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IRS Warns Thousands Could Face Criminal Charges for Filing False Returns

The IRS warned on Tuesday that thousands of taxpayers could face criminal prosecution if they filed false tax returns for high refunds.

In a press release, the IRS reiterated a warning not to fall for tax scams centered around the Fuel Tax Credit, Sick and Family Credit, and household employment taxes.

Despite the warnings, the IRS reportedly came across thousands of dubious claims from taxpayers for credits for which they were not eligible. As a result, the IRS has delayed the refunds and is requesting the taxpayers under investigation to provide proof they are eligible for the credits.

“Scam artists and social media posts have perpetuated a number of false and misleading claims that have tricked well-meaning taxpayers into believing they’re entitled to big, windfall tax refunds,” IRS Commissioner Danny Werfel said. “These bad claims have been caught during our fraud review process. Taxpayers who filed these claims should realize they’ve been tricked, and they face an extensive review process and a long potential wait if they’re owed a refund for other things.”

The Fuel Tax Credit is designed for off-highway business and farming use, the IRS said, and taxpayers who claim the credit are required to have a business purpose and qualifying business activity, like running a farm or purchasing gasoline for aviation purposes. (Read more from “IRS Warns Thousands Could Face Criminal Charges for Filing False Returns” HERE)

Lawmaker Behind Secret $84K Sex-Harassment Settlement Unmasked

Rep. Blake Farenthold used taxpayer money to settle a sexual harassment claim brought by his former spokesman — the only known sitting member of Congress to have used a little-known congressional account to pay an accuser, people familiar with the matter told POLITICO.

Lauren Greene, the Texas Republican’s former communications director, sued her boss in December 2014 over allegations of gender discrimination, sexual harassment and creating a hostile work environment.

Greene said another Farenthold aide told her the lawmaker said he had “sexual fantasies” and “wet dreams” about Greene. She also claimed that Farenthold “regularly drank to excess” and told her in February 2014 that he was “estranged from his wife and had not had sex with her in years.”

When she complained about comments Farenthold and a male staffer made to her, Greene said the congressman improperly fired her. She filed a lawsuit in U.S. District Court in the District of Columbia, but the case was later dropped after both parties reached a private settlement . . .

House Administration Committee Chairman Gregg Harper (R-Miss.) told GOP lawmakers in a closed-door Friday morning meeting that only one House office in the past five years had used an Office of Compliance account to settle a sexual harassment complaint. Harper said in that one instance, the settlement totaled $84,000. (Read more from “Lawmaker Behind Secret $84K Sex-Harassment Settlement Unmasked” HERE)

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Funding the Cult of Terror: Are American Taxpayer Dollars Paying for the Arafat Museum in Ramallah?

Last week, a new, $7 million museum opened in poverty-stricken Ramallah. Given the serial complaints by the Palestinian Authority and its backers about the hardships the Palestinian people endure due to oppression by the Israeli government (a weekly report can be found here), it seems a curious project on which to spend millions. Certainly, given the water crisis the PA has likened to a “crime against humanity,” there must be more pressing needs for these funds.

Until you learn that the museum is dedicated to the chairman of the Palestine Liberation Organization —Yasser Arafat. In other words, it is a shrine to the cult of terror that is the PA’s stock in trade. And directly or indirectly it’s being paid for with American taxpayer dollars.

Indignation about the way the PA spends the relief funds lavished on it generally focuses on the outrageous and abhorrent practice of rewarding the waves of terrorists (and their families) that the PA has unleashed on Israel. This overt sponsorship of terrorism should and must stop, and donor governments are beginning to investigate ways to designate how their aid can be spent.

The PA’s first attempted dodge was to claim that the payments actually came from the PLO, over which it has no formal control. But even PA President Mahmoud Abbas couldn’t maintain this farce with a straight face, leading to increased scrutiny. American aid, for example, is now largely confined to cultural and construction projects — such as a museum — on the grounds that an actual museum containing local antiquities might spur tourism and improve civic life.

The Arafat museum project, however, reveals the PA’s determination to continue using even these funds to sponsor terrorism, as this institution is carefully crafted to incite hatred of Israel. For example, Arafat’s birthplace is proclaimed to be Jerusalem, suggesting an ancestral claim to the city. He was in fact born in Cairo.

The walls are festooned with a rogues’ gallery of his terrorism-sponsoring associates, from Fidel Castro to Muammar Qaddafi. Mr. Arafat’s widow, whose interactions with the PA turned ugly, is missing altogether. Unsavory episodes such as the bombing of Swissair Flight 330 in 1970 to the hijacking of the Achille Lauro in 1985 are glossed over. The tour ends with the unsubstantiated allegation that Arafat was poisoned by the Israelis, a claim dutifully echoed in the Palestinian media.

Sympathetic critics, notably The New York Times, have tried to explain these inaccuracies and omissions by proposing the museum “avoids conclusions” or poses “unanswered questions” in a willful denial of the clear and purposeful — if factually spurious — narrative it weaves.

The ongoing challenge the PA faces is that most humans do not get out of bed in the morning eager to carry out terrorist attacks on their neighbors that will leave them dead or in jail, even if there is a cash reward.

The Palestinian leadership has learned that a systematic program of incitement — extending from schools to media to cultural institutions — is also required. The mission of the Arafat museum, therefore, is to transform the squalid tale of a corrupt and violent terrorist into the heroic myth of a martyr to the Palestinian cause designed to inspire future generations to follow in his footsteps.

The Arafat museum thus presents a necessary if unpleasant reality check that even the best-intentioned aid to the PA will be used to fuel its grim determination to destroy the Jewish state. It is unconscionable that American taxpayer dollars are directly or indirectly funding this crusade. One of the first tasks of the new Congress should be to end this insidious practice until the Palestinian leadership can credibly demonstrate its goal is to make peace with its neighbors, not to annihilate them. (For more from the author of “Funding the Cult of Terror: Are American Taxpayer Dollars Paying for the Arafat Museum in Ramallah?” please click HERE)

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Federal Money to the States Isn’t ‘Free’

photo credit: philiptaylorptRichmond Times-Dispatch columnist A. Barton Hinkle recently made what should be a simple point to understand, but it’s unfortunately one that few people seem to appreciate. Writing about the supposed win-win situation whereby states expand Medicaid coverage and the federal government foots most of the bill, Hinkle reminds readers that the “free” federal money isn’t really free:

In Virginia, officials estimate expanding Medicaid would cost the state $137.5 million over nine years, while the state would receive $23 billion from Washington.

Other states report similar figures. California expects to enroll up to 910,000 residents for a cost beginning at only $46 million a year, while collecting $44 billion in federal funds over a six-year period. An Illinois study estimates that state would spend about $2 billion on expanded Medicaid over the next decade, while reaping $22 billion in federal funds. According to Danielle Holohan, who is in charge of New York’s insurance exchange, Medicaid expansion “actually works out to be an enormous savings” for the Empire State. And so on.

This all sounds great—if you are a state official. But if you are a lowly taxpayer, it leaves out one rather significant point: Where is all that federal money coming from?

No great mystery: Most of that money would come from taxpayers who live in the very states that are looking forward to these supposed windfalls. According to the Kaiser Family Foundation, if every state signed up for Medicaid expansion, then the federal government would spend nearly $1 trillion over the next nine years—paid for by you.

Read more from this article HERE.