IRS "Scandal" Is Falling Apart

[Flagg]

Maddowblog

Cummings gets tired of waiting for Issa

By Steve Benen - Tue Jun 18, 2013 5:07 PM EDT

Rep. Elijah Cummings (D-Md.), the ranking member on the House Oversight Committee, has seen the same interview transcripts as Committee Chairman Darrell Issa (R-Calif.), documenting the interviews investigators conducted with IRS officials in Cincinnati. And with that in mind, Cummings was getting a little tired of Issa playing partisan games, releasing carefully edited, cherry-picked quotes from the transcripts in the hopes of keeping a "scandal" alive.

Indeed, Cummings has declared publicly, more than once, than if Issa didn't provide the public with all of the information -- rather than the portions Republicans found convenient -- than Cummings would feel compelled to make the disclosures himself.

Today, the Maryland Democrat and his colleagues apparently got tired of waiting. Greg Sargent has the story:

Democrats on the House Oversight Committee have just released a full transcript of testimony from a key witness in the investigation of IRS targeting of conservatives -- and it appears to confirm that the initial targeting did originate with a low-level employee in the Cincinnati office.

It also shows a key witness and IRS screening manager – a self-described conservative Republican -- denying any communication with the White House or senior IRS officials about the targeting.

Imagine that. Issa didn't want the public to see all of the relevant information, because the truth interfered with the preferred Republican narrative.

The documents are now online for public review. Part I (pdf) is 103 pages, Part II (pdf) is 102 pages, and both feature some redactions to protect the identities of specific individuals whose names are not relevant to the testimony.

Of particular interest were the remarks of one particular IRS official, whose interview led Cummings to argue that the entire controversy has been "solved" and it's time for the political world to "move on."

I'm referring, of course, to the self-described conservative Republican who helped manage the IRS office that "targeted" Tea Party groups seeking tax-exempt status, and who told investigators that he -- not the White House, not the Obama campaign, not the DNC -- applied the additional scrutiny.

Given its significance, this portion of the full transcript was isolated by committee Democrats in this (pdf) five-page portion. From Greg's summary:

The manager further testified that the Tea Party groups were deliberately grouped together so that they would receive consistent treatment. "There was a lot of concerns about making sure that any cases that had, you know, similar-type activities or items included, that they would be worked by the same agent or same group," the manager testified.

In the testimony, the screening manager also flatly stated he had no reason to believe there was White House involvement.

I wonder why Issa was so eager to keep this information from public view?

It's going to take some time to review the transcript in detail, but at this point, it looks like the IRS controversy, which was on shaky ground before, has almost completely fallen apart.

If, upon further review, these transcripts reinforce the perception that Issa tried to mislead the public, it's the California Republican, and not the Obama administration, that will have some explaining to do.

Sounds like Issa needs to be removed from office in 2014. I'm sure his red as fuck district will disappoint, however.

[Razorgeist]

Wasn't also revealed that they also targeted progressive groups as well?

[Crossroads Inc.]

The Republican's problem has always been this obsession with turning every little problem into some sort of grand evil Obama lead conspiracy!

With Benghazi for instance, it isn't enough hat they say an Embassy was attacked and didn't have enough troops to defend it, no they want to "Prove" that Obama and his cronies purposely denied sending help that, 'they claim' would have saved the lives of the people there...
Likewise it isn't enough for them to just say that the evil IRS went after helpless TeaParty people, oh no. They are out to "Prove" that it was all a systematic Witch hunt personally lead by Obama himself!

It makes me wonder if these "scandals" would be more successful if they focused more effort on simply trying to show government in general was incompetent instead of trying to force them all to be some sort of huge Obama conspiracy.

[Flagg]

Salon.com

Darrell Issa’s credibility is over
After string of exaggerations and distortions, the latest blows to his fake IRS scandal should make him irrelevant

BY ALEX SEITZ-WALD

Liberals have naturally never much cared for Darrell Issa, but after he seized on a Treasury Department inspector general report that appeared to show the agency had improperly singled out Tea Party tax-exempt groups for extra scrutiny, even we thought he might be on to something. Jon Stewart practically disowned the president. After a long string of failures, it looked like Issa had finally found something real, even if he was a bit overeager in hyping it.

