Archive for May 14th, 2013

Some More Thoughts about the IRS

May 14, 2013

I hope that it will not be the case, but I would suspect that there are some liberals out there who would support the idea of the IRS auditing the Tea Party. If you are reading this and agree with that sentiment then consider if the situation were reversed. What if a Republican administration were targeting liberal advocacy groups for extra attention? You really don’t have to use your imagination; Presidents Johnson and Nixon used the IRS to harass anti-Vietnam War protestors. Using the power of the state to intimidate dissenting organizations is simply unacceptable regardless of party or ideology.

It might be a good idea to consider alternatives to the income tax. Neal Boortz and other libertarians have proposed a “fair” tax, an national sales tax to replace the income tax. I have tended to oppose this since I believe that such a tax would be regressive in nature, placing a greater tax burden on the poor than the rich, not to mention that the political difficulties enacting such a tax would be insuperable. A fair tax wouldn’t be subject to the kind of abuse that the income tax has proved to be and it would not require individuals to provide personal information about their finances that the income tax does. There may be other alternatives to consider.

The IRS is expected to play a major role in implementing Obamacare. According to Americans for Tax Reform

When Obamacare’s individual mandate takes effect in 2014, all Americans who file income tax returns must complete an additional IRS tax form.

The new form will require disclosure of a taxpayer’s personal identifying health information in order to determine compliance with the Affordable Care Act’s individual mandate.

As confirmed by IRS testimony to the tax-writing House Committee on Ways and Means, “taxpayers will file their tax returns reporting their health insurance coverage, and/or making a payment”.

So why will the Obama IRS require your personal identifying health information?

Simply put, there is no way for the IRS to enforce Obamacare’s individual mandate without such an invasive reporting scheme.  Every January, health insurance companies across America will send out tax documents to each insured individual.  This tax document—a copy of which will be furnished to the IRS—must contain sufficient information for taxpayers to prove that they purchased qualifying health insurance under Obamacare.

This new tax information document must, at a minimum, contain: the name and health insurance identification number of the taxpayer; the name and tax identification number of the health insurance company; the number of months the taxpayer was covered by this insurance plan; and whether or not the plan was purchased in one of Obamacare’s “exchanges.”

This will involve millions of new tax documents landing in mailboxes across America every January, along with the usual raft of W-2s, 1099s, and 1098s.  At tax time, the 140 million families who file a tax return will have to get acquainted with a brand new tax filing form.  Six million of these families will end up paying Obamacare’s individual mandate non-compliance tax penalty.

As a service to the public, Americans for Tax Reform has released a projected version of this tax form to help families and tax specialists prepare for this additional filing requirement. Taxpayers may view the projected IRS form at www.ObamacareTaxForm.com.  On the form, lines 3-4 show where taxpayers will disclose their personal health ID information.

With the recent revelations concerning the IRS, do you think you can trust them to keep your personal health information secret? What if whatever bureaucracy that is set up to administer our health care system becomes politicized? It is not too difficult for me to imagine a situation in which members of a death panel, or whatever they are going to call it, make decisions on who gets on the organ transplant waiting list, or who gets chemotherapy, based on political affiliation. But, maybe I am just being paranoid.

 

Auditing the Tea Party

May 14, 2013

It’s not paranoia if they really are out to get you. During the last election cycle some Tea Party and conservative groups noticed that the IRS was unusually curious about their tax exempt status. This might be dismissed as anti-government paranoia, except that last Friday an official from the IRS admitted to doing just that.

An IRS official apologized on Friday to tea party organizations and other conservative groups for inappropriately targeting them during the 2012 election, the Associated Press reports.

The groups, which enjoyed tax-exempt status under the internal revenue code, were singled out for additional scrutiny of their tax exemption if their names included the words “tea party” or “patriot.” In several cases, the groups were asked to provide a list of donors for review, usually a violation of IRS policy.

“That was wrong. That was absolutely incorrect, it was insensitive, and it was inappropriate. That’s not how we go about selecting cases,” said Lois Lerner, the head of the IRS division that oversees tax-exempt groups. “The IRS would like to apologize for that.”

Lerner said the additional scrutiny was initiated by lower-level employees working out of Cincinnati, and that the practice was not a product of political bias. She told the Associated Press that high-level officials were not informed of the practice. On a conference call on Friday, IRS officials said they did not know whether any administration officials at the White House or Treasury Department were aware of the practice.

