Tag: IRS

Five Memphis IRS Employees Charged with Defrauding over $1 Million in Federal COVID-19 Relief Funds

Kaitlyn Osteen

Five current or former IRS employees in the Memphis area have been charged with defrauding federal Covid-19 relief programs after spending relief money on Mercedes, Gucci, and trips to Las Vegas.

U.S. Attorney Kevin G. Ritz, for the Western District of Tennessee, said, “These individuals-acting out of pure greed- abused their positions by taking government funds meant for citizens and businesses who desperately needed it. I thank our law enforcement partners for rooting out this fraud. Our office will not hesitate to pursue and charge individuals who steal from our nation’s taxpayers.”

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IRS Sent over $1 Billion in Child Tax Credit Payments to the Wrong People

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The Internal Revenue Service (IRS) sent over $1.1 billion in child tax credit payments to incorrect recipients during the COVID-19 pandemic, according to an audit by the Department of the Treasury’s Inspector General (IG) for Tax Administration on Tuesday.

The IRS sent the payments to 1.5 million people between July and November of 2021 during the pandemic, according to the audit’s report. Additionally, the IG noted that 4.1 million taxpayers did not receive payments they should have, amounting to $3.7 billion withheld.

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Republican Leadership Pledges to ‘Repeal’ IRS Auditor Expansion if GOP Wins Majority

The Center Square

President Joe Biden sparked controversy for pushing through Congress increased federal funding for 87,000 new IRS employees to audit Americans, but Republican leadership has pledged to overturn that expansion if they win the majority.

House Republican Minority Leader Kevin McCarthy, R-Calif., pledged at a Pennsylvania event to “repeal” the IRS expansion.

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Conservative Group Asks IRS to Investigate the American Federation of Teachers

Just the News

The conservative Landmark Legal Foundation (LLF) has asked the IRS to audit the second-largest teachers union in the United States for allegedly misreporting its political spending.

In a letter to the IRS, which the Washington Examiner obtained, the group alleges that the American Federation of Teachers inaccurately claimed that it did not “engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office” on their Form 990s from 2016-2019.

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Commentary: Saving America Now Requires a Ruthless Offense

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The Book of Ecclesiastes tells us there is nothing new under the sun. But there is undeniably something new happening in American history. New and terrible. No hyperbole; we are living through the greatest threat to America since the Civil War.

This new threat, which has been germinating its poisonous fruit for decades in the darkened earth of sheltered universities, federal agencies, and media newsrooms has erupted into such full and ugly view today that it cannot be met and defeated, or even retarded, with any of our normal methods.

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Report: Biden’s IRS Gave Prison Inmates over $1 Billion in COVID Relief

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President Joe Biden’s Internal Revenue Service (IRS) gave a huge number of prison inmates at least $1.3 billion in COVID-19 stimulus checks, the Washington Free Beacon reported.

There are more than 1.1 million incarcerated individuals who took in the stimulus money, according to IRS data provided to the Free Beacon, as part of Biden’s $1.4 trillion American Rescue Plan. Those incarcerated who received the stimulus money includes roughly 163,000 people serving life sentences without parole, the IRS told Republican Nebraska Rep. Don Bacon in a letter obtained by the outlet.

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IRS Accidentally Posts Personal Information of 120,000 Taxpayers

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The IRS briefly made public the personal financial information of roughly 120,000 taxpayers, the agency announced on Friday.

Taxpayers’ Form 990-Ts were temporarily available to public viewing on the IRS website, but the agency has since removed them, according to the Wall Street Journal. Individuals file the form to disclose certain types of income within their retirement accounts.

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Commentary: Biden’s IRS Auditor Army Will Disrupt Economic Recovery

RealClearWire

The Biden administration’s decision to recruit nearly 90,000 new IRS auditors could have a chilling effect on small businesses and economic growth, permanently impeding our nation’s ability to recover from its current economic malaise.

As part of the misleadingly titled “Inflation Reduction Act,” President Biden and his allies secured roughly $80 billion in new IRS funding to hire 87,000 auditors. This is bad news for the American economy.

