-683-5004.
Paid for by The National Organization for Marriage, Brian Brown, president. 2029 K Street NW, Suite 300 Washington, DC 20006, not authorized by any candidate or candidate’s committee. New § 68A.405(1)(f) & (h).
Background: On March 30, 2012, the Huffington Post published NOM’s confidential 2008 tax return filed with the IRS, which it said came from the Human Rights Campaign. The HRC has said on its own site the documents came from a “whistleblower.” However, NOM has determined that the documents came directly from the Internal Revenue Service.
The document above is as it appeared when published by the Huffington Post. However, that document was modified in a failed attempt to obscure its source. There is a label visibly obscuring a portion of each page, and it was determined that information on the top of each page was also obscured in the version posted on the Huffington Post.
After software removed the layers obscuring the document, it is shown that the document came from the Internal Revenue Service. The top of each page says, “”THIS IS A COPY OF A LIVE RETURN FROM SMIPS. OFFICIAL USE ONLY.” On each page of the return is stamped a document ID of “100560209.” Only the IRS would have the Form 990 with “Official Use” information.
Just months after being slimed by President Barack Obama’s re-election campaign, Mitt Romney supporter and businessman Frank VanderSloot was informed that he was going to be audited not only by the Internal Revenue Service, but by the Labor Department as well.
In April 2012, VanderSloot, who served as the national co-chair of Mitt Romney’s presidential finance committee, was one of eight Romney backers to be defamed as ”wealthy individuals with less-than-reputable records” in a post on the Obama campaign’s website. The post, entitled “Behind the curtain: a brief history of Romney’s donors,” singled out VanderSloot for being a ”litigious, combative and a bitter foe of the gay rights movement.”
Two months later, the IRS informed VanderSloot he and his wife were going to be audited, Strassel reported. Two weeks after that, VanderSloot was notified by the Labor Department that it was going to “audit workers he employs on his Idaho-based cattle ranch under the federal visa program for temporary agriculture workers,” reported Strassel.
“The H-2A program allows tens of thousands of temporary workers in the U.S.; Mr. VanderSloot employs precisely three,” Strassel wrote. “All are from Mexico and have worked on the VanderSloot ranch—which employs about 20 people—for five years. Two are brothers. Mr. VanderSloot has never been audited for this, though two years ago his workers’ ranch homes were inspected. (The ranch was fined $8,400, mainly for too many ‘flies’ and for ‘grease build-up’ on the stove. God forbid a cattle ranch home has flies.)”
“This letter requests an array of documents to ascertain whether Mr. VanderSloot’s ‘foreign workers are provided the full scope of protections’ under the visa program: information on the hours they’ve worked each day and their rate of pay, an explanation of their deductions, copies of contracts,” she continued.
In her column, Strassel raised the specter that the IRS targeted VanderSloot for his political activism.
“Did Mr. Obama pick up the phone and order the screws put to Mr. VanderSloot?” she asked. “Or—more likely—did a pro-Obama appointee or political hire or career staffer see that the boss had an issue with this donor, and decide to do the president an unasked-for election favor? Or did he or she simply think this was a duty, given that the president had declared Mr. VanderSloot and fellow donors ‘less than reputable’?”
VanderSloot’s tale is more relevant in light of the admission Friday by IRS official Lois Lerner that the agency gave extra scrutiny to non-profit tea party groups with “tea party” or “patriot” in their name that applied for tax-exempt status under section 501(c)(4) of the tax code. While Lerner said the agency’s actions were inappropriate, she claimed it was not the result of political bias.
However, a forthcoming report by the IRS inspector general will say that the agency went beyond what Lerner admitted to on Friday by targeting groups which criticized “how the country is being run,” the Washington Post, which got an advanced copy of part of the internal audit, reported Sunday.
Though that practice was soon halted, just months later, in January 2012, groups that applied for tax exempt status which described themselves as “political action type organizations involved in limiting/expanding Government, educating on the Constitution and Bill of Rights, social economic reform movement” were again subjected to special scrutiny.
On Friday, House Majority Leader Eric Cantor was among the congressional leaders who called for an investigation into what went on at the IRS.
