Tag: IRS scandal

The IRS steals property and cash

6:27 pm

Theft by government: The IRS admits to seizing hundreds of thousands of dollars of private assets, without any proof of illegal activity, merely because there is a law that lets them do it.

Using a law designed to catch drug traffickers, racketeers and terrorists by tracking their cash, the government has gone after run-of-the-mill business owners and wage earners without so much as an allegation that they have committed serious crimes. The government can take the money without ever filing a criminal complaint, and the owners are left to prove they are innocent. Many give up and settle the case for a portion of their money. “They’re going after people who are really not criminals,” said David Smith, a former federal prosecutor who is now a forfeiture expert and lawyer in Virginia. “They’re middle-class citizens who have never had any trouble with the law.”

The article describes several specific cases, all of which are beyond egregious and are in fact entirely unconstitutional. The Bill of Rights is very clear about this: The federal government cannot take private property without just compensation.

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IRS begins an audit of an anti-Obamacare filmmaker

9:28 am

Working for the Democratic Party: The IRS has begun an audit of an anti-Obamacare filmmaker, even as it proceeds with audits of other consevatives.

Logan Clements, producer of “Sick and Sicker: ObamaCare Canadian Style,” announced via press release Tuesday that he is being audited for the first time ever. The news comes one month after the conservative Breitbart News announced that it, too, was being audited and that the action was probably politically motivated. Mr. Clements‘ movie makes the case that Obamacare will eventually lead to socialized medicine like Canada.

Remember, Obama claimed there wasn’t a “smidgeon of corruption” surrounding the IRS. And of course, we all believe everything this Democratic politician says!

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More IRS hard drives wiped to conceal evidence

10:42 am

Looks like a pattern to me: In a different legal case separate from its harassment of conservatives, the IRS has been accused of wiping more hard drives and destroying more evidence.

In its latest court filing, NetJets claims the IRS has been concealing evidence. Its lawyers say the computers of three key IRS employees were wiped clean, including the computer of “an excise-tax policy manager and a key decision maker regarding the application of the section 4261 ticket tax to whole and fractional aircraft-management companies.”

While the harassment of conservatives was a poltical act apparently instigated by the White House, this case has more to do with IRS managers interpreting the tax code, possibly improperly, so as to squeeze as much money from an American company as possible. That it is also possible that they were also willing to destroy evidence suggests a rampant corrupt culture that needs a major house-cleaning.

We can hope the next Congress will force this house-cleaning after the November election.

Posted on the road passig through Phoenix.

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AG Eric Holder to resign

9:56 am

Good riddance: Attorney General Eric Holder will announce his resignation today.

Morrissey offers a lot of good analysis about why Holder might be doing this now, but I think this story might explain it best: Federal Court Denies DOJ Motion for Delay, Orders Release of Fast and Furious Documents List to Judicial Watch by October 22.

The Holder Justice Department is under legal attack from several fronts. Holder’s effort to block all investigations, from Fast and Furious to the IRS scandal, will be revealed quite soon in court, and when it does, he is going to be toast. Better he leave now then be forced to resign at a time not of his choice. As Morrissey notes,

Resigning now allows Obama to appoint a replacement soon, and Senate Democrats to schedule the hearings during the lame-duck session (and don’t forget Harry Reid’s rule change on filibusters for presidential appointments, too, which expires at the end of this session).

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The IRS versus the Constitution

1:49 pm

Working for fascists: The IRS did not just harass conservatives, it also targeted groups whose only focus was to teach the Constitution.

It is now well known that the IRS targeted tea party organizations. What is less well known, but perhaps even more scandalous, is that the IRS also targeted those who would educate their fellow citizens about the United States Constitution.

