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View Diary: Inspector General Report On IRS Targeting Tea Party A Political Sham (50 comments)

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  •  No, I don't necessarily think it was political (1+ / 0-)
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    Sylv

    I am a CPA and have dealt with the IRS before on similar matters.

    My point is, what the IG's report is describing is exactly what the IRS has done in other similar situations.  Again, I ask you - during the Clinton administration, the IRS singled out environmental group applications for tax exempt status (different code section, but same principle).  They did so in the same manner - based on the group's name and/or policy position. Was this political?

    No it was not.  They did so because they were getting a high volume of such applications, because they were new groups more commonly associated with political lobbying than charitable or social welfare purposes, and these 2 factors led the IRS to believe that there was an increased risk of fraud or noncompliance among these type organizations. The same is true for other types of groups and other types of financial transactions: new, unusual and high volume of activity is going to alert the IRS to increase scrutiny.

    The IG says the criteria should have been "indications of political campaign intervention". Okay, but how can there be such indications unless the IRS asks additional questions and applies extra scrutiny?

    Also, I think the IRS has a legitimate difference of opinion with the IG on this point: if the IRS cannot apply additional scrutiny based on new, unusual or sudden high volume of activity, then be prepared for a lot more fraud going on until the compliance division is able to catch them on the back end and its only years later that the IRS is able to apply extra scrutiny.

    Liberalism is trust of the people tempered by prudence. Conservatism is distrust of the people tempered by fear. ~William E. Gladstone, 1866

    by absdoggy on Wed May 15, 2013 at 08:02:45 AM PDT

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