Search Results for: IRS

Daily Caller: Hillary Could Be Prosecuted For Mishandling CLASSIFIED Information

Read the full story: Daily Caller

The State Department could not definitively say that the personal email account used by Hillary Clinton to conduct state department business did not transmit classified information…

 

“By using a private email system, Secretary Clinton violated the Federal Records Act and the State Department’s Foreign Affairs Manual regarding records management, and worse, could have left classified and top secret documents vulnerable to cyber attack,” Cause of Action Executive Director Dan Epstein said in an email to reporters. “This is an egregious violation of the law, and if it were anyone else, they could be facing fines and criminal prosecution.”

The Hill: Six recommendations to make Washington more transparent

Six recommendations to make Washington more transparent

The 114th Congress, which convened on January 6, faces a deeply uncomfortable reality: The American people simply don’t trust their government. Fully two-thirds of Americans believe that Washington is on the wrong track. Public approval of Congress currently hovers around 15 percent—only one point above its all-time low.

The incoming Congress must seek to address this crisis of confidence. Our elected officials can start by taking up transparency and accountability issues to make the government more accountable to taxpayers.

Cause of Action recommends that Congress act in six specific policy areas:

Require Inspectors General to Actually Investigate. Perhaps the most important pro-transparency initiative that Congress can implement is ensuring compliance with the Inspector General Act. Under the Act, Inspectors General are authorized to conduct full investigations when they receive tips that illegal activity is occurring at a federal agency.

This topic is particularly newsworthy given the recent report from the Treasury Inspector General for Tax Administration (TIGTA) confirming that the IRS targeted certain conservative nonprofits based on their political beliefs. However, TIGTA’s report was based only on an audit and not a full investigation. This limited inquiry into IRS’s clearly inappropriate behavior raised more questions than it answered.

In such situations, Inspectors General—whether at the IRS or any other federal agency—should conduct investigations, based upon compulsory interrogatories, subpoenas, and depositions. Audits, which are designed to review program effectiveness, are not the appropriate method of identifying and resolving allegations of illegality, remediable only through an investigative process.

Reintroduce the Grant Act. The Grant Act, originally introduced by then-Rep. James Lankford (R-Okla.) in 2011, is a straightforward bill that would make the federal grant process transparent. It requires federal agencies to establish uniform standards for how they notice, award, and disclose competitive grants. It would also require agencies to rank grant applicants according to those standards—and make them justify any deviation from those rankings. Ultimately, this would allow taxpayers to ensure that federal agencies are awarding grants using a merit-based—and not a politicized—process.

Police Fraud. In 2013, 3.5 percent of all federal payments were improperly awarded—a sum reaching $106 billion.  Congress should conduct oversight to ensure that agencies and the Department of Justice in particular are enforcing anti-fraud laws like the False Claims Act, the Improper Payments Information Act, and the Program Fraud Civil Remedies Act.

The U.S. Government Accountability Office reports that most Inspectors General fail to enforce the Program Fraud Civil Remedies Act.  Further, public reports by federal agencies that merely identify allegations of fraud (like an audit) have barred whistleblowers from pursuing claims under the False Claims Act even when the feds fail to remedy the abuses.

Congress must ensure that these laws designed to empower whistleblowers are not being misread to incentivize agency failures to prevent fraud.

Hold the White House Accountable. In 2009, the White House, secretly demanded that federal agencies keep it apprised of any document requests containing “White House equities”—a term undefined by statute or regulation. Notwithstanding this lack of clarity, the White House obstructs congressional oversight and violates the spirit of FOIA when its political staff chills public oversight for the benefit of the President’s political image.

Congress should increase its oversight over the FOIA process to prevent the White House’s political offices from meddling into records requests to agencies or otherwise amend FOIA to subject those political offices to greater transparency.

Ensure Agencies Follow the Law. The Federal Records Act requires that agencies notify the Archivist of the United States if there is a proposed removal or destruction of records. The Internal Revenue Services’ failure to properly notify the Archivist regarding the supposed destruction of Lois Lerner’s emails shows that this process must be reformed.

