Tag: IRS

Categories
crime and punishment insider corruption

IRS Case Closed! The End! Letsmoveon!

Democratic Congressman Elijah Cummings says it’s time to stop investigating the latest IRS shenanigans. According to him, closed-​door interviews with IRS staffers prove that no White House or other Washington officials were involved in targeting the applications for tax-​exempt status of conservative groups for special obstructionist attention.

Whew! Crisis over.

But the congressman is ignoring a few things.

For example, history. Everything we are now learning (visit TaxProf Blog for the latest news roundups) indicates that this latest shocking scandal only confirms what we already knew about the Internal Revenue Service. The outfit does not play nice. It is not animated by unwavering concern for truth, justice, and even-​handed enforcement of its welter of wretched regulations.

More immediately, the congressman is ignoring the fact that the IRS’s ideological targeting is not resolvable into the actions of one or two frazzled clerks in Cincinnati. (Even if some reporters have valiantly striven to show, in the words of the San Francisco Chronicle, “How One Overworked IRS Worker Ignited the Tea-​Party Targeting Scandal.”)

We know that many DC-​based officials linked to the targeting of conservative groups quit, were transferred, or were put on administrative leave right after the scandal broke. We know that IRS employees in Cincinnati have testified that the DC office especially requested Tea Party files. We know that DC lawyers both reviewed the intrusive questionnaires sent to Tea Party groups and drafted many of the questions. Etc. All irrelevant?

Come on, Cummings.

This is Common Sense. I’m Paul Jacob.

Categories
tax policy

End the IRS?

Every day: more revelations, more questions.

Was the IRS’s repressive targeting of Tea Party and similar groups seeking tax-​exempt status “accidental”? Were only a few rogue or harried clerks responsible for the repressive targeting? Did anybody in the White House know about the repressive targeting as it happened? What does the frequency of IRS commissioners’ visits to the Obama White House tell us? What about the IRS union chief’s visit with Obama just before the repressive targeting began?

And that’s not all. How similar is the latest IRS repressive targeting of the enemies of those in power to previous IRS repressive targeting of the enemies of those in power? What about all the other forms of riding roughshod over individuals’ rights that the IRS routinely perpetrates?

And then there’s the practical question: What do we do about the mess?

Well, we could try to curtail the allegedly “unusual” abuses of government power and rights violations.

But what if the problem runs deeper?

Former presidential candidate Ron Paul argues that the problem lies “in the extraordinary power the tax system grants the IRS.” He very plausibly puts the current scandals in the context of the bureau’s central mandate: “The very purpose of the IRS is to transfer wealth from one group to another while violating our liberties in the process. Thus the only way Congress can protect our freedoms is to repeal the income tax and shutter the doors of the IRS once and for all.”

Hard? Yes. Doable? Yes — but only if such ideas catch on with more leaders than just the indefatigable Ron Paul.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies too much government

Regulating Protest

How did our founders manage to establish a republic committed to free speech and the rights of the individual without a Federal Election Commission?

Not only did the Sons of Liberty and other patriots lack a functioning FEC to protect them from “big-​money interests,” many of the political communications of the founding era, including works as consequential as The Federalist Papers, were put forth anonymously. Horrors!

Consider organizing like-​minded people during colonial times: No TV, radio, the Internet, smart phones … and sans, too, the Internal Revenue Service, strategically blocking them from creating non-​profit groups that “criticize how the country is run.”

Which brings up the sorry case of Lois G. Lerner, head of the IRS’s exempt organizations division, now mired in the muck of controversy over unequal treatment of non-​profit organizations. She expressed her innocence in the whole affair, but then took the Fifth, refusing to testify.

Ms. Lerner’s now on paid leave. That’ll learn ’er.

I bumped into her back in the 1990s, while I headed U.S. Term Limits and she led the FEC’s enforcement division, which was targeting conservative and libertarian groups. The FEC was never able to prove we did anything wrong, but did cost us plenty of time and money defending against their assault.

What sparked the FEC’s action, then, was incumbent Congressman Mike Synar’s complaint after we informed the people of Oklahoma that Synar opposed term limits. He lost in the Democratic Party primary … to a guy who spent less than $3,000.

Yes, that’s the sort of speech the folks in Washington want to regulate.

This is Common Sense. I’m Paul Jacob.

Categories
ideological culture tax policy too much government

Customer Service?

It was no fun to watch Acting IRS head Steve Miller testify before the House Ways and Means Committee last week. Miller simply had no real explanation for the troubling actions at IRS.

Even his terminology induced cringes. Miller’s mea culpa was for “horrific customer service.”

Customer service? That’s a stretch.

A customer holds a position of honor in a free society. Businesses spend billions on advertising — just to gain our favor. We have the power to make a business succeed or fail according to our decisions.

