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The IRS Scandal Blows Wide Open
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Posted on 04/17/2014 4:09:18 AM PDT by servo1969

A bombshell revelation has brought the IRS scandal to a new level. Judicial Watch has released internal IRS communications revealing that former Tax Exempt Organizations director Lois Lerner was in contact with the Department of Justice (DOJ) regarding whether it was possible to criminally prosecute tax-exempt groups she believed had “lied” about their political activity. Judicial Watch obtained the documents by successfully filing a Freedom of Information Act (FOIA) lawsuit against the IRS in October 2013, following the agency’s stonewall of four FOIA requests dating back to the previous May.

Contained in those documents is an email exchange between Lerner and Nikole C. Flax, then-Chief of Staff to then-Acting IRS Commissioner Steven T. Miller. On May 8, 2013, Lerner sent the following email to Flax:

I got a call today from Richard Pilger Director Elections Crimes Branch at DOJ … He wanted to know who at IRS the DOJ folk s [sic] could talk to about Sen. Whitehouse idea at the hearing that DOJ could piece together false statement cases about applicants who “lied” on their 1024s –saying they weren’t planning on doing political activity, and then turning around and making large visible political expenditures. DOJ is feeling like it needs to respond, but want to talk to the right folks at IRS to see whether there are impediments from our side and what, if any damage this might do to IRS programs.

I told him that sounded like we might need several folks from IRS…”

Flax responded the next day:

“I think we should do it – also need to include CI [Criminal Investigation Division], which we can help coordinate. Also, we need to reach out to FEC. Does it make sense to consider including them in this or keep it separate?”

Sen. Sheldon Whitehouse (D-RI) had chaired a hearing on Apr. 9, 2013 in which he discussed the abuse of the 501(c)(4) tax-exempt designation. During that hearing, he made his leftist agenda clear, insisting that “after the Supreme Court opened the floodgates to big money in elections in its disgraceful Citizens United decision, big donors like to use these non-profit entities to launder campaign spending and hide their identities.”

Whitehouse also asked witnesses from DOJ and IRS why they hadn’t prosecuted 501(c)(4) groups who have made false statements about their activities, or donors who have used shell companies to mask their donations to Super PACs. He urged both entities to “put together a criminal case showing a fairly straightforward false statement or a fairly [straightforward] shell corporation disclosure violation.”

In a March 27, 2013 email to a top staffer at the IRS, Lerner revealed the impetus behind that meeting:

“As I mentioned yesterday — there are several groups of folks from the FEC world that are pushing tax fraud prosecution for c4s who report they are not conducting political activity when they are (or these folks think they are). One is my ex-boss Larry Noble (former General Counsel at the FEC), who is now president of Americans for Campaign Reform. This is their latest push to shut these down. One IRS prosecution would make an impact and they wouldn’t feel so comfortable doing the stuff.

So, don’t be fooled about how this is being articulated – it is ALL about 501(c)(4) orgs and political activity”

An IRS prosecution for the sake of “impact” sounds remarkably like a show trial, but the fact that Lerner advocated such an idea is not surprising. She too had nothing but contempt for Citizens United, a reality she made clear during a 2010 speech at Duke University. At the time she insisted the Supreme Court “dealt a huge blow, overturning a 100-year-old precedent that basically corporations couldn’t give directly to political campaigns.”

Apparently Lerner knew such a prosecution might be at odds with the law. Minutes before sending the above email she sent this one:

“Whether there was a false statement or fraud regarding an [sic] description of an alleged political expenditure that doesn’t say vote for or vote against is not realistic under current law. Everyone is looking for a magic bullet or scapegoat — there isn’t one. The law in this area is just hard.”

Just as damning are a trio of emails that show Lerner working to tamp down the emerging IRS scandal. They are important because all of them were sent before her May 10, 2013 speech attempting to blame the entire debacle on “low level” IRS employees in Cincinnati:

• May 1, 2013: After receiving an email from an assistant showing that 501(c)(4) applications had increased from 1591 in 2010 to 3398 in 2012 , Lerner wrote back, “Looks to me like 2010-2012 doubled too. Oh well – thanks.”

• May 2, 2013: Discussing an upcoming conference call with approximately 100 congressional staffers on May 22, Lerner cautions aides, “Need to be careful not to mention sequester/furlough unless asked although can allude to budget and resources restraints.”

• May 2, 2013: In response to an email reminding her about the upcoming conference call with congressional staffers, Lerner responded, “Arrgh – I just saw it. Sharon [White] could skate, but Cindy [Thomas] is the person who could answer that stuff. We need to give them some type of language in the event that type of question comes up” [apparently in reference to earlier email referencing “sensitive issues”].

