Washington is abuzz with claims the IRS was tough on Tea Party tax-exempts, but the reality is just the opposite. In Jacobson v. IRS Commissioner, US Tax Court, Docket 8447-13W (assigned April 25, 2013), IRS Whistleblower Robert Jacobson claims the IRS ignored a 2010 Complaint alerting it to a Bush Era money-laundering scheme allegedly developed to collect and launder tens of millions of dollars ultimately used by the Republican Party to capture the House of Representatives.
PRLog - May 15, 2013 - WASHINGTON, D.C. -- Washington is abuzz with claims that the IRS mistreated Tea Party tax-exempts, but an IRS Whistleblower alleges that by far the largest single abuse of the tax-exempt law to benefit a political party was conceived and executed by the Bush Administration, resulting in the capture of the House of Representatives by the Republican Party and, ironically, its dominant Tea Party fraction.
Dr. Robert Jacobson, who became an official IRS Whistleblower in 2010, filed a formal Complaint with the IRS Tax-Exempt Examinations office in May 2010 describing the racket -- apparently conceived by friends of Karl Rove as a prototype for post-Citizens United money-laundering schemes. In his Complaint, Jacobson called on the IRS to immediately audit the Non-Compliant Taxpayer, a tax-exempt corporation apparently created primarily for this purpose though with a seemingly benign exterior. Jacobson has taken the IRS to US Tax Court, the main venue for IRS Whistleblowers, to establish the agency's neglect and its responsibility for a very large tax fraud involving also involving violations of FARA, the Foreign Agent Registration Act, including substantial infusions of Chinese money into the Non-Compliant Taxpayer.
"It may be that the Tea Party screams the loudest when stuck, but the scheme I called out raised as much as a hundred-million dollars definitely intended to benefit the Republican Party, based on an hypothetical 'follow-the-money' analysis. Only the IRS could find out for sure, and it ignored my Complaint for at least three years, until the Non-Compliant Taxpayer, having done its job of helping the Republicans to capture the House, starting rolling up its operations. The IRS finally did something, though what was unclear, in the last months of 2012 -- but that was already two years too late. The money was gone."
Jacobson, an experienced policy analyst and forensics expert, is handling his case "pro se," which means he is his own counsel. "It's not my regular line of work," he advised, "but I couldn't stand by and watch this travesty continue without sounding the alarm." Jacobson cites such abuses as the IRS enabling the Non-Compliant Taxpayer to file grossly late tax returns year after year, engage in "excess benefit transactions" -- insider deals -- with no sanctions, and even expediting the Non-Compliant Taxpayer's tax-exempt status despite the Taxpayer's "bad standing" in the District of Columbia, where it was chartered for repeated failures to file tax returns; and incomplete application documents. This last anomaly gained the attention of agents for TIGTA, the Treasury Inspector General for Tax Administration whom, however, did not have authority to repeal the IRS' determination of the Taxpayer's tax-exempt status, awarded with record-breaking speed.
"I have asked the US Tax Court to study the situation and if it agrees with me, to order the IRS to make known its administrative procedures and thoroughly examine the Taxpayer's books, to do a full audit, and track down and "claw back" the $40-80 million that i estimate may have been used by intermediaries to elect Republicans to the House of Representatives. "Not only tax fraud and felony FARA violations occurred while the IRS dithered, but repeated perjuries regarding US law insinuated themselves into the vernacular of Republican and Democratic policymakers alike, including the new State Department in 2009. This debasement of governance will continue in effect until the IRS is ordered to take action to restitute illegal tax-exempt contributions to the US Treasury, turn the perpetrators over to the Justice Department (including close friends of Karl Rove) for prosecution, and issue rules that prevent this perversion of the Tax Code from occurring again -- immediately, in 2014, and in the long-run.
"I believe the Tea Party allegations are diversionary, intended to paint the IRS into a PR corner, so that it can't adequately enforce the tax laws. My case in US Tax Court is intended to refocus the public's and policymakers' attention on the real failings of the IRS, not isolated incidences elevated to an undeserved place in the nation's political consciousness."