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CBO Says IRS Will Audit Americans Making Under $400K

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Despite claims from Biden administration officials that new funding for the Internal Revenue Service (IRS) will not increase the auditing burden on individuals and small businesses, a Friday letter from the Congressional Budget Office (CBO) reveals new auditing activity targeting taxpayers who report less than $400,000 per year will be expected to contribute to about $4 billion in revenue.

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‘Taking Down a Landscape Business Owner’: Rep. Thomas Massie Sounds the Alarm on Viral IRS Training Video

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Republican Rep. Thomas Massie of Kentucky posted a video showing potential IRS agents training Friday and urged Americans to notice a billionaire wasn’t the target.

“Notice the scenario in this IRS recruiting program is ‘taking down a landscape business owner who failed to properly report how he paid for his vehicles,’ not ‘taking down a billionaire who uses the corporate jet for private trips,’” Massie posted.

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Jenny Beth Martin of Tea Party Patriots on IRS: ‘Another Example of How This Administration and the Radical Leftists Want a Centralized Power to Control People Around the Country’

Julie Carr

Friday morning on The Tennessee Star Report, host Leahy welcomed to the newsmaker line Jenny Beth Martin, co-founder of the Tea Party Patriots and columnist for The Washington Times, to voice deep concerns with the IRS’s intent on auditing middle-class Americans and violating the rights and privacy of citizens.

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Expert Says Restaurants and Barber Shops Are the Real IRS Targets

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Grover Norquist, founder of Americans for Tax Reform, said on Fox News Tuesday that the expanded Internal Revenue Service wouldn’t just go after billionaires and large corporations.

“They are targeting people that they keep telling us they think are – restaurants and barber shops and so on,” Norquist told “America Reports” guest host Gillian Turner. “That’s their target, and we know this because every single Democrat in the Senate voted against, to defeat an amendment which said this law will not allow any increase in audits on people making less than $400,000 a year.”

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Connecticut Republican U.S. Senate Candidate Leora Levy: Sen. Richard Blumenthal ‘Laughs Off’ Concern over Biden’s Creation of 87,000 New IRS Agents to Target Americans

Susan Berry, PhD

Connecticut GOP U.S. Senate candidate Leora Levy observed Senator Richard Blumenthal’s (D-CT) mockery of Americans expressing concern over Joe Biden’s creation of 87,000 new IRS Agents in his legislation that will increase taxes on middle-income Americans and will do nothing to reduce inflation.

“I think the IRS is going to target the highest income Americans,” Blumenthal minimized concern over the Inflation Reduction Act on CNN’s State of the Union recently. “As the saying goes, that’s where the money is. That’s where they’re going to look to collect. The idea that there’s going to be this army of IRS agents defending descending on the average American is just preposterous.”

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GA-7 Nominee Mark Gonsalves Rejects Expansion of IRS, Calls for More Border Patrol Agents

Addison Basurto

Republican nominee Mark Gonsalves (R-GA-07) called the proposition for IRS expansion made by the Biden administration “the definition of runaway democracy” and criticized his opponent, Lucy McBath, for her support of the incumbent president.

“Tuesday Trivia fact that’s real, believe it or not. Under Joe Biden, the IRS staff will be larger than the combined totals of the FBI, the Pentagon, the Border Patrol, and the State Department. That is the definition of runaway democracy,” Gonsalves said in reference the Inflation Reduction Act of 2022.

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IRS Job Posting for Criminal Investigation Agent: ‘Be Willing to Use Deadly Force, If Necessary’

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Amid spreading alarm about the Internal Revenue Service stockpiling ammunition and Senate Democrats’ passge on Sunday of a spending bill that would fund the hiring of 87,000 new IRS agents, the tax collection agency is listing a job opening for a Criminal Investigation Special Agent who must must “be willing to use deadly force, if necessary.”

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Commentary: Democrats’ IRS Expansion Would Empower Ruling Elites to Target Americans

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“He has erected a multitude of new offices, and sent hither swarms of Officers to harass our people and eat out their substance.”

