Politico Found Lois Lerner. So Why Can’t the U.S. Attorney in Washington?

Under federal law, the duty of the U.S. Attorney “shall be to bring the before” a federal grand jury for action.

Source: dailysignal.com

Somewhere along the line, the federal government became above the law.  The US Attorney has a duty to uphold the clearly written law.  But the US Attorney with jurisdiction in this matter (an Obama appointee), has selectively ignored his duty.  Lerner was cited with Contempt of Congress-almost 5 months ago.

Selective enforcement of law has become a trademark of the Obama administration, including this federal Attorney.  The evidence of wrongdoing continues to pile up in the Lerner case. The US Attorney is nothing more than an extension of the Obama effort to rule the land by executive fiat.  He and his cohorts are abusing the power and trust of office with a growing contempt for our laws and our citizens.

See on Scoop.itEconomicFactors

IRS charge cards used for pornography, wine, $4,000 in kazoos and more: report

See on Scoop.itEconomicFactors

Report from the Treasury Inspector General for tax administration reveals a host of improper purchases by Internal Revenue Service employees.

Bill McKee‘s insight:

The IRS .. a priveleged “class” that is deemed above the law.. above common decency..and just another group of people dependent upon hard working private sector to support their addictions and entitlement worldview.

See on www.globalpost.com

IRS: Illegal Alien Tax Fraud Encouraged

Illegal Aliens Take Advantage of Tax Loophole that Costs Taxpayers Billions

Tuesday, May 1, 2012, 9:59 AM EDT

Eyewitness News of Indiana’s WTHR reveals a massive tax loophole that provides billions of dollars in tax credits to illegal aliens and people living in foreign countries.

The loophole is called the Additional Child Tax Credit. It’s a fully-refundable credit of up to $1000 per child, and it’s meant to help working families who have children living at home. Eyewitness News has found many undocumented workers are claiming the tax credit for kids who live in Mexico.

A longtime Indiana tax consultant, who remains anonymous for fear of reprisal, came to 13 Investigates to blow the whistle about this nationwide problem involving illegal aliens who are filing tax returns.

“We’re talking about a multi-billion dollar fraud scheme here that’s taking place and no one is talking about it,” tax preparer said.

The Internal Revenue Service says everyone who is employed in the United States, even those who are working here illegally, must report income and pay taxes. Because illegal aliens are not supposed to have a social security number, the IRS created the individual taxpayer identification number, ITIN. A 9-digit ITIN number issued by the IRS provides both resident and nonresident aliens with a unique identification number that allows them to file tax returns.

This ITIN number is backfiring in a big way. Each Spring, many illegal aliens are now eagerly filing tax returns to take advantage of the Additional Child Tax Credit using their ITIN numbers to get huge refunds from the IRS.

“We’ve seen sometimes 10 or 12 dependents, most times nieces and nephews, on these tax forms,” the whistleblower told Eyewitness News. “The more you put on there, the more you get back.”

The whistleblower has thousands of examples, and he brought some of them to 13 Investigates. The examples show that the tax filers had received large tax refunds after claiming additional child tax credits for many dependents.

WTHR spoke to several illegal aliens who confirmed it was easy to get the tax loophole credit.

One of the illegal aliens admitted his address was used this year to file tax returns by four other undocumented workers who don’t even live there. Those four workers claimed 20 children live inside the one residence and, as a result, the IRS sent the illegal immigrants tax refunds totaling $29,608.

13 Investigates asked the illegal alien why illegal aliens should receive tax credits for children living in a foreign country.

“If the opportunity is there and they can give it to me, why not take advantage of it?” the illegal alien responded.

Several of the illegal aliens told WTHR they were told it was legal for them to claim the tax credit for a child who does not live in the United States.

According to Russell George, the United States Department of Treasury’s Inspector General for Tax Administration (TIGTA), the IRS has known about this scheme for years.

“The magnitude of the problem has grown exponentially,” he said.

George has repeatedly warned the IRS that additional child tax credits are being abused by illegal aliens. In 2009, his office released an audit report that showed ITIN tax filers received about $1 billion in additional child tax credits. Last year, the inspector general released a new report showing the problem now costs American tax payers more than $4.2 billion.

What George finds even more troubling is the IRS has not taken action despite multiple warnings from the inspector general.

“Millions of people are seeking this tax credit who, we believe, are not entitled to it,” said the Inspector General. “We have made recommendations to the IRS as to how they could address this, and they have not taken sufficient action in our view to solve the problem.”

