{"id":2284429,"date":"2024-06-27T07:30:01","date_gmt":"2024-06-27T11:30:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-irs-still-reeks-of-institutional-rot-and-corruption\/"},"modified":"2024-06-27T07:36:03","modified_gmt":"2024-06-27T11:36:03","slug":"the-irs-still-reeks-of-institutional-rot-and-corruption","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-irs-still-reeks-of-institutional-rot-and-corruption\/","title":{"rendered":"The IRS Still Reeks Of Institutional Rot And Corruption"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fthe-irs-still-reeks-of-institutional-rot-and-corruption%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2284429&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Internal Revenue \u200cService (IRS) \u200dmade\u200b a\u200c notable apology \u2063to billionaire Ken Griffin, \u2064a rare occurrence from \u2064the agency, following the unauthorized leak of Griffin&#8217;s and other wealthy Americans&#8217; sensitive tax information \u2063by Charles Littlejohn, a contractor at Booz Allen Hamilton\u2062 working\u2063 for the IRS. Littlejohn stole\u200b and disclosed tax details of several high-profile individuals to media\u2063 outlets under the guise\u2062 of\u2062 advocating \u200cfor financial \u2063equity.\u200b His actions, including leaking former President \u2064Donald Trump&#8217;s\u2064 tax information \u200bto The New York \u200bTimes,\u200c resulted in widespread\u200d criticism of\u200c the wealthy for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/irs-overhauls-audit-practice-after-reports-of-racial-disparities-in-tax-audits\/\" title=\"IRS revamps audit process due to reported racial disparities in tax audits.\">tax avoidance strategies<\/a>.<\/p>\n<p>Ken Griffin sued the IRS over this privacy breach, which culminated in a public apology\u200b from the IRS\u2064 to Griffin, indicating their commitment to improving data\u200c security. Meanwhile, Littlejohn pleaded\u2063 guilty to his crimes and was \u200dsentenced to five years in prison.<\/p>\n<p>The article also discusses broader \u2064concerns about \u2063the IRS\u2019s competency and \u2062integrity, citing its history of inefficiencies, scandals during the Obama administration involving \u2064targeting\u2063 conservative groups,\u200b and\u2064 ongoing\u200b debates \u2063around\u200d its funding\u200b and operations. The IRS \u2063has faced criticism for its management of resources and\u2064 the effectiveness of its enforcement strategies, especially regarding their focus on lower income taxpayers rather than high \u2064earners. Additionally, future \u200cchanges like the $600 reporting rule via third-party platforms are highlighted as potential\u200b challenges for ordinary taxpayers.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>This week, the Internal Revenue Service (IRS) <a href=\"https:\/\/www.wsj.com\/us-news\/law\/apologizes-ken-griffintax-leak-76581414?mod=hp_lead_pos3\" target=\"_blank\" rel=\"noreferrer noopener\">made a rare and surprising move by issuing an apology<\/a> to billionaire Ken Griffin. The apology was in response to the agency\u2019s leak of sensitive information about a group of wealthy Americans, including Griffin. This unexpected act of contrition stands out, as the IRS is not known for admitting wrongdoings or extending apologies, despite its <a href=\"https:\/\/r.search.yahoo.com\/_ylt=Awrg0UlPO3tmVbUEpmlXNyoA;_ylu=Y29sbwNncTEEcG9zAzQEdnRpZAMEc2VjA3Ny\/RV=2\/RE=1720561744\/RO=10\/RU=https%3a%2f%2fwww.washingtonexaminer.com%2fopinion%2f2622175%2fthe-irs-has-a-history-of-corruption-and-incompetence%2f\/RK=2\/RS=7h3nAMo2gHrBhYBWdHgyT.24JLs-\" target=\"_blank\" rel=\"noreferrer noopener\">reputation for corruption and incompetency<\/a>.