IRS Warned Employees Not to Target 501(c)4 Donors in 2011
This scandal is getting deeper as the lies become bigger.
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The Internal Revenue Service (IRS) admitted on May 10 that “low level” staff in its Cincinnati office, supposedly “not motivated by political bias,” targeted 75 conservative tax-exempt organizations, including many Tea Party organizations applying for exemption under Section 501(c)4 of the tax code. The groups were singled out for audit and investigation because they used the names “Tea Party” and “Patriot.” Yet in July 2011, the IRS had warned employees to drop audits of donors to similar 501(c)4 organizations.
A hand-signed memorandum from Steven T. Miller, IRS Acting Commissioner for Services and Enforcement, was issued on July 7, 2011 and instructed employees to cease examinations dealing with gift taxes to 501(c)4 organizations because of difficult “legal, administrative, and policy implications” that could only be resolved “after notice to the public.”