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Posts Tagged ‘IRS’
June 6th, 2013 at 12:45 pm
It Wasn’t Just Cincinnati
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Here’s a quick rule of thumb for the IRS scandal dogging the Obama Administration: things will only get worse. The most recent domino to fall: those claims that the abuse was quarantined to the agency’s Cincinnati office just don’t hold up. From the Wall Street Journal:

Two Internal Revenue Service employees in the agency’s Cincinnati office told congressional investigators that IRS officials in Washington helped direct the probe of tea-party groups that began in 2010.

Transcripts of the interviews, viewed Wednesday by The Wall Street Journal, appear to contradict earlier statements by top IRS officials, who have blamed lower-level workers in Cincinnati.

Elizabeth Hofacre said her office in Cincinnati sought help from IRS officials in the Washington unit that oversees tax-exempt organizations after she started getting the tea-party cases in April 2010. Ms. Hofacre said Carter Hull, an IRS lawyer in Washington, closely oversaw her work and suggested some of the questions asked applicants.

“I was essentially a front person, because I had no autonomy or no authority to act on [applications] without Carter Hull’s influence or input,” she said, according to the transcripts.

This shouldn’t come as a surprise to anyone. A low-level government employee is the most risk-averse creature on the planet. That doesn’t prevent them from being wildly incompetent or occasionally venal, but it’s not the stuff of which sweeping ideological crusaders are made. That tends to require direction from above. How far up the chain it goes remains an open question.

June 3rd, 2013 at 10:50 am
Ramirez Cartoon: The Chicago Way
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Below is one of the latest cartoons from two-time Pulitzer Prize-winner Michael Ramirez. 

View more of Michael Ramirez’s cartoons on CFIF’s website here.

May 25th, 2013 at 4:21 pm
Unions Now Hit with ObamaCare’s Glitches and Gaps

Up to 20 million union members and their families will be ineligible for ObamaCare subsidies to help pay for their Cadillac-style health insurance plans, says CBS News.

Instead, members of unions for part-time and seasonal workers and their dependents will likely have to choose between higher premiums to stay on their plans – whose cost will rise because of the health law’s new coverage mandates – or cheaper plans that cover less – but are subsidized – on the state-based ObamaCare exchanges.

The reason for the choice is because ObamaCare only gives subsidies to people who are not covered by their employer. If union members opt to stay with the plans jointly administered by their union and their employer, then they, in effect, are choosing higher premiums.

Of course, opting out of the union’s negotiated health benefits makes union membership itself a much less attractive prospect, causing union leaders to fear that a mass exodus by members to qualify for ObamaCare subsidies will have the effect of shrinking union enrollment.

For its part, the Obama administration is refusing to carve out any exceptions for the affected unions, prompting at least one union official to say, “In the rush to achieve its passage, many of the act’s provisions were not fully conceived, resulting in unintended consequences that are inconsistent with the promise that those who were satisfied with their employer-sponsored coverage could keep it.”

Welcome to the club.

May 25th, 2013 at 2:20 pm
IRS Gave Obama Charity Fast-Track Approval while Tea Party Groups Harassed

What’s in a name?

If you’re Lois Lerner, an IRS division head in charge of approving groups for non-profit status, seemingly everything.

By now, just about everyone in America knows that the IRS division tasked with scrutinizing non-profit applications deliberately and consistently targeted groups with the words “tea party” or “patriot” in their name.

No similar litmus test was used for liberal or progressive groups, indicating a clear and convincing bias by the government against ideological opponents of the White House.

In fact, in at least one case, it looks like the very same IRS agents who persecuted conservative groups fast-tracked approval for an outfit whose name practically screamed for – and received – special treatment.

The name of the organization: The Barack H. Obama Foundation (BHOF). Though not formally affiliated with President Obama, the group is headed by one of his half-brothers, Abon’go Malik Obama, and named for their mutual father.

Organized in 2008, “BHOF operated illegally as a non-profit group and falsely claimed tax-exempt status – for which it had not yet formally applied,” according to research released by Discover the Networks, an online database that keeps track of the connections between leftwing groups and activists.

