Welcome!

News Feed Item

Judicial Watch: New Documents Show IRS HQ Control of Tea Party Targeting

Documents Also Reveal Unusual Pressure From Key Democrat Senator to Target Conservatives

WASHINGTON, DC -- (Marketwired) -- 05/14/14 -- Judicial Watch today released a new batch of Internal Revenue Service (IRS) documents revealing that its handling of Tea Party applications was directed out of the agency's headquarters in Washington, DC. The documents also show extensive pressure on the IRS by Senator Carl Levin (D-MI) to shut down conservative-leaning tax-exempt organizations. The IRS' emails by Lois Lerner detail her misleading explanations to investigators about the targeting of Tea Party organizations.

The documents came in response to an October 2013 Judicial Watch Freedom of Information Act (FOIA) lawsuit filed after the agency refused to respond to four FOIA requests dating back to May 2013 (Judicial Watch, Inc. v. Internal Revenue Service (No. 1:13-cv-01559)).

One key email string from July 2012 confirms that IRS Tea Party scrutiny was directed from Washington, DC. On July 6, 2010, Holly Paz (the former Director of the IRS Rulings and Agreements Division and current Manager of Exempt Organizations Guidance) asks IRS lawyer Steven Grodnitzky "to let Cindy and Sharon know how we have been handling Tea Party applications in the last few months." Cindy Thomas is the former director of the IRS Exempt Organizations office in Cincinnati and Sharon Camarillo was a Senior Manager in their Los Angeles office. Grodnitzky, a top lawyer in the Exempt Organization Technical unit (EOT) in Washington, DC, responds:

EOT is working the Tea party applications in coordination with Cincy. We are developing a few applications here in DC and providing copies of our development letters with the agent to use as examples in the development of their cases. Chip Hull [another lawyer in IRS headquarters] is working these cases in EOT and working with the agent in Cincy, so any communication should include him as well. Because the Tea party applications are the subject of an SCR [Sensitive Case Report], we cannot resolve any of the cases without coordinating with Rob.

The reference to Rob is believed to be Rob Choi, then-Director of Rulings and Agreements in IRS's Washington, DC, headquarters.

Another email string from February - March 2010 includes a message from a California EO Determinations manager discussing a Tea Party application "currently being held in the Screening group." The manager urges, "Please let 'Washington' know about this potentially embarrassing political case involving a 'Tea Party' organization. Recent media attention to this type of organization indicates to me that this is a 'high profile' case." A co-worker responds: "I think sending it up here [DC] is a good idea given the potential for media interest." As with Ben Rhodes' Benghazi-related talking points email, Judicial Watch obtained a more complete version of this IRS email chain than was provided to a congressional committee.

The Judicial Watch documents also contain email correspondence to internal IRS investigators from Lerner, dated April 2, 2013, that tries to explain the "Be on the Lookout" (BOLO) criteria used to select organizations for screening and scrutiny:

Because the BOLO only contained a brief reference to "Organizations involved with the Tea Party movement applying for exemption under 501(c)(3) and 501(c)(4)" in June 2011, the EO Determinations manager asked the manager of the screening group, John Shafer [IRS Cincinnati field office manager], what criteria were being used to label cases as "tea party " cases. ("Do the applications specify/state ' tea party'? If not, how do we know applicant is involved with the tea party movement?") The screening group manager asked his employees how they were applying the BOLO's short-hand reference to "tea party." His employees responded that they were including organizations meeting any of the following criteria as falling within the BOLO's reference to "tea party" organizations: "1. 'Tea Party', 'Patriots' or '9/12 Project' is referenced in the case file. 2. Issues include government spending, government debt and taxes. 3. Educate the public through advocacy/legislative activities to make America a better place to live. 4. Statements in the case file that are critical of the how the country is being run. . . "

So, we believe we have provided information that shows that no one in EO "developed" the criteria. Rather, staff used their own interpretations of the brief reference to "organizations involved with the Tea Party movement," which was what was on the BOLO list.

Lerner omits that her office was "developing" the applications for all Tea Party groups.

