What is the IRS ‘scandal’ about?

An Almost-Final Word On The IRS’s Alleged Tea Party Targeting

This all goes back to the scrutiny the IRS gave to politically active “social welfare” organizations between 2010 and 2013. Conservatives allege that mainly Tea Party groups were targeted. The controversy led to a housecleaning at the top of the IRS — also, to a collapse in the agency’s already feeble attempts to enforce its existing rules on political activity by 501(c)(4) social welfare groups.

The numbers and budgets of politically active social welfare groups have soared since the Supreme Court’s Citizens United ruling in 2010, especially among conservatives. SuperPACs, which are also used by both sides, must disclose their donors, while 501(c)(4) groups have no disclosure requirement.

Facebook, the IRS, and the GOP’s Bullshit Feedback Loop

In reality, the IRS “scandal” was the unhappy byproduct of an agency being tasked with determining the validity of claims to non-profit status, but lacking the proper resources to do it or clear guidance on how. The fact that new Tea Party groups, many with dubious claim to non-profit status, had flooded the IRS with applications compounded the difficulty. The agency thus used watchwords like “tea party” and “progressive” to, in its words, triage the workload.

For the purposes of ginning up voters, that story is much less useful than one in which a liberal agency leader masterminded a sabotage campaign against patriotic conservatives trying to rescue the country from Obama. And so the IRS scandal was born.

Report On IRS Targeting Of Conservatives – No Christmas Pony For Darrell Issa

Now if both sides were doing it equally, it would be possible for the IRS to approach the matter in an even handed manner. As it turns out, unlike the remarkably similar activities of the Kriegsmarine U-boats in the Atlantic and the US Navy submarines in the Pacific, “dark money” is more of a conservative thing . According to Open Secrets in the 2010 election cycle conservative non-disclosure spending was $119.9 million and liberal non-disclosure spending was $10.7 million. In the 2012 election cycle it was $265.5 million conservative versus $33,6 million liberal. The gap starts closing in 2014 but remains wide with $192.8 million conservative and $54 million liberal.

That makes it impossible for IRS action or non-action to not have political effect. Now if we had really wise leaders, they would have gotten together and said that the country needs good tax administration and the Republicans would have agreed to ease up on pushing the envelope so much and the Democrats would not have pressed the IRS to worry so much about a matter that was not contributing to the tax gap. Probably too much to ask for. Instead we’ve got “Winning isn’t everything. It’s the only thing.”

New Records: IRS Targeted Progressive Groups More Extensively Than Tea Party

A series of IRS documents, provided to ThinkProgress under the Freedom of Information Act, appears to contradict the claims by Rep. Darrell Issa (R-CA) and his House Oversight and Government Reform Committee that only Tea Party organizations applying for tax-exempt status “received systematic scrutiny because of their political beliefs.” The 22 “Be On the Look Out” keywords lists, distributed to staff reviewing applications between August 12, 2010 and April 19, 2013, included more explicit references to progressive groups, ACORN successors, and medical marijuana organizations than to Tea Party entities.

Donna Brazile: No conspiracy here, IRS targeted liberals, too

In fact, a few months after the story of the report broke, new documents came to light showing more of the extent of scrutiny of progressive groups. At the time, Alex Seitz-Wald described the landscape this way.

But now, almost two months later, we know that in fact the IRS targeted lots of different kinds of groups, not just conservative ones; that the only organizations whose tax-exempt statuses were actually denied were progressive ones; that many of the targeted conservative groups legitimately crossed the line; that the IG’s report was limited to only Tea Party groups at congressional Republicans’ request; and that the White House was in no way involved in the targeting and didn’t even know about it until shortly before the public did.

Needless to say, especially disturbing is the idea that Issa conveyed to the IG his wish that the investigation focus on conservative groups to the exclusion of progressive ones. The IG later said that initial report was inaccurate, but he didn’t say what was inaccurate about it or offer any explanation of why his spokesperson would have said Issa told them to produce a one-sided report.

