Why are liberals angry at Trump for using a tax loophole that was signed into law by Obama?
By Daniel Alman (aka Dan from Squirrel Hill)
September 28, 2020
As a Libertarian, I’m against tax loopholes. I want the tax code to be as simple as possible, and with marginal tax rates as low as possible.
Democrats prefer higher marginal tax rates, so they can claim that they want to “soak the rich.”
But at the same time, these Democrats also favor giving rich people all sorts of loopholes, writeoffs, and deductions, so they don’t actually have to pay those taxes.
And now, liberals are angry at Trump for using a tax loophole that was signed into law by Obama.
The New York Times just reported:
Mr. Trump harvested that refund bonanza by declaring huge business losses — a total of $1.4 billion from his core businesses for 2008 and 2009 — that tax laws had prevented him from using in prior years.
But to turn that long arc of failure into a giant refund check, he relied on some deft accounting footwork and an unwitting gift from an unlikely source — Mr. Obama.
Business losses can work like a tax-avoidance coupon: A dollar lost on one business reduces a dollar of taxable income from elsewhere. The types and amounts of income that can be used in a given year vary, depending on an owner’s tax status. But some losses can be saved for later use, or even used to request a refund on taxes paid in a prior year.
Until 2009, those coupons could be used to wipe away taxes going back only two years. But that November, the window was more than doubled by a little-noticed provision in a bill Mr. Obama signed as part of the Great Recession recovery effort. Now business owners could request full refunds of taxes paid in the prior four years, and 50 percent of those from the year before that.
Mr. Trump had paid no income taxes in 2008. But the change meant that when he filed his taxes for 2009, he could seek a refund of not just the $13.3 million he had paid in 2007, but also the combined $56.9 million paid in 2005 and 2006, when “The Apprentice” created what was likely the biggest income tax bite of his life.
The records reviewed by The Times indicate that Mr. Trump filed for the first of several tranches of his refund several weeks later, in January 2010. That set off what tax professionals refer to as a “quickie refund,” a check processed in 90 days on a tentative basis, pending an audit by the I.R.S.
His total federal income tax refund would eventually grow to $70.1 million, plus $2,733,184 in interest. He also received $21.2 million in state and local refunds, which often piggyback on federal filings.
Here’s a detailed summary of Obama’s IRS scandal, explaining how his administration illegally used the IRS to harass conservative organizations.
By Daniel Alman (aka Dan from Squirrel Hill)
June 14, 2020
In May 2013, the Washington Post reported that the IRS had illegally targeted conservative groups for additional reviews. Organizations with the words “tea party” or “patriot” were singled out for harassment, such as requiring them to provide a list of donors, details about their internet postings on social networking websites, and information about their family members.
When this was first reported by the media in May 2013, Lois Lerner, who heads the IRS division that had conducted these illegal activities, claimed that only low level employees had known about it, and that no high level IRS officials had known about it. However, soon afterward, NPR reported that an Inspector General report showed that Lerner had been lying, and that she herself had actually been aware of it since June 29, 2011. Even worse, during March and April of 2012, Lerner herself had actually written such letters to fifteen different conservative groups. One of these letters can be read here.
While testifying in May 2013, Lerner said:
“I have not done anything wrong. I have not broken any laws. I have not violated any IRS rules or regulations. And I have not provided false information to this or any other congressional committee.”
However, afterward, Lerner invoked her fifth amendment right to remain silent. The Washington Post reported that there was disagreement as to whether or not Lerner’s statement constituted a waiving of her fifth amendment right to remain silent. Soon afterward, she was placed on paid administrative leave. At a later hearing in March 2014, Lerner again invoked her fifth amendment right to remain silent.
In September 2013, a House committee released several of Lerner’s emails, which showed that she had targeted tea party groups, and that she had asked that their applications be delayed. In one of the emails from 2011, she had written “Tea Party Matter very dangerous.”
In September 2013, after having been on paid leave for four months, Lerner had still not been fired by Obama.
In September 2013, Lerner retired with a full pension.
In October 2013, it was reported that newly discovered emails proved that Lerner had violated federal law by giving the Federal Election Commission confidential tax information of several Tea party groups.
The Washington Post reported that IRS officials at the IRS headquarters in Washington D.C. had sent such letters to conservatives groups. Reuters reported that higher level IRS officials had taken part in discussions about it as early as August 2011. However, 21 months later, on May 10, 2013, the Washington Post reported that President Obama had not done anything to investigate or fire the IRS employees who had engaged in this illegal harassment. As of May 14, 2013, none of the IRS employees who engaged in any of this illegal behavior had been disciplined, despite the fact that higher level IRS officials had known about their illegal behavior at least since August 2011. Despite all of these media reports about the involvement of high level IRS officials, in February 2014, Obama said that these things had come from “a local office.”
