Monday, May 13, 2013

Question for the day. When you are targeted by the state for disagreeing with government action you live in a what?


Wider Problems Found at IRS

Probe Says Tax Agency Used Sweeping Criteria to Scrutinize Conservative Groups


The Internal Revenue Service's scrutiny of conservative groups went beyond those with "tea party" or "patriot" in their names—as the agency admitted Friday—to also include ones worried about government spending, debt or taxes, and even ones that lobbied to "make America a better place to live," according to new details of a government probe.
The investigation into the IRS's targeting of conservative groups has revealed that high-ranking IRS officials knew as early as 2011 of the practice. John McKinnon reports.

The investigation also revealed that a high-ranking IRS official knew as early as mid-2011 that conservative groups were being inappropriately targeted—nearly a year before then-IRS Commissioner Douglas Shulman told a congressional committee the agency wasn't targeting conservative groups.
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Associated Press
Tax-exempt groups organized under section 501(c)(4) of the Internal Revenue Code are allowed to engage in some political activity, but the primary focus of their efforts must remain promoting social welfare.

The new disclosures are likely to inflame a widening controversy over IRS handling of dozens of applications by tea-party, patriot and other conservative groups for tax-exempt status.

The details emerged from disclosures to congressional investigators by the Treasury Inspector General for Tax Administration. The findings, which were reviewed by The Wall Street Journal, don't make clear who came up with the idea to give extra scrutiny to the conservative groups.
The Internal Revenue Service inappropriately flagged conservative political groups for additional reviews during the 2012 election to see if they were violating their tax exempt status. John McKinnon reports on the News Hub.

The inspector general's office has been conducting an audit of the IRS's handling of the applications process and is expected to release a report this week. The audit follows complaints last year by numerous tea-party and other conservative groups that they had been singled out and subjected to excessive and inappropriate questioning. Many groups say they were asked for lists of their donors and other sensitive information.

On Sunday, a government official said the report will note that IRS officials told investigators that no one outside the IRS was involved in developing the criteria the agency now acknowledges were flawed.

On Friday, Lois Lerner, head of the IRS tax-exempt-organizations division, said the agency was "apologetic" for what she termed "absolutely inappropriate" actions by lower-level workers. She said those workers had selected some conservative groups for extra scrutiny to determine whether their applications should be approved. She said they had picked groups for extra scrutiny according to whether they had "tea party" or "patriot" in their names, among other criteria.
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Ms. Lerner came to the IRS in 2001 from the Federal Election Commission, and assumed her current position in 2006. IRS officials said Sunday that Ms. Lerner wasn't available for comment, and she didn't respond to an emailed request.

GOP lawmakers stepped up their criticism on Sunday. "The bottom line is [IRS officials] used key words to go after conservatives," Rep. Darrell Issa (R., Calif.), said Sunday on NBC's "Meet the Press." "There has to be accountability for the people who did it. And, quite frankly…there's got to be accountability for people who were telling lies about it being done."

Some Democrats also voiced criticism. "I'm concerned about that," said Sen. Dianne Feinstein (D., Calif.), also on NBC. "Somebody made the decision that they would give extra scrutiny to this particular group. And I think we have to understand why."

The IRS said over the weekend it is in the process of independently confirming the dates mentioned on the timeline of events contained in the inspector general report, "but we believe the [inspector general's] timeline is correct." The IRS said the report supports its view that its missteps weren't politically motivated and were limited to lower-level workers.

The IRS also said the report reflects that "IRS senior leadership was not aware of this level of specific details" at the time of a March 2012 hearing where Mr. Shulman denied any targeting of conservative groups. Mr. Shulman, who no longer works for the IRS, declined to comment.

The new details suggest that agency workers were examining statements in applications for tax-exempt status to determine whether groups had political leanings.

Tax-exempt social-welfare groups organized under section 501(c)(4) of the Internal Revenue Code are allowed to engage in some political activity, but the primary focus of their efforts must remain promoting social welfare. That social-welfare activity can include lobbying and advocating for issues and legislation, but not outright political-campaign activity. But some of the rules leave room for IRS officials to make judgment calls and probe individual groups for further information.

Organizing as such a group is desirable, not just because such entities typically don't have to pay taxes, but also because they generally don't have to identify their donors.

IRS officials said last week that the focused review of conservative groups was initiated by lower-level civil servants in the IRS Cincinnati office, not by political appointees in Washington, and that it wasn't politically motivated. They say it stemmed from a misguided effort to centralize review of a growing number of applications for tax-exempt 501(c)(4) status.

But questions continued to swirl about the failure of IRS officials to disclose the problems until the inspector general's report was about to become public.

The timeline contained in the draft report indicates that IRS scrutiny of tea-party and other conservative groups began as early as 2010 and came to the attention of Ms. Lerner, the head of the tax-exempt-organizations division, at least by the following year.

