Why the I.R.S. Scandal Won't Go Away
Thomas B. Edsall, NYT
FEB. 25, 2014
In the continuing battle over Republican allegations that the Obama administration pressured the Internal Revenue Service to obstruct Tea Party applications for tax-exempt status, three well-known political figures are among those likely to benefit: Karl Rove and David and Charles Koch.
The story began in 2010, but did not become public until May 10, 2013, when Lois Lerner, then the director of the little-known Cincinnati-based Exempt Organization Division of the I.R.S., which reviews applications for tax-exempt status for nonprofits, publicly acknowledged and apologized for the practice of targeting Tea Party groups for special scrutiny.
Lerner’s admission came four days before J. Russell George, the Treasury department’s inspector general for tax administration, released a critical report confirming that conservative groups had indeed been targeted. Its title presents its conclusion: “Inappropriate Criteria Were Used to Identify Tax-Exempt Applications for Review.”
George and his investigators found that in August 2010, the I.R.S. Exempt Organization Division had distributed to its staff a “Be On the Look Out (BOLO)” warning about groups with the words “Tea Party” in their name. These Tea Party-linked groups were to be subject to detailed examination regarding their eligibility for tax-exempt status. The BOLO directive was later expanded to include organizations that contained the word “patriot” in their names.
(More here.)
FEB. 25, 2014
In the continuing battle over Republican allegations that the Obama administration pressured the Internal Revenue Service to obstruct Tea Party applications for tax-exempt status, three well-known political figures are among those likely to benefit: Karl Rove and David and Charles Koch.
The story began in 2010, but did not become public until May 10, 2013, when Lois Lerner, then the director of the little-known Cincinnati-based Exempt Organization Division of the I.R.S., which reviews applications for tax-exempt status for nonprofits, publicly acknowledged and apologized for the practice of targeting Tea Party groups for special scrutiny.
Lerner’s admission came four days before J. Russell George, the Treasury department’s inspector general for tax administration, released a critical report confirming that conservative groups had indeed been targeted. Its title presents its conclusion: “Inappropriate Criteria Were Used to Identify Tax-Exempt Applications for Review.”
George and his investigators found that in August 2010, the I.R.S. Exempt Organization Division had distributed to its staff a “Be On the Look Out (BOLO)” warning about groups with the words “Tea Party” in their name. These Tea Party-linked groups were to be subject to detailed examination regarding their eligibility for tax-exempt status. The BOLO directive was later expanded to include organizations that contained the word “patriot” in their names.
(More here.)
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2 Comments:
Why did Lerner plead the 5th? If she wants immunity, why? Let's hope the hearings next week shed some light - if she and the IRS have nothing to hide then they have nothing to hide.
Did anyone watch the latest IRS hearing ?
Did you hear that they have implemented all the IG recommendations ?
Now, did you hear the cost to date ?
Internal Revenue Commissioner John Koskinen reported that there have been “significant funds expended by the IRS in responding to congressional inquiries to date, including $8 million in direct costs—such as salaries, benefits, and travel—and an additional $6 million to $8 million to add capacity to information technology systems to process materials to investigators.”
In response to a Feb. 7 request from the lawmakers, Koskinen said a “conservative approach” tallies up 255 employees who’ve spent 97,542 hours to date, which does not factor in “ancillary support costs,” such as indirect work by the IRS offices of Legislative Affairs, Public Affairs, Human Capital, and the Executive Secretariat.
Rather than play games with Lerner, et al, Congress should just end 501 tax shelters.
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