by | ARTICLES, CONSTITUTION, GOVERNMENT, OBAMA, OBAMACARE, POLITICS, TAXES
Thanks to the folks over at CATO, we have a video of the current IRS Commissioner John Koskinen, speaking before the Ways and Means Health Subcommittee early this week. He was being questioned about taxes and Obamacare, and asked about subsidies being repaid.
Chairman Brady said, “The law in that case is that there is not a cap. Subsidies must be repaid. Will you be following the law in that recapture?”
Koskinen replied, “Yes, wherever we can, we follow the law.”
In other words, following the law is a “can”, not a “must”.
With regard to Koskinen’s remarks, Forbes had an interesting observation:
“Numerous Treasury and IRS staffers have told investigators from the House Committee on Oversight and Government Reform that they knew back in 2011 that the Patient Protection and Affordable Care Act didn’t authorize them to issue health-insurance subsidies through Exchanges established by the federal government. But they did so anyway. (And now they’re in court.) The Wall Street Journal‘s Kim Strassel writes about it here.
Given that context, Koskinen’s remark seems like an admission that the IRS sees the law more as a set of guidelines”.
Indeed. I wonder if anyone was to get audited by the IRS, that they could use the phrase “Wherever we can, we follow the law” successfully in their defense.
by | BLOG
The latest revelations in the never-ending IRS Scandal are pretty headline-worthy, but hardly a pip is being heard from the MSM, again. First, Judicial Watch has revealed, and the Department of Justice has confirmed, that the missing emails of Lois Lerner do indeed exist; second, that the content of one of Lois Lerner’s Blackberrys was destroyed after the Congressional investigation began in 2012.
The entire scandal has continuously had the makings of headline news: targeting citizens, evidence disappearing, perjury, and more. Yet few of the leading “news” outlets are bothering to cover the scandal with any journalistic depth.
On the subject of Lerner’s emails, Judicial Watch stated that,
“Department of Justice attorneys for the Internal Revenue Service told Judicial Watch on Friday that Lois Lerner’s emails, indeed all government computer records, are backed up by the federal government in case of a government-wide catastrophe. The Obama administration attorneys said that this back-up system would be too onerous to search. The DOJ attorneys also acknowledged that the Treasury Inspector General for Tax Administration (TIGTA) is investigating this back-up system.”
This is in direct contradiction to what has been declared by Lerner and the current head of the IRS, among others, have stated about the emails and their recoverability, as well as possible perjury. “Current IRS Commissioner John Koskinen testified before the House Government Oversight Committee in June that the emails during the key period when the targeting occurred were “lost” due to a hard drive crash in 2011.”
With regard to Lerner’s Blackberry, apparently the IRS submitted sworn declarations late last Friday as a response to Judge Emmet Sullivan, who is overseeing the case involving Judicial Watch v. IRS. In these sworn declarations, we find that Lois had two Blackberries. One was wiped clean after the Congressional inquiries began, without any attempt at data recovery. The second was issued in 2012, which the IRS still has. From the NY Observer:
“In two elusive and nebulous sworn declarations, we can glean that Ms. Lerner had two Blackberries. One was issued to her on November 12, 2009. According to a sworn declaration, this is the Blackberry that contained all the emails (both sent and received) that would have been in her “Outlook” and drafts that never were sent from her Blackberry during the relevant time.
With incredible disregard for the law and the Congressional inquiry, the IRS admits that this Blackberry “was removed or wiped clean of any sensitive or proprietary information and removed as scrap for disposal in June 2012.” This is a year after her hard drive “crash” and months after the Congressional inquiry began.
The IRS did not even attempt to retrieve that data. It cavalierly recites: “There is no record of any attempt by any IRS IT employee to recover data from any Blackberry device assigned to Lois Lerner in response to the Congressional investigations or this investigation,” according to Stephen Manning, Deputy Chief Information Officer for Strategy & Modernization.”
Unfortunately, these bombshells only serve to re-emphasize two things we already knew. 1) the government is not above lying and cover-ups; 2) no one in the mainstream media has the fortitude to cover the story in-depth. With CNN, CBS, and ABC News having all have direct ties to the Obama Administration over the years, we certainly won’t see any Pulitzer Prize winning investigations on the IRS Scandal at all.
by | ARTICLES, BUSINESS, ECONOMY, GOVERNMENT, OBAMA, OBAMACARE, POLITICS, TAXES
According to the Treasury Inspector General for Tax Admininstration (TIGTA), the 2.3% medical device excise tax enacted to help pay for Obamacare is not meeting targets.
The tax went into affect January 1, 2013. The TIGTA report analyzed the returns for the first two quarters (6 months) of 2013, and found that the “excise tax revenue being reported are lower than estimated” for a total of $913.4 million. The IRS expected to have received “excise tax revenue of $1.2 billion for this same period.”
The report also states that the “Joint Committee on Taxation estimated revenues from the medical device excise tax of $20 billion for Fiscal Years 2013 through 2019.”. And yet, in the first six months alone, the estimate amounts are off by 25%. That does not bode well.