Those were the words of Thomas Jefferson in the Declaration of Independence, referring to the depredation of King George III. The sentence was part of a long list of grievances that bolstered the argument that England’s king and Parliament were becoming tyrannical.

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Top 10 Tough Votes Democrats Had to Take During Vote-a-Rama for Massive Spending Bill

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During a “vote-a-rama” on their $739 billion reconciliation spending bill that has hundreds of billions for climate and health care programs, Democratic senators had to take a series of uncomfortable votes on hot-button issues — particularly tough for those representing swing states.

The bill, which also includes federal funding for 87,000 new IRS agents, passed on a party line vote 51-50 with Vice President Kamala Harris breaking the tie.

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Arizona Republican Lawmakers React to the U.S. Senate Passing the ‘Inflation Reduction Act’

Kaitlin Housler

On Sunday, the US Senate passed the Democrat-backed $740 billion “Inflation Reduction Act” by a 51 to 50 vote, with Vice President Kamala Harris casting the deciding vote. Many Arizona Republican lawmakers are among those claiming the bill will further impact inflation in a negative way while offering no real-time solution to struggling Americans.

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Matt Gaetz Introduces Bill Banning IRS from Acquiring Ammunition

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Congressman Matt Gaetz (R-Fla.) introduced a bill this week that would ban the Internal Revenue Service (IRS) from purchasing any more ammunition, after having already reached an alarmingly high amount.

As reported by Just The News, Gaetz’s bill, the “Disarm the IRS Act,” would forbid the tax-collecting agency from buying ammunition after the agency has already acquired up to 5 million rounds. In 2022 alone, the agency has purchased at least $725,000 worth of ammo.

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DOJ Official Named in FBI Politicization Allegations Played Role in Lois Lerner IRS Scandal

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A senior Justice Department official recently flagged by a U.S. senator in an FBI whistleblower probe into alleged politicization of prosecutions played a key role in the Lois Lerner IRS scandal a decade ago in which conservative Tea Party groups were improperly targeted for scrutiny, government emails and congressional evidence shows.

Richard Pilger, the current chief of the DOJ Elections Crime Branch of the department’s Public Integrity Section, engaged in discussions in 2010 and 2013 with Lerner and other IRS officials about ways to pursue criminal prosecutions of conservative nonprofits, the records show.

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Democrats Propose Spending $80 Billion to Expand the IRS

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Democrats in Congress have proposed a new spending bill that would allocate $80 billion for the sole purpose of expanding the Internal Revenue Service (IRS), ostensibly to fight inflation by raising government revenues.

As reported by The Daily Caller, the bill is called the “Inflation Reduction Act of 2022.” The bill would see the size of the IRS increase as part of a broader effort to increase “taxpayer compliance.” Under the new bill, the IRS would spend an additional $80 billion over the course of the next 10 years, up significantly from its current budget of $13.7 billion, with a primary focus on hiring thousands of new agents, and expanding operations, facilities, and services.

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Mexican National Charged with Tax Fraud in Tennessee Arrested After Six Years on the Run

Peter D'Abrosca

After six years on the run, a Mexican man who lived in Nashville when he allegedly defrauded the U.S. government has been captured by authorities. 

“Claudio Juarez, 40, was arrested at his residence in Bowling Green, Kentucky, this morning and transported to the Middle District of Tennessee.  He will appear before a U.S. Magistrate Judge later this afternoon,” according to the Department of Justice (DOJ). “Juarez and others were charged in 2016 with conspiracy to file false claims against the United States, wire fraud, and theft of more than $1,000 of public money.”

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Pressure from Lawmakers Grows As IRS Begins New Tax Season with ‘Continued Confusion’

The Center Square

Lawmakers on both sides of the aisle are pressuring the Internal Revenue Service over ongoing problems and unaddressed issues from last year’s filing season even as this year’s season is in full swing.

A bipartisan group of more than 100 lawmakers from the U.S. House and Senate sent a letter to the IRS raising concerns about “continued confusion” and “numerous problems” with the agency.