New Documents Show the IRS Targeted ‘Progressive’ and ‘Tea Party’ Groups for Extra Scrutiny

Arguably, ThinkProgress’s report implies, the IRS focused on giving extra scrutiny to groups on the left longer than it did to groups on the right, Issa’s colleagues across the aisle on the Oversight Committee have long noted that Issa has yet to produce evidence supporting his repeated claims that the IRS was acting as part of an anti-GOP political conspiracy. These documents, which ThinkProgress notes were also produced for “investigating congressional committees,” are certainly not that evidence. Here’s a list of some of the groups that show up on the full BOLO watch lists (viewable here):

  • “Progressive” groups, especially those with words like “blue” in the name
  • “Tea Party” groups
  • Not exclusively educational “medical marijuana” groups
  • Groups believed to be “successors to ACORN”
  • “Open source software” organizations
  • “Green energy” organizations
  • “Occupied territory” advocacy organizations

On the “emerging” section on one of the distributed lists, the BOLO lists contains this downright bipartisan warning:

Political action type organizations involved in limiting/expanding government, educating on the constitution and bill of rights, Social economic reform/movement

Anyway, Issa already has a response to that non-specific language. The political watch list language was “changed to broader ‘political advocacy organizations,’” he wrote in a committee report, adding that he believes “the IRS still intended to identify and single out Tea Party applications for scrutiny.” Even though it looks like progressive groups may have ended up on the watch list before the Tea Party started popping up.

Senate Report Confirms That Republicans Lied About The IRS Only Targeting Conservatives

A newly released report from the Senate Permanent Subcommittee On Investigations confirms that both liberal and conservatives groups received the same bad treatment and were targeted by the IRS. In short, Republicans lied about the IRS only targeting conservatives.

The Executive Summary section of the report put the Republican IRS conspiracy down for the count,

The Subcommittee investigation has reached many of the same conclusions as the TIGTA audit of the 501(c)(4) application process. The Subcommittee investigation found that the IRS used inappropriate screening criteria when it flagged for increased scrutiny applications based upon the applicants’ names or political views rather than direct evidence of their involvement with campaign activities. The Subcommittee investigation also found significant program mismanagement, including years-long delays in processing 501(c)(4) applications; inappropriate, intrusive, and burdensome questioning of groups; and poor communication and coordination between IRS officials in Washington and Cincinnati. At the same time, like TIGTA, the Subcommittee investigation found no evidence of IRS political bias in selecting 501(c)(4) applications for heightened review, as distinguished from using poor judgment in crafting the selection criteria. Based on investigative work that went beyond what TIGTA examined, the Subcommittee investigation also determined that the same problems affected IRS review of 501(c)(4) applications filed by liberal groups.

In addition, the Subcommittee investigation found that, by focusing exclusively on how the IRS handled 501(c)(4) applications filed by conservative groups and excluding any comparative data on applications filed by liberal groups, the TIGTA audit produced distorted audit results that continue to be misinterpreted. The TIGTA audit engagement letter stated that the audit’s “overall objective” was to examine the “consistency” of IRS actions in identifying and reviewing 501(c)(4) applications, including whether “conservative groups” experienced “inconsistent treatment.” Instead, the audit focused solely on IRS treatment of conservative groups, and omitted any mention of other groups. For example, while the TIGTA report criticized the IRS for using “Tea Party,” “9/12,” and “Patriot” to identify applications filed by conservative groups, it left out that the IRS also used “Progressive,” “ACORN,” “Emerge,” and “Occupy” to identify applications filed by liberal groups. While the TIGTA report criticized the IRS for subjecting conservative groups to delays, burdensome questions, and mismanagement, it failed to disclose that the IRS subjected liberal groups to the same treatment. The result was that when the TIGTA audit report presented data showing conservative groups were treated inappropriately, it was interpreted to mean conservative groups were handled differently and less favorably than liberal groups, when in fact, both groups experienced the same mistreatment. By excluding any analysis of how liberal groups were handled and failing to provide critical context for its findings, the TIGTA audit inaccurately and unfairly damaged public confidence in the impartiality of the IRS.