How wrong we were. Now it’s clear Issa played us this whole time, thanks to new documents that show the IRS also targeted “progressive” and “Occupy” groups, in addition to Tea Party ones. And if it targeted groups on both sides, it wasn’t really singling anyone out (the only group actually denied tax-exempt status was a progressive one, after all) and the whole scandal falls apart.

It’s not that there were no warning signs. In his zeal to implicate the White House, Issa jumped to conclusions unsupported by evidence. Then he selectively disclosed parts of transcripts that supported his narrative, and threw a fit when Democrats wanted to release the rest, which revealed that the IRS official in charge of the program was a conservative Republican. The whole scandal seemed to be falling apart, and now we know for sure.

Did Issa know the IRS targeted progressive groups too? Why didn’t the inspector general’s report mention this critical bit of data? Russell George, Treasury’s IG, told lawmakers that the “inspector general launches audits on topics requested by lawmakers. The targeting audit requested by House Oversight and Government Reform Chairman Darrell Issa specifically requested a review of IRS actions related to conservative groups,” Politico reported yesterday.

So it seems this entire scandal exists because Issa skewed the outcome of the IG report by asking to keep it narrowly focused on conservative groups, then trumped up its findings’ charges and tried to keep exculpatory evidence out of the public eye. If this were court, the case would not only be thrown out, but Issa would be scolded for prosecutorial misconduct.

Of course, we probably should have seen this coming from Issa, who has been at best an unimpressive House GOP scandal czar, and at worst, an effective conspiracy theory huckster bolstered by the weight of his lofty office. Even some fellow Republicans have spoken up. “I really am concerned that it could tip this into the political realm rather than a true detailed investigation to get the facts out,” Rep. Charles Boustany, a senior Ways and Means Republican who chairs the panel’s Oversight subcommittee, said of Issa’s propensity to blab about any new details he finds while investigating.

Or take this Republican on Issa’s committee: “Our committee, unfortunately does have a reputation for jumping to the end result.” That Republican, it turns out, was Issa himself, explaining in 2011 why he was backing off on the Fast and Furious scandal.

That habit, along with his colorful personal history of car thefts and accusations of insurance scams, got Issa in trouble even before he took the helm of the Oversight committee. In 2010 he called Obama “one of the most corrupt presidents in modern times.” He later apologized, telling CNN, “Do I think the president is personally corrupt? No. I should never have implied that.”

Four days after the 2010 election, Issa declared he would hold seven hearings a week on everything from WikiLeaks to Fannie Mae and Freddie Mac, to the FDA, to the Financial Crisis Inquiry Commission. None of those went anywhere and the hearings have slowed to a trickle. And some of his investigations have been downright ridiculous, like when he asked the Department of Justice to investigate ACORN more than a year after it ceased to exist, or when he said Joe Sestak’s Senate campaign was “Obama’s Watergate.” Do you even remember Sestak’s name, let alone the “scandal”?

Issa’s biggest successes — and also failures — have been when dramatically overplaying his hand. Solyndra, Fast and Furious, Benghazi and now the IRS all followed the same format. In every case, instead of conducting a sober investigation, Issa picked a conclusion (the White House was involved!) and then desperately tried to find evidence to support it. In all cases, he came up way short.

But while other scandals fizzled out after months, the IRS controversy’s collapse has been more dramatic. Just a month ago, it was dominating news coverage. Last week, it was reviving the zombie Tea Party. Now, it’s a flaming ruin. At some point, this has to weigh on Issa’s credibility. James O’Keefe may have more scalps than Issa, who has so far failed to land any body blows on the Obama administration, but both have been caught in one distortion and exaggeration after another. There was no singling out of Tea Party groups and it’s hard to imagine Issa didn’t know this earlier.

As Dartmouth professor Brendan Nyhan has said, it takes two to scandal. Issa can’t do it alone. He needs credulous media coverage to make his work ginning up controversy successful. The media has spent almost two months on a story that has proved to be essentially a fiction. How many important stories didn’t get covered because we were debating something that never happened? How many times does Issa have to cry wolf before the mainstream media will realize he has no credibility left.

Grand Theft Issa needs to be removed from congress. I'm holding my breath.

[TimothyC]

Or, you know, the "They targeted liberals too!" is total bullshit.

Republicans grill acting IRS chief over targeting probe

Washington (CNN) -- The acting head of the Internal Revenue Service said Thursday that evidence so far shows only conservative groups underwent extra scrutiny cited by an inspector general's disclosure of the agency's targeting of applications for tax exempt status.

