Sort of NT - IRS appologizes for targeting Tea Party in 2012

[kcjenkins]

Now we find out from the IG report that they also went after groups with “Jewish,” “Limited Government” or “Constitution” in their names. Is it getting closer to being scary for you?

[Guest Taxed]

May be they need to revisit the entire qualification process of all 501©(4) organizations regardless of their political affiliation!

[Catherine]

May be they need to revisit the entire qualification process of all 501©(4) organizations regardless of their political affiliation!

If they had reason to believe (or suspect) the organizations did not qualify, THEY COULD SIMPLY HAVE TURNED DOWN THE APPLICATIONS. There was no need to demand documents detailing membership applications, future plans of members, copies of letters to the editor written by members -- or start personal audits on those who submitted applications. This was so far over the top that it is utterly and completely antithetical to the principle of freedom of speech this country was based upon.

http://hotair.com/archives/2013/05/10/10-crazy-things-the-irs-asked-tea-party-groups/comment-page-1/

[Guest Taxed]

Let's see if Congress is going to hold any hearings and if heads are going to roll!

No one should use the IRS to harass folks with whose political views you disagree!

[kcjenkins]

IRS Gave Confidential Docs to Lib Group

Tuesday, May 14, 2013

The progressive-leaning investigative journalism group ProPublica says the Internal Revenue Service (IRS) office that targeted and harassed conservative tax-exempt groups during the 2012 election cycle gave the progressive group nine confidential applications of conservative groups whose tax-exempt status was pending.

The commendable admission lends further evidence to the lengths the IRS went during an election cycle to silence tea party and limited government voices.

ProPublica says the documents the IRS gave them were “not supposed to be made public”:

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… 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 six of those public, after redacting their financial information, deeming that they were newsworthy.)

[Guest Taxed]

May be Republicans will use this opportunity to cut back the power of the IRS!

[mrichman333]

"There was no need to demand documents detailing membership applications, future plans of members, copies of letters to the editor written by members"

YOU GOT THAT RIGHT!!! I'll say it again Tyranny is here. We have the Government our founding fathers faught against.

[Guest Taxed]

Such a low threshold for Tyranny!

Folks who have experienced real Tyranny would have their feelings hurt!

[kcjenkins]

In the midst of the IRS scandal, individuals and groups, alike, are continuing to come forward with ever-startling allegations. On Wednesday, Dr. Anne Hendershott, a devout Catholic and a noted sociologist, professor and author,said she believes she may have been one of the IRS’s targets.

According to Hendershott, the IRS audited her in 2010 and demanded to know who was paying her and “what their politics were.” While audits are not unusual, the way hers started was not.

It all started with a phone call she received at her home in May of that year — a call during which she was told she would be audited. A letter that followed on May 19, 2010 solidified the IRS’s request to meet her in person two months later in July. “The IRS calls my house and says … ‘I just wanted to let you know that we’re going to be auditing your business’ and I said ‘My businesses?’ and he said, ‘You know the expenses you take off for writing,”she recalls. In addition to her academic work, she said she occasionally freelances for Catholic outlets and for the Wall Street Journal.

But the circumstances surrounding the irregular nature of the experience don’t end there. She noted it was particularly surprising that she, alone, was audited. Her husband, who brings in the vast majority of the family’s income, was not included in the IRS’s inquiry — even though the Hendershotts always files jointly. Ever hear of that ?

So when the agent explained that she would need to come alone and in person to discuss her “business” activity in July of 2010, the professor was perplexed. “The IRS agent didn't even let me decide when it would be good for me … He didn't want my husband to come,” she said of the meeting, which was held at an IRS office in New Haven, Connecticut.

The process was a grueling one, including many questions that Hendershott felt were political in nature. Numerous records were requested before the in-person meeting, as well as during and after. “Every question had to do with bank deposits we made. Every single question,” she said. “What is this money? And I didn’t know a lot of it. We had to go to our bank and get deposits back. We had to get records showing where the money came from.” While asking about the deposits, the agent wanted to know if the monies came from groups and, if so, what the organizations’ politics were.