The IRS tells WTHR it can do nothing to change the current system unless it gets permission from Congress. In other words, according to the IRS, closing the loophole would require lawmakers to pass a new law specifically excluding illegal immigrants from claiming additional child tax credits.

Congressman Dan Burton (R-Ind.) is frustrated and ready to act.

Rep. Burton and dozens of other House Republicans have co-sponsored a bill that would essentially authorize additional child tax credits only for US citizens. House Resolution 1956 would require tax filers to provide a valid social security number to receive an additional child tax credit.

“This rampant abuse of hardworking taxpayer dollars is just wrong,” said Rep. Sam Johnson (R – Texas), who authored HR 1956. “It’s time we close this tax loophole and put a stop to the child tax credit sham.”

HR 1956 has sat idle in the House Ways and Means Committee for almost a year.

However, language from the bill is now included in a package of proposed budget savings measures that House lawmakers are expected to consider in May. While the budget package may have enough support to pass the House, it is expected to die a quick death in the Democratic-controlled Senate.

“This should not be a partisan issue because we’re all concerned about saving taxpayer dollars and not wasting them on fraudulent things like this,” said Rep. Burton.

It is not just Republicans who are concerned about the issues, Democrat Senators have taken action as well.

Last fall, Senator Claire McCaskill (D- Mo.) sent a letter to IRS Commissioner Douglas Shulman asking him to stop the agency’s payments of additional child tax credits to undocumented workers. “This is deeply problematic and must be remedied,” the senator wrote.

“I’m a taxpayer, and the thought of me paying for 24 people who are living in one trailer boggles my mind, especially when you tell me most of them are still living in Mexico. That’s unconscionable.” said Rep. Burton.

“It’s cheating the American taxpayer,” Burton said. “We all believe in humanity and humanitarianism, but we’ve got a $15 trillion national debt. We can’t subsidize the whole world.”

For more information on this story and to see what you can do about HR 1956, read WTHR.

IRS Already Gearing Up for Health-Care Crackdown | Fox Business

  • Health Care Bill Stethoscope

The rest of the country may be waiting for the U.S. Supreme Court to decide the fate of President Barack Obama’s health-care law, but the Internal Revenue Service is wasting no time.

It wants to add new agents to hunt down tax cheats and still plans to spend $303.5 million building a system to oversee the effects of the health law even though its future is unclear.

As for the new IRS workers, the Government Accountability Office said the total will be about 4,500, with nearly 4,000 (3,997) slated for enforcement.

On the $303.5 million for health care, the GAO said the IRS will “continue the development of new systems and modifications of existing systems required to support new tax credits,” as well as other IRS enforcement systems for health reform.

And that’s where the health reform law gets really tricky for taxpayers.

IRS WATCHDOG: HEALTH REFORM RAISES PRIVACY ISSUES

Nina E. Olson, who runs the Taxpayer Advocate Office {TAO}, a federal IRS overseer, has warned the new health law may require more IRS intrusions on taxpayer privacy, to determine whether individuals got appropriate health coverage, and whether small businesses provide “affordable” coverage, all of which is defined by the government.

That’s because the health-reform law’s individual mandate requires almost all legal residents of the United States to have “adequate” health-care coverage, as determined by the federal government. And it requires businesses of all sizes to provide “affordable” coverage as defined by the federal government.

Health reform’s insurance mandate says if you do not have “adequate” insurance, you’ll have to pay a fine as part of your tax return. If your business doesn’t provide “affordable” coverage,  you’ll have to pay a fine to the IRS, too, as part of your tax return filing.

The IRS must collect these mandate penalties, as well as determine whether individuals buy “adequate” health coverage, and whether small businesses provide “affordable” coverage to workers under the new law.  

WHAT YOU NOW MUST TELL THE IRS UNDER THE HEALTH LAW

The TAO has noted Americans must now tell the IRS under the new law, according to a report obtained by FOX News analyst James Farrell:

*Insurance plan information, including who is covered under the plan and the dates of coverage;
*The costs of your family’s health insurance plans;
*Whether a taxpayer had an offer of employer-sponsored health insurance;
*The cost of employer-sponsored insurance;
*Whether a taxpayer received a premium tax credit; and
*Whether a taxpayer has an exemption from the individual responsibility requirement.

The TAO has warned: “This is different from the type of information the IRS typically deals with, and some taxpayers may feel uncomfortable about sharing it with the IRS.”

Olson added: “As a result, some taxpayers could be tempted to not file a tax return or file a return with incorrect or incomplete information, creating problems for both the taxpayer and the IRS.”

