Sunday, May 19, 2013

IRS Has Long History of Political Dirty Tricks
If you think the IRS's targeting of Americans for their political views is something new, think again.

Historians, tax lawyers, civil libertarians and past victims of abuse say the practice goes back to the Nixon, Johnson, Kennedy and FDR adminstrations, all of which reportedly used the agency as a weapon against political enemies. ...

...Andrew's book, says Schuyler, "documents that Kennedy, Johnson and Nixon were complicit, to varying degrees, in using the IRS for political purposes. And it didn't end there. John had enough material to take it up through the 1970s and '80s. That's all in our college archives."

During the Clinton administration, Paula Jones, who had filed a sexual-harassment suit against President Clinton, alleged she was being audited by the IRS because of it.

Targets of the IRS during the Kennedy administration, according to Andrew and Schuyler, included such groups as the conservative John Birch Society. Former editor of the Washington Post Ben Bradlee in his 1976 book "Conversations With Kennedy," wrote that Kennedy had shared with him confidential information from the tax returns of rich conservatives H.L. Hunt and J. Paul Getty. ...

The New Republic: Hey, didn’t Tea Parties kinda bring this on themselves by trying really hard to follow the law?
...But, in fact, the IRS’s great conservative crackdown is even more innocent than that. It turns out that the applications the conservative groups submitted to the IRS—the ones the agency subsequently combed over, provoking nonstop howling—were unnecessary. The IRS doesn’t require so-called 501c4 organizations to apply for tax-exempt status. If anyone wants to start a social welfare group, they can just do it, then submit the corresponding tax return (form 990) at the end of the year. To be sure, the IRS certainly allows groups to apply for tax-exempt status if they want to make their status official. But the application is completely voluntary, making it a strange basis for an alleged witch hunt.

So why would so many Tea Party groups subject themselves to a lengthy and needless application process? Mostly it had to do with anxiety—the fear that they could run afoul of the law once they started raising and spending money. “Our business experience was that we had to pay taxes once there was money coming through here,” says Tom Zawistowski, the recent president of the Ohio Liberty Coalition, which tangled with the IRS over its tax status. “We felt we were under a microscope. … We were on pins and needles at all times.” In other words, the groups submitted their applications because they perceived themselves to be persecuted, not because they actually were…

So the crime here had nothing to do with “targeting” conservatives. The targeting was effectively done by the conservative groups themselves, when they filed their gratuitous applications. The crime, such as it is, was twofold. First, in the course of legitimately vetting questionable applications, the IRS appears to have been more intrusive than justified, asking for information about donors whose privacy it should have respected. This is unfortunate and intolerable, but not quite a threat to democracy....

...Stefano said she tried to start her own group called The Loyal Opposition between 2010-2011. But when she applied for tax exempt status, the IRS responded with a litany of questions that put her off.

“I was pregnant and on a single income and they were asking me questions like, ‘Are you on Facebook,” she said incredulously. “They wanted my personal Facebook page.”

“A lawyer told me, ‘They’re going to come after you and if you make one mistake they could ruin your life’,” Stefano added. “I like to think of myself as very tough, but I’m ashamed to say I was intimidated and frightened, and I shut it down.”...

...“We’re just regular citizens,” said one member who only spoke on condition of anonymity. “It’s not like we have access to resources to deal with this. Whenever you get pushback from the IRS of this magnitude you’re not able to deal with it.”

The member said the IRS replied to their 2009 application for tax exempt status with the same multi-questionnaire response other groups had gotten. Six months, thousands of dollars, and countless hours later, they gave up.

“As a result of receiving that questionnaire, the person who was our treasurer quit, and the group decided to not move forward with tax exempt status,” the member said. “That’s an example of the type of affect this type thing has.”...

Embattled IRS official Lois Lerner’s husband’s law firm has strong Obama connections
The Internal Revenue Service (IRS) official who apologized for targeting conservative nonprofit groups for extra scrutiny is married to an attorney whose firm hosted a voter registration organizing event for the Obama presidential campaign, praised President Obama’s policy work, and had one of its partners appointed by Obama to a key ambassadorship.

IRS Exempt Organizations Division director Lois G. Lerner, who has been described as “apolitical” in mainstream press coverage of the IRS scandal, is married to tax attorney Michael R. Miles, a partner at the law firm Sutherland Asbill & Brennan. The firm is based in Atlanta but has a number of offices including in Washington, D.C., where Miles works.

The 400-attorney firm hosted an organizing meeting at its Atlanta office for people interested in helping with voter registration for the Obama re-election campaign.

This is not the first of Lerner’s connections to the president to surface. Earlier this week The Daily Caller reported that Lerner personally signed the tax-exemption approval for a shady charity run by Obama’s half-brother, after an inexplicably brief one-month application process....

Data Doesn't Support IRS Explanation for Scandal
Applications for tax exemption from advocacy nonprofits had not yet spiked when the Internal Revenue Service began using what it admits was inappropriate scrutiny of conservative groups in 2010.

In fact, applications were declining, data show.

Top IRS officials have been saying that a “significant increase” in applications from advocacy groups seeking tax-exempt status spurred its Cincinnati office in 2010 to filter those requests by using such politically loaded phrases as “Tea Party,” “patriots,” and “9/12.”...