Search Results for: inspector general

Cause of Action Institute Files Complaint Against IRS for Destroying Records

Washington, DC – The Cause of Action Institute (CoA Institute) today filed a legal complaint against the Internal Revenue Service (IRS) and its commissioner, John Koskinen, for refusing to capture and preserve electronic communications of employees that deal with official business, as required by the law.

CoA Institute President & CEO Alfred J. Lechner, Jr.: “The IRS and Commissioner Koskinen have a legal obligation to preserve official work communications between employees. It appears that federal records are being deleted because the IRS, in a deal with its employee union, refuses to preserve certain types of electronic communications. This lawsuit seeks to ensure that IRS follows the law. No agreement with a union or any other party can supersede Americans right to know how the IRS makes decisions.”

Documents obtained by CoA Institute show that the IRS has a private agreement with its employee union stipulating that the agency will not save the instant message records of its employees. But the IRS cannot allow such an agreement to supersede its statutory obligations to preserve records.  In addition, the IRS is violating the law by regularly deleting all employee text messages as a matter of convenience.

CoA Institute filed its lawsuit with the U.S. District Court for the District of Columbia to force the IRS to comply with its obligations under the Federal Records Act (FRA) to capture and preserve all relevant records.  The complaint seeks an order from the court to require the IRS to establish appropriate guidelines for the preservation of federal employees’ instant message and text message records and to preserve all such records permanently until the establishment of those guidelines.

Background:

Failure to preserve instant messages:

On June 30, 2015, the Treasury Inspector General for Tax Administration issued a report on the hard drive failures within the IRS that resulted in the loss of numerous agency records, including the email communications of Lois Lerner, former head of the IRS tax-exempt organizations unit.  That report revealed that the IRS maintained an instant messaging system for employee communications. But as a result of a memorandum of understanding between the IRS and the National Treasury Employees Union, the IRS did not capture, preserve, or retain such instant message records.  When CoA Institute submitted a FOIA request seeking information regarding this policy, the IRS confirmed that it “does not capture or maintain” the instant message records of its employees.

Failure to preserve text messages:

As part of an investigation into how federal agencies process their text message records, CoA Institute submitted a FOIA request to the IRS in November, 2014, asking it to produce the text message records of five high-ranking agency officials.  In response to that request and in follow-up communications, the IRS revealed that, due to “routine system housekeeping” and “spacing constraints,” text messages are retained for only 14 days and are thereafter deleted.

To access Cause of Action Institute’s complaint, click here. The accompanying exhibits may be found here.

Weekly Rundown 12-4-2015

Cause of Action in the News:

SC MagazineFTC to appeal LabMD dismissal ruling

The Federal Trade Commission has decided to appeal Chief Administrative Law Judge Michael Chappel’s ruling to dismiss the case against LabMD.  Cause of Action Executive Director Dan Epstein responded to the appeal, saying “Every unbiased decision-maker who has reviewed this case, including the FTC’s own Chief Administrative Law Judge, the U.S. House of Representatives Oversight & Government Reform Committee, and a U.S. District Court Judge, has found FTC’s claims against LabMD to be baseless, and its conduct inexplicable and even an ’embarrassment.’”

PoliticoFor their second act, Keystone killers tackle Exxon

Together with the Competitive Enterprise Institute, Cause of Action has filed a complaint with the IRS against the Institute of Global Environment and Society.  The founder of IGES was one of the first to demand that those opposed to his point of view be charged with federal racketeering. Our complaint charges the founder, Jadagish Shukla, of using government given funds for personal gain. The institute is currently being investigated by the House Science, Space, and Technology Committee Chairman Rep. Lamar Smith.

Daily CallerCongress To Protect Worst Bureaucratic Outrage You’ve Never Heard About

The Email Privacy Act has gained steam in the House with bipartisan backing.  The act would protect internet providers from administrative subpoenas, which don’t require a judge’s approval before they are acted upon.  Cause of Action Executive Director Dan Epstein said that “Administrative subpoenas – which are compulsory requests for information – issued by an unelected bureaucrat – not a judge or jury – and which forces individuals and businesses to provide information that will be used against them in a civil enforcement or criminal referral action – are one of the greatest threats to American liberty today, largely because there has been no judicial or legislative attempt to limit their scope or power.”

