CBS News: Republicans ratchet up scrutiny of the IRS

Read the full story: CBS News

While congressional Republicans pull out all the stops to oppose the rule changes, activist groups are weighing in as well. The conservative watchdog group Cause of Action filed a lawsuit to delay the rules.

 

The group’s executive director Dan Epstein called the proposed regulation “simply a back door attempt to stifle political opponents, to protect Administration policies, and to restrict and hamper grassroots education regarding the Constitution, limited-government, and economic freedom.”

The Hill: The politics of targeting

Cause of Action’s Dan Epstein writes in The Hill:

In the wake of the IRS political targeting scandal, Congress missed two opportunities for strategic investigating: First, Congress never “specially authorized” a committee with investigative authority over the IRS’s inappropriate treatment of certain groups seeking tax-exempt status; Second, Congress never appointed a special counsel to investigate the IRS, nor hired an outside counsel to advise it in its investigations.

But on January 8, 2014, Rep. Darrell Issa (R-Calif.), the chairman of the Committee on Oversight and Government Reform, and Rep. Jim Jordan (R-Ohio), the chairman of the Oversight subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending, chastised Attorney General Eric Holder for the appointment of Barbara Bosserman, a career attorney supposedly “leading the DOJ/FBI investigation” into the IRS.

The Oversight Committee didn’t disclose that Bosserman was employed at the Justice Department (DOJ) in 2004 and 2008 when she made her political contributions to the Democratic National Committee.  It is obvious Bosserman was not hired into the DOJ because of her support for the administration and has been a committed Democrat long before a potential conflict could arise between her activities and the work she is assigned.

If DOJ assigned a non-political appointee attorney on a matter because of her political contributions, then Chairmen Issa and Jordan should be raising Hatch Act concerns and potential questions concerning prohibited personnel practices.  Yet Issa and Jordan’s letter to DOJ Attorney General Holder was only carbon copied to DOJ Inspector General Michael Horowitz, not the Office of Special Counsel, who would be responsible for investigating prohibited personnel practices and Hatch Act concerns.

Furthermore, if it is true that Bosserman was assigned to the matter for political reasons, then the DOJ would be subjecting itself to enormous risk by admitting to having knowingly violated the law in publicly stating that “removing a career employee from an investigation or case due to political affiliation, as Chairmen Issa and Jordan have requested, could also violate the equal opportunity policy and the law.”

But that conclusion seems attenuated.  Moreover, neither Chairman Issa nor Subcommittee Chairman Jordan appear at all concerned that the DOJ assigned a Civil Rights Division attorney to investigate the IRS.  The Civil Rights Division mostly prosecutes hate crimes cases and conspiracies to violate civil rights. The Civil Rights Division has no jurisdiction to investigate criminal violations that result when an officer or employee of the United States who “with intent to defeat the application of any provision of [the Internal Revenue Code] fails to perform any of the duties of his office or employment” or when the President, the Vice President, or any of their employees (as well as cabinet secretaries) “directly or indirectly” requests that the IRS “conduct or terminate an audit or other investigation of any particular taxpayer”.

Now the Oversight Committee wants Bosserman to testify before it this week in yet another hearing by a committee which has already spent months investigating the IRS’s political targeting.  As Principal Deputy Attorney General Peter J. Kadzik wrote to Subcommittee Chairman Jordan on Jan. 24, “Your decision to impugn the integrity of a career attorney raises serious concerns, . . . Targeting career attorneys in this manner could plainly have a chilling effect on the valid exercise by federal employees of their basic right to participate in the political process.”

Parsing through the Oversight Committee letter, it would seem that the only point Issa and Jordan are trying to make is that they don’t like that a federal employee has exercised her political speech.  That sounds like political targeting 101.

 

 

Cause of Action Sues IRS Over Proposed Regulations Affecting Nonprofits

Today Cause of Action took three actions to push back against the IRS’s proposed regulations concerning political activity by nonprofits.

1. A request for the IRS to extend the comment period for its proposed rules affecting 501(c)(4) social welfare organizations.