The IRS documents also include a presentation entitled "Heightened Awareness Issues" with a red and orange "Alert" symbol identifying the "emerging issues" that trigger scrutiny for organizations seeking tax-exempt status. Page six of the presentation focuses on the Tea Party organizations due, in part, to the fact that these groups had become a "Relevant Subject in Today's Media."

A series of letters between Senator Levin (D-MI), chairman of the Subcommittee on Investigations, and top IRS officials throughout 2012 discuss how to target conservative groups the senator claimed were "engaged in political activities." In response to a Levin March 30 letter citing the "urgency of the issue," then-Deputy Commissioner Steven Miller assured the senator that IRS regulations were flexible enough to allow IRS agents to "prepare individualized questions and requests" for select 501(c)(4) organizations.

The newly released IRS documents contain several letters and emails revealing an intense effort by Levin and IRS officials to determine what, if any, existing IRS policies could be used to revoke the nonprofit exemptions of active conservative groups and deny exemptions to new applicants. In a July 30, 2012, letter, Levin singles out 12 groups he wants investigated for "political activity." Of the groups -- which include the Club for Growth, Americans for Tax Reform, the 60 Plus Association, and the Susan B. Anthony List -- only one, Priorities USA, is notably left-leaning.

As the 2012 presidential election drew nearer, Levin sent a series of letters to the IRS intensifying his campaign against predominantly conservative nonprofit groups:

  • September 27, 2012: Levin asks for copies of the answers to IRS exemption application question 15 -- a question about planned political expenditures -- from four specific groups: Crossroads Grassroots Policy Strategies, Priorities USA, Americans for Prosperity, and Patriot Majority USA.

  • October 17, 2012: Miller informs Levin, "As discussed in our previous responses dated June 4, 2012, and August 24, 2012, the IRS cannot legally disclose whether the organizations on your list have applied for tax exemptions unless and until such application is approved." Miller, however, then informs Levin that Americans for Prosperity and Patriot Majority have been approved, but the IRS has no records for Crossroads and Priorities USA.

  • October 23, 2012: Levin writes to again express his dissatisfaction with the IRS handling of "social welfare" (501(c)(4) organizations insisting that IRS guidance "misinterprets the law" by allowing any political activity. He again demands an answer as to whether the four organizations he listed in his previous letter were primarily engaged in the promotion of social welfare. He also seeks copies of tax exempt revocation letters sent due to c4 political activities, as well as statistics on how many c4s have been notified that they may be in violation due to political activities.

In perhaps the most revealing letter from the IRS to Levin, Miller on June 4, 2012, takes 16 pages to explain to the senator what IRS regulations and policies may and may not be used to evaluate political groups and assures him that the agency has considerable leeway in picking and choosing which groups would be subject to additional scrutiny:

There is no standard questionnaire used to obtain information about political activities. 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. . .

A May 14, 2013, Treasury Inspector General for Tax Administration (TIGTA) report revealed that the IRS had singled out groups with conservative-sounding terms such as "patriot" and "Tea Party" in their titles when applying for tax-exempt status. The TIGTA probe determined that "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" preparing for the 2012 presidential election.

"These new documents show that officials in the IRS headquarters were responsible for the illegal delays of Tea Party applications," stated Judicial Watch President Tom Fitton. "It is disturbing to see Lois Lerner mislead the IRS' internal investigators about her office's Tea Party targeting. These documents also confirm the unprecedented pressure from congressional Democrats to go after President Obama's political opponents. The IRS scandal has now ensnared Congress."

In mid-April, Judicial Watch released a batch of IRS documents (produced earlier in this litigation) revealing that Lerner had communicated with the Department of Justice about whether it was possible to criminally prosecute certain tax-exempt entities.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
SYS-CON Events announced today that Systena America will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Systena Group has been in business for various software development and verification in Japan, US, ASEAN, and China by utilizing the knowledge we gained from all types of device development for various industries including smartphones (Android/iOS), wireless communication, security technology and IoT serv...
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search and...
The 21st International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that Carbonite will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Carbonite protects your entire IT footprint with the right level of protection for each workload, ensuring lower costs and dependable solutions with DoubleTake and Evault.
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.