But once BHOF did get around to applying for tax-exempt status, the IRS’ penchant for favoritism really showed itself. Per Discover the Networks, “The foundation finally submitted its 2010 application for non-profit, tax-exempt status on May 23, 2011; seven days later, it submitted its filings for 2008 and 2009. Within just one month of these filings – on June 26, 2011 – Lois Lerner, the senior official who headed the IRS’s tax-exempt organizations office, signed paperwork granting tax-exempt status to BHOF.”

Here’s the best part. Apparently, “Lerner broke with the norms of tax-exemption approval making BHOF’s tax-exempt status retroactive to December 2008.”

Maybe the next time Lois Lerner appears before the House Oversight Committee the members will ask her to explain how, with the Tea Party and BHOF examples in mind, they can draw any other conclusion about her stewardship at the IRS than that it has been characterized by the most obvious case of unethical – and potentially illegal – partisan bias.

May 24th, 2013 at 8:53 am
Podcast: Federal Lawsuit Against the IRS
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In an interview with CFIF, David French, Senior Counsel at the American Center for Law and Justice (ACLJ), discusses the upcoming federal lawsuit on behalf of ACLJ’s clients that were targeted by the IRS, why he believes an independent counsel needs to be appointed to investigate, and why it raises fear about the agency’s role in enforcing ObamaCare.

Listen to the interview here.

May 22nd, 2013 at 7:25 pm
Bush AG Mukasey: DOJ Could ‘Redeem’ Itself with IRS Investigation

Former Attorney General Michael Mukasey says appointing a special prosecutor to investigate the IRS scandal would be a bad idea because the investigator would still report to the President.

Better, Mukasey said, for congressional investigations to continue, with a potentially ironic assist from one of the most corrupt divisions in the Department of Justice.

“Ironically, if you decide to have a criminal investigation, I would think that perhaps the proper entity to investigate is the Civil Rights Division of the Justice Department, which has been charged politicizing the way it enforces the law and would have an excellent opportunity to redeem itself and get out from under those charges if it were to conduct an impartial investigation,” Mukasey added.

Though I’m a big fan of Mukasey, particularly his tenure as AG, I just don’t see how the DOJ’s Civil Rights Division gets near this case. In order to prove Mukasey right, the Division would have to conclude in its investigation that major wrongdoing occurred, recommending resignations, fines or criminal charges. Anything less and the Division will be accused of rolling out a whitewash to cover for the Obama administration.

This doesn’t even mention the fact that the DOJ’s Civil Rights Division, as the Mukasey quote alludes to and our own Quin Hillyer has argued, is a breeding ground for corrupt applications of the law. How these legal weasels can be trusted with playing such a sensitive investigation straight is beyond me.

No, the closest we’ll get to an independent arbiter on any of the Obama scandals will be the federal judiciary, and even then there’s no guarantee. Best for the House to continue exercising its oversight responsibilities until they find some smoking guns.

H/T: The Daily Caller

May 20th, 2013 at 6:18 pm
Frightening New Report of Obamite Harassment

At NRO today, Jillian Kay Melchior has a very important story about how the leaders of one of my favorite organizations, what I have described as “the heroic True the Vote” group, have been harassed by not one, not two, not three, but four separate federal agencies that had never before done anything to look even slightly askance at those leaders — never, that is, until just after True the Vote was formed. The IRS, the FBI, the ATF, and OSHA all have made life miserable for True the Vote founder Catherine Engelbrecht and her husband, Bryan.

The situation escalated in 2012. That February, True the Vote received a third request for information from the IRS, which also sent its first questionnaire to King Street Patriots. Catherine says the IRS had “hundreds of questions — hundreds and hundreds of questions.” The IRS requested every Facebook post and Tweet she had ever written. She received questions about her family, whether she’d ever run for political office, and which organizations she had spoken to.

Read the whole thing. It is mind-boggling. It is frightening. It is a story about government tyranny. It is sickening.

At CFIF alone, I have written about True the Vote here and here and here. The group does a wonderful job fighting against vote fraud, while carefully staying well within all legal bounds itself.  For daring to help empower ordinary citizens to act as watchdogs against incompetent or corrupt government, Catherine Engelbrecht has now been treated by multiple organs of government as if she is a criminal, maybe even dangerous.