An initial report on the IRS targeting scandal this week by Daniel Werfel, the IRS principal deputy commissioner, led to the disclosure that IRS workers flagged both liberal and conservative groups when assessing their eligibility for the tax break available to social welfare organizations.

IRS screeners used conservative-themed criteria such as "tea party" on "Be on the Lookout" or BOLO lists to determine if groups underwent further review for political activity that would make them ineligible, according to Werfel and the inspector general who first revealed the targeting.

Another category of the BOLO lists also had liberal-themed criteria including "progressives," but that category didn't set off the automatic extra scrutiny for political activity faced by conservative groups, according to a letter to the panel this week by Treasury Inspector General for Tax Administration J. Russell George.

Under tough questioning Thursday at a House Ways and Means Committee hearing, Werfel acknowledged that the different BOLO categories meant liberal groups avoided the extra scrutiny cited by the inspector general that included processing delays and extensive questions perceived by conservatives as political intimidation.

The revelation bolstered the argument of GOP Rep. Dave Camp of Michigan, the panel's chairman, that the targeting had a political motive.

"So far, the evidence only shows conservatives being systematically targeted by the IRS, not just flagged through the BOLO, but actually targeted," Camp said, later conceding "we're in the early stages of this investigation."

Werfel repeatedly cautioned that his internal review was incomplete, and that additional information from continuing investigations by the FBI, the inspector general and congressional committees was needed to reach definitive conclusions.

He noted that the 80 groups that have waited more than 120 days for a final decision on their applications for a tax break included a diverse range of political leanings.

"I didn't want to leave the committee with the impression that we're not seeing diversity of political labels across the spectrum," Werfel said of the IRS targeting. "What I'm suggesting is more analysis -- significant more analysis -- is needed before we reach conclusions about what that means in terms of an IRS failure or an IRS issue."

The hearing on the still-evolving scandal featured angry accusations and tense exchanges between legislators, with Republicans inferring a government cover-up of high-level wrongdoing while Democrats accused them of political posturing.

All involved agreed that Werfel needed more time to figure out exactly what happened, who was responsible and why.

That didn't stop Republicans from criticizing his efforts so far. Camp said Werfel's report, filed just over a month after his appointment by President Barack Obama to clean up the mess at the IRS, lacked accountability and reached unsubstantiated conclusions.

"If there is anything this report shows, it's just how much more work must be done," Camp said, noting that Werfel had yet to interview principal figures or get other information necessary to determine the origins or scope of the targeting.

Another GOP legislator, Rep. Kevin Brady of Texas, called Werfel's report "a sham."

Camp also warned Werfel that the targeting scandal and other IRS controversies, such as wasteful spending in past years, would affect his panel's consideration budget request for more money next year.

"Until the IRS proves that it can responsibly manage its current funds, the IRS will not see one more dime in taxpayer funding," Camp said.

Werfel noted that the FBI and inspector general were handling interview of IRS officials involved in the targeting, adding that the investigations could involve criminal behavior.

He repeated the assertion in his report that no evidence so far suggested intentional wrongdoing by agency personnel or influence from outside the IRS in the targeting.

His report released Monday said five managers had been replaced and other steps taken in response to George's audit last month that set off a political firestorm in Washington.

Republican leaders contend the targeting uncovered by the inspector general's audit indicated political villainy by the Obama administration to try to stifle opponents, such as groups with "tea party" in their names that were flagged for additional IRS scrutiny.

Democrats said Thursday that such allegations were politically motivated instead of based on any evidence. Rep. Sander Levin of Michigan, the top Democrat on the panel, asked Werfel if there was any evidence of White House involvement in the targeting, and Werfel answered no.

IRS targeting scandal reshaped by new details

On Wednesday, White House spokesman Jay Carney told reporters that "there's been a lot of flagrant, unfounded accusations made by members of Congress in the Republican Party about this issue, accusations that were made without factual foundation."

Obama's second-term blues

Investigations by the FBI, congressional committees, the Treasury inspector general's office and the IRS continue.

President Barack Obama appointed Werfel to clean up the IRS mess last month after the inspector general's audit uncovered targeting of applications that contained conservative-themed words such as "tea party."

George's audit said the targeting resulted in some conservative groups having their applications delayed or stonewalled with requests for answers to inappropriate questions regarding donors, political beliefs and other matters. The targeting of conservative groups ended in May 2012, the audit said.

