Tag: IRS scandal

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:
» Read more

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An illegally destroyed hard drive blocks an investigation into a collegue of Lois Lerner

10:30 pm

Obstruction of justice: The investigation of April Sands, a subordinate of Lois Lerner when both were at the Federal Election Commission, was stymied because the agency destroyed and recycled her computer illegally.

The FEC’s Office of Inspector General sought to conduct a criminal investigation into Sands’ activities but were stymied when they found that the agency had recycled her computer hard drive. “Therefore the OIG was unable to show that Ms. Sands’ solicitations and political activity were done from an FEC computer,” reads the letter. Because of this, the U.S. attorney’s office for the District of Columbia declined criminal prosecution. “The FEC’s failure to retain Ms. Sands’ hard drive prevented the FEC OIG from fully pursuing appropriate criminal sanctions for Ms. Sands’ admitted violation of federal law,” wrote Issa and Jordan.

Sands was under investigation for using her position in the government for partisan purposes. In other words, though she was being paid to work for the Federal Election Commission, she was actually working illegally for the Democratic Party instead.

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Second judge demands explanation from IRS

12:49 pm

A second judge has now ordered the IRS to explain under oath how it lost Lois Lerner’s emails central to the agency’s harassment of conservatives.

The article does not tell us if this second judge has put a deadline on his demands. I expect we will learn more by the end of the day.

Update: This article provides more information. It appears he wants his answers fast, but is also willing to defer to an IRS inspector general investigation into the lost emails that is ongoing.

At a hearing Friday, [U.S. District Judge Reggie] Walton warned government lawyers that he wanted a quick turnaround on that information, saying he would likely require it by the end of next week. Walton said he expected to officially make his order by the end of Friday, but also suggested that he was willing to defer at least somewhat to the inspector general’s investigation and to the multiple congressional inquiries into the IRS. “I am one of the judges that believes the judicial branch has a limited role” in these sorts of cases, Walton said.

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Federal judge gives the IRS 30 days to come clean

4:37 pm

A federal judge has given the IRS 30 days to testify under oath how the Lois Lerner emails were lost.

This testimony will be far different than congressional hearings, in that it will be wide-ranging and will not have Democratic legislators present to provide cover. It will also not be under the time constraints that limit congressional hearings.

In related news, Congressman Steve Stockman (R-Texas) has filed a resolution calling for the arrest of Lois Lerner for contempt of Congress.

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Lois Lerner intentionally sought to hide her emails from Congress

2:43 pm

A newly released 2013 email from Lois Lerner reveals that she made a conscience effort to hide what she was doing from Congressional investigators.

Realizing that her emails at that time were being saved in some manner (this is long after her computer crash that supposedly destroyed her correspondence from 2011), she writes “we need to be cautious about what we say in emails”.

Really? Is that what an honest government worker does? I don’t think so.

Update: This good analysis of these new revelations notes that her email comment above was made only about six weeks before she took the fifth in House hearings. How interesting.

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Another lawsuit presses the IRS

3:10 pm

A third lawsuit against the IRS, this one by True the Vote, will demand answers at a hearing on July 11 about those lost emails.

This lawsuit is in addition to the Z-Street and the Judicial Watch suits. Thus, we now have three different judges in three different courts pushing back at the IRS coverup, with hearings scheduled for July 10 and July 11.

As I said, things should get very hot for the IRS and the Obama administration come mid-July.

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Another legal case that could blow the IRS open

12:44 am

The lawsuit of a pro-Israeli organization, filed in August 2010, makes the IRS extremely vulnerable to deep legal investigation.

[Y]esterday saw the beginning of the discovery phase in the lawsuit by Z-Street a pro-Israel organization that was told its application for tax exempt status was being delayed because “…these cases are being sent to a special unit in the DC office to determine whether the organization’s activities contradict the Administration’s public policies.” …
Judge Jackson gave the IRS until June 26 to respond to Z-Street. That deadline has now passed, so the case enters discovery. This means that Z-Street can subpoena IRS officials, place them under oath, and ask them questions about how they acted, and cross examine them closely. They can also subpoena documents and require their production. This is much different than a House committee hearing in which members have only a few minutes to ask questions, and when friendly Democrats have their opportunity to apologize for the impertinence of daring to ask questions of our IRS masters. Depositions taken under oath can last many hours and involve detailed questions.