We don’t have to be well connected or part of the political or social elite to share this power. The most ordinary of customers can have a powerful impact. When I was a kid, customers in my state helped build a small business, Wal-​Mart, into the envy of the retail world.  In 1956, ordinary bus riders in Montgomery, Alabama, used their “buying power” to help change the world.

As customers, we make demands. We make sure we’re satisfied. Sometimes we negotiate price; when no negotiation is possible and we don’t like the deal, we walk away. We have a choice. We decide.

Does this same type of empowerment exist when dealing with folks at the IRS?

Not so much. They tell us the price. We submit or go to jail. That’s no customer.

Cowering serf might sadly serve as the more apt moniker.

As the IRS grows bigger and more intrusive each year, and as its agents shake us down for ever larger sums, we should at least be able to keep the word “customer” away from them.

This is Common Sense. I’m Paul Jacob.

Categories
ideological culture media and media people

No Humans Were Harmed

MSNBC’s Melissa Harris-​Perry says “no one was fundamentally harmed” by the IRS’s targeting of Obama-​unapproved applicants for tax-​exempt status. (Go to 4:00 of the video to skip the preceding lies.)

Elsewhere, detestable Bill Maher inquires: “Is it unreasonable [for IRS] to target an anti-​tax group?”

Good lord.

I’ve discussed the case of Frank VanderSloot, a wealthy businessman minding his own business preferring Romney to Obama when the Obama campaign attacked him for being a wealthy discredit-​worthy Romney supporter. VanderSloot’s operations were forthwith audited by several government agencies.

VanderSloot is a big fish. Catherine Engelbrecht is not.

Engelbrecht is one of many right-​leaning applicants for tax-​exempt status forced to deal with endless intrusive questions, the ostensible result of innocent mismanagement by harried low-​level IRS clerks. Her two political organizations are True the Vote, which combats voter fraud, and King Street Patriots, a discussion group.

As soon as Engelbrecht applied for tax-​exempt status, the FBI began investigating King Street Patriots. Then the IRS audited the couple’s tax returns. Then the agency began its rounds of grilling about True the Vote and King Street Patriots. Then the ATF audited the machine shop. Then OSHA came.

“No one was fundamentally harmed”? Do we need corpses?

Reports about the IRS’s special targeting of non-​liberal applications for tax-​exempt status indicate that many folks gave up on forming their organizations. Other attempts have been delayed for years. Such time-​wasting, money-​wasting, action-​stopping obstructionism makes it harder to pursue one’s mission during the run-​up to a national election, nyet?

This is Common Sense. I’m Paul Jacob.

Categories
insider corruption

The Enemies List(s)

It’s no surprise to long-​time observers of the Obama administration, the Internal Revenue Service, or government in general that the IRS has targeted non-​lefty groups for reasons the agency laughably contends are non-ideological.

The current brouhaha is only part of the story. Here’s another part. Frank VanderSloot is a businessman who donated to the Romney campaign. In April of last year, an Obama campaign website chastised several Romney supporters for such high crimes as being “high-​dollar donors” with “less-​than-​reputable records,” interested in “pursuing a specific agenda.” Just the kind of persons that government agencies might like to especially investigate, perhaps?

In any case, within two weeks of the publication of this enemies list, a recent employee of Senate Democrats began rooting around in VanderSloot’s divorce records. Next, the IRS launched audits of his tax returns for 2008 and 2009. He’d never before been audited. Next, the Department of Labor decided to audit the three workers he employed on a cattle ranch under the terms of a visa program for temporary workers.

Coincidence(s)? VanderSloot himself suspects that the audits were retaliation for his political leanings. Wall Street Journal columnist Kimberly Strassel noted at the time that to what extent the harassment had been centrally planned was both undiscoverable and somewhat beside the point. “If this isn’t a chilling glimpse of a society Americans reject, it is hard to know what is. It’s why presidents are held to different rules, and should not keep lists.”

At least, not lists of political enemies.

This is Common Sense. I’m Paul Jacob.

Categories
government transparency tax policy

The Block Stops Here

We were initially told that the IRS had apologized to Tea Party and patriot groups for blocking them from non-​profit tax status.

But there has been no apology.

Instead, last Friday, Lois Lerner, the head of the tax-​exempt division of the Internal Revenue Service, confided to a group of tax attorneys at an American Bar Association conference in Washington. She admitted that the IRS had indeed been guilty of unfairly delaying and blocking Tea Party and conservative groups from establishing tax-​exempt organizations, as these dissident groups had been complaining about for years.

Who was to blame? Only mere “low-​level employees” — no senior management, heaven forfend.

Then it was disclosed that senior IRS muckety-​mucks actually knew in 2011 — well before the IRS commissioner assured Congress that the agency wasn’t doing precisely what it was doing. Now, latest disclosures put the beginning of the political bias policy all the way back to 2010.