Congress can strengthen enforcement of the Federal Records Act by reviewing the reporting process. Congress should also require that agencies create multiple sets of electronic back-ups to preserve emails and other important data.

Encourage FOIA Compliance. The Freedom of Information Act has been updated numerous times to keep pace with changes in technology, yet federal agencies continue to find new ways to avoid transparency. For example, while text messages involving official government business are records subject to FOIA, some agencies simply do not know how to locate and search for these records, disenfranchising the public of information. Another problem, reflected by the 30,000 “lost” and then later “found” Lois Lerner e-mails, is that agencies routinely destroy records – a crime – without any liability.

In light of this, Congress should conduct aggressive oversight to deter agencies from destroying or improperly withholding relevant records.

Effective congressional oversight would demonstrate to the public that the 114th Congress is serious about wisely stewarding taxpayer money and protecting the public from arbitrary and abusive executive power. It’s time for our elected officials to prove that they’re serious about making government work for, rather than against, the American people.

Epstein is the executive director of Cause of Action, a non-partisan organization that uses public advocacy and legal reform tools to ensure greater transparency in government, protect taxpayer interests and promote economic freedom.

Wall Street Journal: Disclosing an Invasion of Privacy Would Be an Invasion of Privacy

Read the full story: Wall Street Journal

“In an abrupt decision, the Treasury inspector general’s office said that the documents are covered by privacy and disclosure laws and can’t be provided to Cause of Action, despite a promise last week to hand over some 2,500. . . .

 

“All of the 2,043 pages of documents we have determined to be responsive were collected by the Secretary of the Treasury with respect to the determination of possible liability under Title 26 of the United States Code. These pages consist of return information protected by 26 U.S.C. § 6103 and may not be disclosed absent an express statutory exception,” said the office in a letter dated Dec. 1.”

 

It’s something of a Catch-22, but the logic is not obviously unsound. If the IRS violated taxpayer privacy by providing information to the White House—and as Glenn Reynolds never tires of reminding us, President Obama himself “joked” about auditing his enemies—it’s easy to imagine that disclosing specific details of the violations would be impossible without compounding them. All of which is a strong argument for a confidential but independent investigation of the administration’s abuse of the IRS.

Fox News: Watchdog reveals thousands of docs relating to disclosure of taxpayer data to White House

Read the full story: Fox News

Dan Epstein, a spokesman for Cause of Action, told FoxNews.com he believes that the IRS “essentially ignored the order of the court” with this declaration and that the group is considering the best path forward to force the IRS to disclose the documents.

 

However, Epstein said that the group feels that TIGTA’s acknowledgment of the documents is “absolutely” a victory in their investigation. He said the sheer number of relevant documents indicates that wrongdoing occurred on the part of both the IRS and the White House.

 

“That indicates scandal,” he said.

Cause of Action to Challenge Unlawful Efforts by Department of Labor in D.C. Circuit

FOR IMMEDIATE RELEASE                                                     CONTACT:      

November 24, 2014                                    Mary Beth Hutchins, 202-400-2721

Cause of Action to Challenge Unlawful Efforts by Department of Labor

in D.C. Circuit

Rhea Lana, Inc. Announces Plan to Appeal Lower Court’s Deference to Agency Overreach

WASHINGTON – The U.S. District Court for the District of Columbia, though it ruled to dismiss Rhea Lana, Inc. v. U.S. Department of Labor, invited the D.C. Circuit to determine whether the Department of Labor (DOL) may lawfully destroy a small business by finding “violations” and soliciting others to sue using notice letters that evade judicial review.

