Judicial Watch • JW Obtains Records: IRS’ Lerner Disclosed Confidential Information about Tax Status of Conservative Groups to FEC

JW Obtains Records: IRS’ Lerner Disclosed Confidential Information about Tax Status of Conservative Groups to FEC

JW Obtains Records: IRS’ Lerner Disclosed Confidential Information about Tax Status of Conservative Groups to FEC

OCTOBER 31, 2013

(Washington, DC) – Judicial Watch announced today that it has obtained email exchanges between former Internal Revenue Services (IRS) Director of Exempt Organizations Lois Lerner and enforcement attorneys at the Federal Election Commission (FEC) indicating that the IRS provided detailed, confidential information concerning the tax exempt application status and returns of conservative groups to the FEC in violation of federal law.  Included with the email exchanges were IRS questionnaires to a conservative group that contained questions of a hostile nature.

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The emails were produced to Judicial Watch last week by the FEC in response to an August 9, 2013, Freedom of Information Act (FOIA) request seeking access to the following for the timeframe January 1, 2009, to the present (the IRS received a FOIA request for the same information and has not yet responded):

  • Any and all records concerning, regarding, or related to the FEC’s coordination with the IRS regarding the political activities of 501(c) (4) non-profit organizations;
  • Any and all communications between the FEC and the IRS regarding the political activities of non-profit organizations.

The revealing email chain obtained by Judicial Watch begins with a February 3, 2009, email from a redacted FEC attorney asking Lerner if the IRS had issued an exemption letter for American Future Fund (AFF). The writer of the letter notes, “When we spoke last July, you told us that the American Future Fund had not received an exemption letter from the IRS.”  In the same email, the FEC attorney asked Lerner if she could also advise him if the IRS had granted an exemption letter to American Issues Project (AIP) as well as to AIP’s predecessor organizations, Citizens for the Republic (CFTR) and Avenger, Inc. (AIP).

In her response sent ten minutes later from her irs.gov email address, Lerner indicated that she would require her staff to cooperate fully, saying, “I have sent your email out to some of my staff. Will get back to you as soon as I have heard from them.”

The bulk of the records obtained by Judicial Watch consist of extensive materials from the IRS’ files sent from Lerner to the FEC containing detailed, confidential information about the organizations. These include annual tax returns (Forms 990) and request for exempt recognition forms (Form 1024), Articles of Organization and other corporate documents, and correspondence between the nonprofit organizations and the IRS. Under Section 6103 of the Internal Revenue Code, it is a felony for an IRS official to disclose either “return information” or “taxpayer return information,” even to another government agency.

Initial news reports, when word of some of these IRS-FEC emails first surfaced in August 2013, raised a variety of legal issues. One was the fact that Lerner was supplying confidential information concerning the tax exempt application status of conservative organizations.  Another was the fact that the inquiries regarding AFF made by the FEC attorneys in February 2009 to Lerner occurred before the FEC commissioners had voted on whether to investigate AFF (the FEC later voted not to investigate AFF).  A third was the appearance of collusion between government agencies with an apparently anti-conservative bias. The new in-depth emails obtained by Judicial Watch seem to confirm that the possible collusion between the IRS and the FEC may have been far more extensive than first indicated, particularly in view of allegations that, prior to joining the IRS, Lerner’s tenure as head of the Enforcement Office at the Federal Election Commission (FEC) also was marked by what appeared to be politically motivated harassment of conservative groups.

“These extensive emails and other materials provide a disturbing window into the activities of two out-of-control federal agencies:  the IRS and FEC,” said Judicial Watch President Tom Fitton. “And there is the very real question as to whether these documents evidence a crime.”

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  • constitution1st

    please hold Lois Lerner accountable as obviously Holder n Obama appear to be above any responsibilities! I stand and applaud your work!

  • WestOutFar

    Did you know that for the past 5 years the IRS has targeted those who are legally blind and take the legally blind deduction on their 1040 forms?

  • deliriousindc

    I do not understand this article. Form 990 is a “Return of An Organization Exempt from Tax”. It is not a tax return since no tax is calculated or paid with it, but an information return that is required by law to be viewable by the public. Forms 990 are posted on the IRS’ website, on Guidestar.com, and are required to be given by the organization to anyone who requests one. Exempt organizations that pay taxes do so on Forms 1120-POL (political organizations), 990-T (Unrelated Business Income Tax), or Form 941 (Employment Taxes). Form 1024 is available to the public upon request. If you are reporting that Ms. Lerner allowed the FEC intrude upon IRS’ 1024 approval process, that is one thing, but asserting that Forms 990 and 1024 are confidential documents is misleading at best. Please correct your article.

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