On May 15, 2013, it was reported that Steven Miller, the acting IRS commissioner, had resigned. However, it was also reported that his assignment would have ended in early June anyway. He resigned – Obama did not fire him.
The IRS gave out confidential information about conservative groups. ProPublica wrote:
“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.”
“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.”
“No unapproved applications from liberal groups were sent to ProPublica.”
President Obama either lied about when he first knew about this – or was too busy playing golf and attending fundraisers to read the memos that were sent to him. The Daily Caller wrote:
“White House press secretary Jay Carney said in a press conference Tuesday that the White House was notified about the IRS targeting tea party groups ‘several weeks ago.’ This comes a day after President Obama said he found out about it from news reports on Friday of last week.”
“During a press conference with British Prime Minister David Cameron on Monday, President Obama was asked about the IRS scandal. He responded, ‘I first learned about it from the same news reports that I think most people learned about this. I think it was on Friday.’ “
“However, Carney said Tuesday that first a report had to be compiled by the IRS’s inspector general and then when it was completed, it was passed on to the administration.”
“‘A notification is appropriate and routine and that is what happened and that happened several weeks ago,’ Carney said.”
When Media Trackers, a conservative organization, applied to the IRS for non-profit status, after waiting 16 months, it got no response. But when it reapplied with a liberal sounding name, it got approval in just three weeks. Yahoo wrote:
“In May 2011, Drew Ryun, a conservative activist and former Republican National Committee staffer, began filling out the Internal Revenue Service application to achieve nonprofit status for a new conservative watchdog group.”
“When September 2012 arrived with still no word from the IRS, Ryun determined that Media Trackers would likely never obtain standalone nonprofit status, and he tried a new approach: He applied for permanent nonprofit status for a separate group called Greenhouse Solutions, a pre-existing organization that was reaching the end of its determination period.”
“The IRS approved Greenhouse Solutions’ request for permanent nonprofit status in three weeks.”
Politico reported:
“The same Internal Revenue Service office that singled out Tea Party groups for extra scrutiny also challenged Israel-related organizations, at least one of which filed suit over the agency’s handling of its application for tax-exempt status.”
“The trouble for the Israel-focused groups seems to have had different origins than that experienced by conservative groups, but at times the effort seems to have been equally ham-handed.”
The IRS asked conservative groups what books they were reading.
Although the IRS went 18 months or longer without responding to conservative organizations’ applications, the IRS demanded that these same organizations answer the IRS’s intrusive questions within a few weeks.
After the Waco Tea Party sent an application to the IRS, the IRS waited 19 months to respond. In its response, the IRS asked for printouts of its web page and social networking sites, copies of all of its newsletters, bulletins and fliers, and copies of all stories written about it. The IRS also asked for transcripts of its radio interviews.
As one example of how the IRS treated conservative organizations differently from liberal ones, Politico reported:
“Chris Littleton, one of the co-founders of the Ohio Liberty Coalition, said the group got a grilling from the IRS when it submitted its application, in letters the group has posted on its website. The IRS also gave him so much grief when he tried to apply for tax-exempt status for another group, American Junto, that ‘we just gave up on it,’ he said.”
“But when he submitted an application for a third group — Ohioans for Health Care Freedom, now renamed Ohio Rising — ‘it went through just fine,’ Littleton said. ‘They never asked a single set of questions.’”
After the Greater Phoenix Tea Party Patriots sent in their application, it took two years for the IRS to respond. The IRS response included 35 questions. When the group’s cofounder called the IRS, the IRS agent claimed that he had their group’s file right in front of him. But when the group’s confounder asked the IRS agent a question, the IRS agent asked, “What’s your group’s name again?”
Tea Party groups who spoke with each other said they were all getting the same questions from the IRS.
The Washington Post reported that some IRS employees were “ignorant about tax laws, defiant of their supervisors, and blind to the appearance of impropriety.”
In 2012, the IRS leaked confidential information about Mitt Romney to the co-chairman of President Obama’s re-election committee.
For a 27 month period that began in February 2010, the IRS gave exactly zero approvals to Tea Party organizations that had sent in applications. During that same time period, numerous liberal organizations with names including words such as “progress” or “progressive” did get approval.
After True the Vote, a conservative organization which was founded by Catherine Engelbrecht, sent its application to the IRS, the IRS went three years without responding. During that three year period, Engelbrecht and her family’s small manufacturing business were audited by the IRS, and were investigated by OSHA, the ATF, and the FBI.
Democratic U.S. Senators pressured the IRS to target conservative groups. In May 2013, U.S. News & World Report wrote:
“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. At the same time, Republicans repeatedly and publicly warned against this abuse of government power and pointed to a series of red flags that strongly suggested conservative political organizations were being targeted by the IRS. Those warnings were deliberately ignored by the Obama administration and Democratic leaders in Congress.”