In granting the Department of Labor’s (DOL) motion to dismiss the case brought by Rhea Lana’s, an Arkansas consignment company run by entrepreneur Rhea Lana Riner, the District Court stated that it “sympathizes with Rhea Lana’s predicament.” This “predicament,” as the Court described it, arose when DOL attempted to establish a rule that Americans cannot volunteer at for-profit entities. The DOL pursued this matter by sending a warning letter to Rhea Lana that, in the Court’s view, had a “coercive effect,” essentially telling the company that it could face severe fines for not classifying its consignor-volunteers as employees.

“As the District Court recognized, agencies should not be able avoid judicial review by hiding behind form letters that essentially demand the recipient comply or face stiff penalties ,” said Cause of Action’s Executive Director Dan Epstein. “That is why on behalf of Rhea Lana, Inc. Cause of Action is appealing this decision to the D.C. Circuit.”

“As a company that engages moms in the community to buy children’s clothes and toys at a deep discount and profit from selling their own children’s items, we have never faced complaints from our consignor-volunteers, and we just don’t think it’s fair for the Department of Labor to come after us like this,” said Rhea Lana Riner, founder and president of Rhea Lana, Inc. “The government is essentially telling you that you can’t have your friends help out at a garage sale without the fear that a federal agency will be looking over your shoulder waiting to fine you. That’s why we feel so strongly about fighting back: So that our freedom as entrepreneurs and neighbors can remain intact.”

About Cause of Action:

Cause of Action is a non-profit, nonpartisan government accountability organization that fights to protect economic opportunity when federal regulations, spending and cronyism threaten it.  For more information, visit www.causeofaction.org.

About Rhea Lana, Inc.:

Founded by Rhea Lana Riner in her living room 16 years ago and headquartered in Conway, Arkansas, Rhea Lana’s Children’s Consignment hosts semi-annual sales.  With Arkansas roots, Rhea Lana’s Franchise Systems, Inc. is rapidly growing with 69 locations in 23 states.  The company is the first consignment sale business in the country to offer on-line management and real time tracking of merchandise through a computerized inventory system and a convenient mobile application. For more information, visit www.rhealana.com.

To schedule an interview with Cause of Action’s Executive Director Dan Epstein, contact Mary Beth Hutchins, mary.beth.hutchins@causeofaction.org.

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DOE Follows the Rules After HARDI’s Strong Stand Against Overreach

FOR IMMEDIATE RELEASE                                                         CONTACT:      

November 12, 2014                                              Mary Beth Hutchins, 202-400-2721

DOE Follows the Rules After HARDI’s Strong Stand Against Overreach

COLUMBUS, OHIO – Because of a settlement between the Department of Energy (DOE), the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI) and other stakeholders, DOE reissued a Request for Information (RFI) on energy efficiency standards for residential central air conditioners and gas furnaces on October 31, 2014.  DOE’s RFI, published in the Federal Register, seeks public comment on its authority to develop energy efficiency standards through a “Direct Final Rule.”

Thanks to the government oversight and accountability group Cause of Action, HARDI was able to effectively halt administrative abuse by forcing the DOE to reassess its rulemaking.  DOE arbitrarily attempted to set a rule driving up energy costs for consumers and businesses without following proper procedures to protect the public’s right to have input and comment. This settlement requires DOE to respect the rule of law and is a significant victory for consumers and businesses.

HARDI Executive Vice-President & Chief Operating Officer Talbot Gee said, “We have said from the start that we believed the processes which led to this rule, litigation and settlement were broken. We were pleased to have secured a commitment from DOE to assess this issue and are pleased that HARDI’s comments on the matter are a key component of the request and hopefully the basis for fixing this broken process.”

Cause of Action’s Executive Director Dan Epstein said, “When federal agencies substitute their own agendas for the rules protecting the public’s right to have notice and to comment on proposed regulatory action, then government accountability and transparency are lost. Therefore, this notice, the first step by the DOE since HARDI’s successful settlement, is a major victory for all Americans who value fair government. HARDI’s members took a firm stand, and it has paid off for both consumers and for businesses.”