The mention of groups, Hendershott notes, is particularly interesting, as she had been writing for numerous Catholic outlets and organizations at the time. In addition to Catholic World Report and the Catholic Advocate, she also penned op-eds for the Wall Street Journal. Many of these writings were critical of President Barack Obama and his policies. And the plot thickens. Among the organizations she targeted in her writings were progressive groups highly supportive of Democratic causes, including: Catholics in Alliance for the Common Good, Catholics United, and Catholic Democrats. At the time, one of the founders of Catholics United, Chris Korzen, had become a target of her work, as she exposed, in her view, his true leftist agenda and some of the complicated theological stances the left-of-center organizations he associated with were taking. Plus, there were alleged financial ties with billionaire liberal George Soros.

Her writings for the Catholic Advocate soon ceased because, she admits, the IRS audit silenced her. If her suspicions are true, this may have been its chilling intention. “I haven’t written for them since the audit, because I was so scared,” she said (records show her last article for the organization was on July 10, 2010 — the same month the IRS audit unfolded). She had only shared her story with friends and those close to her, but in light of the recent IRS scandal, she has decided to speak out. “It was clear they didn’t like me criticizing the people who helped pass Obamacare,” she said of the audit,” later adding, ”The IRS is very frightening.” In addition to creating stress and fear, she said that the experience came at a great emotional and financial expense for the family, noting that even after the audit the government sought more information from her. “It was like they just couldn’t find what they wanted because they wanted more and more and more,” she said.

Here’s just two paragraphs from an article she wrote in March 2010, just months before her meeting with IRS officials:

On its website, Catholics United describes itself as a 501© (4) non-profit organization—eligible to accept donations. But, Catholics in Alliance for the Common Good emerged in 2005 as a kind of sister organization to Catholics United. A 501© (3) organization, donors can claim a deduction against personal income tax when they donate money to Catholics in Alliance. Reviewing the 2007 IRS 990 forms for both Catholics in Alliance for the Common Good and Catholics United raises some questions, because Chris Korzen is listed as having received $84,821 in compensation for 40 hours per week from Catholics in Alliance on the group’s 990 Form—even though the Catholics United website claimed he was the director there during the same time period. [...]

Despite their inability to engage in extensive lobbying, Catholics in Alliance has been extremely successful in attracting large donors. Never a friend to the Catholic Church, George Soros, one of the earliest donors, contributed $50,000 to Catholics in Alliance in 2005 and another $100,000 in 2006 through his Open Society Institute. Likewise, Smith Bagley, a major Democratic donor and fundraiser, whose wife, Elizabeth Frawley Bagley, is Chairman of the Board of Catholics in Alliance, came close to matching Soros with grants from his family’s Arca Foundation. With a long history of supporting progressive organizations like ACORN, the Gamaliel Foundation, People for the American Way, and Planned Parenthood, Arca contributed $50,000 to Catholics in Alliance in 2007 and another $75,000 in 2008.

[kcjenkins]

When Internal Revenue Service agents decided to target conservative groups with “unnecessary” information requests, they probably weren’t expecting Marion Bower, an Ohio woman who in 2010 founded her own Tea Party group.

“I was trying to be very cordial, but they wanted copies of unbelievable things,” the 68-year-old founder of American Patriots against Government Excess told ABC News Tuesday. “They wanted to know what materials we had discussed at any of our book studies.”

Yes, when applying for the group’s tax-exempt status, the IRS actually asked her for information regarding the books she and her colleagues read.

“They wanted a synopsis of all the books we read,” she said. “I thought, I don’t have time to write a book report. You can read them for yourselves.”

So she sent the IRS official handling her tax-exempt request in Cincinnati a copy of “The Five Thousand Year Leap” and a paperback version of the United States Constitution.

“Bower, 68, said she did not want to cause trouble or be argumentative with the IRS, so she patiently responded to their questions about her group,” ABC News notes.

“Her group’s request was granted in March 2012, about two years after they originally applied,” the report continues.

The Ohio woman said the IRS’ demands, which included requests for agenda and minutes of their regular meetings, were absurd.

