Tag: IRS

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insider corruption tax policy

There You Go Again, IRS

IRS, free speech, taxes, censorship, corruption, surveillance

The old keywords were “Constitution,” “Patriot” and “Tea Party.”

The new ones? “Marijuana,” “oxycodone,” and “legalization.”

Paul Caron, the TaxProf blogger, calls attention to another IRS scandal — again about denying tax-exempt status to organizations because of their political views. He had barely finished blogging about the scandal that came to light in 2013 when a new one burst into view.

You almost certainly remember the older scandal, in which the Internal Revenue Service had been caught intrusively scrutinizing and delaying the applications of conservative non-profits picked on because of their conservatism.

To cover that mess, Professor Caron published a blog series called “The IRS Scandal, Day __.” He added a post daily.

Every day.

For years.

The last installment, Day 1921, published on August 14, 2018, reported a settlement: meager taxpayer-funded payouts to over a hundred victimized organizations. The IRS never admitted wrongdoing. No one was ever punished. According to the Washington Times, the agency said that it had “made changes so that political targeting can’t occur in the future.”

These changes don’t seem to include prohibiting political targeting by the IRS, however.

Now we have another case.

Caron points us to a Wall Street Journal op-ed by David Rivkin and Randal Meyer, lawyers, who have discovered a dirty little secret in Revenue Procedure 2018-5. One provision authorizes IRS to withhold tax-exempt status from applicants seeking to improve “business conditions . . . relating to an activity involving controlled substances,” including marijuana and oxycodone. Advocating legalization of marijuana would count as trying to improve such conditions.

Apparently, the IRS thinks its mandate entails enforcing the status quo by stifling dissent — instead of just doing its congressionally mandated (if all-in-all irksome) job.

This is Common Sense. I’m Paul Jacob.

 

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Accountability crime and punishment general freedom government transparency ideological culture moral hazard national politics & policies Regulating Protest tax policy too much government

Still at Large

IRS, drain the swamp, Trump, Lois Lerner, tax, tax man

Blogger Paul Caron, dean of Pepperdine Law School, still counts the days since we learned that the IRS was blocking applications for nonprofit status from right-leaning groups at the behest of former IRS honcho Lois Lerner.

Now years later, the agency can still arbitrarily victimize any one of us. Nor have Lerner and other bad guys been brought to justice. Lerner collects a six-figure pension, instead.

And so, on Day 1699, Caron highlighted Kimberly Strassel’s proposal that President Trump make 2018 “the year of civil-service reform — a root-and-branch overhaul of the government itself. Call it Operation Drain the Swamp.” Exhibit A? The IRS and civil “servants” like “Lois Lerner, the IRS official who used her powers to silence conservative nonprofits.”  

And on Day 1709, Caron called our attention to Lerner’s attempt to suppress a deposition she gave in June “for a civil suit that victims [of IRS targeting] brought in 2013.” Lerner thinks we have no right to know why she felt justified in discriminating against applicants for tax-exempt status based on their political viewpoint.

Unfortunately, not everyone cares about justice as much as Caron.

Consider an obtuse Washington Post editorial pretending that the IRS didn’t really target conservative groups. Instead, “conservative groups, their allies in Congress and the IRS itself all bear responsibility” for the appearance otherwise.

And the aftermath.

Uh huh. If only victims of the abuse of power would stop being so indelicate as to object!

This is Common Sense. I’m Paul Jacob.

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Accountability crime and punishment folly general freedom government transparency ideological culture moral hazard Regulating Protest tax policy

Been Burned

IRS, I.R.S., corruption, taxes, budget, tears

“They’ve been burned. They’ve been hammered. They’ve been bludgeoned,” George Washington University law professor Miriam Galston explained to the Washington Post. “They’re trying to survive.”

In this heartbreaking discussion at this special time of year, the “they” are the poor, long-suffering folks . . . at the Internal Revenue Service.

According to the Post analysis, “conservatives” have schemed to “scale back the IRS and shrink the federal government.” (I guess this is supposed to tear at every American’s heartstrings.) Notably, they “capitalized on revelations in 2013 that IRS officials focused inappropriately on tea party and other conservative groups based . . . Among conservatives, the episode has come to be known as the ‘IRS targeting scandal.’”

Note that term of art: episode.

The Post saw no scandal, however — despite the IRS having admitted to harassing, blocking and delaying Tea Party and conservative groups from exercising their most fundamental First Amendment rights to freedom of association and freedom of speech, in some cases for four years.

Instead, the Post decries the response to this gross violation of citizens, a congressional check on the power — and budget — of the agency responsible: reducing the budget for the Exempt Organizations division of the IRS from $102 million in 2011 to $82 million in 2016.

Heavens, Washington is never supposed to work like that! It actually approaches . . . accountability.

The budget cuts, along with hefty settlements the IRS is now paying to victimized groups that sued, make it less likely the IRS will repeat this scandalous . . . episode.

“To many, the IRS targeting of Tea Party and conservative and even some progressive groups is not a scandal,” my Sunday Townhall.com column concluded. “To me, that’s the biggest scandal of all.”