In Other News:

Washington ExaminerState Dept. to overhaul email system to prevent Clinton repeat

In an attempt to prevent another Hillary Clinton email scandal the State Department has sent out a request for information on a new email management system to be put into place by the end of next year.  They are looking for a new system that will keep work and personal emails separate automatically.  It will also automatically save all official emails.  A federal watchdog determined that of the over 1 billion emails sent fewer than 65,000 were printed and saved.

ForbesEPA Wants To Water Down Gasoline Supply With More Ethanol

The Environmental Protection Agency has decided to increase the amount of ethanol added to gasoline.  This decision comes with bipartisan opposition consisting of “environmentalists, oil companies, legislators (Republican and Democrat) and various industry groups who collectively want the RFS standard eliminated.”  The National Council of Chain Restaurants says that this new mandate will raise the price of food $3.2 billion a year.

Money MorningWhat Happened to Government Transparency? All We See Is Illegal Stonewalling

Over the past five years, at least 20 inspectors general investigations have been obstructed in an affront to transparency. To make matters worse, the Department of Justice Office of Legal Counsel in July determined that the intended reading of “all records” does not in fact include “all records.”  Instead, a record deemed to contain “confidential” information can now be retained from the IG’s scope of investigation by the agency.  A New York University professor says that inspectors general have become “defanged” and that “[t]his is by far the most aggressive assault on the inspector general concept since the beginning.”

Weekly Rundown 11-13-2015

Cause of Action in the News:

Franchise Action NetworkDEPARTMENT OF LABOR TAKES AIM AT FRANCHISE SMALL BUSINESS

Earlier this month, Cause of Action argued on behalf of entrepreneur Rhea Lana in Rhea Lana v. U.S. Department of Labor before the D.C. Circuit. The Franchise Action Network wrote “Rhea Lana is faced with a Hobson’s choice; either continue running her businesses and face significant potential monetary penalties or cease operating as she has for years even though she has done nothing wrong.”  Cause of Action will continue to fight for people like Rhea Lana and continue to call for government transparency.

In Other News:

ForbesAmazingly, IRS Says You Can’t Rely On IRS Instructions

If you thought following IRS instructions to complete your taxes was a safe bet, think again. As it turns out, the agency can penalize good-intentioned taxpayers who follow those instructions as courts have held them to be non-authoritative.  There have been many instances of regular Americans losing to the IRS although they tried to do everything right. This kind of behavior would never be tolerated in the private sector and demonstrates an egregious double standard for federal agencies.

Fox NewsFBI expands probe of Clinton emails, launches independent classification

Former Secretary of State Hillary Clinton’s emails are under heightened IRS scrutiny as investigators seek to find evidence of False Claims Act violations.  You may recall, Martha Stewart famously graced West Virginia’s Alderson Federal Prison Camp in 2004 after conviction under the same statute.  Former FBI intelligence officer Timothy Gill said “[t]his is a broad, brush statute that punishes individuals who are not direct and fulsome in their answers.”

Fox NewsStudy claims EPA’s Clean Power Plan may hike electricity prices in 47 states

Boston-based firm NERA Economic Consulting has concluded the EPA’s Clean Power Plan will cost around $292 billion, leading to increased electricity bills in 47 states. Laura Sheehan, Senior Vice President of Communications at the American Coalition for Clean Coal Electricity, noted “[S]tates should be braced to pay higher costs,” and “[c]onsumers only lose in the Clean Power Plan.”  The EPA rejects these results, while curiously maintaining the agency has not even reviewed the report.

AllGovMost U.S. Agencies Fail to Conduct Required Reviews of Federal Regulations

In 2011, President Obama required federal agencies to review the regulations they created by issuing executive orders to clean up rules “that may be outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand, or repeal them in accordance with what has been learned.”  However, a recent study reports that of the 2,400 to 4,500 new regulations promulgated annually, very few are ever reviewed.  The Regulatory Studies Center at George Washington University examined 22 rules that “had an effect of $100 million or more on productivity, jobs, competition, the environment, public health and safety or local governments,” and concluded the government has no plans in place to review them, arguably violating executive directives.