Emails sent after the speech are equally revealing. One sent on May 10 blows a hole in the left’s contention that IRS targeting was a bipartisan affair:

• May 10, 2013: In an email to an aide responding to a request for information from a Washington Post reporter, Lerner admits that she “can’t confirm that there was anyone on the other side of the political spectrum” who had been targeted by the IRS. She then adds that “The one with the names used were only know [sic] because they have been very loud in the press.”

• May 10, 2013: An email from former Cincinnati program manager Cindy Thomas excoriates Lerner for her comments blaming the aforementioned low level employees. Highlighting the words “low-level workers” in bold-face type each of the seven times she used it in a short email, Thomas asked, “How am I supposed to keep the low-level workers motivated when the public believes they are nothing more than low-level workers and now will have no respect for how they are working cases?” Lerner’s response nearly an hour later was a terse, “I will be back shortly and give you a call.”

• May 15, 2013: In an email from an aide to Lerner, the aide specifically mentions “Tea Party Organizations,” the “Tea Party movement,” and “Tea Party Patriots” as organizations targeted by the IRS.

All of the above indicate a despicable level of strategizing aimed at not merely suppressing the efforts of conservative organizations — but targeting them with criminal prosecution and threatening them with imprisonment. Yet one sentence in the above emails stands out above all the rest. It is the one where Lerner states that “everyone is looking for a magic bullet or scapegoat.”

Who is “everyone”? IRS emails released by the House Oversight Committee reveal staff members working for Rep. Elijah Cummings (D-MD), the Committee’s Democratic Ranking Member, were in contact with the IRS multiple times between 2012 and 2013 regarding True the Vote, a conservative organization that works to prevent vote fraud. We now know the DOJ was in the loop as well. So was Lerner’s former employer, the Federal Elections Commission (FEC). They were given access by the IRS to highly confidential tax information about Tea Party groups, in clear violation of federal law.

Who gave them that access? Lois Lerner in an email chain that began Feb. 3, 2009, when the FEC made its request to her. That revelation also comes courtesy of an FOIA request filed by Judicial Watch.

Judicial Watch President Tom Fitton illuminates the implications of these latest document releases. “These new emails show that the day before she broke the news of the IRS scandal, Lois Lerner was talking to a top Obama Justice Department official about whether the DOJ could prosecute the very same organizations that the IRS had already improperly targeted,” he said. “The IRS emails show Eric Holder’s Department of Justice is now implicated and conflicted in the IRS scandal. No wonder we had to sue in federal court to get these documents.”

Now that it is clear the DOJ is part of the scandal, it becomes clear that they are incapable of handling the investigation of it. Thus, there is only one alternative: an independent prosecutor must be appointed. There is no question that Eric Holder’s March 10, 2014 letter to Sen. Ted Cruz (R-Tex.), saying that “such an appointment is not warranted” because the case does not present a conflict of interest or other extraordinary circumstances, is an utter fraud. Three major government entities—the IRS, the DOJ and the FEC–now known to be involved in the effort to harass right wing groups represents a gargantuan conflict of interest and the epitome of extraordinary circumstances.

The American people must rise up and demand such an appointment. The highest offices in the nation have been exposed colluding to persecute politically engaged citizens using any means at their disposal. The American people must do likewise to excise this rot from our most vital institutions.


TOPICS: Business/Economy; Constitution/Conservatism; Crime/Corruption; Government
KEYWORDS: irs; lerner; obama; teaparty

1 posted on 04/17/2014 4:09:18 AM PDT by servo1969
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To: servo1969

I don’t see how it’s a bombshell. They’ll just say they were referring to anyone who “lied”, and that the email doesn’t refer to any specific organization, yadda yadda.

Sure doesn’t look like a smoking gun.


2 posted on 04/17/2014 4:11:20 AM PDT by andyk (I have sworn...eternal hostility against every form of tyranny over the mind of man.)
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To: servo1969

Ms. Lerner is heading to that witness protection program, soon.

Gee, has anyone seen this trollstress in the same room with Hillary Clinton?


3 posted on 04/17/2014 4:11:54 AM PDT by urbanpovertylawcenter (the law and poverty collide in an urban setting and sparks fly)
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To: servo1969

But, not with the kneepad media collaborators. They’re spiking all coverage. It’s a complete blackout.


4 posted on 04/17/2014 4:13:36 AM PDT by Ancient Man
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To: andyk

Well aren’t you the buzzkill, LOL!