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Commentary: The IRS Can’t Get the Basics Right, So Don’t Add to Its Authority

RealClearWire

All taxpayers are dealing with a disastrous filing season this year, with the IRS backed up on processing millions of returns and refunds from last year and communication from the agency nonexistent at best. But some taxpayers will have an added headache in the future as a result of an unnecessary new paperwork requirement that went into effect this year. Fortunately, however, legislation introduced by Sen. Bill Hagerty (R-TN) would address this issue by removing the burdensome new requirement.

Ever since IRS Commissioner Chuck Rettig claimed last year that the “tax gap,” or the gap between what the IRS collects and what it believes it is owed, could be as large as $1 trillion, politicians and legislators have been scrambling to propose ways to collect all that missing revenue. That’s despite the fact that more sober analyses show that the $1 trillion figure is probably wildly exaggerated, that it is functionally impossible to wholly prevent tax evasion, and that a far greater concern is the IRS’s inability to handle its taxpayer service responsibilities.

But as far as proposals to collect all this supposed “extra revenue” go, most of the focus has rightly been on schemes to drastically increase the IRS’s enforcement budget and allow the IRS to snoop on taxpayers’ financial accounts. But another more targeted change has already gone into effect, and is already causing problems.

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IRS Reverses Plans for Facial Recognition Software on Its Website

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man in purple sweater sitting in front of a computer

On Monday, the Internal Revenue Service (IRS) announced in a statement that it would no longer be moving forward with previous plans to implement a controversial facial recognition software on its website in order for users to access certain tax records.

According to CNN, the IRS’s reversal came after widespread backlash by elected officials, privacy groups, and others who pointed out that such technology would constitute a massive overreach and violation of individual privacy. The IRS said in its statement that it would “transition away from using a third-party verification service involving facial recognition,” and would instead add an “additional authentication process.” The agency also vowed to “protect taxpayer data and ensure broad access to online tools.”

“The IRS takes taxpayer privacy and security seriously,” IRS commissioner Chuck Rettig said, “and we understand the concerns that have been raised. Everyone should feel comfortable with how their personal information is secured, and we are quickly pursuing short-term options that do not involve facial recognition.”

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IRS Extends 2021 Tax-filing Deadline for Tornado Victims in Tennessee, Illinois, & Kentucky

Kaitlin Housler

In a Tuesday press release, the Internal Revenue Service (IRS) announced that victims of the deadly tornadoes that swept across parts of Tennessee and Illinois will have an extended deadline for filing their taxes this year. The announcement came days after the IRS first announced a tax-filing deadline for victims in Kentucky affected by the tornadoes.

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New Records Shows Zuckerberg Pumped $7.1 Million into Minnesota’s Election System

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Mark Zuckerberg

Newly-released IRS filings show that a foundation funded by Facebook CEO Mark Zuckerberg injected $7.1 million into local Minnesota electoral systems in 2020.

The Center for Tech and Civic Life (CTCL) is funded by Zuckerberg and his wife, Priscilla Chan. The CTCL is a left-wing organization that spent a total of $350 million during the last presidential election on “grants to various jurisdictions throughout the United States to help them hire more staff, buy mail-in ballot processing machinery, and other measures they deemed necessary to properly handle the election amid the COVID-19 pandemic,” per Influence Watch.

The efforts of the CTCL have been honored by Time Magazine in its infamous article on how activists “fortified” the 2020 election and drawn the ire of Republican legislators who are calling for more transparency about the group’s activities and intentions.

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Analysis: Five Controversial Policies Tucked Inside $1.2 Trillion Infrastructure Bill Passed by Congress

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The final $1.2 trillion INVEST in America Act passed the Democrat-led House in a late night vote on Friday. Tucked away inside the infrastructure bill are some controversial policies, including these five:

1. The cryptocurrency tax provision in the Senate version of the bill was the subject of scrutiny from Democrats and Republicans. The language was not amended in the final bill that passed the House. The legislation includes an IRS reporting requirement for brokers of cryptocurrency transactions.

