Tag Archives: tax-exempt groups

The Wrong People Are Paying For This

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On January 11th, The Daily Signal posted the following article, “Conservative Groups Targeted in Lois Lerner’s IRS Scandal Receive Settlement Checks.”

The article reports:

The federal government in recent days has been issuing settlement checks to 100 right-of-center groups wrongfully targeted for their political beliefs under the Obama administration’s Internal Revenue Service, according to an attorney for the firm that represented plaintiffs in NorCal v. United States.

Three of the claimants in the $3.5 million national class-action suit are based in the Badger State.

“This is really a groundbreaking case. Hopefully it sets a precedent and will serve as a warning to government officials who further feel tempted to discriminate against U.S. citizens based on their viewpoints,” Edward Greim, attorney for Kansas City, Missouri-based Graves Garrett LLC told MacIver News Service.

Most of the claimants will each receive a check for approximately $14,000, Greim said. Five conservative groups that were integrally involved in the lawsuit get a bonus payment of $10,000 each, the attorney said.

About $2 million of the settlement goes to cover the legal costs of five long years of litigation. IRS attorneys attempted delay after delay, objection after objection, trying to use the very taxpayer protection statutes the plaintiffs were suing under to suppress documents.

The agency has admitted no wrongdoing in what a federal report found to be incidents of intrusive inspections of organizations seeking nonprofit status. Greim has said the seven-figure settlement suggests otherwise.

Folks, these checks are coming out of our tax dollars. As taxpayers we are paying for the corruption in the IRS during the Obama administration.

The article continues:

Disgraced former bureaucrat Lois Lerner led the IRS division that processes applications for tax-exempt groups. A 2013 inspector general’s report found the IRS had singled out conservative and tea party organizations for intense scrutiny, oftentimes simply based on their conservative-sounding or tea party names. The IRS delayed for months, even years, the applications, and some groups were improperly questioned about their donors and their religious affiliations and practices.

Lerner claims she did nothing wrong. In clearing her of wrongdoing, an Obama administration Department of Justice review described Lerner as a hero. But she invoked her Fifth Amendment right in refusing to answer questions before a congressional committee. The plaintiffs in the class-action lawsuit took the first and only deposition of Lerner, a document that the former IRS official and her attorneys have fought to keep sealed.

“At one level, it’s hard to even assess a dollar amount to what they did, it’s so contrary to what we think our bureaucrats in Washington should be doing. It boggles the mind,” Greim said.

This was an egregious violation of free speech and disregard for the law, and no one actually was held accountable. That is sad.

Why All Congressional Bills Need To Be Read Carefully

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CBN News reported today on an unnoticed item in the tax cut bill passed by Congress this year.

The article reports:

Churches and non-profit organizations are calling for the repeal of a provision in the GOP’s tax cuts law that would force ministries to file federal tax returns, and in some cases pay taxes.

Last winter, as lawmakers touted the tax savings in the Tax Cuts and Jobs Acts, no one mentioned this new federal tax on local churches. But for non-profits like Christian ministries, that little-known provision in the legislation has become a big cause for concern.

…Under the new tax plan, churches, hospitals, colleges and other historically tax-exempt groups must pay a 21 percent tax on some benefits they provide their employees, such as parking, transportation and other related benefits.

Dan Busby is president of the Evangelical Council for Financial Accountability. He says churches weren’t expecting to get hit with – of all things – an income tax bill, and this one could be a huge burden on groups that have historically enjoyed tax-exempt status.
 
“There are nearly 15 million employees that work in the United States for nonprofits – nearly 10 percent of the workforce – so that’s 15 million parking places. And conservatively, it’s going to cost the non-profit community as a whole up to a billion dollars,” Busby said.

That’s a lot of money for ministries that rely on donations. In response to the news, the ECFA put out a petition that churches and nonprofits can sign to protest the employee parking tax. 

“Tax practitioners who have evaluated Section 512(a) (7) generally believe that the result of this new provision is that tax‐exempt organizations that provide parking to their employees will be subject to unrelated business income tax on the cost of the parking provided. A nonprofit organization that simply allows its employees to park in a parking lot or garage that is part of the organization’s facilities will be subject to a tax on the cost of the parking provided,” the ECFA explained in a position statement available for download on its website.

This is the link to sign the petition against the new tax  –  https://www.ecfa.org/DocSig.aspx

Taxing churches on their staff parking places has to be one of the dumbest ideas I have ever encountered.

The IRS Smoking Gun Will Be Released Tuesday Morning

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The Daily Caller posted a story today stating that they have received an advance copy of a House Oversight and Government Reform Committee that definitively proves malicious intent by the IRS to improperly block conservative groups that an IRS adviser deemed “icky.”

The article lists six findings from the report:

1. The IRS admitted that the front office was “spinning” about the targeting rumors as early as 2012, after IRS commissioner Douglas Shulman denied the tea party targeting to Congress.

2. Then-IRS commissioner Steven T. Miller almost broke down and told the truth about the tea party targeting at a July 2012 hearing, but Lerner’s sidekick Nikole Flax told him not to.

3. The IRS definitely treated tea party applications by a different standard than applications from other (c)(4) groups.

4. Lois Lerner expressed her frustration about having to potentially approve a lot of groups, and her colleagues in the agency assured her that she wouldn’t have to.

5. So the IRS reached out to outside advisers to help come up with ways to deny tax-exempt status to “icky” organizations.

6. A May 2011 email from a lawyer in the IRS chief counsel’s office made clear that the agency sought to use a new “gift tax” to target donors to nonprofit political groups.

Lying to Congress is perjury and I believe it carries a jail term. Unfortunately, the charges would have to be brought by the Justice Department, and I don’t see that happening. At any rate, this information needs to be shouted across the media, although my bet is that most of the  media won’t report it.

Testimony From An Internal Revenue Employee In Cincinnati

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Breitbart.com posted an article today showing testimony from one of the Internal Revenue Service (IRS) employees interviewed by the House Oversight and Government Reform Committee. The article shows testimony from a Cincinnati IRS employee. I strongly suggest that you follow the link above and read the entire transcript.

The key exchange goes something like this:

Q: So what do you think about this, that allegation has been made, I think as you have seen in lots of press reports, that there were two rogue agents in Cincinnati that are sort of responsible for all of the issues that we have been talking about today.  What do you think about those allegations?

[…]

A:  It’s impossible.  As an agent we are controlled by many, many people.  We have to submit many, many reports.  So the chance of two agents being rogue and doing things like that could never happen.

The article concludes:

The Oversight Committee will be conducting hearings this week focusing on the Treasury Inspector General for Tax Administration report on excessive IRS conference spending and abuses of taxpayer dollars. Chairman Issa sent a letter to then-IRS Commissioner Douglas Shulman in April, 2012 regarding the agency’s bloated spending habits. According to the Committee, the IRS spent $50 million on at least 220 conferences between 2010 and 2012.

Anyone who has ever dealt with “low-level” government employees knows that their authority is limited. There is usually a procedures manual that they have to follow to do anything. There is no way a “low-level” employee could create the havoc that was created in the tax-exempt division of the IRS. Orders had to come from higher up. The question at hand is how much higher up.

Note that the problem began in 2010 after the passage of ObamaCare and as the Tea Party was gaining strength. The Democrats saw the threat and dealt with it–illegally, but they did deal with it. If the Democrats were as quick and efficient in dealing with the financial problems of America, America would no longer have financial problems!

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