5 posted on 04/17/2014 4:14:21 AM PDT by prisoner6 (I will not be pushed, filed, stamped, indexed, briefed, debriefed or numbered! I AM A FREE MAN!)
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To: servo1969

And all of you think something is going to be done about this? You haven’t studied history or Machiavelli. So much ignorance in the world today.


6 posted on 04/17/2014 4:15:05 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: servo1969

They pretty much had to know this was coming out.

Sure would be nice to have something to knock it off the news cycle and deflect attention.

Like perhaps a confrontation between BLM officer and some ranchers that got out of hand.


7 posted on 04/17/2014 4:15:28 AM PDT by rdcbn
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To: servo1969

Forget this kind of news FPM, an anti-semetic note was found in a Russian controlled part of the Ukraine, Forbes Magazine has thrown down the Hitler card against Putin and its time the conservatives to rally round the war flag. Let’s get er done.


8 posted on 04/17/2014 4:21:39 AM PDT by junta ("Peace is a racket", testimony from crime boss Barrack Hussein Obama.)
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To: Ancient Man
But, not with the kneepad media collaborators. They’re spiking all coverage. It’s a complete blackout.

Not quite. Here is USN&WR coverage of this story, from yesterday.

USN&WR is as mainstream as they come.

9 posted on 04/17/2014 4:27:27 AM PDT by Steely Tom (How do you feel about robbing Peter's robot?)
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To: servo1969

This is now pointing directly to Eric Holder and possibly Valerie Jarrett and David Axelrod, too. And it could implicate people even higher, too. Ouch.


10 posted on 04/17/2014 4:34:43 AM PDT by RayChuang88 (FairTax: America's economic cure)
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To: Steely Tom

If it has blown wide open, why are the dirty players not already in jail? Stop wasting time.


11 posted on 04/17/2014 4:35:20 AM PDT by DaveA37
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To: andyk

It is proof the DOJ and FEC coordinated with the IRS to stomp on their political enemies.

Since no one will be held accountable, nor even lose their job, is it safe to say we no longer live in a constitutional republic?

Elections matter only in republics.


12 posted on 04/17/2014 4:36:26 AM PDT by Jacquerie (Change is not made without inconvenience, even from worse to better - Richard Hooker. Article V.)
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To: Progov
If it has blown wide open, why are the dirty players not already in jail? Stop wasting time.

Come on now. Jail is only for Republicans who lie.

13 posted on 04/17/2014 4:37:47 AM PDT by Steely Tom (How do you feel about robbing Peter's robot?)
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To: Steely Tom; All

Just like the reporting on Dingy Harry’s land deals, four years late, the Democrats have figured out that a whole host of people are to be given the order to take one for their Gipper Obama. It is their only chance now to have any meaningful hope of not being totally eviscerated in the mid-terms coming up.

I am of the opinion that Lerner will not be as willing to take it in the shorts because she is such an insulated devote’, up until this point. She is about to get a very big lesson that loyalty is not a two way street to the Democrats and Republican Progressives. It is nothing but a single lane dead end with a nice looking 3D backdrop of nirvana escape route, into a brick wall.


14 posted on 04/17/2014 4:38:46 AM PDT by mazda77
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To: RayChuang88
There is no question the psychos that Obama employs are neck deep in this.

To them, we are not their political opponents; we are blood enemies. If they could get away with it, every Freeper would get a free cattle car ride to an uncomfortable destination.

15 posted on 04/17/2014 4:47:03 AM PDT by Jacquerie (Change is not made without inconvenience, even from worse to better - Richard Hooker. Article V.)
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To: Steely Tom

Correct. I was referring to mainstream network media.


16 posted on 04/17/2014 4:53:18 AM PDT by Ancient Man
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To: servo1969

Hate that this is the card being played again but here is WH’s and democRATs’ card on why the People are wrong ... http://news.yahoo.com/democrats-hark-back-to-the-politics-of-race-020141291.html


17 posted on 04/17/2014 4:59:21 AM PDT by no-to-illegals (Scrutinize our government and Secure the Blessing of Freedom and Justice)
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To: prisoner6

Hehe, sorry!


18 posted on 04/17/2014 4:59:49 AM PDT by andyk (I have sworn...eternal hostility against every form of tyranny over the mind of man.)
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To: servo1969

Clearly the IRS has been used as a political arm of the Obama administration in illegally persecuting Obama’s personal opposition.

If this had been discovered with respect to a Republican regime, the press would be howling and prosecutions - and imprisonment - would be ongoing.