WITH WHOM THE IRS GETS TO SHARE YOUR INFO

In the TAO report obtained by Farrell, the TAO has also reported that “obtaining this new information will also require the IRS to communicate with entities and government agencies that it may not deal with now,” including:

*New state-run insurance exchanges;
*Employers;
*Insurance companies; and
*Government insurance programs.

CAN THE IRS HANDLE IT?

The TAO has warned that the IRS may not have the necessary skill sets, budget, or staffing to adequately enforce the new health reform law.

Olson notes that the federal tax code is already so complex that even the IRS makes numerous mistakes in administering it. In the TAO’s 2010 annual report, the service’s overseer says that Congress has been forcing the IRS to oversee more and more social benefit programs, including the Affordable Care Act.

“As part of the recent health-care legislation, the IRS will face a number of decisions and guidance projects unrelated to its employees’ traditional expertise and skill set,” the TAO has said, and now, with the new law, “the IRS must administer the following health care provisions: the Premium Assistance Credit, the Individual Penalty for Lack of Coverage, the Employer Penalty, and the Small Business Tax Credit.”

The IRS should revise its mission statement to make it clear that it is administering social benefits as well as collecting revenue, TAO said. Already, the IRS enforces and collects Medicare and Social Security taxes, making those federal programs’ overhead costs appear lower than they are.

NOT JUST YOU, BUT YOUR ENTIRE HOUSEHOLD

What does the IRS base your mandate penalty on? This is where it gets hairy. The TAO says that the “IRS will need to determine a taxpayer’s compliance with the individual [insurance purchasing] mandate and assess a penalty if coverage is inadequate.”

And the penalty isn’t based on just your personal net income. The penalty will be based on an entirely different number.

“This determination is based on a concept of ‘household income,’” TAO has said, adding, “this may differ from the income reported on the taxpayer’s return, because it is a composite of all of the income reported by members of a taxpayer’s household — information that may not be readily accessible to the IRS.”

HOW THE HEALTH-REFORM PENALTY WORKS

If the IRS finds you have fallen short of the law, it would hit you with a penalty tied to your household income (which may be that of an individual or several family members). But this is more than just your paycheck earnings. Under the new health law, the IRS penalty would be based on “modified adjusted gross income,” not adjusted gross income that you normally report at the bottom of the first page of your tax form 1040, before you take deductions or personal exemptions.

The modifications add back in things like non-taxable interest and excluded foreign income to this number.

Next, to assess the fine, the IRS would take the total household income divided by the number of household members who must have insurance under the law. This raises questions of responsibility for your other household members to abide by the new health reform law.
All of this could mean a heavier enforcement hand at the IRS.

The IRS will need more training in privacy requirements, in order to avoid a drop in tax compliance, the TAO said, as taxpayers may feel they need to protect their confidential household income information for everyone who lives under the same roof.

WHAT THE NEW REFORM PENALTIES LOOK LIKE

And what would your health reform penalty look like?

The IRS penalty is either a fixed dollar amount, or a percentage of income above the filing threshold, whichever is greater. The law sets the fixed dollar penalty at $95 in 2014, $325 in 2015, $695 in 2016, and indexed to inflation thereafter (capped for a family at 300% of the individual amount).

The percentage of income penalty rises at a lower rate than the fixed dollar amount, from 1% in 2014, to 2% in 2015, and to 2.5% in 2016 and after, and then is capped at the national average premium for what’s called “bronze” coverage, which provides the least amount of coverage under the new law, 60% before the patient must chip in for co-insurance, deductibles and co-payments.

There’s more. Small businesses may get hit too. Less than half of small businesses insure workers, says a House Committee on small business. About 60% of America’s uninsured — or 28 million — are small business owners, workers, and their families, it says, adding insurance costs for small businesses have increased 129% since 2000.

The IRS and Treasury have put out for public feedback a new rule to help small businesses contend with a big penalty under health reform that could potentially smack them with tens of thousands of dollars in costs, a fine that could hit already cash-strapped small businesses.

Submarined in the new health-reform law is this big onerous penalty, called a “shared responsibility payment,” that the government can slap against businesses with more than 50 workers if they don’t provide “affordable” health benefits to their full-time employees, which the government gets to define.

The health-reform law exempts all small businesses with fewer than 50 employees from the law’s “shared responsibility requirement,” which begins in 2014. But beginning in 2014, employers with 50 or more employees that do not offer health insurance coverage will pay a fine of $2,000 per full-time worker if any of their employees turn around and get premium tax credits through the new health insurance exchanges.