“From Max Baucus to Chuck Schumer to Jeanne Shaheen, key Senate Democrats publicly pressured the IRS to target groups that held differing political views and who, in their view, had the temerity to engage in the political process. The IRS listened to them and acted.”
In order to get approval, the IRS required members of Coalition for Life of Iowa, a pro-life organization, to sign a promise to avoid protesting in front of Planned Parenthood.
The IRS asked Christian Voices for Life, a pro-life organization, questions about its prayer vigils.
According to the official White House visitor’s log, during Obama’s first four years as President, IRS commissioner Douglas Shulman made 157 visits to the White House. This is more visits to the White House – by a very large margin – than any other cabinet member during Obama’s first term. By comparison, during the four years that Mark Everson was IRS commissioner when Bush was president, Everson made only one visit to the White House.
Shulman donated $500 to the Democratic National Committee in October 2004.
During Congressional testimony that had taken place in March 2012, Shulman falsely said that the IRS had not targeted conservative groups.
Shulman’s wife, Susan L. Anderson, is the senior program advisor for Public Campaign, a liberal organization. The Dailer Caller wrote of this group:
“Public Campaign receives “major funding” from the pro-Obamacare alliance Health Care for America NOW!, which is comprised of the labor unions AFL-CIO, AFSCME, SEIU, and the progressive activist organization Move On, among others.”
“Public Campaign also receives funding from the liberal Ford Foundation, the Common Cause Education Fund, and Barbra Streisand’s The Streisand Foundation, among other foundations and private donors.”
Stephen Seok was one of the IRS agents who wrote threatening letters to conservative groups. After doing so, he was given a promotion.
In June 2013, it was reported that two IRS employees had violated government ethics rules at a 2010 conference when they received $1,100 in free food and other items. One of them was Fred Schindler, the director of implementation oversight at the IRS Affordable Care Act office. The other was Donald Toda, a California-based employee. Obama did not fire them. Instead, he gave both of them paid leave. By comparison, in 1981, President Reagan fired 11,359 air-traffic controllers who had been illegally striking.
In June 2013, it was reported that The National Organization for Marriage, a conservative organization, had forensic evidence which proved that its donors’ private information had been illegally leaked by the IRS. The IRS employees who illegally leaked this private information could get five years in prison. However, Obama refused to file any charges against these IRS criminals.
The IRS illegally leaked the private information of Christine O’Donnell the same day that she announced that she would run for U.S. Senate as a tea party candidate.
According to White House visitor logs, Obama met with Colleen Kelley, the president of the National Treasury Employees Union, on March 31, 2010. The very next day, IRS employees who belonged to that union union started to target tea party organizations.
In June 2013, Associated Press claimed that the IRS had targeted liberal groups, but refused to actually name any of those liberal groups.
In July 2013, it was reported that Obama had met with a key IRS official who was involved in the targeting just two days before the key official had told his colleagues how to target tea party groups. The Daily Caller reported:
“The Obama appointee implicated in congressional testimony in the IRS targeting scandal met with President Obama in the White House two days before offering his colleagues a new set of advice on how to scrutinize tea party and conservative groups applying for tax-exempt status.”
“IRS chief counsel William Wilkins, who was named in House Oversight testimony by retiring IRS agent Carter Hull as one of his supervisors in the improper targeting of conservative groups, met with Obama in the Roosevelt Room of the White House on April 23, 2012. Wilkins’ boss, then-IRS commissioner Douglas Shulman, visited the Eisenhower Executive Office Building on April 24, 2012, according to White House visitor logs.”
“On April 25, 2012, Wilkins’ office sent the exempt organizations determinations unit “additional comments on the draft guidance” for approving or denying tea party tax-exempt applications, according to the IRS inspector general’s report.”
In May 2013, Jon Stewart said of the IRS’s targeting of conservative groups:
“Well, congratulations, President Barack Obama. Conspiracy theorists who generally can survive in anaerobic environments have just had an algae bloom dropped on their f***ing heads, thus removing the last arrow in your pro-governance quiver: skepticism about your opponents.”
In May 2013, Michael Macleod-Ball, chief of staff at the ACLU’s Washington Legislative Office, said of the IRS’s targeting of conservative groups:
“Even the appearance of playing partisan politics with the tax code is about as constitutionally troubling as it gets. With the recent push to grant federal agencies broad new powers to mandate donor disclosure for advocacy groups on both the left and the right, there must be clear checks in place to prevent this from ever happening again.”
In January 2014, it was reported that the Obama administration had chosen Barbara Kay Bosserman to head the investigation of the IRS’s targeting of tea party groups. Bosserman had donated more than $6,000 to Obama’s two presidential campaigns.
In January 2014, it was reported that since Sarah Palin had announced her candidacy for vice-President in 2008, the IRS had harassed her father six different times. Prior to that, the IRS had never contacted him during the 50 years that he had worked. The report did not specify how many of these six incidents happened under President Bush, or how many happened under President Obama.
