Judicial Watch Obtains IRS Documents Revealing McCain’s Subcommittee Staff Director Urged IRS to Engage in “Financially Ruinous” Targeting

McCain minority staff director Henry Kerner to IRS official Lois Lerner and other IRS

officials: “the solution is to audit so many that it becomes financially ruinous”

 

Judicial Watch

(Washington, DC) – Judicial Watch today released newly obtained internal IRS documents, including material revealing that Sen. John McCain’s former staff director and chief counsel on the Senate Homeland Security Permanent Subcommittee, Henry Kerner, urged top IRS officials, including then-director of exempt organizations Lois Lerner, to “audit so many that it becomes financially ruinous.”  Kerner was appointed by President Trump as Special Counsel for the United States Office of Special Counsel.

The explosive exchange was contained in notes taken by IRS employees at an April 30, 2013, meeting between Kerner, Lerner, and other high-ranking IRS officials. Just ten days following the meeting, former IRS director of exempt organizations Lois Lerner admitted that the IRS had a policy of improperly and deliberately delaying applications for tax-exempt status from conservative non-profit groups.

Lerner and other IRS officials met with select top staffers from the Senate Governmental Affairs Committee in a “marathon” meeting to discuss concerns raised by both Sen. Carl Levin (D-MI) and Sen. John McCain (R-AZ) that the IRS was not reining in political advocacy groups in response to the Supreme Court’s Citizens United decision.  Senator McCain had been the chief sponsor of the McCain-Feingold Act and called the Citizens United decision, which overturned portions of the Act, one of the “worst decisions I have ever seen.”

In the full notes of an April 30 meeting, McCain’s high-ranking staffer Kerner recommends harassing non-profit groups until they are unable to continue operating. Kerner tells Lerner, Steve Miller, then chief of staff to IRS commissioner, Nikole Flax, and other IRS officials, “Maybe the solution is to audit so many that it is financially ruinous.” In response, Lerner responded that “it is her job to oversee it all:”

Henry Kerner asked how to get to the abuse of organizations claiming section 501 (c)(4) but designed to be primarily political. Lois Lerner said the system works, but not in real time. Henry Kerner noted that these organizations don’t disclose donors. Lois Lerner said that if they don’t meet the requirements, we can come in and revoke, but it doesn’t happen timely. Nan Marks said if the concern is that organizations engaging in this activity don’t disclose donors, then the system doesn’t work. Henry Kerner said that maybe the solution is to audit so many that it is financially ruinous. Nikole noted that we have budget constraints. Elise Bean suggested using the list of organizations that made independent expenditures. Lois Lerner said that it is her job to oversee it all, not just political campaign activity.

Judicial Watch previously reported on the 2013 meeting.  Senator McCain then issued a statement decrying “false reports claiming that his office was somehow involved in IRS targeting of conservative groups.”   The IRS previously blacked out the notes of the meeting but Judicial Watch found the notes among subsequent documents released by the agency.

Judicial Watch separately uncovered that Lerner was under significant pressure from both Democrats in Congress and the Obama DOJ and FBI to prosecute and jail the groups the IRS was already improperly targeting. In discussing pressure from Senator Sheldon Whitehouse (Democrat-Rhode Island) to prosecute these “political groups,” Lerner admitted, “it is ALL about 501(c)(4) orgs and political activity.”

The April 30, 2013 meeting came just under two weeks prior to Lerner’s admission during an ABA meeting that the IRS had “inappropriately” targeted conservative groups.  In her May 2013 answer to a planted question, in which she admitted to the “absolutely incorrect, insensitive, and inappropriate” targeting of Tea Party and conservative groups, Lerner suggested the IRS targeting occurred due to an “uptick” in 501 (c)(4) applications to the IRS but in actuality, there had been a decrease in such applications in 2010.

On May 14, 2013, a report by Treasury Inspector General for Tax Administration revealed: “Early in Calendar Year 2010, the IRS began using inappropriate criteria to identify organizations applying for tax-exempt status” (e.g., lists of past and future donors). The illegal IRS reviews continued “for more than 18 months” and “delayed processing of targeted groups’ applications” in advance of the 2012 presidential election.