About HARDI:

Heating, Air-Conditioning and Refrigeration Distributors International (HARDI) represents more than 460 wholesale companies and 300 manufacturing associates as well as nearly 140 manufacturer representatives. HARDI members represent an estimated 85 percent of the dollar value of the HVACR products sold through distribution.

About Cause of Action:

Cause of Action a nonprofit, nonpartisan government accountability organization that investigates, exposes, and fights job-killing federal government regulations, waste, fraud, and cronyism.  Cause of Action uses investigative, legal, and communications tools to educate the public on how transparency and accountability protects taxpayer interests and economic opportunity. For more information, visit www.causeofaction.org.

To schedule an interview with Cause of Action’s Executive Director Dan Epstein, contact Mary Beth Hutchins, mary.beth.hutchins@causeofaction.org

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Daily Caller: After Holder: Four Things The Next Attorney General Must Address

Read Dan Epstein’s op-ed in the Daily Caller here.

Attorney General Eric Holder may be heading for the exit door at the Department of Justice (DOJ), but numerous gaps in the agency’s enforcement remain. Will the next attorney general address fraud, transparency, and oversight concerns? We recommend four issues the next attorney general can and should resolve.

Transparency: Eric Holder’s Department of Justice declared its dedication to transparency and openness, going so far as to issue a memo to all agency heads on the Freedom of Information Act, declaring, “In the face of doubt, openness prevails.” In practice, however, this is perhaps the most secretive DOJ on record. The Associated Press Washington Bureau Chief Sally Buzbeesays the transparency of the Obama administration “is significantly worse than previous administrations.”

Cause of Action, a government oversight organization of which I am executive director, found that improper White House review of FOIA requests violated both the letter and spirit of FOIA. We are now suing the Department of Justice for allowing the White House to obstruct the processing of FOIA requests — an integral part of open and transparent government. The next attorney general should enforce Eric Holder’s promise of a bias toward disclosure, by taking decision-making about FOIA productions away from the White House and placing it back in agencies where it belongs.

IRS Political Targeting: Americans have known for over a year about the Internal Revenue Service’s political targeting of non-profit groups. Cause of Action first petitioned DOJ to look into this scandal in May 2013. While an investigation has begun, the DOJ assigned an attorney from the Civil Rights Division (CRD), which mostly prosecutes hate crimes cases and conspiracies to violate civil rights, to investigate the IRS. If criminal violations are uncovered in the investigation, the CRD may not have the authority to handle them, given its jurisdiction. That is why the next attorney general should appoint a special counsel to direct the investigation.

Lois Lerner’s Emails: Perhaps the most confounding part of the IRS scandal is the somehow “lost” emails of Lois Lerner, the IRS official at the heart of the scandal. Cause of Action’s investigation indicates that in losing this valuable information, multiple government officials violated the Federal Records Act, which instructs agencies to create their own regulations regarding document retention. IRS regulations, for instance, required Ms. Lerner to print and file her emails and her attachments. By failing to preserve Lerner’s records, the IRS may have violated its own regulations — and therefore the Federal Records Act.

To this day, the Department of Justice refuses to investigate this potential violation of law, so we urge the next attorney general to conduct an investigation to determine if there has been a violation of the Federal Records Act.

The Chicago Transit Authority: In 2012, Cause of Action provided the Department of Justice with evidence of up to $150 million in rampant fraud at the Chicago Transit Authority, a government entity with close ties to the current administration. As we noted at the time, DOJ has a duty to deal with this issue — the agency has the power to intervene on behalf of other federal agencies to recover misspent taxpayer dollars using the False Claims Act. DOJ declined to take up the case. Cause of Action is continuing to pursue this fraud lawsuit against the CTA because American taxpayers deserve accountability. The next attorney general should intervene in False Claims Act litigation even if they may be politically unfavorable.

We hope the next Attorney General resolves these four issues.  Attorneys in the Department of Justice have a saying: “Do Justice.” Four simple steps would allow the next AG to ensure justice is done.

Dan Epstein is the Executive Director of Cause of Action.