This must not stand. MUST….. NOT….. STAND.

May 20th, 2013 at 10:27 am
Ramirez Cartoon: You Have Nothing To Fear But…
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Below is one of the latest cartoons from two-time Pulitzer Prize-winner Michael Ramirez. 

View more of Michael Ramirez’s cartoons on CFIF’s website here.

May 19th, 2013 at 4:15 pm
Artur Davis: Don’t Dismiss These Scandals

Former U.S. Rep. Artur Davis has done a smart, well-reasoned analysis of the underlying meaning(s) of Barack Obama’s week of scandals. He rightly notes that “Obama’s administration struggles mightily with the threshold concept of accountability.”

And:

The emerging argument, which seems to be that the Obama White House was detached enough to rely on the expertise of its department heads to resolve the dilemmas around each event in the current spotlight, would sound strained even if it came during a presidency that was famously disengaged….

More fundamentally, the “we left it to our division heads defense” would not excuse any executive leadership in the public or private sector from the imperative of setting values and standards of conduct for decisions made inside the organization’s own walls, and policing the extent to which those standards survive.

It is hard to escape the conclusion that at a minimum, if you credit its defense, that this government seems more rudderless than could have been imagined eleven days ago.

Also of great note, Davis rightly focuses on a supremely important facet of the Benghazi scandal that the establishment media seems to have willfully ignored, even though it is one of the most despicable aspects of the administration’s longer-term response to the attack:

Even if one buys the rationalization that Benghazi was only so much internecine backbiting between two old rivals, the State Department and CIA, that rationalization entirely omits the evidence that a career diplomat was punished for raising internal questions about security in advance of the Libyan attack, as well as about the unofficial chronicle, or “talking points”, regarding what led to the assault. What kind of leadership is oblivious to the immediate fortunes of a reasonably high ranking whistleblower?

Of course, this is hardly the first time that this administration has tried to bully whistleblowers. They did it to Justice Department whistleblowers J. Christian Adams and Christopher Coates; they did it to five (!) different Inspectors General; and they at the very least undermined a whistleblower in the St. Paul, Minnesota case that has so badly (and rightly) harmed the confirmation prospects for Labor Secretary nominee Thomas Perez.

Anyway, Davis has a lot of other insights well worth reading in his post.

May 17th, 2013 at 6:25 pm
ACLJ to Sue IRS Next Week over Intimidation Scandal

Jay Sekulow, chief counsel for the American Center for Law and Justice, says the group is readying a federal lawsuit to be filed next week on behalf of at least 25 conservative groups targeted by the IRS, in an interview with National Review.

On its website, ACLJ provides a list of sample questions the IRS asked various conservative applicants, showing clear instances of intrusion into out-of-bounds issues.

This likely will be the first of many, many lawsuits against the IRS.

May 17th, 2013 at 4:08 pm
The Left’s Two Canards About the IRS Scandal

A friend who wishes to remain nameless, somebody without known connection to the stories herein, first  identified the two “canards” I discuss below.

The background is this: In addition to deliberately targeting conservative groups to keep them from receiving tax-exempt status, the IRS also — according to an increasing number of reports — was also increasingly harassing existing conservative groups with invasive, expensive audits, no matter how thin (or non-existent) the reasons for suddenly claiming an audit was appropriate. It turns out that the good folks at the venerable Leadership Institute were among those targeted for such an audit, as LI reports here.

What the IRS asked the Leadership Institute

Copies of applications for internships and summer programs; to include: lists of those selected for internships and students in 2008.
— In regards to such internships, please provide information regarding where the interns physically worked and how the placement was arranged.
— After completing internships and courses, where were the students and interns employed?……

This is just one of the examples LI gives in its report of the obnoxious and irrelevant data demanded by the IRS. It’s also chilling: What was the IRS planning to do with its list of names?