Washington TimesPunishing the Obama way (The president’s enforcers are treating ordinary Americans like enemies)

The Department of Justice has let Lois Lerner off the hook, concluding there was no evidence of Tea Party targeting.  James Clapper, Director of National Intelligence, abandoned his inspector general and opined that Hillary Clinton’s use of a private server for government business was above-board.  These are just a few examples of why it is imperative to fight for a transparent government that demands the same compliance from its officials as it does from the American public.

Weekly Rundown 11-6-2015

Cause of Action in the News:

Full MeasureFull Measure with Sharyl Attkisson

In the fight for government transparency, Cause of Action graded federal agencies on their transparency and response time to FOIA requests. Not surprisingly, many agencies earned very poor grades while two received A’s. Interestingly, the Department of Veterans Affairs scored an A, despite public exposure of the agency’s notorious wait-time scandal the same year. Cause of Action Executive Director Dan Epstein opined, “if you think about it, part of the reason the public knows about the VA scandal is because of the easy ability to get documents. That should show why transparency is actually a good thing for reforming federal agencies.”

Wall Street JournalFranz Kafka in Footie Pajamas (My consignment company for secondhand children’s clothes has somehow run afoul of federal regulators.)

Meet Cause of Action client Rhea Lana Riner, a business woman who started a small and successful consignment business in 1997 that now has franchises in 24 states. Rhea Lana relies heavily on volunteers who are willing to help before and during the events who then get rewarded with perks such as being able to shop first. The Department of Labor decided that her volunteers must actually be considered employees and that she owes them back wages. Even though none of the volunteers have come forward demanding payment for their volunteer hours, the Dept. of Labor continues to try to obstruct Rhea Lana’s business.

In Other News:

Government ExecInspectors General Continue Battle With Justice Over Document Access

The Justice Department has written to Congress that there should be a change in the law that would allow federal agencies to deny access to certain information by inspectors general. They write this as congress holds hearings on a bill that would empower the inspectors general to do their job. The IGs responded saying “While the DOJ agrees with CIGIE that legislation is needed and should be passed by Congress to reverse the impact of the OLC opinion, the DOJ’s proposal only applies to the DOJ Inspector General’s access to records and fails to ensure that all other federal inspectors general have the same independent access at their respective agencies. As such, DOJ’s proposed legislative language is not acceptable.”

PoliticoState Dept.: Outlook crashes delay release of Hillary Clinton schedules

The State Department has been unable to meet the deadline for turning over former Secretary of State Hillary Clinton’s emails due to multiple Microsoft Outlook crashes.  Kelly Degnan, the State Deputy Executive Secretary, wrote a declaration that stated, “[t]hroughout August and the early part of September, problems with the Microsoft Outlook software caused Outlook to crash during the indexing process (a process that is necessary in order to conduct searches of emails which have been retained as .pst files) for searches [State’s executive secretariat within the office of the secretary] was running for other requests, preventing S/ES-S from applying search terms to the records and forcing S/ES-S to restart the indexing process[.]”

Daily CallerEPA’s Smog Regulation Will Cost 40x More Than It Predicted

A new report by the American Action Forum says the Environmental Protection Agency estimate on the cost of the new smog limits is highly inaccurate.  According to the EPA, the new limits will cost $1.4 billion per year; however, AAF has determined the American people will be losing $56.5 billion in income. The report, which looked at counties who were not compliant with the 2008 standard, explains “[o]bserved nonattainment counties experienced losses of $56.5 billion in total wage earnings, $690 in pay per worker, and 242,000 jobs between 2008 and 2013.”  With so many penalties for noncompliance with the 2008 smog standard, it makes sense that the new standards will have an even harsher impact.

SF GateFeinstein calls for end to controversial EB-5 immigration program

The EB-5 visa program gives out green cards to foreign nationals and their families if they invest into U.S. businesses.  Without Congressional action, the program is set to expire in December.  One of the strongest opponents is Senator Diane Feinstein, who noted “[a]t its most basic, the EB-5 program allows a foreigner to invest $500,000 in a U.S. business, in return receive a visa that puts them and their direct family on a special path toward citizenship.  At the same time, individuals unable to buy their way into the country remain trapped in seemingly endless visa backlogs that often last more than 20 years. I believe the program is deeply unfair, sends the wrong message about this country’s values and is prone to fraud and abuse.”