“I felt like, ‘My goodness, what in the world is going on here?’” Bower said. “Is this ever going to end?”

We know why the IRS was stonewalling Bowers.

Agency employees agents were instructed to flag applications that included the words “patriot” and “tea party,” senior IRS officials revealed last week. Conservative groups critical of government and groups designed to educate Americans on the Constitution were also flagged for further review.

“They wanted copies of our blog. They said they had already taken copies of our website. They wanted a list of all of our officers, what we do at our meeting, how our board is made up,” Bower said.

“The IRS says that it is part of its normal oversight responsibility to request additional information to ‘develop’ applications that need heightened scrutiny because tax-exempt groups might only engage in certain amounts and certain kinds of political activity,” ABC News explains.

“But Bower said her group consisted of volunteers who routinely passed out copies of the constitution at parades, and had informational meetings on anything from the health care law to disaster preparedness,” the report notes.

“We thought it would be a very simple process,” Bower said. “It wasn’t a simple process.”

Exit Question: Does this mean there’s a copy of the U.S. Constitution floating around somewhere in the IRS’ Cincinnati offices? If so, is anyone reading it?

[Guest Taxed]

I am sure all groups and individuals who have had any "gripe" with the IRS will show up at the House hearings.

The Republicans in the House (the usual suspects) in conjunction with FoxNews will try to paint the IRS as the "evil" that has been created! Stop Obamacare implementation as they are already beating those drums!

Not to be outdone the rightwing groups will use this opportunity for fund raising from like minded individuals. Somebody got to make money!

It will be interesting at the end to find out how many of those actually rise to criminal prosecution!

[kcjenkins]

[joanmcq]

It all started with a phone call she received at her home in May of that year — a call during which she was told she would be audited. A letter that followed on May 19, 2010 solidified the IRS’s request to meet her in person two months later in July. “The IRS calls my house and says … ‘I just wanted to let you know that we’re going to be auditing your business’ and I said ‘My businesses?’ and he said, ‘You know the expenses you take off for writing,”she recalls. In addition to her academic work, she said she occasionally freelances for Catholic outlets and for the Wall Street Journal. How many clients have no clue their freelance work is considered a business?

But the circumstances surrounding the irregular nature of the experience don’t end there. She noted it was particularly surprising that she, alone, was audited. Her husband, who brings in the vast majority of the family’s income, was not included in the IRS’s inquiry — even though the Hendershotts always files jointly. Ever hear of that ? Yes, her Sch C was being audited. I'm going to bet her hubby just has wage income. Standard Sch. C audit.

So when the agent explained that she would need to come alone and in person to discuss her “business” activity in July of 2010, the professor was perplexed. “The IRS agent didn't even let me decide when it would be good for me they never do… He didn't want my husband to come,” she said of the meeting, which was held at an IRS office in New Haven, Connecticut. Again, how many clients can correctly recall what we, their brokers, the 'other CPA', etc tells them, much less the IRS?

The process was a grueling one, including many questions that Hendershott felt were political in nature. Numerous records were requested before the in-person meeting, as well as during and after. “Every question had to do with bank deposits we made. Every single question,” standard audit of unreported income, bank deposit analysis. she said. “What is this money? And I didn’t know a lot of it. We had to go to our bank and get deposits back. We had to get records showing where the money came from.” While asking about the deposits, the agent wanted to know if the monies came from groups and, if so, what the organizations’ politics were. Not sure about this one, but see remark above regarding client memories.

I'm not finding anything odd about her audit. Maybe if she had gotten representation rather than trying to do it herself.....

[kcjenkins]

I'm not finding anything odd about her audit. Maybe if she had gotten representation rather than trying to do it herself.....

She did get representation and she ended with a no-change audit. But I've NEVER heard of anyone being told that their spouse could not be present. She's a 68 yr old college professor, so I feel sure if she was allowed to have him there, she would have. And in her case, since he was the primary breadwinner, having him there might have sped up things, since he likely would have had answers to many of the deposit questions. He's in the insurance business, so I expect most of the deposits in question were his.