Many of the problems originate in the IRS. In fact, the report is aptly named “An Improved Strategy Is Needed to Ensure Accurate Reporting and Payment of the Medical Device Excise Tax”. Some of the key findings:
“The IRS is attempting to develop a compliance strategy to ensure that businesses are compliant with medical device excise tax filing and payment requirements and has taken several measures to advise medical device manufacturers of the new excise tax. However, the IRS cannot identify the population of medical device manufacturers registered with the Food and Drug Administration that are required to file a Form 720 and pay the excise tax.”
“In addition, processing controls do not ensure the accuracy of medical device excise tax figures reported on paper-filed Forms 720. Our analysis of 5,107 Forms 720 processed for the quarters ending March 31 and June 30, 2013, identified discrepancies in the amount of the medical device excise tax and/or taxable sales amount captured from 276 paper‑filed tax returns. TIGTA identified medical device excise tax discrepancies totaling almost $117.8 million when comparing the excise tax amount captured by the IRS from the Form 720 to the excise tax amount TIGTA calculated.”
And the most interesting:
“Finally, the IRS erroneously assessed 219 failure to deposit penalties totaling $706,753 against businesses filing a Form 720 for the quarters ending March 31 and June 30, 2013, which was designated a penalty relief period. The IRS had reversed 133 of the 219 penalty assessments. When TIGTA alerted the IRS of the remaining 86 penalties, IRS management reversed the penalties and issued apology letters to the affected taxpayers.”
The IRS, it seems, was unprepared to handle the collection of excise tax, and furthermore, did not seems to understand basic reporting and penalty relief periods of which it was put in charge.
Think about this: we are now in August of 2014. That means that the second half of 2013 and the first half of 2014 went by before the TIGTA report was released with its findings. If the first 6 months of revenue were found to be about 25% under estimate, it is likely the trend continued for the next full year.
The IRS did agree to the findings of the TIGTA report. However, the summary does not leave one feeling confident that there will be swift resolution now that the problems have been discovered and dissected. Note the ambiguity and qualifiers:
The IRS agreed with our recommendations and plans to consider alternative strategies for identifying noncompliant manufacturers, identify programming changes needed to improve the math verification for paper-filed Forms 720, and implement procedures for corresponding with taxpayers if the changes can be accomplished within budgetary constraints.
Never mind the fact that the Affordable Care Act passed in March 2010 with the excise tax being a key, but controversial, revenue-raiser. The IRS had nearly three years to come up with a) a system to identify companies who owed the tax and b) a system to process the associated forms. And it couldn’t do it.
With the tax being so controversial from the get-go, there have been measures in Congress calling for its repeal because of its impact on the cost of devices and well as jobs in the medical device field.
“The medical device industry has been lobbying hard to get the tax repealed, and there has been movement in Congress. Both the House and the Senate have passed separate pieces of legislation calling for the tax to be repealed, though the Senate vote was on a nonbinding resolution.”
The problem at this point with excise tax repeal is the question of how to make up for even more lost revenue to pay for Obamacare. Taxpayers should be indeed be nervous that the tax collection is showing to be only 75% and we actually have no idea if it improved or worsened at all over the following year because data is not available for it.
The only thing we do know is that we are certain to see a premium rate increases this coming year because the projections have been so off-estimate.
by | ARTICLES, BLOG, CONSTITUTION, FREEDOM, GOVERNMENT, OBAMA, POLITICS, TAXES
First Lois Lerner’s home computer crashed. Then it was seven IRS employees, many who had important positions. You can read about them here. Now, according to the Daily Caller, the IRS Deputy Associate Chief Counsel Thomas Kane reported in congressional testimony that even more IRS officials succumbed to computer crashes. He estimated that the number was no more than 20. Kane also stated that the IRS does not know yet if those lost emails are backed up anywhere.
Last month in June, the IRS commissioner John Koskinen testified that he did not know of any way to get missing IRS emails back, which was in contrast to his March testimony that IRS employee emails are saved on servers. In that interim time between the two testimonies, it was learned that in September of 2011, the IRS canceled its contract with an email archiving firm after 6 years.
The names of the newest IRS crash victims include: “David Fish, who routinely corresponded with Lois Lerner, as well as Lerner subordinate Andy Megosh, Lerner’s technical adviser Justin Lowe, and Cincinnati-based agent Kimberly Kitchens”.
The IRS computer crashes happened in both Washington DC and Cincinnati. Additionally, it appears that the IRS violated the The Federal Records Act, which required IRS employees to save and also print out all of their emails related to IRS business — in the unlucky event a hard drive crashed or was deleted in an improper data recycling procedure.
UPDATE: Even as the IRS scandal continues to worsen, the IRS brazenly put out a new solicitation on Monday for “media destruction” services to destroy at least another 3,200 hard drives.
You can’t make this up.
by | ARTICLES, FREEDOM, GOVERNMENT, OBAMA, QUICKLY NOTED, TAXES
A federal judge authorized two of three tea party complaints against the IRS to move ahead, despite a plea for dismissal from the accusations of discrimination.
“In her ruling Thursday, Judge Susan Dlott allowed two of the tea party groups’ claims — including that the IRS discriminated and retaliated against them based on their views in violation of their free speech rights — to survive to trial”
This will be interesting to watch, and marks several cases now pending against the IRS in court.