All these documents were forced out of the IRS as a result of an October 2013 Judicial Watch Freedom of Information (FOIA) lawsuit filed against the IRS after it failed to respond adequately to four FOIA requests sent in May 2013 (Judicial Watch, Inc. v. Internal Revenue Service (No. 1:13-cv-01559)). Judicial Watch is seeking:

  • All records related to the number of applications received or related to communications between the IRS and members of the U.S. House of Representatives or the U.S. Senate regarding the review process for organizations applying for tax exempt status under 501(c)(4);
  • All records concerning communications between the IRS and the Executive Branch or any other government agency regarding the review process for organizations applying for tax exempt status under 501(c)(4);
  • Copies of any questionnaires and all records related to the preparation of questionnaires sent to organizations applying for 501(c)(4) tax exempt status.
  • All records related to Lois Lerner’s communication with other IRS employees, as well as government or private entity outside the IRS regarding the review and approval process for 501 (c)(4) applicant organizations.

“The Obama IRS scandal is bipartisan – McCain and Democrats who wanted to regulate political speech lost at the Supreme Court, so they sought to use the IRS to harass innocent Americans,” said Judicial Watch President Tom Fitton. “The Obama IRS scandal is not over – as Judicial Watch continues to uncover smoking gun documents that raise questions about how the Obama administration weaponized the IRS, the FEC, FBI, and DOJ to target the First Amendment rights of Americans.”

Judicial Watch: New Documents Reveal DOJ, IRS, and FBI Plan to Seek Criminal Charges of Obama Opponents

Judicial Watch

(Washington, DC) – Judicial Watch today released new Department of Justice (DOJ) and Internal Revenue Service (IRS) documents that include an official “DOJ Recap” report detailing an October 2010 meeting between Lois Lerner, DOJ officials and the FBI to plan for the possible criminal prosecution of targeted nonprofit organizations for alleged illegal political activity.

The newly obtained records also reveal that the Obama DOJ wanted IRS employees who were going to testify to Congress to turn over documents to the DOJ before giving them to Congress. Records also detail how the Obama IRS gave the FBI 21 computer disks, containing 1.25 million pages of confidential IRS returns from 113,000 nonprofit social 501(c)(4) welfare groups  – or nearly every 501(c)(4) in the United States – as part of its prosecution effort. According to a letter from then-House Oversight Committee Chairman Darrell Issa (R-CA) to IRS Commissioner John Koskinen, “This revelation likely means that the IRS – including possibly Lois Lerner – violated federal tax law by transmitting this information to the Justice Department.”

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Judicial Watch: New Documents Reveal DOJ, IRS, and FBI Plan to Seek Criminal Charges of Obama Opponents

Judicial Watch

(Washington, DC) – Judicial Watch today released new Department of Justice (DOJ) and Internal Revenue Service (IRS) documents that include an official “DOJ Recap” report detailing an October 2010 meeting between Lois Lerner, DOJ officials and the FBI to plan for the possible criminal prosecution of targeted nonprofit organizations for alleged illegal political activity.

The newly obtained records also reveal that the Obama DOJ wanted IRS employees who were going to testify to Congress to turn over documents to the DOJ before giving them to Congress. Records also detail how the Obama IRS gave the FBI 21 computer disks, containing 1.25 million pages of confidential IRS returns from 113,000 nonprofit social 501(c)(4) welfare groups  – or nearly every 501(c)(4) in the United States – as part of its prosecution effort. According to a letter from then-House Oversight Committee Chairman Darrell Issa (R-CA) to IRS Commissioner John Koskinen, “This revelation likely means that the IRS – including possibly Lois Lerner – violated federal tax law by transmitting this information to the Justice Department.”

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IRS’ Latest Email Excuse Draws It Closer To Rogue Agency Status

simple message - lois lerner

Investors.com

Lawlessness: On Day 768 of the IRS scandal targeting political dissidents, the tax agency said it has more emails to release. Only it can’t release them until September because it must ensure there are no duplicates. Baloney.

