FLASHBACK: Romney donor vilified by Obama campaign, then subjected to 2 audits
12:40 AM 05/13/2013
Jamie Weinstein
Just months after being slimed by President Barack Obama’s re-election campaign, Mitt Romney supporter and businessman Frank VanderSloot was informed that he was going to be audited not only by the Internal Revenue Service, but by the Labor Department as well.
VanderSloot’s saga was told by columnist Kimberley Strassel in the Wall Street Journal last July.
In April 2012, VanderSloot, who served as the national co-chair of Mitt Romney’s presidential finance committee, was one of eight Romney backers to be defamed as ”wealthy individuals with less-than-reputable records” in a post on the Obama campaign’s website. The post, entitled “Behind the curtain: a brief history of Romney’s donors,” singled out VanderSloot for being a ”litigious, combative and a bitter foe of the gay rights movement.”
Two months later, the IRS informed VanderSloot he and his wife were going to be audited, Strassel reported. Two weeks after that, VanderSloot was notified by the Labor Department that it was going to “audit workers he employs on his Idaho-based cattle ranch under the federal visa program for temporary agriculture workers,” reported Strassel.
“The H-2A program allows tens of thousands of temporary workers in the U.S.; Mr. VanderSloot employs precisely three,” Strassel wrote. “All are from Mexico and have worked on the VanderSloot ranch—which employs about 20 people—for five years. Two are brothers. Mr. VanderSloot has never been audited for this, though two years ago his workers’ ranch homes were inspected. (The ranch was fined $8,400, mainly for too many ‘flies’ and for ‘grease build-up’ on the stove. God forbid a cattle ranch home has flies.)”
“This letter requests an array of documents to ascertain whether Mr. VanderSloot’s ‘foreign workers are provided the full scope of protections’ under the visa program: information on the hours they’ve worked each day and their rate of pay, an explanation of their deductions, copies of contracts,” she continued.
In her column, Strassel raised the specter that the IRS targeted VanderSloot for his political activism.
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“Did Mr. Obama pick up the phone and order the screws put to Mr. VanderSloot?” she asked. “Or—more likely—did a pro-Obama appointee or political hire or career staffer see that the boss had an issue with this donor, and decide to do the president an unasked-for election favor? Or did he or she simply think this was a duty, given that the president had declared Mr. VanderSloot and fellow donors ‘less than reputable’?”
VanderSloot’s tale is more relevant in light of the admission Friday by IRS official Lois Lerner that the agency gave extra scrutiny to non-profit tea party groups with “tea party” or “patriot” in their name that applied for tax-exempt status under section 501(c)(4) of the tax code. While Lerner said the agency’s actions were inappropriate, she claimed it was not the result of political bias.
However, a forthcoming report by the IRS inspector general will say that the agency went beyond what Lerner admitted to on Friday by targeting groups which criticized “how the country is being run,” the Washington Post, which got an advanced copy of part of the internal audit, reported Sunday.
Though that practice was soon halted, just months later, in January 2012, groups that applied for tax exempt status which described themselves as “political action type organizations involved in limiting/expanding Government, educating on the Constitution and Bill of Rights, social economic reform movement” were again subjected to special scrutiny.
On Friday, House Majority Leader Eric Cantor was among the congressional leaders who called for an investigation into what went on at the IRS.
“The IRS cannot target or intimidate any individual or organization based on their political beliefs,” he said in a statement. “The House will investigate this matter.”
The White House also voiced support for an investigation.
“The president would expect that it would be investigated,” White House spokesman Jay Carney said at the Friday’s press briefing.
While non-profit groups were targeted by the IRS, no hard evidence has yet emerged to show that individuals like VanderSloot were targeted for their political leanings.
IRS timeline shows DC officials in loop on Tea Party targeting
Published May 14, 2013
FoxNews.com
Who is accountable for IRS scandal? http://www.foxnews.com/politics/2013...rty-targeting/
Thune: Why I questioned the IRS's motives http://www.foxnews.com/politics/2013...rty-targeting/
Newly obtained documents show the current IRS chief knew about the agency's targeting of Tea Party groups as early as May 2012 and other officials in Washington were clued in more than a year before that, as the scandal continued to spread.
