IRS Policy: Investigate Conservative Donors, Let Unions Run Wild

Twin revelations in the continuing IRS scandal:

IRS Obtained Donor Lists For ‘Secret Research Project’

The Internal Revenue Service (IRS) improperly obtained donor lists from nonprofit groups as part of a “secret research project” being run by Lois Lerner and other officials.

IRS official David Fish revealed the “secret research project” in a June 27, 2012 email to Lerner’s direct subordinate Holly Paz, according to emails released Thursday by the nonprofit group Judicial Watch, which obtained the emails in a pending Freedom of Information Act lawsuit.
“Joseph Urban [IRS Technical Advisor, Tax Exempt and Government Entities] had actually started a secret research project on whether we could, consistent with 6104, argue that [REDACTED],” Fish wrote.

“Joe was quite agitated yesterday when I told him what we were doing. (He was involved when the initial question was raised, but we didn’t continue reading him in),” Fish continued. “At one point he started saying that this was a decision for Steve Miller–I told him we were already doing it, and that I didn’t know whether Lois had already talked to Nikole [Flax, former IRS Chief of Staff to IRS Commissioner Steve Miller] about this. Would not be surprised if he already started working on Lois.”

“Thanks for the heads up,” Paz replied. “The decision was made by Steve, based on advice from P and A. [Procedure and Administration].”

Lois Lerner and Nikole Flax, who were both part of the “secret research project,” both suffered computer crashes that allegedly wiped out their emails, according to the IRS.

Another email released Thursday showed that Lerner obtaining donor information from groups “was not needed across-the-board and not used in making the agency’s determination on exempt status,” according to an IRS deputy chief counsel.

It must make one feel warm and comfy when they are the subjects of a secret IRS research project.

And while being all wee-wee'd up about the possibility that conservatives might be getting a good deal electoral advantage by donating to the Tea Party groups, Lois showed far less concern that the unions, to which the administration is deeply indebted politically, were cheating on their reports of political activity to the IRS: Email Reveals Lois Lerner Ignored Political Expenditures By Unions

The official at the center of the Internal Revenue Service tea party scandal once dismissed complaints that labor unions were not reporting millions of dollars in political activities on their tax forms, according to an email obtained by The Daily Caller News Foundation.

In 2007, Lerner responded directly to a complaint that some major labor unions reported completely different amounts of political expenditures when filing with the IRS and the Department of Labor.

At the time of the email, Lerner was the Director of Exempt Organizations at the IRS.
Lerner wrote, “We looked at the information you provided regarding organizations that report substantial amounts of political activity and lobbying expenditures on the DOL Form LM-2, but report little to no political expenditures on the Form 990 filed with the IRS.”

“We believe this difference in reporting does not necessarily indicate that the organization has incorrectly reported to either the DOL or the IRS,” Lerner concluded.

Don Todd, the deputy assistant secretary of the Office of Labor-Management Standards (OLMS) at the time the email was sent, confirmed seeing Lerner’s email and remembering similar complaints at the time. OLMS oversees labor union financial disclosures within the Department of Labor.

“The law’s never been enforced,” Todd told TheDCNF. “The IRS was telling us it would cost more to enforce the law then they would collect.”

And how would you know it would cost more than it nets if you haven't tried, and moreover, you don't bother to challenge the unions on their reporting.

But I'm like, uh, totally sure that DOJ investigation, headed up by Obama donor Barbara Bosserman , and employed a man, Andrew Strelka, who used to work for Lerner, will strive to bury shine the light on the facts.

To keep abreast of this scandal, you really need to see the Tax Prof, Paul Caron's daily update.