<\/p>\n<p>Charles Littlejohn, a contractor at Booz Allen Hamilton who was working for the IRS, brazenly stole thousands of wealthy American taxpayers\u2019 information, including that of former President Donald Trump and billionaire Ken Griffin. Littlejohn then proceeded to disclose Trump\u2019s tax information to The New York Times and information about other wealthy individuals to ProPublica. He <a href=\"https:\/\/www.cnn.com\/2024\/01\/29\/politics\/charles-littlejohn-trump-taxes-leak\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">claimed<\/a> to be motivated by a desire to seek financial equity, and that his action was a service to the country. The leaked information was the basis of several articles published by both the <a href=\"https:\/\/www.nytimes.com\/interactive\/2020\/09\/27\/us\/donald-trump-taxes.html\" target=\"_blank\" rel=\"noreferrer noopener\">NYT<\/a> and <a href=\"https:\/\/www.propublica.org\/article\/these-real-estate-and-oil-tycoons-used-paper-losses-to-avoid-paying-taxes-for-years\" target=\"_blank\" rel=\"noreferrer noopener\">ProPublica<\/a> that criticized billionaires such as Trump and Griffin for allegedly avoiding paying federal and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-jersey-democrat-calls-kentucky-other-red-states-moochers\/\" title=\"New Jersey Democrat Calls Kentucky, Other Red States \u2018Moochers\u2019\">state income taxes<\/a> through financial gimmicks and legal loopholes.   <\/p>\n<p>Ken Griffin <a href=\"https:\/\/www.wsj.com\/articles\/ken-griffin-sues-irs-over-tax-privacy-breach-that-also-affected-other-billionaires-11670942150?mod=article_inline\" target=\"_blank\" rel=\"noreferrer noopener\">sued the IRS<\/a> in December 2022 over the leak. Rather than admitting wrongdoings, the government fought every step of the way. According to The Wall Street Journal, even though the government knew Littlejohn was the culprit, it continued denying any knowledge of what happened and who did it publicly. After Littlejohn was identified, the government <a href=\"https:\/\/www.wsj.com\/us-news\/law\/apologizes-ken-griffintax-leak-76581414\" target=\"_blank\" rel=\"noreferrer noopener\">tried to argue<\/a> that Littlejohn wasn\u2019t a government employee when he committed the crime, even though, at the time, he worked inside the IRS and used the IRS-assigned computer to steal private citizens\u2019 tax records.<\/p>\n<p>In October 2023, Littlejohn <a href=\"https:\/\/www.cnn.com\/2024\/01\/29\/politics\/charles-littlejohn-trump-taxes-leak\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">pleaded guilty<\/a> to unauthorized disclosures of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/reports-democrats-splintering-over-voter-rights-bill-may-drop-hr1-elections-overhaul\/\" title=\"Reports: Democrats \u2018Splintering\u2019 Over Voter Rights Bill, May Drop HR1 Elections Overhaul\">income tax returns<\/a>. This January, he was sentenced to five years in prison and ordered to pay a <a href=\"https:\/\/www.nbcnews.com\/politics\/justice-department\/former-irs-contractor-sentenced-5-years-prison-leaking-trump-tax-recor-rcna135908\" target=\"_blank\" rel=\"noreferrer noopener\">fine<\/a> of $5,000. Judge Ana Reyes <a href=\"https:\/\/www.cnn.com\/2024\/01\/29\/politics\/charles-littlejohn-trump-taxes-leak\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">told Littlejohn<\/a>, \u201cWhat you did in attacking the sitting president of the United States was an attack on our constitutional democracy. \u2026 [Y]our actions were also a threat to our democracy. \u2026 It engenders the same fear that January 6 does.\u201d<\/p>\n<p>Griffin and the IRS settled the data leak lawsuit recently. Griffin <a href=\"https:\/\/www.wsj.com\/us-news\/law\/apologizes-ken-griffintax-leak-76581414?mod=hp_lead_pos3\" target=\"_blank\" rel=\"noreferrer noopener\">reportedly<\/a> indicated that his goal in the lawsuit was to motivate the IRS to \u201cimprove data security and acknowledge its mistakes rather than getting the modest monetary damages he could likely claim in court.