2. An Information Quality Act petition challenging the IRS’s paperwork burden estimate for its proposed rules restricting 501(c)(4) social welfare organizations.

3. A lawsuit seeking for the court to:

 a. Delay the IRS issuing a final rule until the IRS produces responsive records; and

b. Order the IRS to re-open the comment period on the proposed rule after the IRS produces all responsive records.

Cause of Action Executive Director Dan Epstein commented:

“The IRS’ proposed regulation is simply a back door attempt to stifle political opponents, to protect Administration policies, and to restrict and hamper grassroots education regarding the Constitution, limited-government, and economic freedom. We’ve seen a pattern spanning decades of the IRS being used to deter political dissenters and stifle criticism.  The government’s proposed rules continue this pattern and are but one more example of the Executive Branch abusing its administrative power.  Every American is entitled to government transparency and accountability which is why Cause of Action is filing this lawsuit.”

Dan Epstein on WIBA-AM Upfront w/ Vicki McKenna 01/14/2014

Discussing the FBI’s decision to forego criminal charges in the IRS investigation.

Related Documents: IRS Targeting & Politicization

Sensitive Case Reports: A Hidden Cause of the IRS Targeting Scandal

Read our full report on IRS targeting here. (March 2017)

TIGTA FOIA Litigation

Final Response to Cause of Action FOIA Request (December 15, 2014)

Joint Status Report and Proposed Schedule (December 5, 2014)

Clarification of Initial Response to Cause of Action FOIA Request (December 5, 2014)

TIGTA Response to Cause of Action FOIA Request(December 1, 2014)

Opinion (September 29, 2014)

Reply Brief (March 17, 2014)

Complaint (August 9, 2013)

IRS FOIA Request regarding IRS Targeting and Records Management

FOIA Request (July 23, 2014)

IRS FOIA Request and Lawsuit

Plaintiff’s Cross-Motion for Summary Judgment (June 10, 2014)

Complaint (June 19, 2013)

October 9, 2012

FOIA Request: records of communication between the White House and the IRS concerning taxpayer information, particularly communications that were not made pursuant to 6103(g) of the tax code, which authorizes the President to request any individual’s tax return information from the IRS.

FOIA request to TIGTA August 16, 2013

Request for access to the work calendars of Inspector General J. Russell George from March 1, 2012 to July 31, 2013.

FOIA production received from TIGTA December 30, 2013

 

Washington Free Beacon: Watchdog Criticizes Justice Dept. Decision to Forego IRS Criminal Investigation

Read the full story: Washington Free Beacon

Cause of Action executive director Dan Epstein said the documents his group obtained, which were shared with the Washington Free Beacon, suggest that TIGTA’s investigation may have been inadequate.

“Given that IG George’s examination of tax-exempt applicant reviews at the IRS was conducted over a period of just a few months—was a thorough investigation of the IRS ever possible?” Epstein asked in an emailed statement.

 

Even the review that did take place lacked the authority to use investigative tools that might have uncovered wrongdoing, Epstein said.

 

“Given that IG George chose to forego an investigation and pursue an audit, coupled with no evidence of any meetings with the FBI in IG George’s calendars, is it any wonder that the FBI has been unable to find criminal violations?” he asked.

 

Related Documents: Healthcare – The Patient Protection and Affordable Care Act

Letter to the Texas Attorney General

Letter (November 13, 2013)

IRS Complaints Against Enroll America For Violating the Internal Revenue Code

Complaint (November 22, 2013)

IRS Reply (August 5, 2013 )

Complaint (July 29, 2013)

Liability Alert Letters re: PPACA

The liability alert letter to the General Counsel of Covered California is here.

Cause of Action sent letters notifying Governors and state Attorneys General of legal liability should federal grant recipients in their states misuse the federal money they receive to run the state health exchanges and Navigator programs. Cause of Action explains how waste, fraud and abuse are potential consequences of federal funds given to states without accountability and proper oversight.

You can find each state letter below and the date on which the letter was sent: