Sunday, July 21, 2013

IRS chief counsel’s office involved in targeting controversy
The chief counsel’s office for the Internal Revenue Service, headed by a political appointee of President Obama, helped develop the agency’s problematic guidelines for reviewing “tea party” cases, according to a top IRS attorney.

In interviews with congressional investigators, IRS lawyer Carter Hull said his superiors told him that the chief counsel’s office, led by William Wilkins, would need to review some of the first applications the agency screened for additional scrutiny because of potential political activity.

Previous accounts from IRS employees had shown that Washington IRS officials were involved in the controversy, but Hull’s comments represent the closest connection to the White House to date....

New testimony claims Lois Lerner and Obama appointee were behind Tea Party targeting
New testimony from IRS officials claims that Lois Lerner, the director of the IRS's Exempt Organizations division, instructed employees to send Tea Party group applications for tax-exempt status through a multi-layered review that included the IRS chief counsel's office, which is led by Obama appointee William Wilkins.

Lerner "sent me email saying ... when these cases need to go through multi-tier review and they will eventually have to [through her staff] and the chief counsel's office," said Michael Seto, the head of the IRS unit that was handling Tea Party applications.

This new testimony suggests that the decision to target Tea Party organizations came from Lerner herself, and that Wilkins' office was closely involved in some of the applications.

Tax law specialist Carter Hull, who works for Seto, testified that despite his 48 years of experience approving or denying tax-exempt status applications, he was told in the winter of 2010 that, at the direction of Lerner, the applications would need to be sent to the chief counsel's office for further review. Hull said never before in his nearly five-decade career had he been told to send applications up the pipeline....

EXCLUSIVE: Feds admit improper scrutiny of candidate, donor tax records
A government watchdog has found for the first time that confidential tax records of several political candidates and campaign donors were improperly scrutinized by government officials, but the Justice Department has declined to prosecute any of the cases.

Its investigators also are probing two allegations that the Internal Revenue Service “targeted for audit candidates for public office,” the Treasury’s inspector general for tax administration, J. Russell George, has privately told Sen. Chuck Grassley....

Former GOP Senate candidate Christine O’Donnell told her tax records were breached
More than two years after her upstart Senate campaign rocked the Delaware political world, Christine O'Donnell got an unexpected contact from a U.S. Treasury Department agent warning that her private tax records may have been breached.

The phone message earlier this year shocked the battled-scarred candidate, a tea party favorite who knocked off Republican mainstay Michael Castle in the primary before losing in a bid to win Vice President Joseph R. Biden’s former seat.

“Ms. O'Donnell, this is Dennis Martel, special agent with the U.S. Department of Treasury in Baltimore, Md. … We received information that your personal federal tax info may have been compromised and may have been misused by an individual,” he said in the January message left on her cellphone.

For Ms. O'Donnell, the message immediately raised red flags.

On March 9, 2010, the day she revealed her plan to run for the Senate in a press release, a tax lien was placed on a house purported to be hers and publicized. The problem was she no longer owned the house. The IRS eventually blamed the lien on a computer glitch and withdrew it....