19 posted on 04/17/2014 5:05:10 AM PDT by Jack Hammer
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To: servo1969

“Sen. Sheldon Whitehouse (D-RI) had chaired a hearing on Apr. 9, 2013 in which he discussed the abuse of the 501(c)(4) tax-exempt designation. During that hearing, he made his leftist agenda clear, insisting that “after the Supreme Court opened the floodgates to big money in elections in its disgraceful Citizens United decision, big donors like to use these non-profit entities to launder campaign spending and hide their identities.”

I think Sheldon may discover what the Big Bang really means. He is a totally corrupt little weasel.


20 posted on 04/17/2014 5:11:02 AM PDT by tgusa (gun control: deep breath, sight alignment, squeeze the trigger .......)
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To: servo1969

"Shall I go the Susan McDougal route, or the Vince Foster route?"

"Decisions, decisions."

21 posted on 04/17/2014 5:41:10 AM PDT by E. Pluribus Unum ("The best way to control opposition is to lead it ourselves." -- Vladimir Ilyich Lenin)
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To: andyk

It is interesting how Democrat politicians were strong arming the IRS to harass conservative groups. First Cummings (who has lied about his involvement), now Whitehouse.

One wonders how many other Democrats were contacting Lerner and was this a coordinated effort by Democrats to put pressure on her?


22 posted on 04/17/2014 5:45:30 AM PDT by randita
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To: RayChuang88
This is now pointing directly to Eric Holder and possibly Valerie Jarrett and David Axelrod, too. And it could implicate people even higher, too. Ouch.

What did the President know, and when did he know it?

23 posted on 04/17/2014 6:06:45 AM PDT by Alas Babylon!
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To: Jacquerie

“I won.”

-Barrack H. Obama


24 posted on 04/17/2014 6:07:58 AM PDT by Alas Babylon!
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To: randita

It is deeply embedded in the leftist psyche (due to the ideology’s Satanic origins) that power is to be used to punish, eliminate, and murder any that are in opposition.


25 posted on 04/17/2014 6:10:42 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: andyk

I Still can’t figure out why they planted the question to Lerner about this so she could reveal the whole targeting issue. Did they think it would help them shut down the tea party groups?


26 posted on 04/17/2014 6:49:42 AM PDT by Aria ( 2008 & 2012 weren't elections - they were coup d'etats.)
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To: servo1969
Next to our Government using our military against us, I can't think of anything more egregious than using the IRS as a weapon of intimidation.

I have no doubt this Government would use military force just as easily as it uses the IRS...to target Politically Conservative Americans.

WE DEMAND PROTECTION FROM THE IRS! WE DEMAND IMMEDIATE ARREST OF GOVERNMENT CRIMINALS!

27 posted on 04/17/2014 6:51:03 AM PDT by Awgie (truth is always stranger than fiction)
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To: Alas Babylon!
What did the President know, and when did he know it?

The president knows only what Valerie Jarrett allows him to know...............

28 posted on 04/17/2014 7:02:29 AM PDT by varon (Para bellum)
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To: urbanpovertylawcenter

“Gee, has anyone seen this trollstress in the same room with Hillary Clinton?”

This was Hillary’s operation start to finish. It was started to get Hillary into the WH, not to get Obama reelected.

As long as people keep believing the IRS targeted the TEA Party to get Obama reelected, Hillary can hide behind Obama’s “Black Shield”.

A lot of these dates are after the election and it was ongoing from when it started, so it’s not to get Obama reelected.


29 posted on 04/17/2014 7:49:07 AM PDT by IMR 4350
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To: Alas Babylon!

You are correct. In fact, my guess is that the President (and possibly the Vice President) personally approved of the plan developed by Jarrett, Axelrod and Holder to use the IRS’ awesome enforcement powers against political enemies.


30 posted on 04/17/2014 7:54:04 AM PDT by RayChuang88 (FairTax: America's economic cure)
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To: servo1969

Nobody is going to jail. If necessary, it will end with the words “The following persons are hereby PARDONED for any and all acts associated with the supposed IRS Scandal”, or words to that effect.


31 posted on 04/17/2014 7:59:08 AM PDT by anoldafvet (If you think the government is capable of taking care of you, just look at the indian tribes)
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To: servo1969

All of the women...well, more appropriately, females...who gain notoriety in obama’s “administration” have that bland, expressionless, soulless, blank-eyed stare. They would be right at home among the grainy, black-and-white photos of the Third Reich.

Sebelius, Napolitano, Lerner, etc.


32 posted on 04/17/2014 8:10:51 AM PDT by RobinOfKingston (Democrats--the party of Evil. Republicans--the party of Stupid.)
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