Weekly Rundown 10-23-2015

Cause of Action in the News:

Wall Street JournalThe Latest Progressive Attack on Speech (Still infuriated by the Citizens United ruling, the left keeps trying to undo that blow for freedom.)

Cause of Action Executive Director Dan Epstein wrote about Van Hollen v. FEC which is currently being heard by the D.C. Court of Appeals.  Maryland Representative Chris Van Hollen is arguing that nonprofit organizations should be required to reveal all donors, not just those that donating for an election.  Mr. Epstein writes “If the court forces nonprofits to disclose the identity of their supporters, it will lead to the “threats, harassment, or reprisal” that chill free speech and limit free association, just as the Supreme Court has warned.”

Delaware OnlineBloom rival settles with state over fuel cells

A settlement was reached that will now allow out-of-state fuel cell manufacturers to compete in Delaware.  Dan Epstein, Cause of Action Executive Director, had this to say about the ruling: “This settlement should send a message to government officials that fair interstate competition is a cornerstone of the U.S. Constitution.  Today is a great day, not only for clean energy manufacturers, but for innovators and entrepreneurs everywhere who wish to compete on an even playing field.”

PoliticoLawyer: Clinton ‘unable to obtain’ emails from first weeks as secretary

Former Secretary of State Hillary Clinton’s lawyer David Kendall says that while she has turned over all of her federal emails, but is “unable to obtain” emails from the beginning of her time in the State Department.  Mr. Kendall said the following in his letter: “She does not have custody of e-mails sent or received during the first few weeks of her tenure.” Kendall’s letter comes amidst ongoing lawsuits regarding Mrs. Clinton’s use of a private server, including the case brought by Cause of Action.

In Other News:

BreitbartDEM REP ON FBI INVESTIGATION OF CLINTON EMAILS: ‘ABSOLUTELY, I THINK IT’S LEGITIMATE’

Democrat Rep. Adam Schiff was asked if he thought the FBI should be investigating Hillary Clinton’s emails and private server.  He first insisted that the investigation wasn’t into Mrs. Clinton herself, but rather to find out when the classified emails on her server were originally marked as classified.  Eventually he did say “Absolutely, I think it’s legitimate for the Justice Department to look into the proper classification of the information and whether any steps need to be taken to protect it. If it’s out in the ethosphere because of this investigation, that’s perfectly appropriate.”

Washington ExaminerStates can sue EPA over climate rules starting Friday

Today the timer begins for states who want to sue the Environmental Protection Agency over the Clean Power Plan.  There are already 16 states who are ready to sue the EPA and the GOP plans to fight the rules in Congress.  As of today, states must either come up with alternative plans or provide a plan that will explain their compliance with the Clean Power Plan by September 2016.

NY PostRevolt of the watchdogs: Federal inspectors general vs. the Obama stonewall

Federal inspector generals have continued time and again to be blocked by the current administration.  Last year over 60 percent of the federal inspectors general wrote a letter stating “serious limitations on access to records that have recently impeded the work” and have reduced their “ability to conduct our work thoroughly, independently, and in a timely manner.”

Weekly Rundown 10-16-2015

Cause of Action in the News:

Daily Caller  – Watchdog Group Hopes To Depose Hillary, State Department Officials                                                                                                       
Cause of Action has requested to depose former Secretary of State Hillary Clinton, the Under Secretary of Management for State Patrick Kennedy, the State Department Inspector General Steve Linick, Deputy Assistant Secretary of State Margaret Grafeld, in addition to officials in the National Archives and Records Administration.

Our hope is that if the deposition of these individuals is allowed we will be able to shine a bright light onto the mystery of Hillary Clinton’s private email server.  A couple of the questions we plan on asking Mrs. Clinton include why she deleted emails in the first place and why she didn’t turn over electronic copies, which could contain insightful metadata.

In Other News:

Examiner.comFTC joins EPA, Justice in probes of Volkswagen

In addition to the Environmental Protection Agency and the Justice Department, the Federal Trade Commission has joined the Volkswagen investigation.  The FTC is planning on looking into VW’s advertisements.  With at least 250 consumer lawsuits in 28 states and criminal probes in other countries this just adds to the car manufacturer’s woes.