According to the inspector general’s report (pp. 30 & 38), this particular IRS targeting commenced on Jan. 25, 2012 — the beginning of the election year for President Obama’s second campaign. On that date: “the BOLO [‘be on the lookout’] criteria were again updated.” The revised criteria included “political action type organizations involved in … educating on the Constitution and Bill of Rights.” [emphasis mine]

Note that the targeting was aimed at educational groups, not political groups, which were simply working to teach Americans about the founding documents of our country. That the Obama IRS could somehow consider this activity political or partisan and subject to increased investigation is quite disturbing. Since when is teaching about the Constitution a Democratic or Republican issue? Or has it become one, with the Democrats now hostile to the principles of freedom for which these documents were written to defend?

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Judicial Watch demands right to cross-examine IRS officials

7:05 pm

Citing the apparent IRS cover-up, Judicial Watch has asked a federal court for the right to cross-examine IRS individuals under oath.

Judicial Watch is also seeking information about missing documents from as many as eight additional IRS officials involved in targeting Tea Party and conservative groups. Judicial Watch argues that the IRS’s unwillingness to provide this and other crucial information: “information that the IRS was ordered to disclose to this Court, under oath, more than two months ago – demonstrates that the only way the information is ever likely to be provided is if discovery is allowed and Judicial Watch is permitted to cross-examine agency witnesses…”

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More computer crashes and lost emails at the IRS.

5:17 pm

Cover-up: In testimony at House hearings on Wednesday, IRS chief John Koskinen admitted that computer crashes continue at the IRS.

“Hard drive crashes continue as we speak,” Koskinen admitted at a House Oversight and Government Reform subcommittee hearing when asked if any computers had recently crashed under his watch. Koskinen admitted that destroying records would be an act “not consistent with the law,” but maintained that there’s no evidence that the IRS intentionally destroyed records. [emphasis mine]

The simple fact that the IRS proceeded with the destruction of Lois Lerner’s hard drive and Blackberry, even as the investigation was on-going, is direct evidence that the IRS did intentionally destroy records. They, and Koskinen, are breaking the law, and spitting in the face of Congress and the American people as they do it.

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The IRS goes after Breitbart

9:07 pm

Working for the Democratic Party: The IRS has targeted conservative outlet Breitbart News for an audit.

Though of course this audit could have been randomly picked by the IRS, if you believe that I have a bridge in Brooklyn I’d like to sell you. This is obviously an attempt by the Obama administration and its flunkies working at the IRS to harass another one of their opponents. For example, the audit notice demanded

a litany of documents, including logs of its receipts and expenses, but also its partnership agreement and a “written narrative” of the business.

From this statement by Senator Ted Cruz (R-Texas) it turns out the IRS has also requested “personal income tax returns for each member of the company.” Consider that for a moment. Such a request suggests a fishing expedition by the IRS which will be followed by further audits of these individuals.

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Obama official calls Republicans by mistake in trying to leak info to Democrats

2:49 pm

Working for the Democratic Party: An aide to Attorney General Eric Holder, in trying to arrange a leak of new IRS information to the Democrats so they could spin the story, accidently called the office of the Republican committee chairman instead.

The aide, Brian Fallon, is a former senior aide to Sen. Chuck Schumer (D-NY) and a well-known personality on Capitol Hill. The letter [by Republican Darrell Issa to Eric Holder] describes Fallon as “audibly shaken” when he realizes his request to leak documents to help get ahead of news stories about them was mistakenly made to the very office he was seeking to undermine. Issa believes the call was intended to be made to Democratic Rep. Elijah Cumming’s staff, the ranking member on the oversight panel, the letter said.

This kind of proves beyond a shadow of a doubt that the Obama administration does not have an investigation into the IRS scandal, only an effort to coverup their illegal activities.

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Why did the IRS wipe clean Lois Lerner’s Blackberry?

9:55 am

An excellent question. The answer? The IRS refuses to say.

Among the most pressing is the fact that a Blackberry belonging to Lois Lerner, a former official at the center of the scandal, was wiped clean shortly after investigators started asking questions about her alleged role in the targeting of conservative groups applying for tax-exempt status.

