Posted on 05/19/2015 7:49:04 AM PDT by SeekAndFind
A group of conservative lawyers who have been investigating the origins of the IRS scandal for the past year-and-a-half say theyve uncovered the real roots of the IRS scandal and theyll surprise both liberals and conservatives alike.
The group, Cause of Action, which has subpoenaed thousands of pages of documents from the agency and is still embroiled in litigation with it, says the targeting of conservative groups resulted as much from IRS personnel merely following the instructions laid out in their employee handbook, the Internal Revenue Manual, as from any political bias at the top.
When the scandal broke nearly two years ago, the IRS and the Obama administration pointed the finger at a few bad apples in the agencys Cincinnati office. The agencys inspector general blamed the inappropriate targeting of tea-party groups on the ineffective management of top bureaucrats. Many reporters, particularly on the right, including here at National Review, concluded that top D.C. official Lois Lerner and her colleagues in the IRSs Exempt Organizations office had orchestrated events from the outset.
Dan Epstein, executive director of Cause of Action, is a former attorney and investigator for the House Oversight Committee. He and his team, a group of 13 attorneys funded by the Koch brothers sprawling network of donors, say none of these stories fully explain what happened at the IRS between 2010 and 2014 and that, in fact, the targeting was baked in the cake. That is, the Internal Revenue Manual, the handbook by which IRS employees are required to abide, mandates the sort of scrutiny that delayed the processing of the applications of hundreds of conservative nonprofit organizations. Cause of Action has laid out its case in a confidential, 35-page memo obtained by National Review. They concluded that many of the IRS officials involved in the scandal were just following the rules.
Cause of Action concluded that the IRS officials involved in the scandal were just following the rules. The targeting of tea-party groups traces back to February of 2010 when a low-level employee in the IRSs Cincinnati office flagged a single file for his superior. In an e-mail written on February 25, 2010, Jack Koester, a revenue agent, told his boss, John Shafer, that recent media attention made the application at hand a high-profile case. In doing so, he was following the Internal Revenue Manuals directive to agency personal to elevate to senior managers cases that fall into several categories, including those that are newsworthy, or that have the potential to become newsworthy.
That single e-mail from Koester ricocheted through the agency and eventually wound up in the Washington, D.C., office: Koesters supervisor, Shafer, elevated the issue to the top official at the IRS office in Cincinnati, Cindy Thomas. Thomas in turn forwarded it to Holly Paz, the manager of the Exempt Organizations Technical Unit in Washington. Paz told Thomas that alerting Washington of the issue was wise due to the potential for media interest. By the next day, February 26, 2010, Thomas asked that the application be transferred to Washington and thanked Koester for elevating the case. Two weeks later, Paz asked that an additional tea-party case be sent from Cincinnati to Washington, and that Cincinnati hold the rest of the tea-party cases until Washington determined how to handle them.
Once in Washington, the applications landed with a group of attorneys known in the IRS as tax-law specialists. The Internal Revenue Manual directs tax-law specialists to create what is known as a sensitive-case report if, among other possible criteria, the application is likely to attract media or Congressional attention.
Thats exactly what happened. On April 5, 2010, e-mails show that Holly Pazs replacement, Steven Grodnitzky, asked a deputy to assign the cases to one person and start [a sensitive-case report] for this month on the cases. Cindy Thomas, in the Cincinnati office, was again instructed to hold the rest of the tea-party applications until Washington had resolved how they would be processed. All of this occurred, the Cause of Action report notes, solely based on the determination by two IRS employees that the tea-party cases were newsworthy and the subject of media attention.
According to the inspector generals report on the scandal, it wasnt until May of 2010 that the IRS began developing the spreadsheet that eventually became the infamous Be On the Lookout List, which instructed IRS personnel to look out for tea-party cases. Cause of Action argues that, while the BOLO lists have been cited as the means of the targeting, the targeting had already been underway for seven months before the first BOLO list was circulated.This is not to say that high-ranking IRS officials did not later take politically-motivated actions to delay the resolution of conservative-group applications, the memo says. The facts indicate that they likely did. However, the memo notes, it cannot be overlooked that the tea-party applications were flagged for extra scrutiny ten months before the use of any Be On the Lookout list identified conservative groups by name and at least three months before Lois Lerner became involved.