“The IRS cannot target or intimidate any individual or organization based on their political beliefs,” he said in a statement. “The House will investigate this matter.”
The White House also voiced support for an investigation.
“The president would expect that it would be investigated,” White House spokesman Jay Carney said at the Friday’s press briefing.
While non-profit groups were targeted by the IRS, no hard evidence has yet emerged to show that individuals like VanderSloot were targeted for their political leanings.
New evidence has now arisen that the IRS under President Obama, which admitted, then half-denied this week that it was targeting conservative non-profit groups, has been targeting Jewish organizations in a virulent manner. An IRS agent admitted that some Israel-related organizations’ applications have been assigned to “a special unit in the D.C. office to determine whether the organization’s activities contradict the Administration’s public policies.”
What does that mean? It means that the Obama administration is going after organizations that support the existence of the state of Israel; one Jewish organization that was not even focused on Israel was required to state “whether [it] supports the existence of the land of Israel,” and also to “[d]escribe [its] religious belief system toward the land of Israel.”
Z STREET, a staunch defender of Israel, had filed a lawsuit against the IRS, saying that an IRS agent told them that their attempt to secure tax-exempt status would be looked over more than usual because it was “connected to Israel.”
Lois Lerner, of the IRS, has already admitted that the IRS had improperly targeted groups with “Tea Party” and “patriot” in their names but said it wasn’t politically motivated, because “That is not how we do things.”
The Obama Administration apparently hates Israel enough to harass and intimidate those who support the Jewish state. So much for the contention of liberal Jews that the Obama administration is a friend to the State of Israel.
The House Ways and Means Committee wants to know when the White House first knew that the Internal Revenue Service was targeting groups for heightened scrutiny for their political views, including groups that used the words “tea party” or “patriot” in their applications for tax exempt status, or that sought to educate people about the U.S. Constitution and Bill of Rights.
The Treasury Inspector General for Tax Administration has provided a timeline to congressional staff that indicates that in the 2010 election year the Internal Revenue Service instructed officials in its “Determinations Unit” to “be on the lookout for” organizations applying for tax exempt status that used the words “tea party” or “patriot” in their applications.
By January 2012, at the beginning of a presidential election year, according to the timeline, the IRS broadened its “be on the lookout order” to target groups that were involved in educating people on the Constitution and the Bill of Rights.
Now the Ways and Means Committee, which is investigating the matter, has publicly posed what it calls ‘The Top 10 Questions for the IRS.” These include: When did the White House know?
“The IRS absolutely must be non-partisan in its enforcement of our tax laws. The admission by the agency that it targeted American taxpayers based on politics is both shocking and disappointing,” said Ways and Means Chairman Dave Camp (R.-Mich.). “The Committee on Ways and Means will thoroughly investigate this matter and will soon hold a hearing to get to the bottom of this situation. We will hold the IRS accountable for its actions.”
Here are the committee’s questions:
What did the IRS know and when? The Top 10 questions for the IRS
1. Beginning with an inquiry in June 2011, the House Ways and Means Committee has repeatedly asked the IRS for verification about whether or not it was targeting groups based on their political philosophies. On repeated occasions, including at a March 2012 Ways and Means Oversight Subcommittee hearing, the IRS explicitly denied such activities had occurred. Now, widespread media reports confirm that the agency learned of these practices just three weeks after the Committee made its initial inquiry related to these groups – nearly 2 years ago. How many times did the IRS lie to Congress about this issue?
2. What words were used in the targeting campaign? We know “tea party,” “patriots” and “conservative” were used.
3. We know words targeting conservative-leaning organizations were used. What about words like “progressive” or “green”? What proof, if any, has IRS provided to demonstrate this was not a politically motivated act? Were any personnel ever directed to delay processing of certain 501(c )(4) applications until after the election?
4. When was the IRS Commissioner informed? When were the White House and Treasury made aware that groups were being targeted based on their political philosophies? How did the White House and Treasury respond when they were made aware that conservative groups were being targeted?
5. When the IRS Commissioner was made aware of these unlawful practices, what steps were taken, if any, to halt the harassment of conservative organizations? Who was disciplined regarding these practices, if anyone?