Despite the fact that this revelation first came to light in August, the IRS has yet explain why this was done.

Considering her former role as chief of the IRS’ tax exempt division, and its proximity to the targeting scandal, the decision to wipe her phone after investigators started asking questions is both suspicious and troubling.

I have to admit I missed this minor detail. In previous examples where the IRS destroyed a hard drive, it was because the hard drive had had problems. The destruction was still illegal, but in at least in that case there was a somewhat reasonable if unlikely reason to do it. With Lerner’s Blackberry they haven’t given us any reason, other than it was done shortly after the investigation had begun.

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More IRS emails lost

3:37 pm

Cover-up: The IRS claimed today that it has lost emails from five more employees that were involved in the agency’s harassment of conservatives.

The article also spends a lot of time talking about a partisan Democratic Senate report issued today that whitewashes the IRS harassment. As far as I can see, that Democratic report confirms only one thing: Senate Democrats are working hand-in-glove with IRS bureaucrats and the Department of Justice to stonewall the investigation and to justify the use of the IRS as a partisan weapon by Democratic politicians. Isn’t that nice?

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New emails provide more details of the IRS harassment of conservatives

5:35 pm

Working for the Democratic Party: New IRS emails reveal that the agency’s demand for donar lists was unnecessary according to the law and took place almost entirely against conservatives.

Worse, the donor lists were then used by the IRS to compile a list of conservatives to be audited.

Then-IRS Commissioner Miller initially testified to Congress on May 17, 2013 that “instructions had been given to destroy any donor lists,” but donor lists were actually produced to the House Ways and Means Committee four months later. The House Ways and Means Committee also announced at May 7, 2014 hearing that, after scores of conservative groups provided donor information “to the IRS, nearly one in ten donors were subject to audit.” In 2011, as many as five donors to one conservative (c)(4) organization were audited, according to the Wall Street Journal. [emphasis mine]

Apparently, the only reason these people were audited by the IRS is because they were contributors to conservative causes. In other words, the IRS was working to squelch the free speech rights of Americans who opposed the Democratic Party.

Read the whole article. There’s a lot more, such as proof that the claim by Lois Lerner and Barack Obama that the harassment was instigated solely by low level IRS employees was an outright lie. They didn’t misspoke. They didn’t misunderstand. They didn’t make a mistake. They lied, knowingly, consciously, and with forethought.

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Lerner ignored questionable union political activities

12:09 am

Working for the Democratic Party: Newly released emails show that Lois Lerner once dismissed complaints that labor unions were not reporting to the IRS millions of dollars in political activities — almost all of which helped Democrats — that they did report to the Labor Department.

In 2006, the year leading up to Lerner’s email, the national headquarters for the AFL-CIO reported no direct or indirect political expenditures with the IRS on their 990 form, leaving the line 81a blank. That same year, the AFL-CIO reported $29,585,661 in political activities with the Department of Labor. Also in 2006 the Teamsters Union reported no political expenditures with the IRS while at the same time reporting $7,081,965 with the Labor Department. Again in 2006, Unite-Here reported no political activity with the IRS and $1,451,002 with the Labor Department. In 2005, the National Education Association also reported no political expenditures with the IRS while at the same time reporting $24,985,250 with the Labor Department.

The lack of reporting to the IRS was essentially illegal. Yet, when complaints were made to Lerner about this, she poo-pooed the issue and apparently squelched further investigations.

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Lois Lerner’s Blackberry destroyed by IRS

11:25 pm

Cover-up: The IRS destroyed Lois Lerner’s Blackberry after her computer crashed and after the Congressional investigation into the harassment of conservatives had begun.

In two elusive and nebulous sworn declarations, we can glean that Ms. Lerner had two Blackberries. One was issued to her on November 12, 2009. According to a sworn declaration, this is the Blackberry that contained all the emails (both sent and received) that would have been in her “Outlook” and drafts that never were sent from her Blackberry during the relevant time.

