ABC News: IRS apologizes for targeting conservative groups

The Tea Party Gets an Apology from the IRS

The Internal Revenue Service inappropriately flagged conservative political groups for additional reviews during the 2012 election to see if they were violating their tax-exempt status, a top IRS official said Friday.

Organizations were singled out because they included the words “tea party” or “patriot” in their applications for tax-exempt status, said Lois Lerner, who heads the IRS division that oversees tax-exempt groups.

In some cases, groups were asked for their list of donors, which violates IRS policy in most cases, she said.

“That was wrong. That was absolutely incorrect, it was insensitive and it was inappropriate. That’s not how we go about selecting cases for further review,” Lerner said at a conference sponsored by the American Bar Association.

“The IRS would like to apologize for that,” she added.

Lerner said the practice was initiated by low-level workers in Cincinnati and was not motivated by political bias. After her talk, she told The AP that no high level IRS officials knew about the practice.

Agency officials found out about the practice last year and moved to correct it, the IRS said in a statement. The statement did not specify when officials found out.

About 75 groups were inappropriately targeted. None had their tax-exempt status revoked, Lerner said.

Senate Republican Leader Mitch McConnell of Kentucky called on the White House to investigate.

“Today’s acknowledgement by the Obama administration that the IRS did in fact target conservative groups in the heat of last year’s national election is not enough,” McConnell said. “I call on the White House to conduct a transparent, government-wide review aimed at assuring the American people that these thuggish practices are not under way at the IRS or elsewhere in the administration against anyone, regardless of their political views.”

Many conservative groups complained during the election that they were being harassed by the IRS. They accused the agency of frustrating their attempts to become tax exempt by sending them lengthy, intrusive questionnaires.

The forms, which the groups made available at the time, sought information about group members’ political activities, including details of their postings on social networking websites and about family members.

Certain tax-exempt charitable groups can conduct political activities but it cannot be their primary activity.

IRS Commissioner Douglas Shulman told Congress in March 2012 that the IRS was not targeting groups based on their political views.

“There’s absolutely no targeting. This is the kind of back and forth that happens to people” who apply for tax-exempt status, Shulman told a House Ways and Means subcommittee.

Shulman was appointed by President George W. Bush. His 6-year term ended in November. President Barack Obama has yet to nominate a successor. The agency is now being run by acting Commissioner Steven Miller.

“The Ways and Means Committee has persistently pushed the IRS to explain why it appeared to be unfairly targeting some political groups over others — a charge they repeatedly denied,” said Rep. Charles Boustany, R-La., chairman of the Ways and Means oversight subcommittee.

“The IRS’s ‘too little too late’ response is unacceptable, and I will continue to work to ensure there are protections in place so no American, regardless of political affiliation, has their right to free speech threatened by the IRS,” Boustany said.

Tea Party groups were livid on Friday.

“I don’t think there’s any question we were unfairly targeted,” said Tom Zawistowski, who until recently was president of the Ohio Liberty Coalition, an alliance of tea party groups in the state.

Zawistowski’s group was among many conservative organizations that battled the IRS over what they saw as its discriminatory treatment of their effort to gain non-profit status. The group first applied for non-profit status in June 2009, and it was finally granted on Dec. 7, 2012, he said — one month after Election Day.

During the 2012 election, many tea party groups applied for tax-exempt status under section 501 (c) (4) of the federal tax code, which grants tax-exempt status to social welfare groups. Unlike other charitable groups, these organizations are allowed to participate in political activities but their primary activity must be social welfare.

That determination is up to the IRS.

Lerner said the number of groups filing for this tax-exempt status more than doubled from 2010 to 2012, to more than 3,400. To handle the influx, the IRS centralized its review of these applications in an office in Cincinnati.

Lerner said this was done to develop expertise among staffers and consistency in their reviews. As part of the review, staffers look for signs that groups are participating in political activity. If so, IRS agents take a closer look to make sure that politics isn’t the group’s primary activity, Lerner said.

As part of this process, agents in Cincinnati came up with a list of things to look for in an application. As part of the list, they included the words, “tea party” and “patriot,” Lerner said.

“It’s the line people that did it without talking to managers,” Lerner. “They’re IRS workers, they’re revenue agents.”

