Sunday, May 12, 2013

How the IRS Targeted Tea Party Groups for Abuse

How the IRS Targeted Tea Party Groups for Abuse:
Did the Internal Revenue Service politically target conservative
organizations when “front line” IRS employees stalled applications
for tax-exempt status?
Absolutely not, said Lois Lerner, director of the IRS’ exempt
organizations unit. There was no political motivation at all.
Still, Lerner, during a press conference Friday afternoon,
issued an IRS mea culpa for employees who inappropriately flagged
organizations with the descriptors, “tea party” or “patriot,” for
further review.
“We had a shortcut in the process. It wasn’t appropriate.
We learned about it and we fixed it,” Lerner answered emphatically
Wisconsin Reporter’s question whether the delays were politically
But several conservative organizations cried foul during, and
many Tea Party organizations filing for 501(c)(4) tax-exempt status
said the IRS peppered them with excessive questions to prove they
were eligible for the exemption.
Lerner confirmed that employees at a Cincinnati IRS office in
2012 flagged 300 applications for tax-exempt status, and a quarter
of those were from the conservative groups. When asked for an exact
number, and whether it was safe to assume that 75 applicants were
Tea Party or patriot groups, Lerner said, “I’m not good at
“But you’re with the IRS,” a reporter shot back.
“I’m a lawyer,” Lerner responded.
Apparently, there were no liberal-sounding organizations
A 501(c)(4) is designated for the promotion of social welfare
and cannot include direct or indirect participation or intervention
in political campaigns on behalf of or in opposition to any
candidate for public office.
“However, a section 501(c)(4) social welfare organization may
engage in some political activities, so long as that is not its
primary activity. However, any expenditure it makes for
political activities may be subject to tax under section 527(f),”
according to the IRS.
Lerner claimed the problem was that low-level IRS agents saw a
higher number of incomplete or questionable applications come in
from “tea party” and “patriot” organizations — questions about the
groups’ political involvement. So, the employees began putting the
“tea party” and “patriot” marked applications in a “bucket.”

Earlier, the IRS released an apology — kind of.  It said
between 2010 and 2012, the agency saw the number of applications
for 501(c)(4) status double.
“As a result, local career employees in Cincinnati sought to
centralize work and assign cases to designated employees in an
effort to promote consistency and quality. This approach has worked
in other areas.
“However, the IRS recognizes we should have done a better job of
handling the influx of advocacy applications. While centralizing
cases for consistency made sense, the way we initially centralized
them did not. Mistakes were made initially, but they were in no way
due to any political or partisan rationale.”
Conservative groups call bull.
Tom Zawistowski, executive director of the Portage County
TEA Party in Ohio and past president of the Ohio Liberty Coalition,
said in a statement that the organization will accept Lerner’s
apology because “what the IRS did was wrong and we proved it was
“However, we cannot accept her statement that this attack on our
organizations and our liberty was orchestrated by low-level IRS
employees in the Cincinnati office. We have proof that the same
questions were being asked of groups from Virginia to Hawaii. We
have further proof that agents admitted that they were being told
by ‘higher ups’ not to process applications from “TEA Party
Members of Congress began asking questions of the IRS last year.
In Friday’s press conference, Lerner said administrators did not
know the extent of the problem at the time. Asked why the IRS
hasn’t issued an apology sooner, Lerner said the IRS was moving to
correct the situation.
Asked by Wisconsin Reporter whether any Wisconsin conservative
organizations were flagged, Lerner said she could not say.
It appears the Rock River Patriots were.
Marv Munyon, secretary/treasurer for the organization, told he applied for 501(c)(4) for the group in April 2012.
The organization has yet to be approved, although the IRS cashed
the Rock River Patriots’ application fee of $400 on May 2, 2012,
according to Munyon.
He said all he’s received for his trouble is the “runaround,”
that he was sent from one agent to the next, over and over
“Finally, a lady told me, ‘Your application has been received
but it hasn’t been referred to anyone to look at yet.’ I said,
‘What does that mean?’ She said, ‘It hasn’t been put into process
at all yet,’” he said.
He said he received a letter on Jan. 29, 2013, informing him
that, “the initial screening of the application of your case should
be assigned to an exempt organizations specialist for technical
review. We assign applications to specialists in the order that we
receive them.”
The letter further states, “Unfortunately, we are experiencing
delays in working applications that require further
Although he has filed the organization’s tax forms, noting the
tax-exempt application was pending, Munyon said he still is
awaiting word from the IRS.
“I just got a bunch of static out of the IRS,” he said.
Lerner declined to say whether agents had been disciplined for
flagging the applications from conservative groups. She said 130 of
the 300 applications have been approved, 25 were withdrawn, and the
rest still are in process. None has been rejected, Lerner said.
“It is important to recognize that all centralized applications
received the same, even-handed treatment, and the majority of cases
centralized were not based on a specific name. In addition, new
procedures also were implemented last year to ensure that these
mistakes won’t be made in the future. The IRS also stresses that
our employees — all career civil servants — will continue to be
guided by tax law and not partisan issues,” the IRS said in its
This article
originally appeared