Posts

Justice Department Knew of IRS Scandal 2 Years Before Congress but Did Nothing

Recently unearthed documents reveal that the FBI knew the IRS was unfairly targeting groups because of their conservative politics two years before Congress even heard about the agency’s misconduct.

The revelation has already added fodder to the conservative case to impeach the current IRS Commissioner John Koskinen.

Almost 300 pages of documents released Thursday and obtained by Judicial Watch through the Freedom of Information Act confirm that the IRS subjected conservative groups to increased scrutiny beginning in 2011.

Even though the FBI uncovered the scandal in 2011, the documents show, the Department of Justice chose not to act.

In interviews with FBI agents, IRS officials said that a Cincinnati branch of their agency targeted conservative groups.

“Cincinnati was categorizing cases based on name and ideology, not just activity,” Nancy Marks, a senior official at the IRS, told the FBI. That was in the summer of 2011. The public wouldn’t learn of the scandal until May 2013.

The scandal first erupted at an American Bar Association event when IRS official Lois Lerner answered a planted question about the tax agency’s handling of applications for nonprofit status. She apologized for the inappropriate scrutiny some groups experienced, adding that the conduct “was incorrect, insensitive, and inappropriate.”

The documents expose former IRS Acting Commissioner Steven Miller as the author who actually wrote Lerner’s response word for word.

After multiple congressional hearings, a vote to censure Lerner, and her eventual retirement, the Department of Justice announced the administration would not level criminal charges against the tax official.

“We found no evidence that any IRS official acted based on political, discriminatory, corrupt or other inappropriate motive,” the Justice Department wrote members of Congress in an October 2015 letter.

That the administration sat on the information for two years before deciding not to prosecute is “par for the course and, frankly, the stench is overwhelming” said Rep. Tim Huelskamp, R-Kan.

The documents underscore the need to impeach Koskinen, members of the House Freedom Caucus say, even though the tax chief wasn’t with the IRS at the time. The group argues that he impeded a subsequent congressional investigation into the scandal and they want a political pound of flesh.

“At the end of the day we have to be able to strike at least one blow on behalf of accountability,” Huelskamp told The Daily Signal.

The administration won’t deal with the situation, said House Freedom Caucus Chairman Jim Jordan, R-Ohio. The episode, he told The Daily Signal, shows that “there are two sets of rules in this country—one for ‘we, the people’ and another for the politically connected.”

To can Koskinen, members of the Freedom Caucus have filed a parliamentary measure known as a privileged resolution to force a floor vote on impeachment.

Rep. John Fleming, R-La., who introduced the motion along with Huelskamp, says the new documents establish a more troubling problem.

“While this provides further confirmation that the IRS was acting to suppress the voices of certain conservative groups, it now raises questions about whether the FBI has been compromised or politicized,” Fleming told The Daily Signal.

That’s “simply outrageous,” says Heritage Foundation legal scholar Hans von Spakovsky, who has watched the scandal unfold since 2013. “No one at the IRS has been punished over this, no one has been prosecuted,” he notes. “Nothing has been done to ensure that this won’t happen again.”

The FBI and IRS did not respond to multiple requests for comment by phone and email from The Daily Signal. (For more from the author of “Justice Department Knew of IRS Scandal 2 Years Before Congress but Did Nothing” please click HERE)

Follow Joe Miller on Twitter HERE and Facebook HERE.

BRILLIANT: IRS “Security” Program Unable to Stop $3.1 Billion Fraud

While it’s absorbed persecuting law-abiding conservative groups the Internal Revenue Service (IRS) can’t seem to stop crooks from scamming it to the tune of several billion dollars in one year alone via bogus tax refunds. It’s the latest of many transgressions at the agency that’s doubled as an Obama administration tool to crack down on political adversaries.

A special IRS security feature called Taxpayer Protection Program (TPP) couldn’t prevent criminals from scamming the agency out of an eye-popping $3.1 billion in one year, according to a federal audit.

TPP was implemented to curb an epidemic of identity theft that allows criminals to fraudulently get tax refunds. Supposedly, identity theft fraud is reduced through a verification process but the federal probe, conducted by the investigative arm of Congress, the Government Accountability Office (GAO), found serious loopholes. “TPP uses single-factor authentication procedures that incorporate one of the following authentication elements: ‘something you know,’ ‘something you have,’ or ‘something you are,’” the GAO report states. “TPP’s single-factor authentication procedures are at risk of exploitation because some fraudsters obtain the PII (personally identifiable information) necessary to pass the questions asked during authentication.”