Quote from LI founder and president Morton Blackwell: ”

“The IRS’ indefensible behavior is worse than we first thought, as it targeted both new and existing conservative groups in politically motivated attacks,” said Morton Blackwell, president of the Leadership Institute. “Fortunately my Leadership Institute had the resources to stand up to the government’s bullying and intimidation. Other groups, including grassroots and tea party groups we’ve helped train, did not.  Defending ourselves from the harassing audit cost my organization more than $50,000 in legal fees alone.”

This is inexcusable. Anybody who has ever dealt with Morton Blackwell knows just how fastidiously he has observed all relevant regulations for the more than three decades LI has been in operation. He will not discuss partisan political organizing on his LI email. As the longtime Republican National Committeeman from Virginia, Blackwell is well known for leaving LI’s offices to go use a phone elsewhere in order to avoid using LI phone lines when on RNC calls. Again and again and again, Blackwell has made clear to everybody at LI, and all those who deal with him while he is in LI offices, that certain rules prohibit LI from direct partisan or overtly political activity. After thirty years of this, surely the IRS should have known this about the IRS.

Nonetheless, the audit came. And it was unlawfully invasive. Indeed, so obsessed was the IRS with LI that it even demanded the following from The Hawaii Tea Party in a January 26, 2012 letter: “Provide details regarding your relationship with the Leadership Institute. Provide copies of their training material.”

Huh? Why is a Hawaii Tea Party being asked about connections with LI, as if LI is some nefarious organization? This is sickening.

NOW, HERE’S THE RUB: There have been two excuses offered by hardened lefties for why (they say) the IRS scandal isn’t really much of a scandal at all. First is the idea that the poor overworked IRS employees were just trying to figure how to deal with such a huge surge in 501(c)(4) applications and that it was all these new requests that caused the problem. But… the audits of LI and others (granted, the audits came from a different division, but that means there should be ANOTHER investigation, of those) had nothing to do with new applications. And, as this story shows, even the new applications weren’t rising. So this whole excuse completely falls apart.

Secondly, to quote my aforementioned friend: “LI is a 501c3. The other lefty narrative has been that this is about 501c4s, these legal structures that have a new life since Citizens United. Lefty legal people say ‘501c3 law is SO WELL UNDERSTOOD and NO ONE UNDERSTANDS 501c4 law.’ So the Citizens United thing is a canard. This is just about using the IRS to intimidate enemies.”

I hope that makes sense. In other words, the argument that the IRS officials were confused because they were dealing with different regs (the c4 ones) than they were accustomed to (the c3 ones) is absurd, at least as far as the audits of LI and others were concerned — because LI was a c3!

Finally, it’s worth noting that the 501(c)(4) spending was not, despite Obama’s and others’ complaints, driven by the famous Citizens United case that Obama loves to castigate; instead, even according to the left’sown favorite election-related lawyer, Rick Hasen, that spending rose as a result of the Wisconsin Right to Life case from two years earlier.

In all, there remains no excuse for the targeting of Tea Parties, of other conservative organizations, or the auditing of conservative organizations and individuals. All the excuses offered so far are as thin as gossamer, and not even as strong.

May 17th, 2013 at 11:28 am
Liberals: IRS Scandal Shows Need for Less Citizen Privacy, Not More
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So the IRS singled out conservative citizens and organizations for persecution, while giving liberal counterparts a “pass,” in the words of USA Today.

As we note this week in our commentary “The IRS, Campaign Finance and Freedom of Association,” the scandal proves the inherent danger of federal micromanagement of American citizens’ private political activity.  As the Supreme Court observed in NAACP v. Alabama (1958), revelation of an organization’s members or supporters exposes them to reprisal, harassment and threat.  We now have a perfect illustration.

According to many liberals, however, the problem isn’t too little citizen privacy but too much.  Already during today’s House Ways and Means Committee hearing on the IRS practices, liberals such as Richard Neal (D – Massachusetts) and Charlie Rangel (D – New York) have asserted that Citizens United is the real problem.  Apparently, forcing citizens to disclose even more of their First Amendment activity to government will transform abusive IRS bureaucrats from perpetrators into saints.

Their agenda is wholly irrational, but all too predictable.   We must fully investigate and expose the IRS abuse, but we must also ensure that the longer-term takeaway is more individual freedom for American citizens, not less.

