IRS Practices Call Forth Legal Questions

 Two employees from the IRS are currently under disciplinary actions for possibly discriminating against conservation non-profit agencies.  Some are calling for further disciplinary action, including criminal charges under civil rights provisions, or the Hatch Act, which prohibits federal employees from participating in partisan behavior.  This week a report was released that clearly indicated a timeline in which IRS employees singled out organizations applying for tax exemption with description words such as “tea-party”, “Patriot” for extra scrutiny in 2011 and 2012.  In light of the scandal, IRS Commissioner Steven Miller has already submitted his resignation and the Justice Department is investigating criminal charges.

House Speaker John Boehner (R)
Image: Gage Skidmore via Flickr

  Republicans raise the question of whether Obama officials were manipulating election results through the discriminatory practices, although IRS officials have repeatedly claimed that high level employees were not aware of the practice, and insist that employees were acting on their own under misguided principals.  Steven Miller apologized for the “poor service” the IRS has provided and insisted they were improving their employee guidelines.

  Deputy Lois Lerner was ousted as having known about the practice as early as two years ago, but apologized on behalf of the agency and insisted the inappropriate behavior was made by employees acting on their own volition.  While steps have been taken to contain the scandal, prominent law makers in both parties have expressed concern over the practice, including California Democrat Dianne Feinstein and House Speaker John Boehner, who was said to have asked who will be going to jail over the issue.

CA Democrat Dianne Feinstein
Image: Freedom to Marry

  The keyword targeting practice was likely born out of the specific rules that tax exemption guidelines set that while 501C nonprofit organizations are allowed to advocate certain policies, the primary purpose of the organization needs to lie in promoting social welfare.  They are not allowed to contribute to political actions specifically.  The guidelines leave room for judgment calls from IRS employees approving the applications.  The practices went as far as issuing guidelines that include flagging files with any complaint about government spending or statements about making America better.