An old but important (and quickly forgotten) story of improper politicization of govt: IRS

[salin]

In January of 2006 there was a story that broke and quickly was ignored (and I am not aware of any followup) about that a database created for the IRS to determine "scofflaws" to determine who to audit... contained party affiliation. Sen. Murray was on the case (any of her constituents reading this? Perhaps you could call for followup info?).

The IRS spokesperson claimed that this was this was a 'mistake', that the data was collected by contractors - who used voter registration rolls as part of their data collection - but that the party affiliation info was not supposed to be included in the data base. However, DUers determined that this 'excuse' didn't fly - because in several of the states for which this info was included in the database there is no party registration - thus the info would have to be sought in other ways (searching for political donations, perhaps?) In any event, we were told by the IRS that the info was being deleted and would never be used - as 'that would be against the law'. Don't we feel reassured by that?

Here is an old thread of mine from 14 months ago that has the relevant info: http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=132&topic_id=2354658

Given the current news and congressional investigations that indicate a long-standing pattern of the bush admin using the federal govt as a tool for bolstering the republican party and elections - isn't this an issue that should be revived?

What ever happened to this data? Why was it really collected? Has the collection of this info ceased? Was it erased? Are audits occurring based on party affiliation? How do we get these questions and this story back into the news?

[monarch]

1. K & R

This needs more follow up. With so much s*** hitting the fan lately, it is easy to lose sight of all of the nefarious stuff that this administration has been involved in/

[salin]

3. The story came and went last year... but with the current disclosures

of the bushadmin using branches of the fed govt to act as an arm of the republican party... It would seem that this story REALLY needs follow up.

If this practice has continued? Talk about killing the GOP. IRS is no favorite of anyone - but esp reviled by the GOP. Imagine how many rank and file members (let alone moderates and independents) would be horrified if it were to be disclosed that audit info (that is info used to determine who to audit) DID include party affiliation (that is the practice continued.)

[Jackpine Radical]

2. Interesting...

and eminently worthy of K&R.

[salin]

4. Most of the corporate media never ran anything but the initial AP item

no follow up at the time. Leaving the impression that the denial and "oops, we'll correct it" from the IRS was all that was needed.

One year later... and I can't find a single story about this since it broke in early January 2006. Wish that I had access to Lexis Nexus to do a more complete search of papers.

[salin]

5. Why is this important?

Seriously, for several years it has felt as if players in the bushco were working to establish the infrastructure to enforce "party loyalty" ala what is known in the former Eastern European autocracies.

ala:

Give money and vote 'for the party' or suffer audits and harrassment from the govt.

To secure employment in govt (or with orgs that do business with the govt) must be a member 'of the party'

To secure favor of the govt must spy and inform on others (think of Ashcroft's TIPS program)

We are not there ... but this IRS story creeped me out at the time for the above implications... and it has disturbed me ever since that I can not find ANY followup in the media. As if we must take the 'word' of the IRS spokesperson at face value. Aren't we far passed the time when we the people should take the 'denials and assurances' from representatives of the bushadmin at face value?

[Jackpine Radical]

6. I went to Patty Murray's website & emailed an edited and

abreviated version of your OP. It did permit me to send something from out-of-state, and I hope someone reads it. Suggest others do something similar.

[salin]

8. Thanks - hope others do the same.

Maybe a couple of LTTE in Washington state papers? Why? It is common for staffers to keep an eye on LTTE - and if an issue recurs to begin to pay attention. Since Sen. Murray was the one that 'blew the whistle' so to speak (pushed it into the press) - I would hope that her staffers would take notice of some new interest and spur some follow up.

[bonito]

7. K&R n/t

[Jackpine Radical]

9. I posted a thread in the Washington State forum

that links to this one:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=184x11536

Salin, you might want to follow up & kick it once in a while.