May 14th, 2013 at 6:00 pm
True the Vote Among Those Targeted by IRS

In the second update today on items I wrote about last week, it turns out that what I described as the “heroic organization True the Vote” was one of those conservative groups targeted by the IRS. The Washington Post, in an eye-opening report co-written by my old friend Juliet Eilperin (yes, conservatives can have liberal friends), confirmed the apparent abuse of True the Vote  while showing the IRS scandal extends well beyond “low level IRS employees in Cincinnati.”

True the Vote is dedicated to careful and fair application of voting laws. It should be praised, not targeted for abuse by rogue bureaucrats (or by the administration that employs them).

May 14th, 2013 at 3:11 pm
Self-Insurance Another ObamaCare Unintended Consequence

Sally Pipes identifies an “escape hatch” for small businesses trying to avoid the costly employer mandates threatening employers with costly insurance premiums or fines:

A RAND analysis found that a fifth of firms with 50-200 workers had self-insured by 2010, the year Obamacare became law — up from 14 percent of such companies in 2006.

A survey by Munich Health North America found that 82 percent of health insurance executives report seeing growing interest in self-funded coverage among employers. A California-based benefits consulting firm that helps companies self-insure told Kaiser Health News that its business has doubled in the past six months. And Cigna says that it saw self-coverage for small businesses grow by a fifth last year.

Companies with younger, healthier workforces are leading the way. After all, with their population of low-risk employees, they have the most to gain. And that’s bad news for Obamacare’s exchanges.

The problem for ObamaCare is that the only way health insurance premiums will be (theoretically) affordable is if legions of young, healthy people join the exchanges’ insurance pools. That’s because they are needed to pay into the system so that older and sicker people can draw down the benefits.

But if small businesses opt to self-insure – especially if they are newer businesses more likely to employ younger and healthier workers – then that will drain the ObamaCare pools of the very people who will make them (barely) affordable.

With this in mind, don’t be surprised to see an IRS or HHS rule come down that prohibits self-insurance to prop up ObamaCare’s exchange pools.

As with the so-called “family glitch,” it’s a ploy the Obama administration will be ready to use if its slapdash law continues to produce embarrassing unintended consequences.

February 15th, 2013 at 12:50 pm
A Corporate Tax “Cut” Isn’t Enough

Tim’s column on corporate tax rates is superb. But I’d go even farther.

Before I explain, I’d like to highlight this part of Tim’s column, which is right on target:

At one point Lew stated that any reform must bring in more revenue to feed out-of-control federal spending, and suggested that although America’s official tax rate is too high, the actual effective rate is “much lower.”  Senator Portman helpfully instructed him that even the U.S. effective rate far exceeds the industrialized world average.

We must also beware Lew’s other caveat above.  Liberals will attempt to exploit corporate tax reform as a source of new revenue for the federal government.  Our budgetary problem, however, is not insufficient revenues but extravagant spending, as illustrated by the fact that if we simply returned to 2005 spending levels we would have enjoyed a $100 billion surplus last year.

The deficit problem clearly is caused by over-spending. But one thing I would emphasize is that cutting corporate rates probably would not add anything to the deficit; indeed, the sort of parallel tax cut, that of cutting capital gains tax rates, has consistently resulted in greater total revenues from capital gains actually coming into federal coffers. The added economic activity really has “paid for itself,” and then some.

But, as I said, I would go farther. As I’ve written here and elsewhere before, I would completely eliminate corporate income taxes. Gone. Kaput. Finis. Nada. And, obviously, if the rate is zero, there would be zero revenues from that particular tax, so of course the “more than paid for itself” argument would go out the window.

But that doesn’t mean eliminating the tax would cost much or any revenue, total, to the feds. Indeed, it was a left-leaning, former Democratic Capitol Hill budget staffer who first suggested to me the idea of completely eliminating this tax, and he, as a number cruncher, explained that he thought it would be almost revenue neutral. Some of the “lost” taxes would be recouped immediately via higher receipts from capital gains taxes and dividend taxes (because corporate profits obviously would be expected to rise), and some would be recouped through substantially higher economic growth, and some would be recouped due to a huge rush of companies repatriating their business operations. And so on, as I’ve explained elsewhere — including some savings on the spending side due to cutbacks in no-longer-needed IRS enforcement.