Of course, the IRS vehemently denies that politics played any role.

And what about Barack “buck-​stops-​here” Obama?

“I first learned about it from the same news reports that I think most people learned about this,” the president said in response to a question, adding, “I think it was on Friday.”

In denial, the president spun, “If, in fact, IRS personnel engaged in the kind of practices that had been reported on and were intentionally targeting conservative groups” and “if you’ve got the IRS operating in anything less than a neutral and non-​partisan way, then … it is contrary to our traditions.”

Well, if these ifs weren’t so (traditionally?) evasive, we might take the prez seriously.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies too much government

IRS Overreach

The taxman puts his hands in our pockets. But it’s one thing to reach into our bank accounts and take our money, it is quite another when governments engage in different kind of overreach, where they go beyond the rule of law and just start pushing people around.

Take the case of Sabina Loving and Elmer Killian.

The Institute for Justice has.

These plaintiffs are suing the IRS because that bureau of plunderers has ruled that Ms. Loving and Mr. Killian — who provide tax preparation services — must be regulated and schooled and certified by the IRS itself. The IRS says that these independent tax preparers (independent in that they are not part of big businesses) can’t just offer their services on the market, they must undergo an expensive annual education and certification process.

The overreach part is that the IRS has no statutory authority to regulate these businesses. Congress rejected precisely such regulation back in 2008. So the clever kleptocrats now argue that a pre-​IRS law hailing from way back in 1884 authorizes their regulatory powers.

But that law doesn’t even deal with representatives of folks who owe the government money. It deals with representatives of people owed money by the federal government.

Nice try.

“You will be as shocked as Captain Renault to learn that big tax-​prep companies — H&R Block, Jackson Hewitt, Liberty — all support the new regulations,” writes A. Barton Hinkle in Reason magazine, “for the same reason big tobacco companies go after roll-​your-​own smoke shops: It’s in their interest to stifle low-​cost competitors.”

Like Ms. Loving and Mr. Killian.

As we prepare our tax returns in the next several weeks leading up to April’s filing day, perhaps we should burn a little incense along with our midnight oil in support of the plaintiffs and the Institute for Justice. For, really, they are fighting for us, too — eternal vigilance and all.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies tax policy too much government

Commiserations on Tax Day

It’s April 15, my eldest daughter’s birthday. I used to tell her she wouldn’t have to pay taxes like everyone else, because IRS folks wouldn’t dare make her file on her birthday, would they?

Seriously, when it comes to family and taxes, I’m just glad that my wife does all the work. 

My job is getting the birthday cake.

You can understand why I’d shirk the tax work. There are 40,000 sections to the tax code, and no one understands it all.

This complexity has costs. And not just to my sanity. A whole industry has risen to ease the burden of figuring out our taxes. One hates to begrudge anyone an honest living, but really, most of today’s tax accountants would better serve humanity in some other job.

Simplifying taxes should be as important as tax reduction. Instead, because our representatives and our president just cannot stop themselves from spending more and more of our money, they are raising taxes. It’ll be on the proverbial rich, in the immediate future, but they won’t stop there.

They can’t stop there. 

Why? Because if you took all the wealth — not just the income, but all the wealth — from every millionaire in the country, you still couldn’t pay all the future obligations of the federal government.

My darling daughter aside, April 15 is no day to celebrate. It’s tax day, and it marks the degradation of our nation at the hands of our politicians.

This is Common Sense. I’m Paul Jacob.

Categories
tax policy

IRS Wants Your Four Cents

On the one hand, we’ve got trillion-​dollar federal deficits and no sign of any austerity measure on the congressional horizon. On the other hand, we’ve got dark-​suited IRS agents bullying small businessmen for allegedly being four cents behind in taxes.

The letter that the two IRS suits hand-​delivered to the owner of Harv’s Metro Car Wash in Sacramento claims that with penalties piling up since 2006, Aaron Zeff now owes over $200. Zeff reports that the agents “were deadly serious, very aggressive, very condescending.”

The incident is bad press for the Internal Revenue Service. But maybe the taxmen relish this kind of bad press once in a while. After all, they need the rest of us to worry what might happen to us if we step out of line even four cents worth, even if it’s only in the fevered imagination of some bored IRS accountant.

Was the hounding of Mr. Zeff a deliberate plan or just zealous overreaching by a couple of goons who forgot to read the manual on being nice to taxpayers? Who knows. Either way, though, do we want the IRS in charge of slapping us with a big tax penalty if we don’t sign up for a government-​approved health plan? After all, that’s a big part of the so-​called health care “reform” that Congress is in process of imposing on us.

This is Common Sense. I’m Paul Jacob.