[salin]

10. Thanks Jackpine!

I will probably be off line much of the day - but will try to kick when I get the chance... hopefully others will read this and do the same. I appreciate your attention - and recognition that this really might be something big. It might not - maybe the IRS really did clean it up. But if not... I think this has the potential to be very big news and very bad news for bushco. Per pattern of bad acts and attempt to recreate the role of govt (from one of governing to one of enforcing political party rule.)

[salin]

11. Here is a current IRS item- tied to a US Attorney in Northern Illinois:

http://www.prbuzz.com/three-irs-employees-and-us-attorney-sued-for-9-million-tax-fraud-1554.html

(From a press release - so included in its entirety)

Three IRS Employees and US Attorney Sued for $9 Million Tax Fraud
Written by Michael Henry
CHICAGO, Mar 28, 2007 -- /prbuzz/ --- High-profile United States Attorney Patrick Fitzgerald's office is defending three employees of the Internal Revenue Service (IRS) and U.S. Attorney Lynne Murphy for their part in a purported $9 million tax fraud. They have been sued in the Northern District of Illinois for allegedly fabricating and falsifying IRS tax records.

According to the suit, one Michael Henry purchased $8 million of stock in American Metrocomm Communications, by paying $2 million cash and giving the company a non-recourse note in the amount of $6 million. Under current tax law, and as upheld in the landmark case of Crane v. Commissioner, 331 U.S. 1, 67 S.Ct. 1047(1947), a non-recourse debt is treated as a recourse debt for tax purposes. However, according to the suit Ms. Murphy (following the orders of her supervisor Michael J. Kearns and Eileen J. O'Connor, the Assistant Attorney General) instructed the IRS employees to ignore this ruling, as well as Commissioner v. Tufts, 461 U.S. 300(1983), and enter fraudulent information into the IRS computers showing Henry earning, instead of owing, $6 million. This caused the IRS system to erroneously create a deficiency notice for insufficient tax payments in excess of $9 million.

Henry has sued the United States Department of Justice, the IRS and all individuals involved, for fabricating and falsifying this deficiency notice and for ignoring the Supreme Court rulings. Based on the evidence that the IRS claims it has in its possession Goldman Sachs, Cisco Systems and Henry Paulsen along with the IRS and the U.S. Government withheld records and evidence in the Delaware bankruptcy filing of American Metrocomm Corporation. Henry is claiming civil damages for legal malpractice, bankruptcy fraud and damages against the government and its individual employees for creating and falsifying government tax records and for withholding documents from the bankruptcy court.

However, Ms. Murphy maintains that a U.S. attorney can commit fraud and ignore Supreme Court rulings while working for the U.S. Government, because the U.S. Government and its employees are immune to lawsuits under so-called “sovereign immunity.” In the meantime, Ms. Murphy continues to work on tax-related cases.

The Honorable David Coar has been assigned the case (06-C7087).

SOURCE Michael F. Henry -

Note that the press release is from the person filing the suit against the IRS. So - take it with a grain of salt.

Nonetheless, I Have to wonder how Henry leans per political giving. Given that the credibility of actions of the USAs have now been seriously brought into question (per - what have these USAs done to prove themselves 'loyal bushies' and not be targetted by the purge list...), seems an interesting item.

[Jackpine Radical]

12. His phone # is there. Call & ask if he has any traceable

Dem connections.


I Googled the name & came up with a Michael F. Henry molecular-bio type at Harvard.

[salin]

13. Forget this line... seems to be part of ongoing procedings

tied to the bankruptcy of the company American Metrocomm. He seems a bit shady - the company no longer exists - has been decertified from doing business in many states - stemming back to the bankruptcy in 2000.

There are always blind alleys to be followed ... :shrug:

[EVDebs]

14. Proudly voting 6th for Greatest Page ! 'Enemies List' is merely the D or Green Party

on your voter rolls.

[salin]

15. just one more quick way to get onto the "uninvestigated" via bush... fisaless

electronic survellience sweeps?

[salin]

16. an afternoon - its almost taxday ... is the IRS playing rovian games... kick.

[fed-up]

17. kicking/rec for the night owls nt