If I were a politician rather than a journalist, I would make this proposal part of my platform — and dare any demagogue to criticize me for it as long as it the criticism was done in open debate.

Finally, it’s worth noting that other very smart people have pushed the same idea, including Megan McArdle, formerly of The Atlantic and now apparently of The Daily Beast.

October 10th, 2012 at 5:35 pm
O-Care Lets IRS Tax Refunds, Monitor Daily Life

Last week Byron York highlighted two important Nanny-state features of Obamacare when it gets fully implemented in 2014:

Administration officials and Democrats in Congress have stressed that Obamacare does not permit the IRS to garnish wages or seize cash and assets from taxpayers.

What they mention less frequently is that the IRS has another way to get the money. About three-quarters of U.S. taxpayers receive refunds after filing their returns each year, with the average refund nearly $3,000. After 2014, those people will discover the IRS can take the penalty out of their refunds.

The IRS will also determine who is eligible for taxpayer-financed subsidies to purchase health care on the exchanges that will be set up in every state. Anytime anyone’s situation changes — a raise, a new job, a move to another state — that person will be required to report it to the IRS for the purpose of recalculating their eligibility.

This is not a small group. Obamacare will give tax credits for the purchase of health coverage to people who make up to four times the poverty level — at the moment, that’s $44,100 a year for an individual and $88,200 for a family of four. Those millions of Americans had better keep the IRS informed of their status every step of the way.

So, failure to buy a product that the feds approve of can get your tax refund wiped out, while failure to update your status with the IRS like it was Facebook can get you fined?

These are the kinds of details that need to be hammered home in the upcoming debates by Romney and Ryan so that voters can know what a vote for Obama – and Obamacare – really means.

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July 5th, 2012 at 1:35 pm
Roberts’ ObamaCare Decision a Job Creator?

It’s no secret that Chief Justice John Roberts’ opinion in the ObamaCare case last week is already helping President Barack Obama on the campaign trail by giving the unpopular law constitutional legitimacy.

But Fox News reports that Roberts’s opinion may also help the President make another boast: ObamaCare is a job creator.

Much bigger than the mandate itself are the insurance exchanges that will administer $681 billion in subsidies over 10 years, which will require a lot of new federal workers at the IRS and health department.

“They are asking for several hundred new employees,” Dorn said. “You have rules you need to write and you need lawyers, so there are lots of things you need to do when you are standing up a new enterprise.”

For some, though, the bottom line is clear and troubling: The federal government is about to assume massive new powers.

According to James Capretta of the Ethics and Public Policy Center, federal powers will include designing insurance plans, telling people where they can go for coverage and how much insurers are allowed to charge.

“Really, how doctors and hospitals are supposed to practice medicine,” he said.

The health department is still writing regulations, which can be controversial in and of themselves. One already written, for instance, requires insurance plans to cover contraception. It has been legally challenged by Catholic groups in a case likely to end up in the Supreme Court.

So, there are likely to be many more chapters to go in the saga of Obama’s health care law

And none of it would be possible without the Chief Justice.

March 10th, 2011 at 5:43 pm
“Collegegate”: Obama Education Department to Track Private, Individualilzed IRS Records?
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Remember when the Obama Administration proposed thousands of new Internal Revenue Service (IRS) agents to enforce ObamaCare’s mandate that American businesses file 1099 tax forms every single time they spent over $600 with any supplier?  The resulting uproar was loud and justified.

Unfortunately, reports suggest that Obama’s Department of Education (DOE) similarly seeks to snoop through private IRS records to enforce its destructive “Gainful Employment Rule” against for-profit career colleges.