So IRS Didn’t ‘Target Conservative Groups,’ After All

It turns out that the IRS really was just doing its job — scrutinizing all kinds of groups applying for special tax status, not “targeting conservatives” as has been widely reported. Of course anti-government scandal-mongers are trying to make this sound bad, saying this means the “targeting” was “broader” than first thought. That’s like saying people are “targeted” to pay their taxes on April 15. Anyway the “scandal’s” purpose was achieved: the IRS is going to give corporate-funded political groups a pass now and let them “self-certify” that they aren’t breaking the rules. […]

But the truth doesn’t matter. The fact that there was no “targeting of conservative groups” doesn’t mean that conservatives don’t get their way. Even though the whole “ACORN scandal” turned out to just be a lie, Congress defunded ACORN anyway. Van Jones and Shirley Sherrod were both fired after right-wing media launched smear and lie campaigns. And this time the administration immediately caved to the right and fired the head of the IRS. This of course amplified the right’s “targeted conservatives” accusations and whipped the media into a full-blown scandal frenzy.

And the clincher: the IRS has issued new rules, offering corporate-funded political groups a “fast track” to getting their special tax status.

The Chronicle of Philanthropy explains, in IRS Offers Fast-Track for Advocacy Groups Awaiting Tax Exemptions. All they have to do is self-certify that they won’t break the rules, and Bob’s your uncle.

Organizations that have applied to the IRS for status as social-welfare groups but have faced inordinate delays because of the political scrutiny that engulfed the tax agency in controversy now have recourse: They can win tax-exempt status within two weeks if they pledge not to devote more than 40 percent of their time and money to partisan activities.

The IRS announced the streamlined process on Monday as part of its 83-page report, shown below, on how the agency is overhauling its process for reviewing applications for tax-exempt status. By setting the 40-percent marker, the organization for the first time was explicit about how much advocacy is acceptable for a group that has 501(c)(4) status.

So they win.

House Republicans pretend IRS ‘scandal’ still exists

Just so we’re clear, these House Republicans still haven’t uncovered any evidence of official wrongdoing, and they didn’t accuse Koskinen of having any role in “targeting” anyone. Rather, the GOP lawmakers are convinced Koskinen hasn’t done enough to help them find evidence to substantiate allegations that fell apart two years ago.

Or put another way, they want to fire the IRS guy who replaced the other IRS guy who was fired over a “scandal” that never really existed in the first place.

There is, of course, no reason to believe Koskinen’s job is in jeopardy, which is probably why House Oversight Committee Chairman Jason Chaffetz (R-Utah) raised the prospect of holding the IRS commissioner in contempt of Congress, because, well, why not? It’s been months since House Republicans held an Obama administration official in contempt of Congress, they’re arguably overdue.

Fox News’ phony scandal: The truth about the fictional “plot” to suppress conservatives

Absent campaign-finance law, and with a deadlocked Federal Election Commission incapable of acting, the IRS was the last defense against opaque and unrestricted political money. Yet as Republicans in Congress blocked efforts to address campaign-finance transparency, nonprofits were inundating the IRS with applications for tax-exempt status, many for social-welfare groups. And media outlets were focused on “Tea Party” groups forming around the country.

Against this backdrop, one IRS case manager in the Los Angeles office forwarded an application to the agency’s Cincinnati office for review, expressing concern that the organization applying for nonprofit status was not being established for social-welfare purposes, but instead for political campaign activity. The Cincinnati office, which oversees nonprofit applications, agreed to review the case.

That questionable applicant was a Tea Party group, whose application triggered the reviewer’s concern over its involvement with direct campaign activity relating to specific candidates.

As applications stacked up, the IRS identified areas with potential for abuse, and began to flag applications that followed a similar format, issuing a “BOLO” (Be On the Lookout) alert for new applications with similar features or organizations with similar names.

Throughout 2010 and 2011, the IRS continued to wrestle with how it should handle these organizations in general (and Tea Party applications in particular), while the agency faced mounting pressure from House and Senate investigative committees concerning tax-exempt organizations and donor identities. Tea Party applications were particularly problematic, because the term “Tea Party” was identified with groups backing specific candidates or opposing the policies of the Obama administration.

Such activities are not covered by the “primary purpose” rule applicable to social-welfare groups, which restricts tax exemption (and freedom from disclosure requirements) to organizations that “operate primarily to further the common good and general welfare of the people of the community.”