Missing yet another court-ordered deadline on June 12, the Internal Revenue Service has failed to release 6,400 new emails found on the hard drive of Lois Lerner, former tax exempt organization chief, pertaining to the agency’s admitted targeting of administration critics.

The agency is being investigated by Congress and scrutinized by the group Judicial Watch.

These are among the same emails whose release to congressional investigators had already been delayed by more than a year on errant claims by the IRS commissioner that the entire cache had been lost.

Now, instead of that dog-ate-my-homework claim, the excuse is that the IRS only wants to make sure there are no duplicates in the bunch, a peculiar fastidiousness given how the agency has stopped answering most taxpayer phone calls .

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Federal Judge Hands Tea Party Huge Victory Against the IRS

Red Statements

A federal judge has ordered the IRS to hand over a list of 298 Tea Party groups that were targeted by Obama the IRS for extra scrutiny in an effort to keep them from working against Obama in the 2012 election.  This is an important development since the Tea Party groups are looking to be certified for a class action suit.  That in itself is a big development for the groups but more importantly, once they are granted class action status, they can begin to ask for large quantities of emails, files and other evidence during the discovery phase.  The IRS argued that it was illegal for them to hand over the list because of the privacy issue.  The judge said there exceptions for that rule and ordered the release.

This is the last legal battle still available for the Tea Party.  There had been several cases filed against the IRS to prevent them from continuing to target their groups.  Those cases were tossed based on testimony from IRS chief, John Koskinen where he said the targeting has stopped, despite the fact that there are a number of groups who have been waiting as long as five years in order to get approved.  Koskinen has offered the groups approval if they limit their political activity to 40% of their actions.  The Tea Party groups have rejected that since the limit for liberal groups is 49.9%.

, who sits in the Southern District of Ohio also asked the IRS if a partial list posted by USA Today was genuine:

“The return information sought is directly related to the issue of class certification in this federal court proceeding.  The names of the putative class member organizations and their control dates — the date which the putative class member organizations submitted their applications for tax exempt status to the IRS — are directly related to the issue of class certification.”

The class action can also be used to punish those in charge of the obstruction.  My suggestions would be Lois Lerner, Nikole Flax and Obama’s political appointee, William Wilkins.  These three should be listed as co-defendants.

Lois Lerner CAUGHT By Washington Post and CNN As Being Accessory to Terror Funding

 Freedom Outpost

Based on a 2009 article that appeared in the Washington Post and a March 2013 report by CNN, Rep. Steve Stockman (R-TX) – who authored a resolution calling for the Sergeant at Arms to arrest Lois Lerner for contempt of Congress – should perhaps point to a much more significant crime in response to any concerns that Lerner could become a sympathetic figure if she were arrested. That crime involves Lerner’s alleged illegal backdating of a tax exempt approval letter for an organization whose founder does business with a State Sponsor of Terrorism, business the Post says is illegal.

Here is what the Washington Post’s Dan Eggen wrote nearly five years ago:

p>U.S. legal requirements… mandate disclosure of work for foreign governments and which prohibit doing business with Sudan under sanctions first imposed in the 1990s.

Here is what CNN reported in 2013:

…Sudan, which has been under strict U.S. government sanctions and a trade embargo for nearly 20 years for supporting terrorism and violating human rights.

As Shoebat.com has demonstrated for over a year now, Malik Obama – the brother of the President of the United States – has been “doing business with Sudan” since at least 2010, a year prior to when Lerner granted him tax exempt status.

Stockman was interviewed by Megyn Kelly about his resolution and one of the counterarguments raised by Kelly was that if the Sergeant at Arms is ordered to arrest Lerner, Republicans risk making Lerner a sympathetic figure. Stockman, whom we believe is well aware of the Malik Obama angle to the scandal (based on his trips to Egypt earlier this year), didn’t seem concerned with Lerner garnering sympathy during his interview:
Read more at http://freedomoutpost.com/2014/07/lois-lerner-caught-washington-post-cnn-accessory-terror-funding/#C4ozj5WYKE7Gifpz.99