\u201d <\/p>\n<p>This Tuesday, the IRS publicly apologized to Griffin, <a href=\"https:\/\/www.wsj.com\/us-news\/law\/apologizes-ken-griffintax-leak-76581414?mod=hp_lead_pos3\" target=\"_blank\" rel=\"noreferrer noopener\">stating<\/a>, \u201cThe IRS takes its responsibilities seriously and acknowledges that it failed to prevent Mr. Littlejohn\u2019s criminal conduct and unlawful disclosure of Mr. Griffin\u2019s confidential data. \u2026 The agency believes that its actions and the resolution of this case will result in a stronger and more trustworthy process for safeguarding the personal information of all taxpayers.\u201d<\/p>\n<p>Griffin was able to extract a rare public apology from the IRS because he had the financial resources to take the government to court. However, many Americans who lack financial means also deserve an apology from the IRS.<\/p>\n<p>The IRS has a reputation for being an agency that \u201ccan\u2019t do its basic job well but will terrorize taxpayers whether deserving or not,\u201d <a href=\"https:\/\/www.wsj.com\/articles\/this-is-your-irs-at-work-tigta-report-treasury-inspector-general-for-tax-administration-audit-inflation-reduction-act-11660943317?mod=article_inline\" target=\"_blank\" rel=\"noreferrer noopener\">according to The Wall Street Journal<\/a>. Some instances reported by the WSJ that highlight these concerns included the following: The agency answers only 10 percent of taxpayers\u2019 calls; the IRS admitted it distributed $19 billion in \u201cimproper\u201d earned-income tax credit payments in fiscal year 2021 (28 percent of all EITC payments); an audit found the IRS has spent $574 million to implement the Foreign Account Tax Compliance Act, but collected only $14 million in revenue (the U.S. Congress expected the law to collect $9 billion compliance revenue by 2020).<\/p>\n<p>Other controversies surrounding the IRS are not to be overlooked. During the Obama administration, an IRS employee <a href=\"https:\/\/www.politico.com\/story\/2014\/06\/irs-nom-lawsuit-108266\" target=\"_blank\" rel=\"noreferrer noopener\">disclosed<\/a> the National Organization for Marriage\u2019s donor information to the media, a breach of trust that raised concerns about the agency\u2019s data security. The Huffington Post then ran a story that identified a political action committee linked to Mitt Romney as one of the donors, a move that further fueled the controversy. The IRS eventually paid NOM $50,000 to settle the lawsuit.<\/p>\n<p>Undoubtedly, the most flagrant IRS scandal during the Obama administration was the agency\u2019s unjust targeting of conservative groups seeking nonprofit status. A congressional investigation <a href=\"https:\/\/www.finance.senate.gov\/chairmans-news\/hatch-bipartisan-report-finds-unacceptable-mismanagement-at-irs\" target=\"_blank\" rel=\"noreferrer noopener\">revealed<\/a> that the IRS \u201cset aside all incoming Tea Party applications for special processing \u2014 a decision that would subject those organizations to long delays, burdensome questions, and would ultimately prove fatal to some of their applications.\u201d During the investigation, as many as 24,000 emails of Lois Lerner, the former Internal Revenue Service (IRS) official at the center of this scandal, were \u201c<a href=\"https:\/\/thehill.com\/policy\/finance\/246133-watchdog-irs-improperly-destroyed-backups-containing-lerner-emails\/\" target=\"_blank\" rel=\"noreferrer noopener\">improperly<\/a>\u201d destroyed. Eventually, President Obama\u2019s Justice Department <a href=\"https:\/\/thehill.com\/policy\/finance\/257928-doj-ends-investigation-of-lois-lerner-without-bringing-charges\/\" target=\"_blank\" rel=\"noreferrer noopener\">declined<\/a> to bring charges against Lois Lerner, and she was able to retire with a full pension.