The additional details were provided in a timeline from the office of Sen. Orrin Hatch, R-Utah, based on briefings by the inspector general's office investigating the case. Together, they challenged the agency's initial claims that the practice of flagging conservative groups for additional scrutiny was contained to low-level staffers at a Cincinnati office.
The timeline shows that Steven Miller, the acting IRS chief who at the time was a deputy commissioner, was briefed on the practice on May 3, 2012. Despite this briefing, Miller wrote letters to members of Congress at least twice to explain the process of reviewing applications for tax-exempt status without disclosing that Tea Party groups had been targeted. On July 25, 2012, Miller testified before the House Ways and Means oversight subcommittee, but again did not mention the additional scrutiny -- despite being asked about it.
House Ways and Means Committee Chairman Dave Camp, R-Mich., blasted Miller over the revelation.
"It is almost inconceivable to imagine that top officials at the IRS knew conservative groups were being targeted but chose to willfully mislead the Committee's investigation into this practice," he said in a statement.
Further, the timeline shows that managers, after compiling a list of Tea Party and other cases, decided to send their report "up the chain in Washington" in April 2010. The timeline says this report was shared with two executives in Washington, including Lois G. Lerner. Lerner heads the IRS division that oversees tax-exempt organizations and is the official who first revealed the controversial practice on Friday.
The timeline suggests she knew about the practice even earlier than previously thought. Further, it suggests other Washington officials were aware early on. Meanwhile, The Washington Post reported that IRS officials at the D.C. headquarters were sending inquiries to conservative groups on their donors, and in at least one case an application came under review in Washington.
Miller's actions are sure to come under increased scrutiny.
At the June hearing, Rep. Kenny Marchant, R-Texas, told Miller that some politically active tax-exempt groups in his district had complained about being harassed. Marchant did not explicitly ask if tea party groups were being targeted. But he did ask how applications were handled.
Miller responded, "We did group those organizations together to ensure consistency, to ensure quality. We continue to work those cases," according to a transcript on the committee's website.
Earlier, Rep. Charles Boustany, R-La., had raised concerns with the IRS about complaints that tea party groups were being harassed. Boustany specifically mentioned tea party groups in his inquiry.
But in a June 15, 2012, letter to Boustany, Miller said that when the IRS saw an increase in applications from groups that were involved in political activity, the agency "took steps to coordinate the handling of the case to ensure consistency."
He added that agents worked with tax law experts "to develop approaches and materials that could be helpful to the agents working the cases."
Miller did not mention that in 2011, those materials included a list of words to watch for, such as "tea party" and "patriot." He also didn't disclose that in January 2012, the criteria for additional screening was updated to include references to the Constitution or the Bill of Rights.
The House Ways and Means Committee, chaired by Camp, is holding a hearing on the issue Friday and Miller is scheduled to testify.
The Senate Finance Committee announced Monday that it will join a growing list of congressional committees investigating the matter.
The IRS apologized Friday for what it acknowledged was "inappropriate" targeting of conservative political groups during the 2012 election to see whether they were violating their tax-exempt status. In some cases, the IRS acknowledged, agents inappropriately asked for lists of donors.
The agency blamed low-level employees in a Cincinnati office, saying no high-level officials were aware.
When members of Congress repeatedly raised concerns with the IRS about complaints that tea party groups were being harassed last year, a deputy IRS commissioner took the lead in assuring lawmakers that the additional scrutiny was a legitimate part of the screening process.
That deputy commissioner was Miller, who is now the acting head of the agency.
Camp and other members of the Ways and Means Committee sent at least four inquiries to the IRS, starting in June 2011. Hatch, the top Republican on the Senate Finance Committee, sent three inquiries. And Rep. Darrell Issa, R-Calif., chairman of the House oversight committee, sent at least one.