In January 2014, it was reported that during the FBI’s so-called “investigation” of the IRS’s harassment of tea party groups, the FBI had not actually interviewed any tea party groups.
In January 2014, it was reported that the IRS had demanded that Friends of Abe (a conservative organization whose members work in the entertainment industry) give the IRS enhanced access to its security protected website (which included its secret membership list), even though such a demand was not standard IRS procedure. In addition, even though the organization had applied to the IRS for tax free status two years earlier, the IRS had still not made a decision regarding the application.
In February 2014, Obama said that there was “not even a smidgeon of corruption” in the IRS’s actions.
In February 2014, it was reported that during Obama’s presidency, 100% of the established 501(c)(4) groups that had been audited by the IRS were conservative.
In February 2014, when Fox News’s Bill O’Reilly asked Obama about the IRS harassment of tea party groups, Obama said “These kinds of things keep on surfacing, in part because you and your TV station will promote them.”
In May 2014, it was reported that tea party donors had been audited by the IRS at ten times the rate of the general population.
In May 2014, it was reported that the IRS had illegally ignored four Freedom of Information requests from Judicial Watch between May 2013 and October 2013. Judicial Watch filed a lawsuit in October 2013, and was finally able to get the information in May 2014. It showed that the orders for the IRS to harass tea party members had come from IRS headquarters in Washington D.C. It also showed that U.S. Senator Carl Levin (D-Michigan) had pressured the IRS to shut down tea party organizations.
In June 2014, the IRS claimed that Lerner’s emails to outside agencies from January 2009 through April 2011 had been “lost” when her hard drive “crashed.” Also in June 2014, the IRS claimed to have “lost” the emails from six additional IRS employees who were relevant to this scandal when their hard drives “crashed.” One of these IRS employees was Nikole Flax, who had been chief of staff to former IRS commissioner Steven Miller. Flax had made 31 visits to the White House during the time that the IRS had been targeting tea party groups. However, a private company called Sonasoft had a contract with the IRS since 2005 to back up all of the IRS’s emails. The company keeps multiple and redundant backup copies of all the IRS’s emails. The company advertised itself by saying “If the IRS uses Sonasoft products to back up their servers why wouldn’t you choose them to protect your servers?” In addition, Norman Cillo, an Army veteran who had worked in intelligence, and who had also worked as a program manager at Microsoft, listed six reasons why the IRS’s claim about “losing” the emails must be false. Also, federal law requires the IRS to keep permanent, backup copies of all of its emails at an external location. And finally, the NSA has copies of all of the emails.
Although federal law requires the IRS to keep permanent, backup copies of all of its emails at an external location, in June 2014, it was reported that the IRS has canceled its email archiving contract with Sonasoft weeks after Lerner’s computer “crashed.”
In June 2014, it was reported that emails showed that Lerner had suggested that the IRS audit U.S. Senator Charles Grassley (R-Iowa).
In June 2014, the IRS admitted that it had illegally given out information about the conservative group National Organization for Marriage.
In July 2014, it was reported that Lerner had called Republicans “crazies” and “assholes” in her emails.
In July 2014, it was reported that after Lerner’s hard drive “crashed,” the IRS deliberately destroyed it, without making any attempt to recover her emails. Top IRS officials told Congressional investigators that the hard drive was irreparably damaged before they destroyed it. However, IRS technical experts who had examined the hard drive before the IRS destroyed it said that this was not true, and that the data could have been recovered. Bruce Webster, partner at Provo, Utah-based IT consulting and expert witness firm Ironwood Experts, who has served as a consulting and IT expert in more than 80 civil lawsuits, said of this:
“… the IRS has no excuses for having handled this so poorly… This happens all the time… There are little storefront companies in just about every major city that can do this and there are forensic companies that can restore files and even do higher end recovery of data.”
In August 2014, the IRS admitted in a court filing that it had deliberately destroyed Lerner’s Blackberry after her computer “crashed.” In addition, an IRS official admitted, under penalty of perjury, that Lerner’s Blackberry had contained the same emails that had been on her computer.
In August 2014, the IRS finally admitted, under penalty of perjury, that Lerner’s emails had never really been “lost.” The IRS said the “missing” emails had been on its backup system all along.
On November 5, 2014, it was reported that the IRS had admitted to the court that it had not even tried to find Lerner’s “missing” emails in its backup system.
On November 21, 2014, it was reported that the Treasury Inspector General for Tax Administration had obtained as many as 30,000 of Lerner’s “missing” emails from IRS disaster recovery tapes.
In February 2015, it was reported that Lerner had received a total of $129,300 in bonuses between 2010 and 2013.
As of April 2015, no criminal charges had been filed against Lerner.
On June 12, 2015, when the IRS missed a court ordered deadline for releasing 6,400 newly found emails from Lerner’s hard drive, the IRS said it would not be able to release those emails for another three months because it needed those three months to remove any duplicates.