2. Under the “national motor vehicle per-mile user fee pilot” section of the bill, there is a pilot program to create a vehicle miles traveled system for taxing drivers based on their annual vehicle mileage. During his confirmation process, Transportation Secretary Pete Buttigieg floated the idea of taxing motorists based on the number of miles they travel each year as a way to partly fund the legislation. The Biden administration backed off of full-scale development of the controversial proposal, settling instead for a pilot program.

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Commentary: A $10K Bank-Snooping Threshold Would Intrude on Many Millions

RealClearWire
Man standing at an ATM

Bowing to pressure from banks and taxpayers concerned about a proposal to require financial institutions to report to the IRS gross inflows and outflows for just about every account in the country, Democrats have attempted to quell concerns by raising the threshold. Unfortunately, even the raised threshold is still laughably low to accomplish Democrats’ stated purpose of cracking down on wealthy tax cheats.

The original proposal would have required financial institutions to report on any account (be it a checking account, savings account, stock portfolio, etc.) which handled more than $600 in inflows and outflows in a given year. Obviously, that’s just about every account.

But the new proposal isn’t much better. This time, the threshold would be set at $10,000, and exempt payroll deposits. In other words, if a given taxpayer received $20,000 in payroll deposits, they would only exceed the threshold were other deposits and spending, taken together, to exceed $30,000.

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Commentary: $28 Per Day Triggers IRS Surveillance Program

Admin

The entire Democrat multi-trillion dollar socialist spending scam is bad for Americans, and bad for our economy. One particular provision that is especially terrible is their “IRS Surveillance” program, which would grant the government access to spy on nearly every Americans’ bank accounts. Their bill wants to use $80 billion of taxpayer funds to hire 85,000 more bureaucrats, nearly doubling the size of the IRS, to go through individuals’ personal banking information.

President Biden, and his colleagues in Congress, must have realized how unpopular this policy was with the American people, so they decided to make some “changes.” They created the impression they were raising the threshold in transactions individuals would need to hit before triggering the IRS to spy on their personal banking accounts.

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School Boards Group That Equated Parental Activism with ‘Domestic Terrorism’ Owes IRS $20 Million

Admin

A national education group that implied some parental activism is tantamount to “domestic terrorism” owes nearly $20 million to the IRS, according to tax forms reviewed by Just the News.

Most of that comes from “accrued pension liability,” as disclosed by the National School Boards Association’s 2017 and 2018 Form 990 filings. Unlike those two, the 2019 form — the most recently filed — does not include an itemized list under the federal income taxes subheading for “other liabilities.”

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Democrats Descend on Churches in Virginia in Souls to the Polls Campaign Urging Parishioners to Vote for Terry McAuliffe

The Center Square

Democratic leaders are targeting church goers to get out the vote, endorsing Democratic incumbent Gov. Terry McAuliffe, who is slightly behind in the polls for the first time after making controversial remarks about parents not having a say in their children’s education.

Some argue the Souls to the Polls campaign violates IRS rules governing tax-exempt entities such as churches.

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Wall Street Journal Editorial Board: Democratic Proposal Will Let the IRS Snoop on Your Bank Account

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Woman holding credit card, laptop open in front of her

The Wall Street Journal Editorial Board said that a Democratic effort to crack down on tax cheating would give the Treasury Department access to almost every American’s bank account.

The Thursday op-ed focused on a proposal that would require financial institutions to report individual accounts containing at least $10,000 to the IRS. That effort, the board wrote, would affect the vast majority of Americans who did not exclusively use cash to make purchases and pay bills.

“The details are murky, but most Americans could still get ensnared in this dragnet unless they pay bills and buy goods in cash,” the editorial board wrote. “Democrats say banks will only have to report total annual inflows and outflows, not discrete transactions. But nearly all Americans spend more than $10,000 a year.”

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IRS Rule Appears to be Flouted in Pro-McAuliffe Video Starring Kamala Harris Played at Virginia Churches

Admin

Hundreds of churches across the state of Virginia have been airing a political ad featuring Vice President Kamala Harris encouraging churchgoers to vote for Terry McAuliffe in the Virginia gubernatorial race, for which early voting has begun.

The video is raising questions about the legality of the ad being shown in houses of worship. The vice president calls upon Virginians to “raise your voice through your vote,” specifically, a vote for Democrat McAuliffe, whom Harris refers to as “the leader Virginia needs at this moment.”