In all, about 300 groups were singled out for additional review, Lerner said. Of those, about a quarter were singled out because they had “tea party” or “patriot” somewhere in their applications.

The IRS statement said that once applications were chosen for review, they all “received the same, even-handed treatment.”

Lerner said 150 of the cases have been closed and no group had its tax-exempt status revoked, though some withdrew their applications.

“Mistakes were made initially, but they were in no way due to any political or partisan rationale,” the IRS said in a statement. “We fixed the situation last year and have made significant progress in moving the centralized cases through our system.”

Marcus S. Owens, who spent a decade leading the IRS division that oversees tax-exempt organizations, said Friday that it made sense that the problem arose among workers in Cincinnati because the agency “really has delegated a lot of authority” to local offices to make decisions about handling their workload.

But Tea Party groups weren’t buying the idea that the decision to target them was solely the responsibility of low-level IRS workers.

“It is suspicious that the activity of these ‘low-level workers’ was unknown to IRS leadership at the time it occurred,” said Jenny Beth Martin, national coordinator for Tea Party Patriots, which describes itself as the nation’s largest tea party organization. “President Obama must also apologize for his administration ignoring repeated complaints by these broad grassroots organizations of harassment by the IRS in 2012, and make concrete and transparent steps today to ensure this never happens again.”

Story Update:

PHOTO: Tea party activists Bob Mason, left and John Oltesvig, both of North Carolina, wear colonial costumes with tri-corner hats as they participate in the rally at the Capitol, April 6, 2012.

The Internal Revenue Service is apologizing for what it acknowledges was “inappropriate” targeting of conservative political groups during the 2012 election to see if they were violating their tax-exempt status.IRS agents singled out dozens of organizations for additional reviews because they included the words “tea party” or “patriot” in their exemption applications, Lois Lerner, who heads the IRS division that oversees tax-exempt groups, said Friday. In some cases, groups were asked for lists of donors, which violates IRS policy in most cases, she said.The agency — led at the time by a Bush administration appointee — blamed low-level employees, saying no high-level officials were aware. But that wasn’t good enough for Republicans in Congress, who are conducting several investigations and asked for more.

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Click below for the full article:

http://abcnews.go.com/Politics/wireStory/irs-apologizes-targeting-conservative-groups-19151151

 

Yahoo News: White House Defensive Over Benghazi Memo; Draft revised 12 times

President Barack Obama’s standoff with congressional Republicans over Benghazi escalated on Friday as the White House rebuffed House Speaker John Boehner’s demand that it turn over unclassified internal emails linked to the deadly Sept. 11, 2012, attack.

Press secretary Jay Carney rejected the request and again accused Republicans of trying to milk the tragic death of Ambassador Chris Stevens and three other Americans for political gain.

“They’re asking for emails that they’ve already seen, that they were able to review and take extensive notes on, apparently provide verbatim information to folks,” Carney told reporters.

His comments came hours after ABC News reported that talking points crafted by the administration to explain the attack to the public underwent extensive revisions at the State Department’s request and with copious White House oversight.

“The fact that the very people who’ve reviewed this and probably leaked it–generally speaking, not specifically–are asking for something they’ve already had access to I think demonstrates that this is what it was from the beginning in terms of Republican handling of it which is a highly political matter,” the spokesman said.

Carney noted that key Republicans had been given access to internal emails in which officials discussed the drafting of the talking points. Lawmakers were able “to review them, take notes, spend as much with with them as they liked,” Carney said. (The lawmakers were were not allowed to make copies or take the documents out, which is known as an “in camera” review. )

“There is a long precedent here for protecting internal deliberations. This is across administrations of both parties,” he said. House Republicans have hinted they may try to subpoena the emails if the administration does not cooperate.

“From the hours after the attack, beginning with the Republican nominee’s unfortunate press release, and then his statements the day after, there has been an effort to politicize a tragedy here, the deaths of four Americans,” Carney said, referring to Mitt Romney’s poorly received response to the attack.

“The administration wouldn’t allow our staff to keep any emails or make copies,” Boehner spokesman Brendan Buck told Yahoo News. “We believe the American public should be able to see the contents, and we continue to call on the president to live up to his promise of cooperation and release them publicly.”

