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IRS smoking gun
TownHall.com ^ | Monday, July 29, 2002 | by Robert Novak

Posted on 07/28/2002 10:51:59 PM PDT by JohnHuang2

WASHINGTON -- The mystery surrounding Internal Revenue Service (IRS) tax audits against critics of President Bill Clinton during his administration has been cracked. A smoking gun has just been released by the IRS itself. The unmistakable evidence is that the supposedly non-political tax agency responds to complaints by prominent politicians.

The IRS, perhaps unknowingly, incriminated itself July 8 with a 1,500-page document dump answering four years of freedom-of-information requests by the watchdog organization Judicial Watch. The material shows that the IRS audit of Judicial Watch was preceded by written complaints from the White House and prominent Democratic members of Congress. Furthermore, existence of supposedly secret audits was unsealed thanks to a Justice Department tax litigator who is, implausibly, active in local Democratic politics.

Republicans in Congress display little curiosity about IRS harassment of conservative organizations. Nor have Treasury Secretary Paul O'Neill or Attorney General John Ashcroft pursued abuses. Judicial Watch's lawsuits have made the organization as obnoxious to the Bush administration as to its predecessor. Nevertheless, the White House is concerned about one abuse close to the political bone: IRS disclosure of confidential tax information about the Republican candidate for governor of California.

Until the July 8 document dump, Judicial Watch got little satisfaction from the IRS in fighting the costly, time-consuming audits. Among the 1,500 pages was found this Aug. 14, 1998, e-mail to President Clinton (with the sender's name blackened).

"I have received solicitation for funds and a questionnaire from Larry Klayman, of Judicial Watch. They have targeted you and the Vice President. My question is how can this obviously bipartisan organization be classified as tax exempt . . . I think you and your wife have done a great job in spite of the partisan attacks against both of you."

According to the IRS documents, the Clinton fan's complaint was received by the IRS from the White House on Sept. 14, 1998, and dispatched to Commissioner Charles Rossotti's office. That same day, the file indicates, a telephone call in connection with this matter was made to an unnamed person (name blacked out). Just two weeks later, Judicial Watch received its first notice of an audit.

While Judicial Watch received continued audit notices, the IRS was pressured by prominent Democrats. Rep. Charles Rangel of New York, top Democrat on the tax-writing House Ways and Means Committee, on Feb. 2, 1999, wrote questioning whether the watchdog group was entitled to a tax exemption. Rangel's letter noted complaints from Rep. Martin Frost of Texas, a member of the Democratic leadership who had received a constituent complaint about Judicial Watch solicitations.

Marcus Owens, head of the IRS's Exempt Organizations Division, responded to both Rangel and Frost. "We have forwarded the information you provided to the key district with examination jurisdiction over these organizations," said Owens. Translated from bureaucratese: an IRS probe was underway. As audit notices went out, complaints came in from other Democrats -- including Sens. Richard Bryan of Nevada and Tom Harkin of Iowa and Rep. Jim Moran of Virginia.

Judicial Watch's fight against a political audit was unsealed by the federal district court in Baltimore, with proceedings sent to the Tax Notes Today publication. A filing in the court last Jan. 7 indicates the documents were released by lawyers from the Justice Department's Tax Division. The government's chief litigator against Judicial Watch has been a remarkable Washington bureaucrat named Stuart Gibson.

While serving as a civil service tax lawyer, Gibson also is a liberal activist in suburban Fairfax County, Va., where he was elected to the school board with Democratic backing. He was the lead litigator in the public disclosure of tax shelters by individual taxpayers -- including Bill Simon, the Republican nominee for governor of California.

The Bush White House has a great deal more concern for Simon than Klayman particularly since Judicial Watch filed suit against Vice President Dick Cheney recently. The broader question is political motivation behind the IRS audits. There is now evidence that the audit of at least one Clinton "enemy" was triggered by the White House. The background of other such audits might yield other smoking guns, if Congress or the Bush administration were interested enough to investigate.


TOPICS: Crime/Corruption; Editorial; Government; News/Current Events
KEYWORDS: taxreform
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Monday, July 29, 2002

Quote of the Day by willgetsome

1 posted on 07/28/2002 10:51:59 PM PDT by JohnHuang2
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To: JohnHuang2
The Bush White House has a great deal more concern for Simon than Klayman particularly since Judicial Watch filed suit against Vice President Dick Cheney recently.

Burnt bridges are difficult to cross.

2 posted on 07/28/2002 10:58:03 PM PDT by Texasforever
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To: Texasforever
Even more so with Clintonistas embedded in the warf and woof of the IRS long after the presidential ex felon left office. Which explains why the IRS leaked a document implicating Bill Simon of taking advantage of tax shelters but conveniently avoiding any mention of GrayDown. The IRS' political audits of conservatives continue unabated showing how little the organization's culture has changed since a new administration came into power.
3 posted on 07/28/2002 11:02:54 PM PDT by goldstategop
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To: goldstategop
The IRS' political audits of conservatives continue unabated showing how little the organization's culture has changed since a new administration came into power.

As the article stated, the Administration is "interested" in Simon's case. Larry would have a point about his had he not tried to do the same thing to Cheney. Larry is on his own.