"This was a targeting of the president's political enemies, effectively, and lies about it during the election year so that it wasn't discovered until afterwards," Issa said Tuesday on "CBS This Morning." The fact is this is the kind of investigation that has to be open and transparent to the American people."
None of the responses they received from the IRS acknowledged that conservative groups had ever been targeted, including a response to Hatch dated Sept. 11, 2012 -- four months after Miller had been briefed.
In several letters to members of Congress, Miller went into painstaking detail about how applications for tax-exempt status were screened. But he never mentioned that conservative groups were being targeted, even though people working under him knew as early as June 2011 that tea party groups were being targeted, according to an upcoming report by the agency's inspector general.
The IRS issued a statement Monday saying that Miller had been briefed on May 3, 2012 "that some specific applications were improperly identified by name and sent to the (exempt organizations) centralized processing unit for further review." That was the unit in Cincinnati that handled the tea party applications.
When Lerner responded to inquiries from the House oversight committee, she also didn't mention the fact that tea party groups had ever been targeted. Her responses included 45-page letters in May 2012 to Issa and to Rep. Jim Jordan, R-Ohio, who chairs a subcommittee.
The Associated Press contributed to this report.
IRS scrutiny went beyond Tea Party, targeting of conservative groups broader than thought
Published May 13, 2013
FoxNews.com
An IRS campaign to apply additional scrutiny to conservative groups went beyond targeting "Tea Party" and "patriot" groups to include those focused on government spending, the Constitution and several other broad areas.
The additional guidelines created by the agency were part of a timeline, obtained by Fox News, from the Treasury Inspector General for Tax Administration, which is looking into the controversial IRS practice. IRS officials apologized Friday for the scrutiny, but new information suggests senior leaders were apprised of the effort as early as 2011 despite public denials from the top.
Republican lawmakers have vowed to investigate and hold hearings, calling the revelations deeply troubling.
"The conclusion that the IRS came to is that they did have agents who were engaged in intimidation of political groups," Michigan Rep. Mike Rogers told "Fox News Sunday." "I don't care if you're a conservative, a liberal, a Democrat or a Republican, this should send a chill up your spine. It needs to have a full investigation."
The House Ways and Means Committee plans to hold a hearing Friday, Fox News has learned. A top Democrat -- Senate Finance Committee Chairman Max Baucus -- also said Monday that his committee would launch a "full investigation" into the matter.
"These actions by the IRS are an outrageous abuse of power and a breach of the public's trust. Targeting groups based on their political views is not only inappropriate but it is intolerable," the Montana Democrat said in a statement. "Americans expect the IRS to do its job without passion or prejudice. We need to get to the bottom of what happened here. ... The IRS will now be the ones put under additional scrutiny."
President Obama weighed in as well, saying at a press conference Monday that if the reports are true, "then that's outrageous and there's no place for it -- and they have to be held fully accountable."
Obama said he first found out about the practice on Friday. He said that if agents behaved in a partisan fashion, "I've got no patience with it. I will not tolerate it."
The internal IG timeline shows a unit in the agency was looking at Tea Party and "patriot" groups dating back to early 2010. But it shows that list of criteria drastically expanding by the time a June 2011 briefing was held. It then included groups focused on government spending, government debt, taxes, and education on ways to "make America a better place to live." It even flagged groups whose file included criticism of "how the country is being run."
By early 2012, the criteria were updated to include organizations involved in "limiting/expanding government," education on the Constitution and Bill of Rights, and social economic reform.
Taken together, the findings of the IG and the initial admissions by the IRS Friday are fueling complaints from Republicans on Capitol Hill.
Evidence that the IRS was flagging such groups in 2011 was included in a draft inspector general's report obtained Saturday by Fox News and other news organizations and expected to be released in full later this week.
That information seemingly contradicts public statements by IRS Commissioner Douglas Shulman, who told congressional investigators in March 2011 that specific groups were not being targeted.