6. Who were the employees that made these decisions, and what guidance were they provided with from Washington, if any, to pursue their work in this manner? Who are these employees? Were these political appointees? Were they hired through the process established by the Ramspeck Act (where some, including staff whose Members have lost or retired, receive placement assistance in an agency setting)?
7. It is clear from the TIGTA timeline that IRS was targeting those with conservative political philosophies as early as 2010. It is well documented that active Congressional investigations were going on pertaining to this subject – why wasn’t Congress immediately notified when IRS became aware that groups were, in fact, actively being targeted?
8. How widespread was the campaign to target conservative groups? We’ve heard about Ohio, a longtime bellwether state in political elections. What has IRS done, if anything, to identify whether this practice of targeting specific groups was occurring in IRS offices in other states?
9. Why is IRS apologizing now? IRS waited until well after the 2012 election cycle to issue a public apology for targeting these groups, but never informed Congress of its intent to do so, despite ongoing investigations. Why didn’t they inform Congress of their intent to do so?
10. What steps, if any, has IRS taken to ensure that the targeting of individuals and organizations does not occur in the future?
Senior Internal Revenue Service officials knew agents were targeting tea party groups as early as 2011, according to a draft of an inspector general’s report obtained by The Associated Press that contradicts public statements by the IRS commissioner.
. Internal Revenue Service (IRS) Commissioner Douglas Shulman testifies on Capitol Hill in Washington before the House Oversight Committee
The IRS apologized Friday for what it acknowledged was “inappropriate” targeting of conservative political groups during the 2012 election to see if they were violating their tax-exempt status. The agency blamed low-level employees, saying no high-level officials were aware.
But on June 29, 2011, Lois G. Lerner, who heads the IRS division that oversees tax-exempt organizations, learned at a meeting that groups were being targeted, according to the watchdog’s report. At the meeting, she was told that groups with “Tea Party,” ”Patriot” or “9/12 Project” in their names were being flagged for additional and often burdensome scrutiny, the report says.
The 9/12 Project is a group started by conservative TV personality Glenn Beck. In a statement to the AP, Beck suggested that the revelations were hardly news to him and other conservatives.
“In February 2012, TheBlaze first reported what the IRS now admits to — that they unfairly targeted conservative groups including the 9/12 project,” Beck said, citing his website and TV network. “It is nice to see everyone else playing catch-up and finally asking the same questions that TheBlaze started raising over a year ago.”
Lerner instructed agents to change the criteria for flagging groups “immediately,” the report says.
The Treasury Department’s inspector general for tax administration is expected to release the results of a nearly yearlong investigation in the coming week. The AP obtained part of the draft report, which has been shared with congressional aides.
Among the other revelations, on Aug. 4, 2011, staffers in the IRS’ Rulings and Agreements office “held a meeting with chief counsel so that everyone would have the latest information on the issue.”
On Jan, 25, 2012, the criteria for flagging suspect groups was changed to, “political action type organizations involved in limiting/expanding Government, educating on the Constitution and Bill of Rights, social economic reform/movement,” the report says.
While this was happening, several committees in Congress were writing numerous letters IRS Commissioner Douglas Shulman to express concern because tea party groups were complaining of IRS harassment.
In Shulman’s responses, he did not acknowledge targeting of tea party groups. At a congressional hearing March 22, 2012, Shulman was adamant in his denials.
“There’s absolutely no targeting. This is the kind of back and forth that happens to people” who apply for tax-exempt status, Shulman said at the House Ways and Means subcommittee hearing.
The portion of the draft report reviewed by the AP does not say whether Shulman or anyone else in the Obama administration outside the IRS was informed of the targeting. It is standard procedure for agency heads to consult with staff before responding to congressional inquiries, but it is unclear how much information Shulman sought.
The IRS has not said when Shulman found out that Tea Party groups were targeted.
Shulman was appointed by President George W. Bush, a Republican. His 6-year term ended in November. President Barack Obama has yet to nominate a successor. The agency is now run by an acting commissioner, Steven Miller.
The IRS said in a statement Saturday that the agency believes the timeline in the IG’s report is correct, and supports what officials said Friday.