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NOTE: Dr. Jacobson notes, "I cannot divulge the name of the Non-Compliant Taxpayer whose treatment by the IRS is the subject of this US Tax Court case, and will not in this context. I am not responsible if third parties use Google or other means to discover who the Non-Compliant Taxpayer is or the other actors in this carefully-orchestrated political melodrama, abetted I claim by the IRS."
Read Full Story - Whistleblower takes IRS to Court, Alleges Agency "Blind Eye" to Right-Wing Political Tax Fraud | More news from this source
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Dr. Robert Jacobson, who became an official IRS Whistleblower in 2010, filed a formal Complaint with the IRS Tax-Exempt Examinations office in May 2010 describing the racket -- apparently conceived by friends of Karl Rove as a prototype for post-Citizens United money-laundering schemes. In his Complaint, Jacobson called on the IRS to immediately audit the Non-Compliant Taxpayer, a tax-exempt corporation apparently created primarily for this purpose though with a seemingly benign exterior. Jacobson has taken the IRS to US Tax Court, the main venue for IRS Whistleblowers, to establish the agency's neglect and its responsibility for a very large tax fraud involving also involving violations of FARA, the Foreign Agent Registration Act, including substantial infusions of Chinese money into the Non-Compliant Taxpayer.
"It may be that the Tea Party screams the loudest when stuck, but the scheme I called out raised as much as a hundred-million dollars definitely intended to benefit the Republican Party, based on an hypothetical 'follow-the-money' analysis. Only the IRS could find out for sure, and it ignored my Complaint for at least three years, until the Non-Compliant Taxpayer, having done its job of helping the Republicans to capture the House, starting rolling up its operations. The IRS finally did something, though what was unclear, in the last months of 2012 -- but that was already two years too late. The money was gone."
Jacobson, an experienced policy analyst and forensics expert, is handling his case "pro se," which means he is his own counsel. "It's not my regular line of work," he advised, "but I couldn't stand by and watch this travesty continue without sounding the alarm." Jacobson cites such abuses as the IRS enabling the Non-Compliant Taxpayer to file grossly late tax returns year after year, engage in "excess benefit transactions" -- insider deals -- with no sanctions, and even expediting the Non-Compliant Taxpayer's tax-exempt status despite the Taxpayer's "bad standing" in the District of Columbia, where it was chartered for repeated failures to file tax returns; and incomplete application documents. This last anomaly gained the attention of agents for TIGTA, the Treasury Inspector General for Tax Administration whom, however, did not have authority to repeal the IRS' determination of the Taxpayer's tax-exempt status, awarded with record-breaking speed.
"I have asked the US Tax Court to study the situation and if it agrees with me, to order the IRS to make known its administrative procedures and thoroughly examine the Taxpayer's books, to do a full audit, and track down and "claw back" the $40-80 million that i estimate may have been used by intermediaries to elect Republicans to the House of Representatives. "Not only tax fraud and felony FARA violations occurred while the IRS dithered, but repeated perjuries regarding US law insinuated themselves into the vernacular of Republican and Democratic policymakers alike, including the new State Department in 2009. This debasement of governance will continue in effect until the IRS is ordered to take action to restitute illegal tax-exempt contributions to the US Treasury, turn the perpetrators over to the Justice Department (including close friends of Karl Rove) for prosecution, and issue rules that prevent this perversion of the Tax Code from occurring again -- immediately, in 2014, and in the long-run.
"I believe the Tea Party allegations are diversionary, intended to paint the IRS into a PR corner, so that it can't adequately enforce the tax laws. My case in US Tax Court is intended to refocus the public's and policymakers' attention on the real failings of the IRS, not isolated incidences elevated to an undeserved place in the nation's political consciousness."
* * *
NOTE: Dr. Jacobson notes, "I cannot divulge the name of the Non-Compliant Taxpayer whose treatment by the IRS is the subject of this US Tax Court case, and will not in this context. I am not responsible if third parties use Google or other means to discover who the Non-Compliant Taxpayer is or the other actors in this carefully-orchestrated political melodrama, abetted I claim by the IRS."
Read Full Story - Whistleblower takes IRS to Court, Alleges Agency "Blind Eye" to Right-Wing Political Tax Fraud | More news from this source
Press release distribution by PRLog