This is Common Sense. I’m Paul Jacob.

 

N.B. The title reference is to Neil Young’s song, Burned, which begins, “Been burned, and with both feet on the ground . . .”

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IRS, I.R.S., corruption, taxes, budget, tears

 

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Accountability crime and punishment moral hazard nannyism national politics & policies property rights too much government

What’s Being Forfeited

asset forfeiture, banks, banking, IRS,TIGTA, Bank Secrecy Act

What do you call those who prey upon the innocent, illegally snatching their money?

Thieves? Muggers? The Mob?

Government.

Last month, the Treasury Inspector General for Tax Administration (TIGTA) issued a report on the Internal Revenue Service’s use of civil asset forfeiture against Americans accused — well, not accused . . . more like suspected . . . well, not actually suspected of doing anything wrong, but willy-nilly deemed guilty without charge, judge, jury or conviction — of “structuring.” That’s depositing less than $10,000 in cash into a bank to avoid all the paperwork demanded by the United States Congress at that amount.

Congress passed the Bank Secrecy Act, making structuring illegal, supposedly to trip up drug traffickers and money-launderers. But that is obviously a ruse, as the TIGTA report makes abundantly clear. The IRS is simply snatching money — they won’t tell us how much — right out of individuals’ and businesses’ bank accounts.

Pity the cash-oriented business that doesn’t accumulate at least $10,000 to deposit.

The TIGTA report highlights that an incredible 91 percent of the time, the IRS acted “against individuals and businesses whose income was legally obtained,” and whom the IRS did not suspect of criminal activity. Also, through the IRS’s process of thievery “the rights of some individuals and businesses were compromised.”

Why is the IRS using the law to pilfer from the innocent, instead of the guilty?

As I explained Sunday at Townhall.com, it is easier and more profitable to make “quick hits” against innocent businesses rather than devious criminals.

When those responsible for protecting the innocent from criminals, instead, illegally twist the law to victimize the innocent, it’s called tyranny. And what is forfeited is much more valuable than mere money.

This is Common Sense. I’m Paul Jacob.

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Common Sense crime and punishment general freedom government transparency national politics & policies U.S. Constitution

Swarms of Officers to Harass

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Two wrongs don’t make a right.

It’s simple but true. And, as a corollary, let me add that using the power of the federal government to harass individuals or groups one happens to dislike or disagree with is wrong.

You might recall that our Declaration of Independence rebuked King George for sending “hither swarms of Officers to harass our people.” Or consider the recent civil-rights-violating behavior of the IRS against conservative groups during President Obama’s administration.

Yesterday, I proposed to end all taxpayer subsidies to Planned Parenthood. Obviously, I’m not a fan of the organization. And neither are the Republican presidential candidates — especially Louisiana Gov. Bobby Jindal.

“Planned Parenthood had better hope that Hillary Clinton wins this election,” Jindal boasted at last week’s JV presidential debate hosted by Fox News, “because I guarantee you that under President Jindal, January 2017, the Department of Justice and the IRS and everybody else that we can send from the federal government will be [looking] into Planned Parenthood.”

Speaking with reporters after the debate, Mr. Jindal doubled down, suggesting there might also be a role for the Environmental Protection Agency and perhaps other tentacles of the federal Leviathan.

Jindal has removed Planned Parenthood from Louisiana’s Medicaid program. That’s within his legitimate power. But directing an assault against anyone using the IRS and other federal agencies is both wrong and . . . against the law.

It promises not change but the same rotten, rights-robbing, goon-squad government we have now. Just with a different color shirt.

This is Common Sense. I’m Paul Jacob.

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Accountability crime and punishment government transparency

Impeach IRS Boss Now

Impeach him

Last week National Review reported that Republicans in the U.S. House have long been pondering impeachment of IRS Commissioner John Koskinen for stonewalling about whether Lois Lerner’s emails were lost and irretrievable.

Lerner is the former IRS official who oversaw the obstructing of applications for non-profit status by right-leaning and Tea Party organizations. The timeline that has the GOP considering impeachment of the IRS boss goes like this:

  • March 2014: Koskinen testifies before Congress to the effect that it would take quite a while to retrieve Lois Lerner’s archived emails.
  • June 2014. Koskinen tells Congress (eliciting “audible gasps”) that many of Lerner’s scandal-relevant emails had been lost in a “computer crash.” (What happens when you hit hard drives with hammers. . . .)
  • June 2015. Congress learns from the Treasury Department’s inspector general that IRS wasn’t merely lethargic about finding the emails, and didn’t accidentally lose them to a sweeping Lerner-targeting technical glitch, but actively sought to destroy files “most likely to have contained Lerner’s emails.”

However, investigators have recovered data, including 30,000 Lerner emails, that probably do contain many scandal-related epistles. Which anybody who knows anything about the Internet and servers and backups knows had never been lost to begin with — not prior to specific attempts to lose them.

How many weeks must drag on before Congress does what is necessary? Koskinen strung Congress along for his benefit, not ours — giving him more time only plays into his hands.

Stop procrastinating, Congress. Do it. Now.

This is Common Sense. I’m Paul Jacob.

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Impeach him