“IRS senior leadership was not aware of this level of specific details at the time of the March 2012 hearing,” the statement said. “The timeline does not contradict the commissioner’s testimony. While exempt organizations officials knew of the situation earlier, the timeline reflects that IRS senior leadership did not have this level of detail.”
Lerner’s position is three levels below the commissioner.
“The timeline supports what the IRS acknowledged on Friday that mistakes were made,” the statement continued. “There were not partisan reasons behind this.”
Rep. Charles Boustany, R-La., chairman of the House Ways and Means Committee’s oversight subcommittee, said the report “raises serious questions as to who at IRS, Treasury and in the administration knew about this, why this practice was allowed to continue for as long as it did, and how widespread it was.”
“This timeline reveals at least two extremely unethical actions by the IRS. One, as early as 2010, they targeted groups for political purposes. Two, they willfully and knowingly lied to Congress for years despite being aware that Congress was investigating this practice,” Boustany said.
“This is an outrageous abuse of power. Going after organizations for referencing the Bill of Rights or expressing the intent to make this country a better place is repugnant,” Boustany added. “There is no excuse for this behavior.”
Several congressional committees have promised investigations, including the Ways and Means Committee, which plans to hold a hearing.
“The admission by the agency that it targeted American taxpayers based on politics is both shocking and disappointing,” said Rep. Dave Camp, R-Mich., chairman of the Ways and Means Committee. “We will hold the IRS accountable for its actions.”
The group Tea Party Patriots said the revelation was proof that the IRS had lied to Congress and the public when Schulman said there had been no targeting of tea party groups.
“We must know how many more lies they have been telling and how high up the chain the cover-up goes,” Jenny Beth Martin, national coordinator for the group Tea Party Patriots, said in a statement Saturday.
“It appears the IRS committed crimes and violated our ability to exercise our First Amendment right to free speech. A simple apology is not sufficient reparation for violating the constitutional rights of United States citizens. Therefore, Tea Party Patriots rejects the apology from the Internal Revenue Service,” Martin said. “We are, however, encouraged to hear that Congress plans to investigate. Those responsible must be held accountable and resign or be terminated for their actions.”
On Friday, White House spokesman Jay Carney said the administration expected the inspector general to conduct a thorough investigation, but he brushed aside calls for the White House itself to investigate.
Many conservative groups complained during the 2012 election that they were being harassed by the IRS. They accused the agency of frustrating their attempts to become tax exempt by sending them lengthy, intrusive questionnaires.
The forms, which the groups have made available, sought information about group members’ political activities, including details of their postings on social networking websites and about family members.
In some cases, the IRS acknowledged, agents inappropriately asked for lists of donors.
There has been a surge of politically active groups claiming tax-exempt status in recent elections – conservative and liberal. Among the highest profile are Republican Karl Rove’s group Crossroads GPS and the liberal Moveon.org.
These groups claim tax-exempt status under section 501 (c) (4) of the federal tax code, which is for social welfare groups. Unlike other charitable groups, these organizations are allowed to participate in political activities, but their primary activity must be social welfare.
That determination is up to the IRS.
The number of groups filing for this tax-exempt status more than doubled from 2010 to 2012, to more than 3,400. To handle the influx, the IRS centralized its review of these applications in an office in Cincinnati.
Lerner said on Friday this was done to develop expertise among staffers and consistency in their reviews. As part of the review, staffers look for signs that groups are participating in political activity. If so, IRS agents take a closer look to make sure that politics isn’t the group’s primary activity.
As part of this process, agents in Cincinnati came up with a list of things to look for in an application. As part of the list, they included the words “tea party” and “patriot,” Lerner said.
“It’s the line people that did it without talking to managers,” Lerner told the AP on Friday. “They’re IRS workers, they’re revenue agents.”
In all, about 300 groups were singled out for additional review, Lerner said. Of those, about a quarter were singled out because they had “tea party” or “patriot” somewhere in their applications.
Lerner said 150 of the cases have been closed and no group had its tax-exempt status revoked, though some withdrew their applications.
‘
darcprynce
Dave C
Gatordoug