In his first substantive report on the agency, Werfel said Monday that its tax-exempt unit used multiple lists of inappropriate criteria in assessing tax-exempt applications until earlier this month, more than a year later than previously revealed.

Werfel said he has suspended the use of BOLO lists in considering tax-exempt applications for now.

Boehner on IRS: Who is going to jail?

Werfel's report Monday said the five IRS managers replaced included the previous acting commissioner he succeeded, as well as the head of the unit based in Cincinnati that handles tax-exempt applications.

In addition, Werfel created an Accountability Review Board to recommend within 60 days "any additional personnel actions necessary to hold accountable those responsible" for the targeting disclosed by the inspector general's report.

As part of his review, Werfel said 80 groups awaiting IRS action on their applications for tax-exempt status for more than 120 days could self-register with the agency as long as they certified under penalty of perjury that they would comply with applicable laws and regulations.

At the heart of the matter is what kind of organization can qualify for tax-exempt status. Regulations limit such status to groups primarily involved in social welfare activities, while political groups are considered ineligible.

Confusion over defining what constitutes political activity versus social welfare activity contributed to the targeting by the IRS, Werfel said.

An IRS statement Monday said the "safe-harbor" option for self-certification would apply to groups that "certify they devote 60% or more of both their spending and time on activities that promote social welfare."

"At the same time, they must certify that political campaign intervention involves 40% or less of both their spending and time," the statement said. Applicants meeting those thresholds would get approval within two weeks of seeking self-certification, it said.

Werfel said the IRS would continue checking on tax-exempt groups to ensure they were following the law.

Yeah, the Acting head of the IRS said that only conservative groups got additional scrutiny.

Or the IG's letter to Representative Levin

Based on the information you flagged regarding the existence of a “Progressives” entry on BOLO lists, TIGTA performed additional research which determined that six tax-exempt applications filed between May 2010 and May 2012 having the words “progress” or “progressive” in their names were included in the 298 cases the IRS identified as potential political cases. We also determined that 14 tax-exempt applications filed between May 2010 and May 2012 using the words “progress” or “progressive” in their names were not referred for added scrutiny as potential political cases. In total, 30 percent of the organizations we identified with the words “progress” or “progressive” in their names were processed as potential political cases. In comparison, our audit found that 100 percent of the tax-exempt applications with Tea Party, Patriots, or 9/12 in their names were processed as potential political cases during the timeframe of our audit.

[Flagg]

In any case the person "behind" it all was a conservative republican whose testimony Issa has still not released because it proves there was no WH connection. Keep tilting at windmills, Timmy.

[Patroklos]

Just so we are clear you are outright ignoring the IG report?

[Flagg]

Just so we are clear you are outright ignoring the IG report?

Just so we are clear how far is your head up your ass? There's no "there" there. This is evidenced by Issa the arsonist releasing heavily edited transcripts that when revealed in full show the exact opposite of what the edits make it look like they are saying.

[Patroklos]

No, that is exactly what the IG report didn't show and why the IG inspector came back out after the Democrat's release to explicitly smack down as incorrect. TC quoted the smack down for your convienience.

You were punked Flagg, so I ask again are you outirght ignoring the IG report? If so what is your justification for doing so?

[Patroklos]

DP

[Flagg]

No, that is exactly what the IG report didn't show and why the IG inspector came back out after the Democrat's release to explicitly smack down as incorrect. TC quoted the smack down for your convienience.

You were punked Flagg, so I ask again are you outirght ignoring the IG report? If so what is your justification for doing so?

Are you retarded? Why am I asking, I know you're retarded. The point to all of this, retard, is that there was no coordination from the WH. So go piss up a rope.

[Patroklos]

Did I claim there was, or rather did I claim the Democratic line that the IRS was targeting groups with "progressive" in their title was bogus?

When you can can stop throwing your little temper tantrum for two seconds even you will realize what an asshat your are being and actually read what the IG said. And then maybe you can stop being a partisan hack and realize your beloved Levin just lied to your face and made you look like an idiot standing up for him here.

[Soontir C'boath]

I am not sure Flagg gives a shit about that part. As it is, it was a Republican who ordered the acting IRS commissioner to investigate the conservative groups without any Executive involvement. End of.

[Flagg]

I am not sure Flagg gives a shit about that part. As it is, it was a Republican who ordered the acting IRS commissioner to investigate the conservative groups without any Executive involvement. End of.

Exactly.