Meanwhile, senior administration officials, briefing reporters at the White House on condition that they not be named or quoted, offered a detailed timeline of the administration’s efforts to draft the talking points, which the House Intelligence Committee had requested. And they sought to explain away one email from a senior State Department official, spokeswoman Victoria Nuland, who seemed to urge an edit to spare the department from attacks by congressional Republicans.

Much of the latest controversy has centered on a handful of meaningful changes to the original CIA-produced draft, which ABC reported underwent 12 revisions:

– The very first draft, from 11:15 a.m. on Friday, Sept. 14, refers to “the attacks in Benghazi.” And it asserts “we do know that Islamic extremists with ties to al-Qaida participated in the attack.” It suggests that the extremist group Ansar al-Sharia may be involved.

– By 4:42 p.m. on Friday, they are “demonstrations in Benghazi” that “evolved into a direct assault.” The al-Qaida reference is gone.

– A few edits later, at 8:59 p.m., “we do know” has become “there are indications that.” And Ansar al-Sharia is gone.

As is well known, the ultimate version linked the onslaught in Benghazi to Muslim anger at an Internet video denigrating Islam — which had sparked a violent demonstration and attack on the U.S. embassy in Cairo. There was no such demonstration in Benghazi.

Nuland’s email in particular has drawn scrutiny. She objected to an early draft’s reference to CIA warnings in the months leading up to the attack on grounds that such language “could be abused by members [of Congress] to beat up the State Department for not paying attention to warnings, so why would we want to feed that either? Concerned …”

One senior administration official described Nuland’s concerns as consistent with worries expressed by the Federal Bureau of Investigation, which leads the ongoing investigation into the attack, and the Department of Justice. The official said Nuland also made the case that the administration should not suggest that Congress point to Ansar al-Sharia when administration officials were waiting to do so until the results of the investigation.

Another official said the FBI had objected to the “we do know that Islamic extremists” participated phrasing.

“I think the overriding concern of everyone involved in that circumstance is always to make sure that we’re not giving, to those who speak in public about these issues, information that cannot be confirmed, speculation about who was responsible, other things like warnings that may or may not be relevant to what we ultimately learn about what happened and why,” Carney said at his public briefing later.

The officials also insisted that Carney had not meant to mislead reporters when he contended that the White House had only made one “stylistic” change — altering the description of the ransacked facility from a “consulate” to a “diplomatic post.” They said he had been referring to the process that unfolded after the interagency debate on the talking points, once the deputy director of the CIA had drafted a would-be final draft on Saturday morning, September 15th. The documents obtained by ABC showed that the White House oversaw the early back-and-forth among the agencies concerned.

The officials also tackled another issue that has drawn scrutiny: Why, after lumping Benghazi in with the attacks of Sept. 11, 2001 as “acts of terror,” did the president and other top aides shy from calling it “terrorism”? The officials said that there was never any doubt that the attack was terrorism, but that they avoided the label because they were not certain who carried out the attack or whether it was spontaneous or pre-planned.

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Click here to read the article on the Yahoo News website:

http://news.yahoo.com/blogs/ticket/white-house-rebuffs-boehner-benghazi-related-emails-214324542.html

AP: Obama declared health care law ‘is here to stay’

Caught between nervous Democrats and emboldened Republicans, President Barack Obama on Friday stepped up the sales pitch on his health care overhaul as the final elements of his top domestic achievement go into effect. With his legacy and the law’s success at stake, Obama said: “The law is here to stay.”

Behind the scenes, the White House readied a campaign-style effort to get healthy young people to sign up for the insurance “exchanges” in order to keep premium costs from skyrocketing. On Capitol Hill, House Republicans are planning yet another vote to try to try to repeal the law.

The insurance exchanges are the centerpiece of the landmark overhaul of the nation’s health insurance system and the White House mobilization is crucial to the success of the health care law and, by extension, to Obama’s place in history as the first president in decades to expand health care coverage.

“There’s a lot that this law is already doing for Americans with insurance,” Obama said during a Mother’s Day-themed event at the White House. “There’s a lot more that’s going to happen for folks who don’t have insurance.”

But he cautioned: “We still have a lot of work to do in the coming months to make sure more Americans can buy affordable health coverage.”

And he urged the public not to be swayed by what he said were scare tactics from critics of the law who might blame it for rising premiums.

“Don’t be bamboozled,” he said.