Even if the small business has 51 workers, and that one worker gets a tax credit to help them buy insurance — a tax credit provided under health reform — the small business still has to pay a fine.

And beginning in 2014, the government will slap businesses with a higher, $3,000-per-employee penalty if the government finds they provide workers “unaffordable” health insurance.

WHO DEFINES “UNAFFORDABLE” HEALTH COVERAGE?

And who gets to define “unaffordable”? The government. How is it defined?

The government will assess the $3,000 penalty if any worker has to take a tax credit or has to enroll in state health exchanges because his or her boss pays less than 60% of the full value of the coverage, or the premium the employee pays is more than 9.5% of household income.

This means more IRS intrusion into small businesses. But the Treasury Department and the IRS have asked for input from the public on a proposed “safe harbor” for 2014 that says small businesses would not have to pay the new fine, so long as they can prove to the government their health insurance is really “affordable.”

So how can companies qualify for this safe harbor? Watch this – because again health reform has raised serious privacy issues about how much the government can know. The small business has to prove to the IRS that its insurance is affordable by showing the government the wages that it paid to employees, instead of reporting to the government the employee’s household income.

Meaning, the IRS would deem a business’s coverage affordable so long as a worker’s premium costs did not exceed 9.5% of his W-2 wages.

The IRS said in a statement: “By allowing employers to base their affordability calculations on each employee’s W-2 wages (which employers know) instead of each employee’s household income (which employers generally would not know), the safe harbor could provide a more workable and practical method for measuring the affordability of an employer’s coverage.”

Want to see the headaches the small business has to go through to figure out the penalty owed to the government? The penalty is $2,000 per employee, but the business must first knock out from the math here the first 30 workers — part-timers don’t count.

Example: If you have 51 full-time employees and 15 part-time employees throughout the year, and one full-time employee is receiving a tax credit to help them buy health insurance, your business will have to pay:
51 (the number of full time employees) – 30 (the first 30 employees are excluded)
21 x $ 2,000 = $ 42,000

Government intrusion into private affairs of American citizens makes the story, “1984”, seem to be a watered down version of the future reality. Is this the direction we want America to go? A police state? Really?

Dinesh D’Souza – Obama and 2016

An extremely important movie is coming this summer – Dinesh D’Souza – Obama & 2016 

Dinesh D’Souza is author of many New York Times best sellers. The movie is from Gerald R. Molen, producer of Academy Award Winning Schindler’s List, and Brave Heart.

It explains in plain language who Barack Obama really is, what he stands for, and the dangers of him being reelected for another four years.

Watch this 14 minute video preview of this movie which came out only yesterday (Feb.28, 2012) and share it with others. It has already been seen by over 10,000 people. Within a very short time it will have been seen by millions!  

https://www.youtube.com/v/Z6QOscKvUjU?version=3&feature=player_embedded

IRS attempting to intimidate Citizen’s who oppose Statism

Ever had the urge to tell the Internal Revenue Service “None of your business”?

Most tax counselors probably would advise against that response, but it’s exactly what the federal tax-collecting agency soon will be hearing from a list of tea party organizations it has sent letters demanding information that is protected by the First Amendment

The situation developed recently as the local tea party groups submitted paperwork for their federal status designations, in some cases as nonprofits. The IRS responded in what apparently is a coordinated campaign with questions including one for the names and contact information for relatives of board members.

The result is that the American Center for Law and Justice has agreed to represent the groups in their responses to the IRS.

There already are dozens of groups involved, and ACLJ chief Jay Sekulow told WND that he expects that total to rise quickly.

“There are certain questions that are outside the bounds,” he told WND. “They’re invasive, they violate free speech and association. Those questions will not be addressed.”

He said it appears the demands for such information from an agency supervised by Barack Obama is a “coordinated attempt.”

“Basically, we’re objecting to information that the IRS is requesting that is beyond the scope of its legitimate inquiry.”

On the ACLJ website, several questions from the IRS were quoted:

  1. Do you directly or indirectly communicate with members of legislative bodies? If so, provide copies of the written communications and contents of other forms of communications.
  2. Please describe the associate group members and their role with your organization in further detail. (a) How does your organization solicit members? (b) What are the questions asked of potential members? (c) What are the selection criteria for approval? (d) Do you limit membership to other organizations exempt under 501(c)(4) of the Code? (e) Provide the name, employer identification number, and address of the organizations.
  3. Do you have a close relationship with any candidate for public office or political party? If so describe fully the nature of that relationship.

“The quoted requests are merely the tip of the iceberg,” the ACLJ said. “We’re still reviewing the IRS letters and will have more information as we complete our review.”