The report's timeline indicates that the criteria were changed to be more neutral in July 2011 after Ms. Lerner "raised concerns." The criteria for heightened scrutiny continued to evolve over the next year or so, even as complaints from tea-party groups—and questions from GOP lawmakers—mounted over IRS inquiries to various groups about their activities.

Letters from Ms. Lerner in April and May 2012 responding to questions by Republican lawmakers made no mention of the problems that had surfaced in the IRS unit.

According to the draft report, on April 24 and 25 of last year, officials in Ms. Lerner's office were reviewing "troubling questions" that had been asked of organizations, including "the names of donors."

Ms. Lerner's April 26 letter to Mr. Issa, the chairman of the House Oversight and Government Reform Committee, said that "there are instances where donor information may be needed…such as when the application presents possible issues of…private benefit."

The report indicates that in 2010 and 2011, some IRS workers weren't just singling out groups because their names contained certain words, as IRS officials suggested on Friday, but appeared to be probing for indications of political interests or leanings.

According to the report, by June 2011 some IRS specialists were probing applications using the following criteria: "issues include government spending, government debt or taxes; education of the public by advocacy/lobbying to 'make America a better place to live'; statements in the case file criticize how the country is being run."


Posted By Jamie Weinstein 
Just months after being slimed by President Barack Obama’s re-election campaign, Mitt Romney supporter and businessman Frank VanderSloot was informed that he was going to be audited not only by the Internal Revenue Service, but by the Labor Department as well.
VanderSloot’s saga was told by columnist Kimberley Strassel in the Wall Street Journal last July.
In April 2012, VanderSloot, who served as the national co-chair of Mitt Romney’s presidential finance committee, was one of eight Romney backers to be defamed as ”wealthy individuals with less-than-reputable records” in a post on the Obama campaign’s website. The post, entitled “Behind the curtain: a brief history of Romney’s donors,” singled out VanderSloot for being a ”litigious, combative and a bitter foe of the gay rights movement.”
Two months later, the IRS informed VanderSloot he and his wife were going to be audited, Strassel reported. Two weeks after that, VanderSloot was notified by the Labor Department that it was going to “audit workers he employs on his Idaho-based cattle ranch under the federal visa program for temporary agriculture workers,” reported Strassel.
“The H-2A program allows tens of thousands of temporary workers in the U.S.; Mr. VanderSloot employs precisely three,” Strassel wrote. “All are from Mexico and have worked on the VanderSloot ranch—which employs about 20 people—for five years. Two are brothers. Mr. VanderSloot has never been audited for this, though two years ago his workers’ ranch homes were inspected. (The ranch was fined $8,400, mainly for too many ‘flies’ and for ‘grease build-up’ on the stove. God forbid a cattle ranch home has flies.)”
“This letter requests an array of documents to ascertain whether Mr. VanderSloot’s ‘foreign workers are provided the full scope of protections’ under the visa program: information on the hours they’ve worked each day and their rate of pay, an explanation of their deductions, copies of contracts,” she continued.
In her column, Strassel raised the specter that the IRS targeted VanderSloot for his political activism.
“Did Mr. Obama pick up the phone and order the screws put to Mr. VanderSloot?” she asked. “Or—more likely—did a pro-Obama appointee or political hire or career staffer see that the boss had an issue with this donor, and decide to do the president an unasked-for election favor? Or did he or she simply think this was a duty, given that the president had declared Mr. VanderSloot and fellow donors ‘less than reputable’?”
VanderSloot’s tale is more relevant in light of the admission Friday by IRS official Lois Lerner that the agency gave extra scrutiny to non-profit tea party groups with “tea party” or “patriot” in their name that applied for tax-exempt status under section 501(c)(4) of the tax code. While Lerner said the agency’s actions were inappropriate, she claimed it was not the result of political bias.
However, a forthcoming report by the IRS inspector general will say that the agency went beyond what Lerner admitted to on Friday by targeting groups which criticized “how the country is being run,” the Washington Post, which got an advanced copy of part of the internal audit, reported Sunday.
Though that practice was soon halted, just months later, in January 2012, groups that applied for tax exempt status which described themselves as “political action type organizations involved in limiting/expanding Government, educating on the Constitution and Bill of Rights, social economic reform movement” were again subjected to special scrutiny.
On Friday, House Majority Leader Eric Cantor was among the congressional leaders who called for an investigation into what went on at the IRS.
“The IRS cannot target or intimidate any individual or organization based on their political beliefs,” he said in a statement. “The House will investigate this matter.”
The White House also voiced support for an investigation.
“The president would expect that it would be investigated,” White House spokesman Jay Carney said at the Friday’s press briefing.
While non-profit groups were targeted by the IRS, no hard evidence has yet emerged to show that individuals like VanderSloot were targeted for their political leanings.

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