• Tag Archives IRS
  • Law Lets I.R.S. Seize Accounts on Suspicion, No Crime Required

    For almost 40 years, Carole Hinders has dished out Mexican specialties at her modest cash-only restaurant. For just as long, she deposited the earnings at a small bank branch a block away — until last year, when two tax agents knocked on her door and informed her that they had seized her checking account, almost $33,000.

    The Internal Revenue Service agents did not accuse Ms. Hinders of money laundering or cheating on her taxes — in fact, she has not been charged with any crime. Instead, the money was seized solely because she had deposited less than $10,000 at a time, which they viewed as an attempt to avoid triggering a required government report.

    “How can this happen?” Ms. Hinders said in a recent interview. “Who takes your money before they prove that you’ve done anything wrong with it?”

    The federal government does.

    Using a law designed to catch drug traffickers, racketeers and terrorists by tracking their cash, the government has gone after run-of-the-mill business owners and wage earners without so much as an allegation that they have committed serious crimes. The government can take the money without ever filing a criminal complaint, and the owners are left to prove they are innocent. Many give up.

    “They’re going after people who are really not criminals,” said David Smith, a former federal prosecutor who is now a forfeiture expert and lawyer in Virginia. “They’re middle-class citizens who have never had any trouble with the law.”

    Full article: http://www.nytimes.c … e-required.html?_r=0


  • Lois Lerner’s Former FEC Colleague Has Emails Go Missing Too

    The FEC’s Office of Inspector General sought to conduct a criminal investigation into Sands’ activities but were stymied when they found that the agency had recycled her computer hard drive.

    “Therefore the OIG was unable to show that Ms. Sands’ solicitations and political activity were done from an FEC computer,” reads the letter.

    Because of this, the U.S. attorney’s office for the District of Columbia declined criminal prosecution.

    “The FEC’s failure to retain Ms. Sands’ hard drive prevented the FEC OIG from fully pursuing appropriate criminal sanctions for Ms. Sands’ admitted violation of federal law,” wrote Issa and Jordan.

    “Like the IRS’s destruction of Lois Lerner’s hard drive, the FEC’s recycling of Ms. Sands’ hard drive may have also destroyed material responsive to Freedom of Information Act and congressional oversight requests,” the letter continued.

    Lerner’s computer hard drive crashed in the middle of 2011, right around the time that questions were being raised over whether the IRS’s enforcement agency was targeting conservative non-profit groups while considering whether to grant them tax-exempt status.

    via Lois Lerner’s Former FEC Colleague Has Emails Go Missing Too


  • New Emails: Democratic Senator Pressured IRS To Target Groups

    The IRS’ Washington, D.C. headquarters targeted conservative groups in part due to pressure from Democratic Sen. Carl Levin, according to emails obtained by the watchdog group Judicial Watch and reviewed by The Daily Caller.

    Levin, chairman of the Senate Homeland Security and Governmental Affairs’ permanent subcommittee on investigations, wrote a March 30, 2012 letter to then-IRS commissioner Douglas Shulman discussing the “urgency” of the issue of possible political activity by nonprofit applicants. Levin asked if the IRS was sending out additional information requests to applicant groups and citing an IRS rejection letter to a conservative group as an example of how the IRS should be conducting its business.

    A top IRS official replied that the agency could send out “individualized questions and requests.”

    “Some entities claiming tax-exempt status as social welfare organizations under 26 U.S.C.&501(c)(4) appear to be engaged in political activities more appropriate for political organizations claiming tax-exempt status under 26 U.S.C.&527,” Sen. Levin wrote. “Because of the urgency of the issues involved in this matter, please provide the following information by April 20, 2012.”

    Levin asked ”if it is not provided on a routine basis, approximately what percentage of such applicants receive an IRS questionnaire seeking information about any political activities, and how the IRS determines whether and when to send that questionnaire; and approximately how many days after an application is filed that questionnaire is typically sent.”

    Levin cited a 1997 IRS rejection letter to the conservative group National Policy Forum, formed by former Republican National Committee chairman Haley Barbour, and asked Shulman, “Is it still the position of the IRS that a 501(c)(4) organization cannot engage in any partisan political activity, even as a secondary activity?”

    Then-IRS deputy commissioner Steven T. Miller sent Levin a 16-page response explaining that the flexibility of IRS rules allow for the agency to “prepare individualized questions and requests.”

    “There is no standard questionnaire used to obtain information about political activities,” Miller wrote. “Although there is a template development letter that describes the general information on the case development process, the letter does not specify the information to be requested from any particular organization … Consequently, revenue agents prepare individualized questions and requests for documents relevant to the application. . .”

    As TheDC has extensively reported, IRS agents targeted groups’ donors, seized training information, demanded personal information on college interns, and even targeted individuals by name.

    The emails obtained by Judicial Watch clearly demonstrate that the targeting was based in Washington, D.C.

    IRS official Holly Paz wrote a July 6, 2010 email to Washington-based IRS lawyer Steven Grodnitzky “to let Cindy and Sharon know how we have been handling Tea Party applications in the last few months.” Grodnitzky replied to the email, confirming that the Washington-based Exempt Organization Technical unit (EOT) was designing the targeting in the nation’s capital.

    Full article: http://dailycaller.c … rs-to-target-groups/