In September 2010, Senator Max Baucus (D-MT) wrote to then-IRS Commissioner Douglas Shulman, asking him to conduct a survey of major 501(c)(4), (c)(5), and (c)(6) organizations involved in political campaign activity to see whether they were in compliance with the “primary purpose” rule. He also requested that the IRS look at whether the organizations “were acting as conduits for major donors advancing their own private interests regarding legislation or political campaigns.”

In 2012, Senator Carl Levin (D-MI) made a formal request for the IRS to produce specific information on the activity of several high-profile organizations, including Karl Rove’s Crossroads GPS, the liberal group Priorities USA, Americans for Prosperity, and Patriot Majority USA. As dark money spending increased in 2012, Levin pressed harder, criticizing the IRS decision to interpret the word “exclusively” to promote social welfare as “more than 50 percent” of the organization’s activity. He wanted to know how many tax exemptions had been audited to see if organizations engaged in excessive political activity.

After the 2012 elections, the IRS found itself caught between mounting pressure from Congressional Democrats and from groups receiving information requests from the IRS but no letters approving their tax-exempt status. The agency was requesting that applicants provide all donors’ names and addresses (presumably to satisfy the Baucus inquiry), sparking outrage among conservative groups asked for that information.

UNBRIDLED FREEDOM

At the same time, Congressional Republicans began to hear from big donors who were concerned about the loss of anonymity—and the tax deductions that some of the nonprofits provided. And from “grass roots” groups impatient with the IRS.

One of these groups was KSP/True the Vote, a Texas-based voter-integrity organization originally known as the King Street Patriots—one of the nonprofit applicants selected by the IRS for closer scrutiny, based upon its application and media reports in 2010 in which KSP/True the Vote activists were accused of intimidating voters at the polls.

In 2010, acting under the name King Street Patriots, conservative Texas activist Catherine Engelbrecht accused a voter-registration group, Houston Votes, of being “the New Black Panthers office” in Texas. Claiming to have found thousands of fraudulent voter registrations in the Houston area, Engelbrecht appeared on Fox News, accusing Houston Votes of massive voter fraud. The King Street Patriots also produced a video that warned: “Our elections are being manipulated by the RADICAL LEFT.” Backed by an ominous soundtrack, the video also included a doctored image of an African American holding a sign that read: “I only got to vote once.”

Ironically, one documented case of voter fraud surfaced in Texas in 2010 when County Commissioner candidate Bruce Fleming, who had been endorsed by Engelbrecht, was found to have cast votes in Pennsylvania and Texas in the 2006, 2008, and 2010 elections, boasting that he “had the chance to vote twice against Barack Obama.”

Indeed, KSP/True the Vote’s literature established that they were operating for campaign purposes, as evidenced by a self-published “Legislative Agenda for Texas” in 2011 and their lobbying for stricter voter-ID laws. The state Democratic Party sued, and in 2011 a Texas court ruled that the King Street Patriots was a PAC and not a nonprofit group. The group was ordered to reveal its donors and pay Houston Votes a substantial settlement.

Despite the court ruling and extensive news coverage, when news broke on May 9, 2013, that the IRS may have singled out conservative groups for scrutiny, Engelbrecht was prepared. On May 21, KSP/True the Vote filed a federal lawsuit against the IRS for targeting them. The suit was dismissed in late 2014.

Democrat Corruption? Liberal Scandals?

I’m an unrepentant liberal with strong interest in liberal views and interests. I do, however, go out of my way to try to see the world from other views as well. I check out the views of anarchists, libertarians, Tea Party protesters, rightwing bloggers, intelligent conservative news (such as Wall Street Journal), etc. I even stay moderately informed of what comes from Fox News reporters and pundits.

Still, I’m biased and I don’t hide my bias. Despite my liberal rants and complaints, I do believe that truth matters more than ideology. I consider my liberalism as more of an attitude than a specific position on political issues. I want to be fair and I try to be fair… but am I being fair?

I’ve recently noted many scandals involving Republicans and conservatives in general. Just this past week there has been some doozies. In order to be fair, I was trying to think of what recent major scandals have involved Democrats and liberals in general. Over the past year, there has been endless criticisms of supposed associates (past and present) with people deemed by rightwing pundits as socialists, communists, terrorists or whatever. These allegations have had some real world impact on the careers of certain people, but they’re not exactly scandals on the level of it being revealed that Bush covered up the fact that many Gitmo detainees were known to be innocent.