In June 2015, government investigators said the IRS had “mistakenly” erased 422 backup tapes of IRS emails.
In July 2015, the House Oversight Committee released information which showed that in 2011, when Lerner’s hard drive was examined by John Minsek, a senior investigative analyst with the IRS Criminal Investigations unit, it contained “well-defined scoring creating a concentric circle in the proximity of the center of the disk.”
In July 2015, the House Oversight Committee released information which showed that the IRS had avoided searching five of six possible sources of electronic media for Lerner’s emails.
In July 2015, the House Oversight Committee released information which showed that some IRS officials, including some who were supervised by Lerner, had used a “wholly separate” instant messaging system called “Office Communication Server” that automatically erased its messages. None of these messages were archived. In an email conversation, Lerner had asked if the Office Communication Server archived its messages, and when she was told that it did not archive its messages, she responded by saying “Perfect.”
In July 2015, U.S. District Judge Emmet G. Sullivan threatened to hold IRS employees, including IRS Commissioner John Koskinen, in contempt because they had illegally ignored the judge’s orders to release some of Lerner’s emails and other IRS documents. These same IRS employees had previously illegally ignored Freedom of Information requests and lawsuits for those same emails and other documents.
In August 2015, a report by the Senate Finance Committee said that during the 40 month period from February 2009 through May 2012, only one conservative group had been granted non-profit status by the IRS. The Senate Finance Committee report stated:
“Due to the circuitous process implemented by Lerner, only one conservative political advocacy organization was granted tax-exempt status between February 2009 and May 2012. Lerner’s bias against these applicants unquestionably led to these delays, and is particularly evident when compared to the IRS’s treatment of other applications…”
“Although applications from the Tea Party and conservative organizations languished at the IRS, this was not the case for all groups that applied. In cases where the IRS wanted to act quickly, it did – particularly for other high-profile applications that attracted political attention…”
“The IRS’s treatment of these organizations was almost universally consistent with Lerner’s personal political views – this is, supporting Democratic candidates and opposing conservative tax-exempt organizations…”
The Senate Finance Committee report also said:
“We found evidence that Lerner’s personal political views directly resulted in disparate treatment for applicants affiliated with Tea Party and other conservative causes…”
“Her influence led not only to indefinite delays in the processing of these groups’ applications for tax-exempt status, but also to audits. During that same time, the IRS generally responded quickly and favorably to nonprofit organizations that were affiliated with progressive causes…”
In June 2016, the IRS released a list of names of 426 conservative organizations that it had targeted.
In June 2016, it was reported that in October 2010, at Lerner’s request, 1.25 million pages of confidential tax returns had been transferred from the IRS to the Department of Justice’s criminal division. The only way that this transfer could have been legal would be if the Justice Department had specifically requested it, and the only circumstances under which the Justice Department is legally allowed to make such a request is when the parties in question are under criminal investigation by the Justice Department. However, the Justice Department never requested these documents, and there was no criminal investigation of these organizations by the Justice Department. Therefore, Lerner’s action was illegal. Included in this transfer were the names and address of donors to these organizations – information which is supposed to be private and confidential. Of course, as always, Obama refused to file any charges against Lerner for her illegal activity.
On July 29, 2016, a Freedom of Information lawsuit by Judicial Watch resulted in more documents being released. These documents showed that top IRS officials in Washington D.C., including Lerner, had known as early as the summer of 2011 that the IRS was targeting conservative groups because of their ideology and political affiliation. Judicial Watch wrote of this:
“These documents show that the Obama FBI and Justice Department had plenty of evidence suggesting illegal targeting, perjury, and obstruction of justice. Both the FBI and Justice Department collaborated with the Lois Lerner and the IRS to try to prosecute and jail Barack Obama’s political opponents. These documents show the resulting compromised investigation looked the other way when it came to Obama’s IRS criminality.”
On August 1, 2016, Judicial Watch released additional documents, which showed that the IRS targeting of conservative groups had been happening since 2010, and that it had lasted though the November 2012 election. Multiple IRS employees said that applications from conservatives groups had been automatically denied approval, and were placed in a special “inventory” while IRS employees awaited further instructions from IRS headquarters in Washington D.C. Multiple IRS agents said that these IRS policies guaranteed that these applications from conservative groups would not be approved before the November 2012 election.
On August 2, 2016, Judicial Watch released more documents, which showed that Justice Department attorney Barbara Bosserman, who had spent more than 1,500 hours “investigating” the IRS targeting of conservative groups, had donated a total of $6,750 to Obama’s campaigns and the DNC between 2004 and 2012, including 12 separate donations to Obama for America between 2008 and 2012. In addition, it was Attorney General Eric Holder who had assigned Bosserman to oversee this “investigation.” No charges were filed as a result of this “investigation.”
In August 2016, it was reported that the Albuquerque Tea Party was still waiting for approval from the IRS more than six years after it had filed its first application.