We at CFIF have chronicled the Obama Administration’s ongoing effort to cripple for-profit colleges via that rule, which would limit financial aid to students attending career colleges based upon arbitrary income data.  Along the way, we reported allegations of collusion between DOE personnel and short-sellers who had wagered that for-profit college stocks would decline.  Those allegations were sufficiently grave to trigger investigation by Senators Tom Coburn (R – Oklahoma) and Richard Burr (R – North Carolina).  Then, the GovernmentAccountability Office (GAO) withdrew, then revised and republished a defective study originally released last summer involving undercover “students” sent to capture information on for-profit colleges.  The GAO’s revisions all slanted in one direction – the original report inaccurately cast career colleges in an unfavorable light, while the revisions indicate that the GAO’s undercover students may have intended to entrap career college admissions personnel.  According to the GAO’s own estimate, only 1 percent of reports require correction, and the statistical likelihood that all of its flaws skewed in the same direction (unfavorably toward for-profit colleges) was 1 in 65,536.  Tellingly, the stock value of for-profit colleges reportedly fell 14%, or $4.2 billion, following the GAO report.

Now, instead of simply using aggregated, readily-available Bureau of Labor Statistics (BLS) data to enforce their Gainful Employment Rule, the DOE seeks to access private, individualized IRS records.  Not only does this intrude upon individual citizens’ private information, it serves to deter Americans from exercising free will in choosing the colleges that best fits their needs.  Additionally, as noted by Cesar Conda in The Washington Times, the Obama DOE’s effort constitutes a new get-rich scheme for the trial lawyer lobby:

The Department of Education should admit that it is using the Internal Revenue Service to send a not-too-subtle message to prospective students:  Attend a for-profit college, and risk that your private financial data may be analyzed to ensure that all your financial transactions are accounted for and allowed.  Thus, the Department of Education, rather than putting the interest of students first, is forcing hardworking adults to go through yet another hurdle to pursue upward mobility.  In their war against individual freedom and personal choice, the nanny bureaucrats never rest; they also roll out the red carpet for the trial lawyers. Clearly, the actual impact of such tracking of student incomes by the IRS will create a new business opportunity for class-action law firms, which will use these new student financial statistics, assembled and provided the Department of Education, to justify billion-dollar litigation.”

So in addition to crippling private career colleges that it considers politically unfavorable, the Obama Administration apparently wants to pore through students’ confidential IRS individual data.  Congress must maintain its current effort to defund this Obama Administration abuse, and Americans must support that effort and maintain its resolve.

July 10th, 2010 at 11:39 pm
IRS Assures Small Businesses that More Electronic Monitoring Means Less Paperwork

Never underestimate the power of positive thinking.  With a level of spin only a well-heeled campaign operative could rival the IRS is trying to allay small business owners’ fears of an “avalanche” of new1099 reporting requirements that life under the new rules won’t be so bad.

With an assist from CNN, here’s IRS Commissioner Douglas Shulman’s attempt to slather lipstick on a pig:

The IRS will have broad leeway to interpret the rules — and it’s already showing signs that it will look for ways to staunch the paperwork flood.

In a late May speech before the two payroll industry trade group, IRS Commissioner Douglas Shulman announced a major exception to the new rules: The IRS plans to exempt transactions made through credit and debit cards. A separate reporting requirement kicks in next year that will cover card transactions and help the IRS spot unreported payments made through those channels, “so there is no need for businesses to report them as well,” Shulman said. “Whenever a business uses a credit or debit card, there will be no new burden under the new law.”

Geez, Doug, I can’t tell you how much better I feel knowing that no matter when and where I swipe my business card I don’t have to report it because you already know about it.  What a relief!  Now that you can spot every single transaction I make, I’m sure the helpful agents at the IRS won’t hold it against me if I forget to include one of those payments on my tax return; right?

I mean, you’re trying to help small business owners by relentlessly monitoring all of our electronic transactions; aren’t you?  After all, you’ve got “broad leeway” in interpreting your new powers…

April 29th, 2010 at 11:44 am
IRS Not Powerful Enough to Enforce Health Insurance Mandate?

Apparently, that’s the case since the current version of ObamaCare doesn’t allow the IRS to exercise its usual methods of coercing compliance, like imposing tax liens or levies, seizing property or seeking jail time against delinquent taxpayers.  But don’t rest too easy.  Since health care is now a federal “right,” you can bet on the good folks in Washington, D.C., conjuring up amendments to guarantee that you and every other American citizen will enjoy it to the fullest extent the law requires.

H/T: USA Today