The two biggest alleged liberal scandals involved ACORN and the Climategate e-mails. However, both of those incidents were investigated and officials determined that no illegal or immoral activities happened with either. The real scandal about ACORN turned out to be the guy who made it all up by editing and splicing video. His moral character was made evident when he was caught doing some other illegal activities that sent him to jail for a time (the judge released him but required him to live with his parents).

So, where are the liberal scandals? Ignoring the empty allegations of a socialist conspiracy, where are the concretely proven failures of liberal and Democrat leaders? Am I missing something? Or have Republicans become more corrupt than Democrats?

Rightwing Madness

I read many comments online. I always wonder why many rightwingers have a tendency to make extreme statements

Whenever they disagree with someone or something, they say things such as:

  • Obama is the Anti-Christ, a Muslim, a terrorist, a Nazi, Hitler, Stalin, etc.
  • Obama isn’t American. Show me his birth certificate.
  • I hope Obama gets assassinated.
  • Jim Wallis is Satan.
  • Liberals are Communists.
  • Dr. Tiller got what he deserved and Roeder is a hero.
  • Overthrow the government!
  • He is an FBI operative.
  • FEMA will put us in concentration camps.
  • Violent militia groups are just defending their rights.
  • America is a Christian nation and the Founding Fathers meant the govt to be a fundamentalist theocracy.

They’re particularly obsessed with their xenophobia. They constantly live in fear of fags, blacks, and immigrants. They’re blind to their own bigotry and love to allege reverse racism. They conflate beliefs and facts, rhetoric and logic. They think the opinions of anyone else is equal to or greater than the opinion of the consensus of experts. They think they have the right to their own ‘facts’. They just know they’re right and you’re wrong. They often see conspiracies all around them:

  • New World Order
  • Liberal Elites
  • Hidden Communist conspiracy
  • Jewish Cabal
  • Immigrant invasion
  • Black helicopters

It’s not that all conservatives think and act this way, but there is a surprising number who do. More importantly, mainstream conservatives apparently are afraid of their own fringe. Conservative politicians and media personalities rarely criticize the fringe and often instead fan the flames instead. When a Tea Party leader asked about the fringe, he agreed they existed in the party but he thought they had a rightful place in the movement. They welcome the fringe and help give the extremists a voice. It’s not surprising that this filters into the mindset of the average conservative and so that is why you see all these crazy rightwing comments all over the web.

I’m trying not to over-generalize here. I know there are intelligent and rational conservatives. There are some who will criticize the fringe sometimes. I give credit for Bill O’Reilly in that he will on occasion make attempts to distance himself from the crazies and he’ll even sometimes directly criticize them. I just wonder why the ‘normal’ conservatives tend to be so silent. Is it the same reason why average Muslims too rarely speak out against the violence and oppression of Muslim extremists? Is it fear to speak out or is there an element of complicit agreement?

There is always a way to rationalize away or ignore evidence to the contrary. The federal report about rightwing militias is a smear campaign, but when righwing militias start conspiring violence against the government it’s automatically assumed these groups have been innocently framed. ACORN and Climategate are liberal conspiracies and they must be destroyed. The conservative media goes batshit over it and gets the rest of the media to jump on the bandwagon. After organizations and reputations are destroyed, investigations conclude that all involved were innocent. The conservatives use lies and deceit to destroy their enemies, but they don’t care about the truth. Will ACORN and the CRU scientists get vindicated in the media? No, probably not. Scandals get attention, but innocent victims of rightwing hatred don’t make for entertaining news. So, the media waits to get carried away by the next ‘scandal’.

Why is it so rare than anyone gets held responsible for any of this kind of immoral behavior? Yes, Roder gets life in prison and the guy who slandered ACORN ended up in prison as well. But Dr. Tiller can’t be brought back to life and who knows how many women will die or suffer serious health conditions because there is now one less doctor to help them. ACORN is permanently villified in the public eye and the organization is no more. What about all the people that Dr. Tiller and ACORN helped? Why doesn’t the media obsess over the real victims?