In September 2016, Judicial Watch reported:
A 2013 study by scholars from the American Enterprise Institute and the John F. Kennedy School of Government at Harvard University found that, “had the Tea Party groups continued to grow at the pace seen in 2009 and 2010, and had their effect on the 2012 vote been similar to that seen in 2010, they would have brought the Republican Party as many as 5 – 8.5 million votes compared to Obama’s victory margin of 5 million.”
In November 2016, U.S. District Judge Michael R. Barrett said that the IRS was still targeting tea party groups because the IRS was still not processing applications that the tea party groups had submitted several years earlier. He ordered the IRS to process an application that the Texas Patriots Tea Party had submitted four years earlier. He also ordered the IRS to stop targeting tea party groups. Judge Barrett said:
“The evidence strongly suggests that the IRS initiated the delay because TPTP’s application was perceived at the screening stage to be a Tea Party case.”
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Associated Press claims IRS targeted liberal groups, but refuses to actually name even one of them
The Associated Press is now claiming that the IRS targeted liberal groups. The article begins:
Democrats are unhappy that newly revealed Internal Revenue Service documents show the agency screened for progressive groups seeking tax-exempt status, not just the tea party organizations for which the IRS was already under fire.
Democrats also want to know why the Treasury Department inspector general who investigated IRS targeting of conservative groups didn’t mention that terms like “Progressives” and “Healthcare legislation” were on the same lists agency workers used to find applications to review closely.
“The Inspector General seriously erred in not making clear in both the audit report and his testimony on this matter that ‘Tea Party’ and ‘Progressives’ were included” in the lists IRS workers used to screen applications, Rep. Sander Levin, D-Mich., wrote Monday in a memo his aides distributed. Levin is the top Democrat on the House Ways and Means Committee.
Despite continuing for an additional 22 paragraphs, the article does not name even one liberal group that was allegedly targeted. The article does not cite even one specific example of a liberal group being treated badly by the IRS. The article does not quote even one person from one liberal group claiming to have been treated unfairly.
(more…)
IRS agents have violated the medical privacy of 10 million people
Forbes reports:
“Much of the talk in the news this week regards the appalling scandal involving IRS targeting of conservative non-profit groups. So it’s worth noting that Obamacare dramatically expands the authority and the scope of the Internal Revenue Service. Two provisions in particular will require thousands of new IRS agents, and billions in funding, to enforce: the law’s individual mandate, forcing most Americans to buy government-approved health insurance; and its employer mandate, forcing most employers to take money out of workers’ paychecks to purchase costly health insurance on their behalf. Here’s why these two provisions are so intrusive, and why the only solution to the problems they create is to repeal them.”
Courthouse News reports:
“A lurid but vague class action accuses corrupt and abusive IRS agents of stealing 10 million people’s medical records without a warrant – including ‘intimate medical records of every state judge in California.'”
“‘These medical records contained intimate and private information of more than 10,000,000 Americans, information that by its nature includes information about treatment for any kind of medical concern, including psychological counseling, gynecological counseling, sexual or drug treatment, and a wide range of medical matters covering the most intimate and private of concerns,’ the complaint states.”
“Corrupt and abusive IRS agents”? Isn’t that being awfully redundant?
Technically, these particular IRS agents were probably hired before Obamacare was passed. But still, Obamacare does call for thousands more just like them to be hired, all in the name of “health care.”
I always thought that providing health care to 30 million additional people would involve hiring new doctors, not new IRS agents. But Obama is a lawyer and a community organizer – not a doctor, scientist, or logician – so from his point of view, it is IRS agents, and not doctors, who will be the real solution to the health care crisis.
For four years, IRS supervisors were too dumb to notice that their own employee was embezzling money from the IRS
Wow! This shows just how incredibly stupid the supervisors at the IRS are. For four years, they were too stupid to notice the altered receipts that one of their employees was giving them when she used her IRS credit card to make personal purchases.
Anyone who is too stupid to notice that, should not be working as a supervisor at the IRS.
The Smoking Gun reports:
Entrusted with a government credit card, an Internal Revenue Service worker allegedly used the plastic for a years-long Amazon.com shopping spree that netted her hundreds of items, including a chocolate fondue fountain; Bollywood movies; Pampers; Harlequin romance novels; Omaha Steaks; Apple Bottoms skinny jeans; mango body wash; and a Ginsu knife set.
According to a court filing, Oseni was given a Citibank MasterCard for the “purchase of office supplies for her business unit.”
However, a probe by the Treasury Department’s inspector general determined that Oseni has made scores of unauthorized purchases since being provided the IRS credit card in mid-2009. Oseni “provided altered receipts to approving officials at the IRS to cover-up the unauthorized purchases,” prosecutors charge.