[joanmcq]

See, there's a difference in perception that I was alluding to. Was she told she could not have her husband present, or did the agent say she didn't need to have her husband present. Since she complained that the auditor didn't let her pick a time that was convenient for her, I can see this conversation: Auditee: but the appointment is for noon on a Tuesday! My husband has to work. Auditor: he doesn't have to be here. It's not his business. Perception: the auditor discouraged me from having my husband go along. She didn't get representation at the start, or she wouldn't have ever talked to the auditor, and hubby along or not along would never have come up.

[Catherine]

Such a low threshold for Tyranny!

Folks who have experienced real Tyranny would have their feelings hurt!

Folks who have experienced REAL tyranny -- have you spoken with any of these folks? I have -- defectors from the USSR, refugees from Czechoslovakia from behind the Iron Curtain, and more.

The all have ONE thing to say, and it is, "Will you people open your eyes and STOP this?!?! I did not risk my life to escape the Communists to live under their thumb here!" Only in much greater detail and in much stronger terms.

[JohnH]

Throughout the past 5 years, I've been fascinated by the parallels between the Obama presidency and the Carter presidency. Similar failures of style; similar failures of leadership. And unfortunately for all of us in the long term, similar projections of weakness on the world scene. But I never contemplated that there might be parallels between the Obama presidency and the Nixon presidency. I'll bet Jimmy Carter is the one most pleased to see these latest developments since they somewhat take the spotlight off his miserable tenure in office.

[Guest Taxed]

Folks who have experienced REAL tyranny -- have you spoken with any of these folks? I have -- defectors from the USSR, refugees from Czechoslovakia from behind the Iron Curtain, and more.

The all have ONE thing to say, and it is, "Will you people open your eyes and STOP this?!?! I did not risk my life to escape the Communists to live under their thumb here!" Only in much greater detail and in much stronger terms.

Oh yes I have as amatter of fact I have a few clients from those countries that emigrated here a decade or so back. All of them love USA and they want to bring their relatives but they have to wait for green card!

And NONE of them said what they told you. So I guess you rightwingers must be talking to a a different group of people and if they DO NOT like it here they can always get a one way ticket back. May be they will like it better there!

[GeneInAlabama]

I don't know how it is now, but it used to be that the IRS would NEVER notify anyone of an audit by phone, it was ALWAYS by mail. My understanding has always been that you could take anyone with you to an audit, they just didn't have any authority to do anything unless it was the preparer, an EA, CPA, or an attorney. I have seen people take their small children with them on an audit.

[Guest Taxed]

Taking your small children to an IRS Audit is NOT recommended. Pay for a babysitter, this is serious business not a walk in the mall!

[Jack from Ohio]

Taking your small children to an IRS Audit is NOT recommended. Pay for a babysitter, this is serious business not a walk in the mall!

I have had people say" "I don't need your assistance. I am not afraid of the IRS. I will show them!"

After the first audit visit, my fee doubled to help them.

[GeneInAlabama]

>>Taking your small children to an IRS Audit is NOT recommended. Pay for a babysitter, this is serious business not a walk in the mall!<<

No, it is NOT recommended. As a former tax auditor (many years ago), I have seen it happen a number of times. I have to say that I wasn't very sympathetic with a family that had small children running around the office getting into things. I put up with it to a degree then and I still have to put up with it now in preparing returns for people who bring their children with them. While I should charge more for clients like that, I have never had the fortitude to do it.

[Guest Taxed]

Tax audits are a totally different ballgame than preparing tax returns.

I do have a few clients (mostly evening or night appointments) who will bring their toddlers to the appointment. I have a reception area outside my office with a TV. I politely request one of the parents to watch their kids there and if I need any question answered I can always holler!

This year one of my client's teenage daughter brought her lap dog in her big bag. Half way through the appointment when i saw the head pop up, I had to ask her to go sit in the reception area!

[mrichman333]

A study was done quite a few years ago that found people were more afraid of the IRS then the mafia. As Thomas Jefferson said when people fear the Government there is tyranny and when the Government fears the people there is freedom.

Does anyone seriously think the Government fears us anymore.