The report continued, “Critically, the demands we’ve seen are made not in response to complaints of wrongdoing but instead in response to applications for exemption. In other words, the IRS appears to be conditioning the grant of exemptions on the extensive violation of the tea party’s fundamental First Amendment freedoms.”

Stephanie Scruggs, who works with The912Project as well as United in Act, helped coordinate the information for the ACLJ.

She said the demands for information are incredible, citing one for copies of every single post to every single organization website page, Twitter feed and Facebook feed.

Another request demanded contact information for family members of each board member. And yet another wanted the name and contact for every person who ever had attended one of the group’s meetings.

The ACLJ said the intimidating letters implicated both free speech and free association issues.

Tea party groups earlier asked Congress to look into whether the Internal Revenue Service was following a political agenda by flooding them with demands for information before granting tax-exempt status.

One request came from Jamie Radtke, a Republican U.S. Senate candidate in Virginia, who asked Rep. Darrell Issa, R-Calif., to look into the unfair treatment she believes tea-party groups have been getting from the IRS.

According to the Daily Caller, Radtke reported that after two and a half years of processing, the IRS “recently communicated a new set of overly burdensome and invasive demands for information that exceed the scope of the IRS code.”

Radtke, the Daily Caller reported, is a former president of the Richmond Tea Party. She said the latest demand includes 12 more questions in 53 separate parts, requiring copies of Facebook pages, names of donors, information about exactly how grants are spent and many other details.

The requests demand copies of Web pages “that are accessible only to your members.”

A similar situation developed for the Ohio Liberty Council, which asked Congress to investigate.

Spokesman Tom Zawistowski told the Daily Caller, “I defy any American to read this list of demands by the IRS and not be outraged.

“This is the kind of personal information that this government is going to be demanding from your church, your doctor, your hospital, your business and your favorite charity going forward,” he said.

“This has nothing to do with tax status,” Zawistowski told Fox News. “It has to do with political affiliation. The questions are too close to home.”

According to a letter posted online by Fox News, the IRS is demanding printed copies of organization Web pages, newsletters, bulletins, flyers, newsletters, social networking sites, officer rosters and revenues and expenditures.

“Have you expressly endorsed or oppose (sic) candidates for public office or slates of candidates at public events, on your website, on your radio show or You Tube page, in your literature or in any other forum? Do you plan to do so in the current election cycle? If so, provide a list of candidates for political office you have expressly endorsed or opposed, and describe the occasion on which you made each endorsement,” the letter states.

“Do you have a close relationship with any candidate for public office or political party? If so describe fully the nature of that relationship. Provide copies of any agreements you have with others for provision of goods or services, sharing of facilities or other cooperative arrangements, or anything else.”
At Hot Air Green Room, columnist Howard Portnoy questioned, “Is someone out to intimidate the tea party movement, and if so, who?”

An IRS official told Fox, “When determining whether an organization is eligible for tax-exempt status, including 501(c)4 social welfare organizations, all the facts and circumstances of that specific organization must be considered to determine whether it is eligible. … To be tax-exempt … they must be primarily engaged in the promotion of social welfare.”

The spokesman continued, “Career civil servants make all decisions on exemption applications in a fair, impartial manner and do so without regard to political party affiliation or ideology.”

But the Weekly Standard documented the situation of the Richmond, Va., tea party.

The organization said: “On December 28, 2009, RTP applied to become a 501(c)(4) organization. After nearly 10 months, the IRS finally responded with a letter (dated September 17, 2010), requesting detailed documentation to satisfy 17 questions, giving RTP only a two-week window in which to finish. (As the response was curiously due on the opening day of the inaugural Virginia Tea Party Convention, for which RTP was a central organizer, we requested and received a two-week extension.) We fully complied, providing over 500 pages of documentation. We received no response for over a year. Eventually the IRS sent a letter dated January 9, 2012, thanking us for our ‘complete and thorough responses’ from the first request, but then asking us to answer 12 additional questions in 53 separate parts, including the totally inappropriate request for a full list of our donors and volunteers.”

 

NEA at it again – Tax Exempt Labor Union Uses General Funds For Taxable Campaigning

Landmark Legal files demand with IRA, claims the NEA labor union tried to avoid paying taxes on general funds used for campaigning.. which is illegal for “tax exempt” organizations.  The IRS has intevened several times in the past.. the NEA is apparantley determined to receive money from taxpayers, but avoid paying taxes which are due per the statute.

Education NEAComplaintMarch2011http://www.scribd.com/embeds/50996579/content?start_page=1&view_mode=list

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