Maine Republican Sen. Susan Collins on Sunday also called the IRS activities chilling and said she was disappointed that President Obama had not condemned the actions.
"This is truly outrageous and it contributes to the profound distrust that the American people have in government," Collins told CNN's "State of the Union." "It is absolutely chilling that the IRS was singling out conservative groups for extra review. And I think that it's very disappointing that the president hasn't personally condemned this."
At about the same time, White House Press Secretary Jay Carney released a statement saying: "If the inspector general finds that there were any rules broken or that conduct of government officials did not meet the standards required of them, the president expects that swift and appropriate steps will be taken to address any misconduct."
Michigan Republican Rep. Dave Camp, chairman of the House Ways and Means Committee, said Friday his committee will hold a hearing on the issue.
The IRS said Friday that it was sorry for what it called the "inappropriate" targeting of the conservative groups during the 2012 elections.
Lois G. Lerner, who heads the IRS division that oversees tax-exempt organizations, said the practice was initiated by low-level workers in Cincinnati and was not motivated by political bias.
But on June 29, 2011, Lerner found out that such groups were being targeted, according to the inspector general's report.
She was told at a meeting that groups with "Tea Party," "Patriot" or "9/12 Project" in their names were being flagged for additional and often burdensome scrutiny, the report states.
The 9/12 Project is a group started by conservative TV personality Glenn Beck.
Collins also said she does not believe the activity was limited to "a couple of rogue IRS employees."
"After all," she added, "groups with `progressive' in their names were not targeted similarly."
The Associated Press contributed to this report.
Alabama tea party groups targeted by IRS (updated)
By George Talbot | gtalbot@al.com
Email the author | Follow on Twitter
on May 13, 2013 at 1:14 PM, updated May 13, 2013 at 8:52 PM
At least two Alabama tea party groups said they were singled out by the Internal Revenue Service over their applications for tax-exempt status.
Both the Common Sense Campaign, a Mobile-based tea party group, and the Wetumpka Tea Party said they were targeted by the IRS, which apologized Friday for what it called “inappropriate” reviews of conservative political groups.
Pete Riehm, a co-founder of the Common Sense Campaign, said the IRS blocked his group’s application to be recognized as a 501c4 non-profit organization.
“We were never audited, but we were certainly harassed,” Riehm said today.
A House bill introduced today would make it a crime punishable by jail time if IRS agents are found guilty of discriminating against political groups.
Riehm said his tea party group submitted its initial application to the IRS in the summer of 2009, along with an $850 filing fee. He said the campaign spent nearly two years and at least $2,000 in legal costs dealing with the IRS’ questions about the application.
Riehm said the group faced repeated delays and was told on at least two occasions that its application had been lost, forcing Common Sense organizers to restart the application process.
Riehm said his group was asked to provide a list of its donors – a violation of IRS policy. He said the agency additionally asked for information about people who posted comments on the campaign’s web site.
The group’s efforts to comply with the IRS only brought new rounds of requests from the tax agency, he said.
Riehm said his concerns peaked in early 2011, when the IRS asked the campaign to identify the employers of its campaign donors and board members.
"They were definitely trying to scare us." - Pete Riehm, a co-founder of the Common Sense Campaign
“That’s when I knew we were being targeted. It had a chilling effect on our ability to raise money,” he said. “They were definitely trying to scare us.”
Becky Gerritson, president of the Wetumpka Tea Party, said her group faced similar delays after applying for tax exempt status in October 2010. After months without any response from the IRS, she said the group received an 8-page letter in February 2012 requesting extensive details about its activities.
"They wanted copies of any communications with legislators. They wanted the names of our volunteers and anyone who'd spoken at our events. They even wanted actual copies of the speeches," Gerritson said. "It was very disorienting."
Gerritson said her group declined to provide the information based on legal advice from the American Center for Law and Justice, a Washington-based law firm that represents about 30 tea party organizations.
The IRS informed the group in July 2012 that its application had been approved, Gerritson said.