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Some Credit Unions Already Losing Accounts over Democrats’ Plan to Expand IRS Tracking

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Outside of IRS building

Organizations representing community banks and credit unions are blasting the Democrats’ commitment to expanding IRS reporting requirements, calling the proposal a government overreach that would require financial institutions to spend more money on compliance costs at the expense of products and services for their members.

According to the National Association of Federally-Insured Credit Unions, customers at some credit unions have already decided to close their accounts over “government intrusion” concerns fueled by the prospect of such new rules taking effect.

The Democrats’ proposal would require financial institutions to report account activity above $600 to the IRS.

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Pelosi: ‘Yes,’ IRS ‘Tracking’ of Bank Accounts over $600 Still on Table as Opposition Grows

The Center Square
House Speaker Nancy Pelosi

U.S. House Speaker Nancy Pelosi, D-Calif., doubled down on the inclusion in a spending bill of a Democratic provision that would require banks to report to the IRS transactions for accounts holding over $600.

When asked Tuesday if the IRS monitoring would remain in Democrats’ proposed $3.5 trillion reconciliation legislation, Pelosi emphatically said “yes.”

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Arizona State Treasurer Kimberly Yee Sends Letter to Sinema, Kelly Opposing Legislation to Allow IRS to Monitor Americans’ $600 or More Withdrawals and Deposits

Rachel Alexander

Arizona State Treasurer Kimberly Yee sent a letter to Arizona’s Democratic Sens. Kyrsten Sinema and Mark Kelly urging them not to vote for legislation that would allow the IRS to monitor Americans’ bank accounts for transactions of $600 or more in withdrawals and deposits. The proposal is part of the Biden administration’s $3.5 trillion American Families Plan, the so-called “human infrastructure” bill. Scott Earl, the CEO & President of Mountain West Credit Union Association, also signed the letter, representing multiple credit unions. 

Yee, who is running for governor of Arizona, said, “As it stands now, this proposal would threaten the financial security of more than 100 million Americans from all demographics. If it passes, the government will conduct one of the largest data mining exercises in American history, risking the security of the banking system.”

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Businesses Push Back Against Biden Plan to Track All Bank Transactions over $600 Through the IRS

The Center Square
Joe Biden outside

A major component of President Joe Biden’s plan to raise revenue to pay for his trillions of dollars in new federal spending is now under fire from trade associations across the country.

The Biden administration has made clear its plan to beef up IRS auditing by expanding the agency’s funding and power. Biden’s latest proposal would require banks to turn over to the Internal Revenue Service bank account information for all accounts holding more than $600.

In a sharp pushback against the proposal, more than 40 trade associations, some of which represent entire industries or economic sectors, signed a letter to U.S. House Speaker Nancy Pelosi, D-Calif., and Minority Leader Kevin McCarthy, R-Calif., raising the alarm about the plan.

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Commentary: IRS Guidance Would Punish Small Business Owners with Families

RealClearWire
Outside of IRS building

Most IRS guidance documents make for poor pleasure reading. Then again, most IRS guidance doesn’t effectively impose a retroactive tax on small business owners merely for having a family. IRS Notice 2021-49, issued on August 4, includes a bizarre interpretation of the law that will effectively raise taxes for business owners with close relatives, even if their family members have no involvement in the company.

A core goal of the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed early on in the pandemic was to assist businesses in keeping employees on their payroll even as they dealt with the economic effects of lockdowns. Part of the plan was the Employee Retention Tax Credit (ERTC), which provides a tax credit against employer payroll tax liabilities.

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Georgia Rep. Austin Scott Warns Democrats Weaponizing IRS to Pay for Liberal Agenda

Chris Butler

U.S. Representative Austin Scott (R-GA-08) said a new Biden administration proposal would require financial institutions and other financial service providers to report all inflows and outflows on accounts that have more than $600. And this proposal, Scott told constituents in an emailed newsletter Sunday, would create a huge privacy issue for Americans and burden local banks and credit unions.

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