4 posted on 07/28/2002 11:06:18 PM PDT by Texasforever
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To: JohnHuang2
Interesting
5 posted on 07/28/2002 11:10:07 PM PDT by knak
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To: *Taxreform
.
6 posted on 07/28/2002 11:30:54 PM PDT by Libertarianize the GOP
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To: goldstategop
If it's true that the IRS is targeting conservatives (and it seems to be the case), let's do what the good liberals would do: Let's sponsor a class action lawsuit against those involved.

That's one way to shut them up and shut them down.

7 posted on 07/29/2002 12:17:35 AM PDT by Reactionary
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To: JohnHuang2
But I thought that the press, historians, and 'Rats revile President Nixon because he threatened to use agencies like the IRS to pursue his enemies.

When will history get it right as to who our slimey leaders were? I think that at this point Bubba Billy Jeff Blythe Clinton would be glad to think that the only "scandal" under his administration was a sex act with an intern.

8 posted on 07/29/2002 1:20:43 AM PDT by weegee
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To: JohnHuang2
Republicans in Congress display little curiosity about IRS harassment of conservative organizations. Nor have Treasury Secretary Paul O'Neill or Attorney General John Ashcroft pursued abuses

Why do you think that is?

9 posted on 07/29/2002 5:14:33 AM PDT by RJCogburn
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To: Texasforever
As the article stated, the Administration is "interested" in Simon's case. Larry would have a point about his had he not tried to do the same thing to Cheney. Larry is on his own.

So, it's perfectly all right for this administration to carry on vendettas against citizens via the IRS just as the Clinton administration did. Thanks for clarifying for everyone that Bushites are merely Clintonistas who vote republican.

10 posted on 07/29/2002 5:16:54 AM PDT by Twodees
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To: Twodees
it's perfectly all right for this administration to carry on vendettas against citizens via the IRS

WHAT are you tallking about? This administration? The article refers to IRS actions during the Clinton administration.

11 posted on 07/29/2002 5:24:40 AM PDT by M. Thatcher
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To: Reactionary
Let's sponsor a class action lawsuit against those involved.

Better yet, let's get a RICO investigation started. This certainly falls under the category of "organized crime".

12 posted on 07/29/2002 5:57:21 AM PDT by Fudd
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To: M. Thatcher
I was responding to Texasforever's comment, not on the article itself, Maggie old girl. Please try to keep up or butt out. Either will suit me.
13 posted on 07/29/2002 6:11:45 AM PDT by Twodees
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To: Twodees
I was responding to Texasforever's comment, not on the article itself, Maggie old girl. Please try to keep up or butt out. Either will suit me.

You see, how it works on this forum, is that everyone can actually see the comments -- and can respond to whatever he or she wishes. I chose to respond to your error. Because the FACT is, ace, this administration does not carry on, has not carried on, "vendettas against citizens via the IRS," despite your snide swipe.

I know it's hard, but try to understand your own posts.

14 posted on 07/29/2002 6:16:09 AM PDT by M. Thatcher
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To: M. Thatcher
I think "twodees" = "DD" = Dumb Democrat = or possible "damn dumb".
15 posted on 07/29/2002 6:16:51 AM PDT by antivenom
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To: antivenom
I think "twodees" = "DD" = Dumb Democrat = or possible "damn dumb".

Have you thought about dropping the "anti" from your name?

16 posted on 07/29/2002 6:56:03 AM PDT by carenot
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To: Twodees
So, it's perfectly all right for this administration to carry on vendettas against citizens via the IRS just as the Clinton administration did. Thanks for clarifying for everyone that Bushites are merely Clintonistas who vote republican.

Who said the Bushies were advocating the same underhanded (and criminal) tactics of the Clintons? The Bush Administration is "interested" in the Simon case in the sense that they would like to track down who misused the IRS for political purposes -- and we already know one of the conspirators, the Fairfax County liberal Dem.

What the Bush Administration should do is fire any IRS agent who has abused his power, and urge Congress to pass a law that prohibits members of the legislative and executive branches of government from requesting IRS audits. The IRS, if it can't be abolished, should at least be independent of the scoundrels who would use it as a personal life-ruining police force.

17 posted on 07/29/2002 7:10:50 AM PDT by seamus
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To: JohnHuang2
The "Bush Administration" is not interested in making waves for the political ship that Democrats and Republicans share as they screw US tax payers. Both parties could give a rats butt about Joe Citizen. Ever here of a politicion that was broke or honest?
18 posted on 07/29/2002 7:20:39 AM PDT by sandydipper
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To: seamus
You say:

Who said the Bushies were advocating the same underhanded (and criminal) tactics of the Clintons?

The article says:

Republicans in Congress display little curiosity about IRS harassment of conservative organizations. Nor have Treasury Secretary Paul O'Neill or Attorney General John Ashcroft pursued abuses

Not 'the same tactics' but we should expect better....but this administration has shown no interest in dealing with government corruption. Turning a blind eye is just a tad better than being corrupt.

19 posted on 07/29/2002 7:43:20 AM PDT by RJCogburn
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To: seamus
Look at the post I was addressing. Texasforever suggests that it's fine for the admin to ignore JW's harassment at the hands of the IRS because they had the temerity to file suit against Cheney. That's the same thing as allowing IRS harassment.

I know full well what the Bush admin should do, but I don't expect them to do any such thing. If they do, it will be totally out of character for an administration which allows its security service to threaten a summons server with arrest. The Bushites will defend whatever this administration does. That's what makes them indistinguishable from the Clintonites.

20 posted on 07/29/2002 7:46:51 AM PDT by Twodees
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