Some of Oseni’s more distinctive buys included:
* “2 Plus Size Trench Coats”
* “Hello Kitty Cosmetic Set and Dream Diary Kit”
* “MAC Haughty & Naughty Lash Mascara”
* “Nostalgia Electrics RSM-702 Retro Series Snow Cone Maker”
* “3lb Party Candy and Toy Pinata”
* “Lansinoh Lanolin Nursing Cream”
* “4 pairs of Leveret Children Pajamas (Choo Choo, Dreamboat, Tiger, Monkey)”
Oseni, who is free on a personal recognizance bond, faces a maximum of ten years in prison if convicted on the embezzlement count. She is scheduled for a June 12 hearing at the federal courthouse in Greenbelt, Maryland.
This went on for four years – four years of these purchases using her IRS credit card – and none of her supervisors – not one of them – noticed that she was submitting phony receipts.
For four years, none of her supervisors ever questioned why she was charging such huge sums of money on her IRS credit card.
This proves, beyond any doubt, that the people who work as IRS supervisors, are too stupid to be working as IRS supervisors.
Compilation of the IRS’s actions in its targeting of conservatives
In May 2013, the Washington Post reported that the IRS had illegally targeted conservative groups for additional reviews. Organizations with the words “tea party” or “patriot” were singled out for harassment, such as requiring them to provide a list of donors, details about their internet postings on social networking websites, and information about their family members.
When this was first reported by the media in May 2013, Lois Lerner, who heads the IRS division that had conducted these illegal activities, claimed that only low level employees had known about it, and that no high level IRS officials had known about it. However, soon afterward, NPR reported that an Inspector General report showed that Lerner had been lying, and that she herself had actually been aware of it since June 29, 2011. Even worse, in March of 2012, Lerner herself had written such a letter to American Patriots Against Government Excess, a conservative group. Lerner’s letter can be read here.
The Washington Post reported that IRS officials at the IRS headquarters in Washington D.C. had sent such letters to conservatives groups. Reuters reported that higher level IRS officials had taken part in discussions about it as early as August 2011. However, 21 months later, on May 10, 2013, the Washington Post reported that President Obama had not done anything to investigate or fire the IRS employees who had engaged in this illegal harassment. As of May 14, 2013, none of the IRS employees who engaged in any of this illegal behavior had been disciplined, despite the fact that higher level IRS officials had known about their illegal behavior at least since August 2011.
On May 15, 2013, it was reported that Steven Miller, the acting IRS commissioner, had resigned. However, it was also reported that his assignment would have ended in early June anyway. He resigned – Obama did not fire him.
The IRS gave out confidential information about conservative groups. ProPublica wrote:
“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.”
“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.”
“No unapproved applications from liberal groups were sent to ProPublica.”
President Obama either lied about when he first knew about this – or was too busy playing golf and attending fundraisers to read the memos that were sent to him. The Daily Caller wrote:
“White House press secretary Jay Carney said in a press conference Tuesday that the White House was notified about the IRS targeting tea party groups ‘several weeks ago.’ This comes a day after President Obama said he found out about it from news reports on Friday of last week.”
“During a press conference with British Prime Minister David Cameron on Monday, President Obama was asked about the IRS scandal. He responded, ‘I first learned about it from the same news reports that I think most people learned about this. I think it was on Friday.’ “
“However, Carney said Tuesday that first a report had to be compiled by the IRS’s inspector general and then when it was completed, it was passed on to the administration.”
“‘A notification is appropriate and routine and that is what happened and that happened several weeks ago,’ Carney said.”
When Media Trackers, a conservative organization, applied to the IRS for non-profit status, after waiting 16 months, it got no response. But when it reapplied with a liberal sounding name, it got approval in just three weeks. Yahoo wrote:
“In May 2011, Drew Ryun, a conservative activist and former Republican National Committee staffer, began filling out the Internal Revenue Service application to achieve nonprofit status for a new conservative watchdog group.”
“When September 2012 arrived with still no word from the IRS, Ryun determined that Media Trackers would likely never obtain standalone nonprofit status, and he tried a new approach: He applied for permanent nonprofit status for a separate group called Greenhouse Solutions, a pre-existing organization that was reaching the end of its determination period.”
“The IRS approved Greenhouse Solutions’ request for permanent nonprofit status in three weeks.”
Regarding how the IRS treated one of President Obama’s relatives, the Dailer Caller wrote:
“Lois Lerner, the senior IRS official at the center of the decision to target tea party groups for burdensome tax scrutiny, signed paperwork granting tax-exempt status to the Barack H. Obama Foundation, a shady charity headed by the president’s half-brother that operated illegally for years.”
“According to the organization’s filings, Lerner approved the foundation’s tax status within a month of filing, an unprecedented timeline that stands in stark contrast to conservative organizations that have been waiting for more than three years, in some cases, for approval.”
“Lerner also appears to have broken with the norms of tax-exemption approval by granting retroactive tax-exempt status to Malik Obama’s organization.”