Riehm said the Common Sense Campaign, frustrated by mounting legal costs, chose to drop its application in 2011.
“We decided to just pay the tax and quit fighting the bureaucracy,” he said. “It was obvious they weren’t going to recognize us” as a tax-exempt organization.
Lois Lerner, who heads the IRS division that oversees tax-exempt groups, said Friday that about 75 groups were inappropriately targeted. None had their tax-exempt status revoked, Lerner said.
The agency — led at the time by a Bush administration appointee — blamed low-level employees, saying no high-level officials were aware.
That explanation wasn’t good enough for members of the Wetumpka Tea Party.
“Our group was targeted by the IRS,” the group said in a message posted on its Facebook page. “ We have a hard time believing this was an ‘accident’ by low level IRS people.”
Updated at 8 p.m. to include comments from Becky Gerritson
Breaking: IRS admits current Commissioner knew of targeting … a year ago; Update: ProPublica: Same office leaked files to us
posted at 6:11 pm on May 13, 2013 by Ed Morrissey
The Associated Press, via the Washington Post, runs this breaking story about the exploding IRS scandal. It turns out that while outgoing IRS commissioner Douglas Shulman told Congress twice in March 2012 that the agency wasn’t targeting conservative groups, just two months later his acting replacement Steve Miller knew all about it:
IRS says current acting commissioner learned in May 2012 that tea party groups were targeted.
The current commissioner knew for a full year that the agency was targeting Tea Party groups and other opposition organization for aggressive auditing?
And in the middle of an election year, no less? And yet, today Barack Obama insists that he knew nothing of this practice until last Friday.
This is either the most incompetent administration ever, or one of the least honest. I don’t think there’s a third option any longer, especially in this scandal.
Guess who gets to be on the hot seat for Friday?
The House Ways and Means Committee has scheduled a formal hearing Friday to probe the Internal Revenue Service for placing heavier scrutiny on conservative groups that applied for nonprofit status between 2010 and 2012.
IRS Commissioner Steve Miller and Treasury Inspector General for Tax Administration J. Russell George are expected to testify Friday morning during the hearing, which committee leaders said would examine the agency’s “practice of targeting applicants for tax-exempt status based on political leanings.”
Expect Miller to get a lot of questions as to why he never mentioned this practice in June 2012:
The Internal Revenue Service says acting IRS Commissioner Steven T. Miller was first informed in May 2012 that tea party groups were inappropriately targeted for scrutiny.
A month later he wrote a member of Congress to explain the process of reviewing applications for tax-exempt status without mentioning the controversy.
Who told him to keep quiet? That will certainly be one of the questions. At the same time, this poses a fresh set of problems for Shulman, too. It will be very difficult to argue that he didn’t know anything about the practice in March 2012 when his chief counsel knew about it in August 2011, but that Miller came up to speed on it just after his departure. And both men will have to answer whether and when they briefed the White House on this — or whether the White House briefed them to put the practice in place.
Update: Funny how Lois Lerner never mentioned this in her Friday-afternoon dump attempt, huh?
Update: Wow … just wow:
The same IRS office that deliberately
targeted conservative groups applying for tax-exempt status in the run-up to the 2012 election released nine pending confidential applications of conservative groups to ProPublica
late last year.
The IRS did not respond to requests Monday following up about that release, and whether it had determined how the applications were sent to ProPublica.
In response to a request for the applications for 67 different nonprofits last November, the Cincinnati office of the IRS sent ProPublica applications or documentation for 31 groups. Nine of those applications had not yet been approved—meaning they were not supposed to be made public. (We made
sixof those public, after redacting their financial information, deeming that they were newsworthy.)
It’s amazing that ProPublica is willing to burn its source, at least in a general sense, as the key update that it is. This shows that the aggressive actions from this office were hardly apolitical. All nine of the confidential files involved conservative groups, not just a cross-section of 501(c)4s applying for exemptions. This was a coordinated effort to attack conservative groups, although ProPublica ran their article after the election.
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