What makes the Z-Street case unique and potentially extremely damaging is that its lawsuit was filed in August 2010. That filing placed the IRS under legal obligation to preserve records.

As the article notes, as a legal proceeding it will be practically impossible for the IRS to stonewall, as it has done during Congressional hearings. Like the Judicial Watch case that will have a hearing on July 10, the IRS was required under the law to make sure evidence was not destroyed, and failed to do so. And like that case, the court will have the right to demand answers about that failure and get them.

I want to underline the basis of the Z-Street case: An IRS official admitted that this organization’s tax exempt status was being delayed merely because its “activities contradict the Administration’s public policies.” Think about that. The IRS believes it can decide your tax liability and status based on your political opinion.

Doesn’t that capture in a nutshell the entire scandal, in which the IRS was used as a weapon to harass opponents of the Democratic Party and specifically of Barack Obama.

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Things could get very interesting for the IRS on July 10.

11:46 pm

The judge with whom the IRS failed to notify about the lost emails and is holding a hearing on the matter on July 10 has in the past aggressively pursued corruption in the Department of Justice.

Judge Sullivan is the judge who held federal prosecutors in contempt, dismissed an unjust indictment against a United States Senator, and publicly excoriated the Department of Justice. He also had the moral conviction, courage and gumption to appoint a special prosecutor to investigate the Justice Department and the individual prosecutors. …

In the [Senator Ted] Stevens case, Judge Sullivan publicly upbraided the government lawyers before an overflow courtroom, “In nearly 25 years on the bench, I’ve never seen anything approaching the mishandling and misconduct that I’ve seen in this case. . . . When the government does not meet its obligations to turn over evidence, the system falters.”

Judge Sullivan was taking the extraordinary step of appointing a special prosecutor. He chose highly respected DC attorney Henry Schuelke III to investigate the prosecutors for possible criminal charges. The judge ordered the department to preserve all of its files, electronic correspondence—everything—and cooperate fully in the investigation, including providing Schuelke access to investigative files and all witnesses.

It is very possible Sullivan will get as incensed on July 10. Stay tuned. Things could get very hot for the IRS and the Obama administration on that day.

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IRS also failed to tell court about lost emails

6:17 pm

Cover-up: Even though the IRS knew it had lost a significant chunk of Lois Lerner emails in February, it failed to notify the court even as it released in April emails demanded of them as part of a court case.

No mention was made in that production of the lost Lerner emails, even though the original Judicial Watch FOIA lawsuit filed in May 2013 specifically sought them.

Judicial Watch further noted that “although IRS had knowledge of the missing Lois Lerner emails and of the other IRS officials, it materially omitted any mention of the missing records” in an April 30 status update on its document production. … The tax agency could also face court sanctions or even criminal proceedings if [the judge in the case] is not satisfied with the government’s explanation. [emphasis mine]

The IRS and the officials there should be punished criminally for this behavior, but I doubt it will happen.

And then there’s this: According to the law, the loss of the emails of Lerner and other IRS officials can be inferred as evidence that the emails were incriminating.

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Let citizens sue government workers directly for misconduct.

9:31 am

Let citizens sue government workers directly for misconduct.

The way to control this epidemic of government law-breaking is to allow citizen victims to sue, and legislate personally liability for bureaucrats guilty of willfully illegal conduct.

I agree. If a government bureaucrat breaks the law and no one in the government does anything about it, allowing them to get off without punishment, then the American citizen who was harmed by that illegal activity should have the right to sue that bureaucrat directly. This is how the law applies in every other venue of society. Why should government workers be exempt from the liability of their actions?

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$4.4 billion for 2,000 IRS hard drive crashes.

5:40 pm

After spending $4.4 billion on its computers during the Obama administration, the IRS still had over 2,000 hard drive crashes in 2014.

IRS commissioner John Koskinen used the 2,000 crashes as an argument that the crash of Lois Lerner’s hard drive was not that unusual, and that their aging equipment made backup difficult. To me, it suggests that the people at this agency are either gross incompetents, or even more corrupt than I thought.

Because you see, with that many crashes, the IRS made the one obvious decision anyone with any brains would immediately make in that situation: They canceled the contract with their email backup service.

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