With incredible disregard for the law and the Congressional inquiry, the IRS admits that this Blackberry “was removed or wiped clean of any sensitive or proprietary information and removed as scrap for disposal in June 2012.” This is a year after her hard drive “crash” and months after the Congressional inquiry began.

The IRS did not even attempt to retrieve that data. It cavalierly recites: “There is no record of any attempt by any IRS IT employee to recover data from any Blackberry device assigned to Lois Lerner in response to the Congressional investigations or this investigation,” according to Stephen Manning, Deputy Chief Information Officer for Strategy & Modernization.

I am once again reminded of the Watergate coverup, where Nixon’s effort to block the investigation did nothing but slow the release of evidence, turning it into a steady trickle that kept coming, again and again and again, with each revelation acting like another nail in the coffin. We are seeing this same process unfold again here.

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DOJ attorney once worked under Lois Lerner at IRS

6:11 pm

Working for the Democratic Party: The attorney in the Justice Department representing the IRS directly participated in the harassment of conservatives when he worked under Lois Lerner at the IRS from 2008 to 2010.

The article calls this a conflict of interest. I instead see it as a continuing and unified effort by the Obama administration and all levels of the federal bureaucracy to use the power of the federal government to squelch any opposition to the Democratic Party.

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IRS tech claims Lerner’s hard drive wasn’t damaged.

10:21 am

Cover-up: An IRS computer technician has contradicted the sworn testimony of IRS officials, stating that Lois Lerner’s hard drive was not damaged prior to its destruction.

Aaron Signor, an IRS technician that looked at Lerner’s hard drive in June 2011, said in IRS court filings that he saw no damage to the drive before sending it off to another IRS technician, leading some in the media to suggest that the lost emails scandal is basically over. But Signor’s statement, issued in response to the Judicial Watch lawsuit, does not jibe with sworn congressional testimony.

This testimony is one of the reasons Judge Emmet Sullivan has ordered an independent inquiry into the IRS’s lost emails.

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IRS lets contractors rummage through taxpayer data

2:43 pm

Does this make you feel secure? An inspector general report found that the IRS allowed contractors access to personal taxpayer information without doing the required background checks required by IRS policy.

Contractors who have access to sensitive information, which also includes employee and law enforcement data, must undergo a background check if they’re with the IRS for more than six months.

But the inspector general’s audit found five contracts where contractors had not had any background checks out of the 28 total contracts reviewed. In one of those cases, a contractor working on printing and mailing tax forms was given a disk containing 1.4 million taxpayer names, Social Security numbers and other personal information. A separate contract, for couriers, had given a daily route to an ex-convict who served more than 20 years for arson, the report added. In another 12 cases, IRS staffers had started background checks for contractors, but contractors were allowed to start working before those investigations had concluded.

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“It was the grossest incompetence.”

12:23 pm

The IRS takes more than two years to issue a refund check because of its own stupidity.

This paragraph best sums up the entire idiocy:

Dinesen [representing the citizen] immediately contacted the collection division. He was told they had no record of the return. The identity theft unit was handling it, and the collection division’s computers weren’t capable of interfacing with the identity theft unit’s computers. “I asked if he could just call the identity theft unit to confirm the return had been filed. He said he couldn’t. His explanation for why not boiled down to, ‘We don’t do that,’” Dinesen said.

The agent agreed to suspend collection actions against Boka Gonzalez while Dinesen tried to resolve the case. “He also asked me to give him a call if I got any information from the identity theft unit. It seemed ridiculous to me that one part of the IRS would ask an outside person to keep him informed of what another part of the IRS was doing, but that was the level of dysfunction we were dealing with,” Dinesen said.

Read the whole story. It is horrifying. And remember, this is a case where the IRS was simply incompetent. Imagine the harm they could do if they wanted to do harm, or were ordered to do so by our political leaders. Thank God such things never happen!