SlateIRS Hasn’t Finished Doing Windows Upgrades Because It Can’t Find a Bunch of Its Computers

Even after spending $128 million upgrading their computers from Windows XP on their computers and Windows 2003 from their servers, the Internal Revenue Service isn’t finished. An audit revealed that almost fifty percent of the servers and over a thousand computers have not yet been upgraded.  It was also revealed that the IRS cannot find these computers and servers to upgrade them. “At the conclusion of our fieldwork, the IRS had not accounted for the location or migration status of approximately 1,300 workstations and upgraded only about one-half of its Windows servers.”

Washington ExaminerNew EPA climate rules target your air conditioning

The Environmental Protection Agency has introduced new rules that will directly affect the American people in their homes.  Air conditioners and refrigerators are the next target the EPA has in its sights.  The EPA’s administrator said that the rules would get us closer to meeting the current administration’s climate agenda.

Business InsiderFacebook, Google, Amazon and other big tech companies just slammed a proposed US cybersecurity law

A group of large tech companies have grouped together and have gone after the Cybersecurity Information Sharing Act, which they claim “does not sufficiently protect users’ privacy or appropriately limit the permissible uses of information shared with the government.”  The act is supposed to make it easier for the government to get customer information from big tech companies.  As of right now, the Cybersecurity Information Sharing Act is being deliberated in Congress.

Wall Street JournalClinton Server’s Technical Problems Boosted Use of Personal Accounts (In less than a month, the server appeared to stop functioning at least twice, according to emails the conservative group Citizens United obtained)

By now everyone has heard of former Secretary of State Hillary Clinton’s private email server.  What everyone may not know is that after being in use for only a month the server started having technical difficulties.  When the server was down the email addresses that it was responsible for weren’t working either, which may have led to the use of personal email accounts to send State Department emails.

Weekly Rundown 9-18-2015

Cause of Action in the News:

PoliticoGOP senators want to talk to Clinton tech staffer’s boss

On Monday, Cause of Action sent a letter to the Inspector General of the State Department asking for an investigation into the off the books way Hillary Clinton paid for the management of her private server.  We aren’t the only ones trying to get to the bottom of this.  Two senators want to dig deeper into the staffer who was managing the server.  Hopefully, with all the pressure being applied to the State Department the American people will start to get some answers.

POGOFOIA Fee Waivers Protected

The US Court of Appeals unanimously agreed with Cause of Action, confirming that federal agencies cannot use fees to prevent releasing documents requested under the Freedom of Information Act.  It was decided by the court that the only requirement for FOIA requests concerning the requester’s use of the documents is that they must “enlighten more than just the individual requester.”  This is great news for anyone who wants to see a more transparent federal government.

In Other News:

Washington ExaminerEmail scandal defining Clinton campaign

When people think of Hillary Clinton they seem to focus in on one thing in particular, her email scandal.  In a Gallop poll, when asked about what sticks out when they read or hear about Hillary Clinton, of 750 adults “email” was mentioned 329 times in a few different ways including “email”, “email scandal” and “that email thing”.

Fox NewsGOP lawmaker moves to impeach EPA chief McCarthy

Arizona Rep. Paul Gosar claims that the head of the Environmental Protection Agency lied to Congress.  He said “McCarthy not only broke the law by lying to Congress, but in doing so she also lied to the American people in order to force misguided and overreaching regulations, which have no scientific basis, down our throats.” Because of her perjury the Representative says that Administrator McCarthy should be impeached.

ForbesIRS Gets Sued Over Bonuses To Lois Lerner

The IRS scandal continues.  Pleading the Fifth, missing email, fake email accounts have all been a part of the drama that has been plaguing the IRS.  Now they have a lawsuit under the Freedom of Information Act on their hands over bonuses they gave out right after the nonprofit targeting became public knowledge.  Of the $70 million in bonuses given out Lois Lerner received $42,000.

Daily CallerHillary Clinton Emails Have A FIVE-Month Gap

After testifying that she had turned over all required emails, former Secretary of State Hillary Clinton may have missed a couple months.  There have been claims that there were five months of emails missing from what was turned over by Mrs. Clinton.  The State Department has responded to those claims saying that there aren’t any gaps, those documents just haven’t been released yet and will be released in the future.