I know that, in response, rightwingers will argue that leftwingers are just as bad. They’ll point out a couple examples they once saw in the news. That is fair in that there are extremists of all ideological varieties, but there is a difference that makes a difference. First, I doubt people toting guns and screaming racial slurs wouldn’t feel very welcomed at most liberal protest and I could imagine the politically correct police asking them to leave. Second, the loony left doesn’t get a platform from the “liberal media” in the way that loony right gets a platform from conservative media such as Fox News. All news have agendas, but Fox News takes it to a new level of outright political spin and propaganda. I’m not sure why a media corporation would want to fan the flames of rightwing fear and hatred. I suppose it must be serving some purpose of theirs or of the GOP.

There seems to be a different attitude between the left and the right. On the left, different opinions are embraced as long as they’re respectful. On the right, different opinions aren’t embraced, but as long as your remain within the in-group ideology it doesn’t matter if you voice your opinions respecfully. In fact, rightwingers seem to pride themselves on being disrespectful. Anger, hatred and bigotry are seen as strengthening and consolidating the group. It’s the us vs them attitude. As long as the disrespectful message is directed outside of the group at the enemy, it doesn’t matter what a rightwinger says or how they say it.

Part of why I bring all this up is because I’ve noticed how it’s changed me. I feel unable to let it just roll of me. I’ve never called George W. Bush the Anti-Christ or Glenn Beck the devil, but it has become more common for me to call someone an asshole when someone is being offensive or aggressive, when someone is acting righteous or bigoted. I’ve learned to respond this way because some people don’t seem to understand how mean-spirited their comments are until you confront them in a forceful manner. Why should I respect the opinion of someone who claims Roeder is a hero for committing murder and terrorism? If they want to say they’re against abortion fine, but there is no excuse for what Roeder did. What Roeder did goes against everything our country stands for. Why should liberals try to be understanding towards such hatred and violence? Why shouldn’t stand up for the rights of everyone? For that matter, why shouldn’t it be expected that conservatives should stand up for the rights of everyone?

This isn’t just about my being a liberal. What rightwing extremists are doing and what mainstream conservatives are (implicitly or explicitly) supporting is stupid just from the perspective of strategy. They’re turning a whole generation of youth against the conservative movement. All the shootings and militias are just going to deservedly bring down hard the hammer of the law. In their fear of the government, they’re forcing the hand of the govenment. It’s as if they want a war. The culture war has failed. So, what they couldn’t accomplish through politics they’ll now try to accomplish through violence. I don’t what strategy would work for conservatives trying to get their message out, but what they’re doing right now is not working. Yes, it feels empowering to rant and rave, to fear-monger and use hate speech, to brandish guns at political gatherings. But this sense of empowering is just reactionary, just a shortterm gain. Conservatives were successful in the past because they took the longterm view, but they seem to have forgotten the lesson of their past success.

If you’re a Christian and you don’t like another Christian’s views, don’t call them the Anti-Christ or the Devil. If you’re a libertaraian and you don’t like Democrats being in power, don’t call Obama Hitler or a Commie. If you’re worried about our employment or your economic security, don’t attack immigrants and blame the poor. If you want to make a difference, reach out to others and not just to the small group of people who are just like you.

I realize I’m offering you liberal advice. But guess what? The world has become a liberal place. We no longer live at a time when white Christians monopolize all power. We no longer live at a time when minorities, immigrants and the poor knew their place. It’s just a fact of life. Accept it or not, but the world isn’t going to return to simpler times. Anyways, your idealizing of the past is just a fantasy. It’s time to stop fighting the inevitable. Change happens and there is nothing you can do to stop it. You either join in and work together or else you become obsolete. It’s your choice.

When Obama voices bipartisan values, I don’t know if he actually means it or not. However, people voted him into office because they believed in the message. The young generation that voted Obama into office doesn’t want partisan bickering, doesn’t want angry ranting and fear-mongering. The young generation looks for what we all share in common and they don’t care about parties, they don’t even care about the Tea Party. Many liberals and many conservatives as well were inspired by Obama’s message of hope and change. This is what people want. Obama was voted in by a majority of Americans. He may not be living up to his speeches, but the point is that people want to believe in the vision he spoke of.