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The IRS stonewalls a judge

10:27 am

Working for the Democratic Party: Required by a judge to explain in detail in 30 days the destruction of its emails, the IRS has instead provided nothing more than shallow platitudes.

The author of the article above is very confident that, based on his past history, the judge will come down very hard on the IRS for its stonewalling. I pray that he is right.

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The count now more than 20

11:43 pm

Corruption: More than twenty Obama officials have lost or destroyed emails after learning that Congress wanted to see them.

[I]n each case, the loss wasn’t disclosed to the National Archives or Congress for months or years, in violation of federal law,” House Oversight and Government Reform Committee chairman Darrell Issa (R-California) said of [the] lost e-mails. “It defies logic that so many senior Administration officials were found to have ignored federal record-keeping requirements only after Congress asked to see their e-mails.”

Actually, it doesn’t defy logic. It is perfectly logical. This administration is corrupt, has broken the law numerous times, and is now aggressively destroying evidence to cover-up its corruption.

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Democratic Party law professor made a fool of at House IRS hearings today

7:57 pm

A law professor brought before a House committee today by the Democrats to argue against appointing a special prosecutor in the IRS scandal was made to look ridiculous when he couldn’t answer the most basic legal questions in connection with the concept of conflict of interest.

The article describes Congressman Trey Gowdy’s (R-South Carolina) questioning quite well, but you should still watch the video below the fold. It reveals how blindly partisan today’s Democrats have become, willing to defend this IRS harassment of their political opponents under all circumstances, no matter how stupid and corrupt it makes them look.
» Read more

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New emails reveal Lois Lerner’s hatred of conservatives

9:13 am

Working for the Democratic Party: In newly revealed emails, Lois Lerner refers to Obama’s conservative opponents as “–holes” and “terRorists”.

In that Nov. 9, 2012 email, Lerner further suggests that conservatives will ruin the country: “So we don’t need to worry about alien teRrorists (sic). It’s our own crazies that will take us down,” she wrote.

The evidence also shows that Lerner used her private email account to conduct official IRS business, while also clearly favoring liberal organizations.

I wonder what we would find if those lost emails could turn up?

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More destroyed evidence at the IRS

10:39 am

Working for the Democratic Party: The IRS now reports that as many as 20 individuals under investigation for the agency’s harassment of Obama’s political opponents have had computer crashes, losing their emails.

IRS Deputy Associate Chief Counsel Thomas Kane said in transcribed congressional testimony that more IRS officials experienced computer crashes, bringing the total number of crash victims to “less than 20,” and also said that the agency does not know if the lost emails are still backed up somewhere.

The new round of computer crash victims includes David Fish, who routinely corresponded with Lois Lerner, as well as Lerner subordinate Andy Megosh, Lerner’s technical adviser Justin Lowe, and Cincinnati-based agent Kimberly Kitchens.

But hey, Lois Lerner says she did nothing wrong!

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The House slashes IRS budget

9:51 am

The Republican-controlled House has slashed the IRS’s tax enforcement budget by 25%.

The cuts reflect GOP outrage over the agency’s scrutiny of tea party groups seeking tax-exempt status and frustration over the agency’s failure to produce thousands of emails by Lois Lerner, the official formerly in charge of the IRS division that processes applications for tax-exempt status.

“The use of a government agency to harass, target, intimidate and threaten lawful, honest citizens was the worst form of authoritarianism,” said Rep. Paul Gosar, R-Ariz., author of an amendment to cut the IRS tax enforcement budget by $353 million. Rep. Bill Huizenga, R-Mich., followed up with an amendment to cut $788 million more.

The Democratic floor leader on the funding bill, Rep. Jose Serrano of New York, opposed the amendments but opted against demanding a roll call vote. [emphasis mine]

This is the right way to deal with the IRS abuse of power. Cut their funds. Use the power of the purse. I also highlight the Democratic position because it illustrates several things:
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