As a result thousands of bogus filers get refunds from the IRS annually, possibly more, the GAO probe found. In fact, investigators determined that the IRS may have doled out an undetermined amount of money to an unknown number of fraudsters so the true figure will never be known. This has been going on for years and the IRS has spent a chunk of change trying to combat it to no avail. In fiscal year 2015 the agency dedicated more than 4,000 full-time employees and spent about $470 million to combat refund fraud and identity theft, the GAO reports. The Obama administration requested an additional $90 million and 491 full-time employees for fiscal year 2017 to reduce improper payments as if throwing more money at the problem will solve it. The reality is that this is part of a much broader security issue at the tax agency. Earlier this year the IRS Inspector General confirmed that hackers gained unauthorized access to 724,000 taxpayer accounts, illustrating that its system is incredibly vulnerable.

The latest GAO audit exposes just one of a multitude of problems at the feared tax agency. Judicial Watch has reported extensively on IRS scandals over the years and has been a leader in uncovering the sordid details of the agency’s witch hunt of conservative groups. Judicial Watch has obtained damaging government records that show the IRS illegally colluded with another federal agency to crack down on conservative nonprofit groups during the 2012 election cycle. The IRS director at the center of the scheme, Lois Lerner, not only broke agency rules—as well as the law—to target conservative organizations, she also lied to Congress in an effort to cover up the wrongdoing.

Judicial Watch has also been a leader in reporting other IRS wrongdoing that’s been largely ignored by the mainstream media. This includes allowing prison inmates to fraudulently receive tens of millions of dollars in tax refunds and illegal immigrants billions by letting them improperly claim tax credits they don’t qualify for. Last summer an embarrassing federal audit exposed the IRS for awarding dozens of tax-delinquent companies with millions of dollars in government contracts. During a two-year period the IRS awarded 57 contracts worth nearly $19 million to 17 corporations that owed federal taxes during that period. This actually violated a 2012 federal law called the Consolidated Appropriations Act prohibiting government agencies from using appropriated funds to enter into a contract with a company that has certain federal tax debt or felony convictions.

As if this weren’t bad enough, IRS employees have been charged with stealing hundreds of thousands of dollars in government benefits, including food stamps, welfare and housing vouchers. IRS employees have also been singled out in various government probes as the federal workers with the highest number of tax delinquents that received bonus pay. A few years ago a federal audit revealed that at the IRS alone, staff members with violations received close to $3 million in awards on top of their regular government salary. Some got the extra cash despite being cited for using drugs, making violent threats, fraudulently claiming unemployment benefits and misusing government credit cards. (For more from the author of “BRILLIANT: IRS “Security” Program Unable to Stop $3.1 Billion Fraud” please click HERE)

Follow Joe Miller on Twitter HERE and Facebook HERE.

Conservatives Impatient With House Leadership on Impeaching IRS Chief

Conservatives’ campaign to impeach IRS Commissioner John Koskinen has yielded hearings but little else. As the congressional calendar slips by, some accuse House Republican leaders of dragging their feet on the issue.

“We’re running out of time” to impeach Koskinen, Rep. Raúl Labrador, R-Idaho, recently told The Daily Signal.

House leadership isn’t serious about impeachment and removal of the IRS chief, Labrador said, adding that he believes House Speaker Paul Ryan and his team probably are “trying to delay it on purpose.”

Conservatives have been angling for Koskinen’s impeachment since last fall. They argue that the nation’s top taxman is unfit for office because of his obstruction of a congressional investigation into how the IRS treated conservative groups that applied for nonprofit tax status.

In October, Oversight and Government Reform Chairman Jason Chaffetz, R-Utah, drew up impeachment articles. Seven months later, Ryan allowed the process to move forward but only after the conservative House Freedom Caucus twisted leadership’s arm on the issue.

The Judiciary Committee invited four scholars to testify June 22 on the constitutional mechanics of impeachment, while Koskinen declined to testify for a second time.

The hearing didn’t shed much light on how the House plans to proceed. The Freedom Caucus, which Labrador helped found, released a statement that afternoon calling for an impeachment vote on the House floor, something leadership has not done.

“Mr. Koskinen is guilty of gross negligence, dereliction of duty, and violating the public trust and therefore meets the legal standard for impeachment of a public official,” the caucus of roughly 40 lawmakers said in the statement.

Chaffetz, who first spearheaded the effort to topple Koskinen, credited leadership for letting the hearing go forward. To keep the impeachment process from stalling, though, the Utah representative led his committee in censuring the tax chief in May.