During the election, several conservative groups cried foul over what they saw as undue pressure justify their tax-exempt status, accusing the IRS of sending arduous questionnaires seeking information about their members’ political activities.

The story that it was just a few low level employees didn’t last long.

Higher-level Internal Revenue Service officials took part in discussions as far back as August 2011 about targeting by lower-level tax agents of “Tea Party” and other conservative groups, according to documents reviewed by Reuters on Monday.

The documents show the offices of the IRS’s chief counsel and deputy commissioner for services and enforcement communicated about the targeting with lower-level officials on August 4, 2011, and March 8, 2012, respectively.

The two communications occurred weeks and months before Doug Shulman, then the commissioner of the IRS, told congressional panels in late March 2012 that no groups were being targeted for extra scrutiny by the tax agency.

The IRS has maintained that its senior leadership did not know for some time that lower-level agents were applying extra scrutiny to applications for tax-exempt status from groups with key words in their names, such as “Tea Party” and “Patriot.

The agency said in a statement on Monday that Steven Miller, who is now acting IRS commissioner, was first informed in early May 2012 that some groups seeking tax-exempt status had been “improperly identified by name” and subjected to extra scrutiny.

Late on Monday, Senate Finance Committee Republicans said Shulman was briefed on the targeting in May 2012, a date not previously disclosed. An aide said committee staff learned this on Monday from the Treasury Inspector General for Tax Administration (TIGTA), an independent IRS watchdog.

It keeps getting worse and worse. The Tea Party weren’t the only ones selected for special attention by the IRS.

The Internal Revenue Service’s scrutiny of conservative groups went beyond those with “tea party” or “patriot” in their names—as the agency admitted Friday—to also include ones worried about government spending, debt or taxes, and even ones that lobbied to “make America a better place to live,” according to new details of a government probe.

The investigation also revealed that a high-ranking IRS official knew as early as mid-2011 that conservative groups were being inappropriately targeted—nearly a year before then-IRS Commissioner Douglas Shulman told a congressional committee the agency wasn’t targeting conservative groups.

The new disclosures are likely to inflame a widening controversy over IRS handling of dozens of applications by tea-party, patriot and other conservative groups for tax-exempt status.

The details emerged from disclosures to congressional investigators by the Treasury Inspector General for Tax Administration. The findings, which were reviewed by The Wall Street Journal, don’t make clear who came up with the idea to give extra scrutiny to the conservative groups.

The inspector general’s office has been conducting an audit of the IRS’s handling of the applications process and is expected to release a report this week. The audit follows complaints last year by numerous tea-party and other conservative groups that they had been singled out and subjected to excessive and inappropriate questioning. Many groups say they were asked for lists of their donors and other sensitive information.

On Sunday, a government official said the report will note that IRS officials told investigators that no one outside the IRS was involved in developing the criteria the agency now acknowledges were flawed.

In my opinion this is worse than the scandal regarding the Benghazi attacks last September 11. It is regrettable and unfortunate that four Americans lost their lives and an investigation is in order to determine what went wrong, but the worst that the Obama administration can be charged with there, is gross incompetence and negligence, and a coverup to ensure that the narrative that al-Qaeda was in retreat not be challenged. The issue with the IRS is the deliberate use of the federal government’s power to harass people and organizations opposed to the administration.

Is President Obama responsible for the questionable activities of the IRS? Probably not directly. Richard Nixon almost certainly neither knew of or authorized the break in at Watergate. He was still responsible for the scandal because the President sets the tone for his administration. The Nixon administration became one in which the suggestion that someone break into the Democratic National Committee headquarters and install listening devices was not instantly dismissed as illegal and insane, but was approved and acted upon. President Obama probably never suggested that the IRS should investigate Tea Party organizations, but the employees at the IRS must have suspected that such activity would be condoned by President, “If they bring a knife to the fight, we bring a gun” and “punish our enemies in the voting booth“. Barack Obama has never seemed to be especially interested in getting along with his opponents. Perhaps it is a legacy of his days as a community organizer, but Obama seems to be more interested in destroying those who oppose his policies, which makes this whole affair all the more chilling.

 

 


%d bloggers like this: