In his letter to the IRS
seeking the suspension of Lois Lerner, the woman in the cross-hairs who pleaded
the Fifth Amendment at a congressional hearing, U.S. Sen. Carl Levin revealed
that Lerner repeatedly withheld key information from his Permanent Subcommittee
on Investigations.
seeking the suspension of Lois Lerner, the woman in the cross-hairs who pleaded
the Fifth Amendment at a congressional hearing, U.S. Sen. Carl Levin revealed
that Lerner repeatedly withheld key information from his Permanent Subcommittee
on Investigations.
Lerner, who has refused to
resign and claims she has “done nothing wrong,” was placed on administrative
leave on Thursday, the same day the Levin letter was sent to the acting IRS commissioner,
Daniel Werfel. Sen. John McCain, the top-ranking Republican on the subcommittee,
co-signed the letter.
resign and claims she has “done nothing wrong,” was placed on administrative
leave on Thursday, the same day the Levin letter was sent to the acting IRS commissioner,
Daniel Werfel. Sen. John McCain, the top-ranking Republican on the subcommittee,
co-signed the letter.
The subcommittee has been
investigating whether political groups are improperly receiving tax-exempt
status from the IRS.
investigating whether political groups are improperly receiving tax-exempt
status from the IRS.
Here is the full text of
the letter:
the letter:
Dear Acting Commissioner Werfel:
We are writing to urge you to suspend immediately Lois
Lerner from her office as Director of the Office of Exempt Organizations at the
Internal Revenue Service (IRS). We believe that Ms. Lerner failed to disclose
crucial information concerning the IRS’s inappropriate targeting of some
conservative 501(c)(4) organizations during the course of a Subcommittee
investigation into how the IRS enforces the 501(c)(4) law, leading to an
incomplete account of the full operations of her unit.
Lerner from her office as Director of the Office of Exempt Organizations at the
Internal Revenue Service (IRS). We believe that Ms. Lerner failed to disclose
crucial information concerning the IRS’s inappropriate targeting of some
conservative 501(c)(4) organizations during the course of a Subcommittee
investigation into how the IRS enforces the 501(c)(4) law, leading to an
incomplete account of the full operations of her unit.
Since March of last year, the Subcommittee has been
examining whether the IRS adequately and appropriately enforces tax code
provisions and implementing regulations regarding the extent to which
tax-exempt 501(c)(4) groups may engage in political campaign activity. The
Subcommittee asked the IRS why it was not enforcing the 501(c)(4) statute which
states that social welfare organizations should be used “exclusively for the
promotion of social welfare” and instead enforcing the more lenient IRS
regulation which states that a social welfare organization may be used “primarily”
for social welfare. It also asked the IRS about how they reviewed applications
filed by certain Democratic and Republican leaning 501(c)(4)s. Our
investigation has included a year’s worth of correspondence between the
Subcommittee and the IRS, as well as document productions and repeated
consultations with IRS staff.
examining whether the IRS adequately and appropriately enforces tax code
provisions and implementing regulations regarding the extent to which
tax-exempt 501(c)(4) groups may engage in political campaign activity. The
Subcommittee asked the IRS why it was not enforcing the 501(c)(4) statute which
states that social welfare organizations should be used “exclusively for the
promotion of social welfare” and instead enforcing the more lenient IRS
regulation which states that a social welfare organization may be used “primarily”
for social welfare. It also asked the IRS about how they reviewed applications
filed by certain Democratic and Republican leaning 501(c)(4)s. Our
investigation has included a year’s worth of correspondence between the
Subcommittee and the IRS, as well as document productions and repeated
consultations with IRS staff.
On April 30, 2013, Ms. Lerner and seven IRS colleagues
spent six-hours being interviewed, on a bipartisan basis, by Subcommittee
staff. That interview covered, among other topics, how the IRS determines which
groups to review, what actions are taken in connection with the IRS reviews,
and how the laws and regulations are used to examine those groups. Ms. Lerner
failed to disclose the internal controversy over the search terms used by the
Cincinnati office to identify 501(c)(4) groups for further review, the actions
taken by that office in reviewing the identified groups, the investigation and
imminent findings by the Treasury Department Inspector General for Tax
Administration (TIGTA); and TIGTA’s conclusion that the IRS had used
inappropriate criteria to target Tea Party and other conservative groups. Ms.
Lerner also failed to disclose that she was fully aware of these issues as
early as June 2011, and, according to TIGTA, had been personally involved in
reviewing questionable actions taken by the Cincinnati office.
spent six-hours being interviewed, on a bipartisan basis, by Subcommittee
staff. That interview covered, among other topics, how the IRS determines which
groups to review, what actions are taken in connection with the IRS reviews,
and how the laws and regulations are used to examine those groups. Ms. Lerner
failed to disclose the internal controversy over the search terms used by the
Cincinnati office to identify 501(c)(4) groups for further review, the actions
taken by that office in reviewing the identified groups, the investigation and
imminent findings by the Treasury Department Inspector General for Tax
Administration (TIGTA); and TIGTA’s conclusion that the IRS had used
inappropriate criteria to target Tea Party and other conservative groups. Ms.
Lerner also failed to disclose that she was fully aware of these issues as
early as June 2011, and, according to TIGTA, had been personally involved in
reviewing questionable actions taken by the Cincinnati office.
Given the serious failure by Ms. Lerner to disclose to
this Subcommittee key information on topics that the Subcommittee was
investigating, we have lost confidence in her ability to fulfill her duties as
Director of Exempt Organizations at the IRS. Ms. Lerner’s continued tenure in
the office she holds, where she is responsible for overseeing 1.6 million
tax-exempt organizations, would erode public trust and confidence in the IRS
and its professional integrity. We believe that the immediate removal of Ms.
Lerner from office would be a vital step in helping to restore public trust in
the agency.
this Subcommittee key information on topics that the Subcommittee was
investigating, we have lost confidence in her ability to fulfill her duties as
Director of Exempt Organizations at the IRS. Ms. Lerner’s continued tenure in
the office she holds, where she is responsible for overseeing 1.6 million
tax-exempt organizations, would erode public trust and confidence in the IRS
and its professional integrity. We believe that the immediate removal of Ms.
Lerner from office would be a vital step in helping to restore public trust in
the agency.
Sincerely,
John McCain
Carl Levin
According to a story
posted last week on the Fox News website, Levin last year requested information
from the IRS on 12 organizations.
posted last week on the Fox News website, Levin last year requested information
from the IRS on 12 organizations.
“Organizations are
using Internal Revenue Code section 501(c)(4) to gain tax exempt status while
engaging in partisan political campaigns,” wrote Levin in a letter to the
IRS on July 27, 2012. “Making the problem worse is that the IRS knows
there is a problem because of the public nature of the activity but has failed
to address it.”
using Internal Revenue Code section 501(c)(4) to gain tax exempt status while
engaging in partisan political campaigns,” wrote Levin in a letter to the
IRS on July 27, 2012. “Making the problem worse is that the IRS knows
there is a problem because of the public nature of the activity but has failed
to address it.”
The subcommittee chairman’s
list reportedly contained nine conservative groups, including Club for Growth,
Americans for Tax Reform, and Americans for Prosperity. It also included two liberal
groups and one centrist group.
list reportedly contained nine conservative groups, including Club for Growth,
Americans for Tax Reform, and Americans for Prosperity. It also included two liberal
groups and one centrist group.
The National Review is reporting that Lerner signed cover letters to 15
conservative organizations currently represented by the American Center for
Law and Justice (ACLJ) between March and April of 2012. The letters, such as this
one sent to the Ohio Liberty Council on March 16, 2012, informed the groups
applying for tax-exempt status that the IRS was “unable to make a final
determination on your exempt status without additional information,” and
included a list of detailed questions of the kind that a Treasury inspector
general’s audit
found to be inappropriate, according to National Review Online. Some of the
groups to which Lerner sent letters are still awaiting approval.
conservative organizations currently represented by the American Center for
Law and Justice (ACLJ) between March and April of 2012. The letters, such as this
one sent to the Ohio Liberty Council on March 16, 2012, informed the groups
applying for tax-exempt status that the IRS was “unable to make a final
determination on your exempt status without additional information,” and
included a list of detailed questions of the kind that a Treasury inspector
general’s audit
found to be inappropriate, according to National Review Online. Some of the
groups to which Lerner sent letters are still awaiting approval.