To the chagrin of Chaffetz, leadership has not scheduled a vote on that measure either.

“Censure and impeachment are directly within [House] control,” Chaffetz told The Daily Signal. “We have no other scapegoat but ourselves. We can moan and groan and cry or we can actually do something. That’s the choice before us.”

Reps. Ken Buck, R-Colo., and Mark Sanford, R-S.C., launched a new effort to end Koskinen’s tenure by emptying his wallet.

The two introduced an amendment to a financial services spending bill to cut the IRS chief’s salary to zero. Because federal law prevents working for free, the duo reasons, the amendment would keep Koskinen from returning to his office.

Whether the measure can gain political traction, or is even constitutional, remains an open question.

Another impeachment avenue exists if all else fails, conservative staffers say. The Freedom Caucus could force an impeachment vote on the floor through a parliamentary procedure known as a “privileged resolution.”

Before the July 22 hearing, Rep. Jim Jordan, R-Ohio, chairman of the Freedom Caucus, said that he’s focusing on taking things “one step at a time.” But, he noted, the Freedom Caucus “will never rule out anything” when it comes to impeaching Koskinen.

Conservatives’ campaign to impeach Koskinen will have to compete with Democrats’ tactics to force a vote on gun control. With their “sit-in” holding up the House floor, Democrats triggered an early recess before the Fourth of July. They’re promising to renew that effort when Congress returns July 5. (For more from the author of “Conservatives Impatient With House Leadership on Impeaching IRS Chief” please click HERE)

Follow Joe Miller on Twitter HERE and Facebook HERE.

‘IRS Agents’ Involved in Menacing but Lucrative Scam

It may be an old scam, but apparently it’s still a very live and effective one, as at least three WND staff members have been targeted with it in recent weeks.

The potential victim receives a message from a computerized voice to call the IRS immediately about his “case file.”

The worried caller then is informed by an “agent” that a criminal case has been filed against him for defrauding the IRS, and if he doesn’t immediately make a payment, police will show up at his door.

The taxpayer then is instructed to go to the nearest drug story to purchase a pre-paid credit card through which a payment can be made to satisfy authorities.

The IRS is trying to warn Americans that its officers would never makes such a telephone call, but many terrified citizens are taking the bait. (Read more from “‘IRS Agents’ Involved in Menacing but Lucrative Scam” HERE)

Follow Joe Miller on Twitter HERE and Facebook HERE.

IRS Finally Reveals List of Tea Party Groups Targeted for Extra Scrutiny

More than three years after it admitted to targeting tea party groups for intrusive scrutiny, the IRS has finally released a near-complete list of the organizations it snagged in a political dragnet.

The tax agency filed the list last month as part of a court case after a series of federal judges, fed up with what they said was the agency’s stonewalling, ordered it to get a move on. The case is a class-action lawsuit, so the list of names is critical to knowing the scope of those who would have a claim against the IRS.

But even as it answers some questions, the list raises others, including exactly when the targeting stopped, and how broadly the tax agency drew its net when it went after nonprofits for unusual scrutiny.

The government released names of 426 organizations. Another 40 were not released as part of the list because they had already opted out of being part of the class-action suit.

That total is much higher than the 298 groups the IRS‘ inspector general identified back in May 2013, when investigators first revealed the agency had been subjecting applications to long — potentially illegal — delays, and forcing them to answer intrusive questions about their activities. Tea party and conservative groups said they was the target of unusually heavy investigations and longer delays. (Read more from “IRS Finally Reveals List of Tea Party Groups Targeted for Extra Scrutiny” HERE)

Follow Joe Miller on Twitter HERE and Facebook HERE.

Has the IRS Been Illegally Deleting Records?

The Cause of Action Institute (CoA) filed a legal complaint against the Internal Revenue Service for illegally destroying records Tuesday, at the same time that IRS commissioner John Koskinen approaches an impeachment trial before Congress.

In the complaint, CoA alleges that the IRS and Koskinen refused to “capture and preserve” employees’ electronic communication dealing with official business, as the law requires.

Here’s a piece of the press release from CoA’s website:

“The IRS and Commissioner Koskinen have a legal obligation to preserve official work communications between employees. It appears that federal records are being deleted because the IRS, in a deal with its employee union, refuses to preserve certain types of electronic communications. This lawsuit seeks to ensure that IRS follows the law. No agreement with a union or any other party can supersede Americans right to know how the IRS makes decisions.”