Underscoring the policy and political consequences, the White House plans to employ both the resources of government as well as those of his reconfigured political operation as it aimed to enroll 7 million people in health insurance exchanges between Oct. 1 and the end of March. The goal is to get 30 million people to sign up within five years.

Moreover, the composition of those signing up for the new exchanges matters just as much as the overall totals. In order to keep premium costs down, officials say they must register 2.7 million healthy people between the ages of 18 and 35 in order to counteract the costs of ensuring seniors and people with health problems.

The White House’s hopes that Obama’s East Room event would draw broad attention crumpled, however, when the president’s event had to compete for attention with revelations about administration deliberations over the September attack on U.S. diplomats in Benghazi, Libya, and an acknowledgement by the Internal Revenue Service that its workers had singled out conservative groups for additional review.

The effort comes as the public remains divided over the health care law. As a result, the White House is planning an election-like campaign to target those uninsured or individually insured young people, an effort reminiscent of the sophisticated voter outreach that helped Obama twice win the White House. The administration has identified where many of the healthy and uninsured young live and will be working with health clinics, hospitals, churches and other groups to sign them up for the exchanges.

Organizing for Action, an outside political group supporting Obama, will also be involved in the effort to promote the exchanges.

Administration officials say one-third of the young people they need to sign up for the exchanges live in California, Texas and Florida. Just over 50 percent are minorities and 57 percent are men.

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Click here for the full story:

http://hosted.ap.org/dynamic/stories/U/US_OBAMA?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-05-10-15-39-49

Judge Napolitano: Why We Should Mistrust the Government

It should come as no surprise that President Obama told Ohio State students at graduation ceremonies last week that they should not question authority and they should reject the calls of those who do. He argued that “our brave, creative, unique experiment in self-rule” has been so successful that trusting the government is the same as trusting ourselves; hence, challenging the government is the same as challenging ourselves. And he blasted those who incessantly warn of government tyranny.

Yet, mistrust of government is as old as America itself. America was born out of mistrust of government. The revolution that was fought in the 1770s and 1780s was actually won in the minds of colonists in the mid-1760s when the British imposed the Stamp Act and used writs of assistance to enforce it. The Stamp Act required all persons in the colonies to have government-sold stamps on all documents in their possession, and writs of assistance permitted search warrants written by British troops in which they authorized themselves to enter private homes ostensibly to look for the stamps.

These two pieces of legislation were so unpopular here that Parliament actually rescinded the Stamp Act, and the king’s ministers reduced the use of soldier-written search warrants. But the searches for the stamps turned the tide of colonial opinion irreversibly against the king.

The same king also prosecuted his political adversaries in Great Britain and here for what he called
“seditious libel” – basically, criticizing the government. Often that criticism spread and led to civil disobedience, so the British sought to punish it at its source. The prosecutions were so unpopular here, and so contrary to the spirit of what would become the Declaration of Independence, that when the British went home and the Framers wrote the Constitution and the Bill of Rights was added, the First Amendment assured that the new government could not punish speech.

Yet barely 10 years into “our brave, creative, unique experiment in self-rule,” in the infamous Alien and Sedition Acts, Congress at the instigation of President John Adams criminalized
free speech that was critical of the new government.

How did it come about that members of the same generation – in some cases the very same human beings – that declared in the First Amendment that “Congress shall make no law … abridging the freedom of speech” in fact enacted laws that did just that?

As morally wrong, as violative of the natural law, as unconstitutional as these laws were, they were not historical incongruities. Thomas Jefferson – who opposed and condemned the acts (he was Adams’ vice president at the time) – warned that it is the nature of government over time to increase and of liberty to decrease. And that’s why we should not trust government. In the same era, James Madison himself agreed when he wrote, “All men having power should be distrusted to a certain degree.”

The Alien and Sedition Acts were but the beginning of a long train of government abuses visited upon people in America as a consequence of the “experiment in self-rule.” I am not quoting Obama’s Ohio State speech to nitpick, but rather to establish a base line for my argument that he rejects core principles and historical lessons and, most troubling, the natural law itself when he opines that government should be trusted because it has gained power via self-rule.

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Click below to read the full article on Lew Rockwell’s website.

http://lewrockwell.com/napolitano/napolitano100.html