Disgraced IRS official Lois Lerner didnt become involved with the tea-party cases until May 13, 2010, when she received the sensitive-case report created by tax-law specialists in Washington. Then, in early 2011, Lerner ordered that the cases go through a multi-tiered review process, called the tea-party cases very dangerous, and reiterated, Cincy should probably NOT have these cases.
What followed was a series of events that those who followed the IRS scandal closely will remember well: Lerner demanded that the tax-law specialists working the cases coordinate with the chief counsels office, subsequently asked that tea-party cases be reclassified as advocacy cases, and worked to orchestrate a cover-up of those orders when she learned that an inspector generals report was set to come to light in May of 2013.
Epsteins and his teams conclusion: The Internal Revenue Manual must be fundamentally reformed in order to prevent future targeting. Epsteins team at Cause of Action is adamant that most of the IRS personnel involved in the scandal executed their duties properly. Clearly, Jack Koester, John Shafer, and Cindy Thomas executed their employee obligations precisely, their report says. Indeed, in the course of merely two business days, the employees in the Exempt Organizations group accurately elevated this Tea Party issue as newsworthy or having the potential to become newsworthy.
The teams conclusion: The Internal Revenue Manual must be fundamentally reformed in order to prevent future targeting. While there are certainly complex or new issues that would warrant or even require an employee to elevate the issue to a manager, the IRSs desire to be portrayed in a positive light by the media is certainly not one of those issues, they say.
Tax-law experts agree. Craig Engle, the founder of the bipartisan political-law group at the Washington law firm Arent Fox, says that allowing IRS personnel, ultimately at the national level, to determine what issues are newsworthy creates a sort of self-fulfilling prophecy.
The Internal Revenue Manual as it stands now virtually requires the national office to do something about cases it deems newsworthy, Engle says. As a result, he says, the IRS created a task for itself that it would be impossible to administer evenhandedly, let alone on a bipartisan basis. Its no wonder they got caught.
Eliana Johnson is Washington editor of National Review.
Summary: IRS rules say — go after anyone who is unpopular with the MSM.
So they were just following the rules, but never had before, and oddly never found that the rules applied the same way to Democrat front groups, or corrupt operations like the Clinton Foundation, even though they were “in the news”.
This might have been the mechanism they exploited to justify partisan witch hunts, and the IRS might have coordinated with leftist media to set up the “triggers”, but leftist higher-ups orchestrated the game for corrupt political purposes. The IRS sent a million+ pages of confidential tax records of administration opponents to the Justice Department illegally — was that “following the rules”?
Is “Cause of Action” the false flag operation run by the communists it appears to be?
Reason number 256 for eliminating the income tax
and replacing it with a national sales tax.
I’ll pay my taxes when Lois is in jail.
Newsworthy to whom? Why would it make the news that conservative organizations were pursuing 501(C)3 status? First, are not the applications confidential? Unless the IRS planned on releasing the applications to the media deliberately, how on earth would they ever become “newsworthy” to begin with?
This was one man’s probably politically-bigoted opinion, and he forwarded it to another politically-bigoted person, and so on.
In other news local city officials who enforced Jim Crow laws were not acting out a racism, but only following the law.
They sound more like IRS apologists than investigators.
This is why maybe it’s time to get rid of the current income tax system, rife with political corruption.
...and we still have an IRS...why?
They are very predictable
Shriveled up old hag Lerner is not in jail yet.
Yep. That’s why I keep asking the question (which no one has answered by the way ) — exactly what does Contempt of Congress get you?
When one is found in contempt of Court, one goes to jail.
What does one get for contempt of Congress?
Apparently nothing. Eric Holder and Lois Lerner are still up and about.
Simply reading this examination of the bureaucratic machinations should make anyone understand that government, at its core, is an unsustainable entity that feeds on its own largess.
Bump
Because WE allow it?
>>Because WE allow it?<<
Did we not vote in a Republican Senate and increase our majority in the House? Is this not what we elect these guyz to do on our behalf?
We call, we write, we attend Tea Party events, attend townhalls with representatives.
Damn, a person can only do so much short of landing in a 6x9 cell.
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