Documents obtained by CoA Institute show that the IRS has a private agreement with its employee union stipulating that the agency will not save the instant message records of its employees. But the IRS cannot allow such an agreement to supersede its statutory obligations to preserve records. In addition, the IRS is violating the law by regularly deleting all employee text messages as a matter of convenience.

The IRS’s obligation to capture and preserve relevant records is drawn from the Federal Records Act (FRA). The complaint filed by CoA is intended to establish a court order requiring the IRS to create and implement guidelines for acquiring and keeping such information.

As reported by the Washington Post, commissioner Koskinen could become the first agency leader to be removed from office since 1876 when War Secretary William Belknap was facing corruption charges. The House Judiciary Committee is set to hold impeachment hearings next week. (For more from the author of “Has the IRS Been Illegally Deleting Records?” please click HERE)

Follow Joe Miller on Twitter HERE and Facebook HERE.

Congress Takes Next Step to Impeach IRS Chief

House Republicans will soon take the next steps necessary in their bid to impeach IRS Commissioner John Koskinen.

On Tuesday, the House Judiciary Committee plans to hear testimony and examine charges that Koskinen obstructed a congressional investigation into the agency’s treatment of conservative groups.

While Koskinen is willing to appear at a second hearing in June, the Internal Revenue Service told Politico that the 76-year old commissioner was not able to prepare adequately for the Tuesday hearing. So the nation’s top taxman won’t show.

In a written statement to the Judiciary Committee, Koskinen described the allegations and impeachment resolution as “without merit” and “unwarranted.”

“Under my direction,” Koskinen wrote, “the IRS has responded comprehensively and in good faith to the various subpoenas and document requests from the investigating entities.”

Nevertheless, Rep. Jim Jordan, R-Ohio, told The Daily Signal “that the second hearing is more important.” The Freedom Caucus Chairman, who helped spearhead the impeachment effort, explained that the first hearing “is just sort of to get the facts out there.”

Republicans, like Jordan, say there’s plenty to cover at Tuesday’s hearing without Koskinen.

Conservatives argue that Koskinen is unfit to be tax chief because he flouted congressional authority, allowed subpoenaed emails to be destroyed, and misled the public during his testimony.

“Never lose site of the underlying offense though,” Jordan said, “an agency, with the power the IRS has over American lives, systematically targeted people for their political beliefs. That is as fundamentally wrong you can be.”

In 2010, the agency began flagging applications from conservative groups applying for tax-exempt status. Tax agents targeted applications for further review that contained terms such as tea party, patriot, and government spending.

Rep. Ron DeSantis, R-Fla., described the agency’s subsequent conduct as “a total obstruction of justice,” in an April interview with The Daily Signal. “And the question is, will Congress do anything when an agency like that walks all over us? Or are we just going to let is happen?”

The Florida prosecutor, who sits on the Oversight and Government Reform Committee, is slated to testify Tuesday and he’s had plenty of time to prepare: the effort began last October in that committee under chairman Jason Chaffetz, R-Utah.

Since then, the GOP brass have been hesitant to continue the impeachment process. House Speaker Paul Ryan, R-Wis., said that the IRS “needs to be cleaned up” but said that’s a task best suited for after the November election.

To place pressure on leadership, members of the Freedom Caucus went to the floor on April 14 to deliver speeches calling on Ryan and Judiciary Committee Chairman Bob Goodlatte, R-Va., to end their opposition to proceeding with impeachment.

Later, behind closed doors, conservatives threatened to go it alone. The Freedom Caucus threatened to use a mechanism known as a “privileged resolution” to force a floor vote on impeachment if leadership declined.

Jordan said he believes that Koskinen’s record combined with “members of the Freedom Caucus pushing our leadership to do it, that’s what finally caused us actually to get a hearing.”

After going through the Judiciary Committee, the impeachment effort would still require a majority of the House before going to the Senate for further consideration.

But Jordan wouldn’t comment on what the Freedom Caucus might do if the impeachment effort again got bogged down in committee. The Ohio chairman would only say that “we’re committed to impeaching Mr. Koskinen.”

Historically, this would be a rare move: Congress has only deployed its impeachment power 19 times since the nation’s founding. Koskinen would be just the 20th federal official to be put on congressional trial, and could become only the ninth convicted.

Though the IRS provided Koskinen’s written testimony to The Daily Signal, they did not respond to The Daily Signal’s request for additional comment. (For more from the author of “Congress Takes Next Step to Impeach IRS Chief” please click HERE)

Follow Joe Miller on Twitter HERE and Facebook HERE.