Politico reported:
“The same Internal Revenue Service office that singled out Tea Party groups for extra scrutiny also challenged Israel-related organizations, at least one of which filed suit over the agency’s handling of its application for tax-exempt status.”
“The trouble for the Israel-focused groups seems to have had different origins than that experienced by conservative groups, but at times the effort seems to have been equally ham-handed.”
The IRS asked conservative groups what books they were reading.
Although the IRS went 18 months or longer without responding to conservative organizations’ applications, the IRS demanded that these same organizations answer the IRS’s intrusive questions within a few weeks.
After the Waco Tea Party sent an application to the IRS, the IRS waited 19 months to respond. In its response, the IRS asked for printouts of its web page and social networking sites, copies of all of its newsletters, bulletins and fliers, and copies of all stories written about it. The IRS also asked for transcripts of its radio interviews.
As one example of how the IRS treated conservative organizations differently from liberal ones, Politico reported:
“Chris Littleton, one of the co-founders of the Ohio Liberty Coalition, said the group got a grilling from the IRS when it submitted its application, in letters the group has posted on its website. The IRS also gave him so much grief when he tried to apply for tax-exempt status for another group, American Junto, that ‘we just gave up on it,’ he said.”
“But when he submitted an application for a third group — Ohioans for Health Care Freedom, now renamed Ohio Rising — ‘it went through just fine,’ Littleton said. ‘They never asked a single set of questions.'”
After the Greater Phoenix Tea Party Patriots sent in their application, it took two years for the IRS to respond. The IRS response included 35 questions. When the group’s cofounder called the IRS, the IRS agent claimed that he had their group’s file right in front of him. But when the group’s confounder asked the IRS agent a question, the IRS agent asked, “What’s your group’s name again?”
Tea Party groups who spoke with each other said they were all getting the same questions from the IRS.
The Washington Post reported that some IRS employees were “ignorant about tax laws, defiant of their supervisors, and blind to the appearance of impropriety.”
In 2012, the IRS leaked confidential information about Mitt Romney to the co-chairman of President Obama’s re-election committee.
For a 27 month period that began in February 2010, the IRS gave exactly zero approvals to Tea Party organizations that had sent in applications. During that same time period, numerous liberal organizations with names including words such as “progress” or “progressive” did get approval.
In May 2013, U.S. News & World Report wrote:
“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. At the same time, Republicans repeatedly and publicly warned against this abuse of government power and pointed to a series of red flags that strongly suggested conservative political organizations were being targeted by the IRS. Those warnings were deliberately ignored by the Obama administration and Democratic leaders in Congress.”
“From Max Baucus to Chuck Schumer to Jeanne Shaheen, key Senate Democrats publicly pressured the IRS to target groups that held differing political views and who, in their view, had the temerity to engage in the political process. The IRS listened to them and acted.”
The IRS also treated conservative and liberal groups differently on the issue of abortion. The Washington Examiner reported:
IRS officials refused to grant tax exempt status two pro-life organizations because of their position on the abortion issue, according to a non-profit law firm, which said that one group was pressured not to protest a pro-choice organization that endorsed President Obama during the last election.
“In one case, the IRS withheld approval of an application for tax exempt status for Coalition for Life of Iowa. In a phone call to Coalition for Life of Iowa leaders on June 6, 2009, the IRS agent ‘Ms. Richards’ told the group to send a letter to the IRS with the entire board’s signatures stating that, under perjury of the law, they do not picket/protest or organize groups to picket or protest outside of Planned Parenthood,” the Thomas More Society announced today. “Once the IRS received this letter, their application would be approved.”
The IRS also pressured another pro-life group about its religious activities. “The IRS withheld approval of an application for charitable tax-exempt recognition of Christian Voices for Life, questioning the group’s involvement with ’40 Days for Life’ and ‘Life Chain’ events,” according to the law firm. “The Fort Bend County, Texas, organization was subjected to repeated and lengthy unconstitutional requests for information about the viewpoint and content of its educational communications, volunteer prayer vigils, and other protected activities.”
Jon Stewart said of this:
“Well, congratulations, President Barack Obama. Conspiracy theorists who generally can survive in anaerobic environments have just had an algae bloom dropped on their f***ing heads, thus removing the last arrow in your pro-governance quiver: skepticism about your opponents.”
During Congressional testimony that had taken place in March 2012, IRS Commissioner Doug Shulman falsely said that the IRS had not targeted conservative groups.
Michael Macleod-Ball, chief of staff at the ACLU’s Washington Legislative Office, said of this:
“Even the appearance of playing partisan politics with the tax code is about as constitutionally troubling as it gets. With the recent push to grant federal agencies broad new powers to mandate donor disclosure for advocacy groups on both the left and the right, there must be clear checks in place to prevent this from ever happening again.”
Dan from Squirrel Hill's Blog 