IRS Sued for Refusing to Release Secret Church Investigations Procedures

Government watchdog groups have filed a motion in federal court to compel the IRS to reveal how it determines when to initiate “church investigations” after accusing the tax-collecting agency of “stonewalling” efforts to bring to light its procedures.

The motion, filed jointly Friday by the Alliance Defending Freedom and Judicial Watch, came in response to a legal settlement struck in 2014 with an atheist organization, which said the IRS had “resolved the signature authority issue necessary to initiate church examinations.”

“The IRS also has adopted procedures for reviewing, evaluating and determining whether to initiate church investigations,” the Freedom From Religion Foundation said in a press release.

But nobody knows what those “procedures” are for conducting “church investigations,” the watchdog groups said.

“The IRS is not above the law, and Americans deserve to know the truth about the agency’s secret deals with activists,” ADF Legal Counsel Christina Holcomb said in a press release. “The IRS has a legal obligation to explain why it is hiding things or else produce documents. Its ongoing refusal to follow the law is absurd, particularly since much of [what] we are asking for is information that the IRS has already provided voluntarily to Freedom From Religion Foundation.” (Read more from “IRS Sued for Refusing to Release Secret Church Investigations Procedures” HERE)

Follow Joe Miller on Twitter HERE and Facebook HERE.

PRISON IS CALLING LOIS LERNER: Still No Justice for the Victims of the Obama’s Weaponized IRS

The Capital Research Center recently released a report on the IRS non-profit conservative targeting scandal. The IRS Attacks the Tea Party highlights Lois Lerner’s corrupt behavior. Current agency chief John Koskinen’s aid in covering the targeting scandal has only furthered the agency from accountability.

The report reminds us of the scandal:

“Before examining the role that those left-wing nonprofits played in the saga, some background is necessary. In the lead up to the 2012 election, many conservative organizations and Tea Party groups that had sought tax-exempt status from the IRS were frozen in limbo, unable to participate fully in election season because they were wasting away on an IRS waiting list specifically created to stymie right-leaning groups hostile to President Obama’s radical left-wing agenda.”

“The very fact that Lois Lerner isn’t in prison right now is proof of political interference at the highest levels. Lerner lied to congress, committed, contempt, and engaged in obstruction of justice on a massive scale. Yet nothing happen to her.”

The chairman of the House Oversight Committee, Rep. Jason Chaffetz (R-Utah), noted that the “Obama administration continues to refuse to hold anyone accountable at the IRS.” This comes after an interview in which President Obama said that not even “a smidgen of corruption” would be found during the investigation into the IRS scandal.”

The CRC report concludes:

“The Left’s ‘accountability’ actions focus on harassing and intimidating political enemies, disrupting their activities, and forcing them into waste resources dealing with activist’s provocations… They want to shut down, humiliate, and silence those who won’t quietly submit to their policy agenda.” (For more from the author of “PRISON IS CALLING LOIS LERNER: Still No Justice for the Victims of the Obama’s Weaponized IRS” please click HERE)

Follow Joe Miller on Twitter HERE and Facebook HERE.

Court Rebukes IRS for Tea Party Targeting, Orders Release of Secret List

A federal appeals court spanked the IRS Tuesday, saying it has taken laws designed to protect taxpayers from the government and turned them on their head, using them to try to protect the tax agency from the very tea party groups it targeted.

The judges ordered the IRS to quickly turn over the full list of groups it targeted so that a class-action lawsuit, filed by the NorCal Tea Party Patriots, can proceed. The judges also accused the Justice Department lawyers, who are representing the IRS in the case, of acting in bad faith — compounding the initial targeting — by fighting the disclosure.

“The lawyers in the Department of Justice have a long and storied tradition of defending the nation’s interests and enforcing its laws — all of them, not just selective ones — in a manner worthy of the Department’s name. The conduct of the IRS’s attorneys in the district court falls outside that tradition,” Judge Raymond Kethledge wrote in a unanimous opinion for a three-judge panel of the Sixth Circuit Court of Appeals. “We expect that the IRS will do better going forward.”

Justice Department officials declined to comment on the judicial drubbing, and the IRS didn’t respond to a request for comment on the unusually strong language Judge Kethledge used.

The case stems from the IRS‘ decision in 2010 to begin subjecting tea party and conservative groups to intrusive scrutiny when they applied for nonprofit status. (Read more from “Court Rebukes IRS for Tea Party Targeting, Orders Release of Secret List” HERE)

Follow Joe Miller on Twitter HERE and Facebook HERE.