<\/p>\n<p>Despite the IRS\u2019s long history of incompetence and failures, the agency keeps demanding more money, power, and greater access to taxpayers\u2019 data, even though it often breaks its promises. In 2022, while lobbying for receiving an additional $80 billion in funding as part of the 2022 Inflation Reduction Act to hire 87,000 new IRS agents, IRS Commissioner Charles Rettig <a href=\"https:\/\/nypost.com\/2022\/08\/10\/irs-audits-will-absolutely-not-target-middle-income-americans\/\" target=\"_blank\" rel=\"noreferrer noopener\">reassured<\/a> the U.S. Senate that these additional IRS agents would \u201cabsolutely not\u201d increase audit scrutiny on small businesses or middle-income Americans.\u00a0However, the most recent IRS audit <a href=\"https:\/\/www.wsj.com\/articles\/irs-tax-collectors-audit-middle-class-tigta-5071d622?mod=e2two\" target=\"_blank\" rel=\"noreferrer noopener\">shows<\/a>, \u201cAs of last summer, 63% of new <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/joe-bidens-signature-achievement-is-his-list-of-broken-promises\/\" title=\"Joe Biden's most notable accomplishment lies in his record of unkept promises\">audits targeted taxpayers<\/a> with incomes of less than $200,000. Only a small overall share reached the highest earners, while 80% of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/after-promising-not-to-the-irs-army-democrats-expanded-is-targeting-the-middle-class\/\" title=\"Despite pledging not to do so, the IRS, under Democratic leadership, has extended its focus to include the middle class\">audits covered filers earning<\/a> less than $1 million.\u201d\u00a0In other words, the IRS broke its promise.<\/p>\n<p>An even bigger headache is coming for ordinary American taxpayers in 2025. It is called the \u201c<a href=\"https:\/\/www.cnbc.com\/select\/irs-600-reporting-rule-delayed\/\" target=\"_blank\" rel=\"noreferrer noopener\">$600 rule<\/a>.\u201d Starting next year, any American who gets paid more than $600 for the transaction of goods and services through third-party payment platforms, i.e., PayPal and Venmo, will have to report the income through a 1099-K form. The IRS insists it is interested in catching wealthy tax cheaters, yet it is pathetically going after Americans who try to make ends meet with side gigs. Besides the additional burden of preparing one more tax form, American taxpayers deserve to know why we should entrust more financial data to an agency with a history of failing to keep our data secure.<\/p>\n<p>While it\u2019s a step in the right direction that the IRS publicly apologized to Ken Griffin after a costly legal battle, it\u2019s crucial for the agency to understand that this is not just about one individual. It\u2019s about rebuilding the trust of every American taxpayer. This can only be achieved through tangible actions, not just words. As a start, the IRS needs to demonstrate its commitment to data security and transparency, reassuring taxpayers that their financial information is in safe hands.<\/p>\n<hr>\n<div>\n<p>      Helen Raleigh, CFA, is an American entrepreneur, writer, and speaker. She&#8217;s a senior contributor at The Federalist. Her writings appear in other national media, including The Wall Street Journal and Fox News.  Helen is the author of several books, including &#8220;<a href=\"https:\/\/www.amazon.com\/Confucius-Never-Said-Helen-Raleigh\/dp\/1499185278\/ref=sr_1_1?dchild=1&#038;keywords=Helen+Raleigh+Confucius+Never+Said&#038;qid=1606079469&#038;sr=8-1\">Confucius Never Said<\/a>&#8221; and \u201c<a href=\"https:\/\/www.amazon.com\/Backlash-How-Chinas-Aggression-Backfired\/dp\/1736008501\/ref=tmm_pap_swatch_0?_encoding=UTF8&#038;qid=1606006113&#038;sr=8-1\">Backlash: How Communist China&#8217;s Aggression Has Backfired<\/a>.&#8221; Her latest book is the 2nd edition of <a href=\"https:\/\/www.amazon.com\/Broken-Welcome-Mat-unAmerican-immigration-ebook\/dp\/B0C44QSPJ9\/ref=sr_1_3?crid=3HFXEVT236ZRW&#038;keywords=The+Broken+welcome+mat+book&#038;qid=1683127487&#038;sprefix=the+broken+welcome+mat+book%2Caps%2C135&#038;sr=8-3\">\u201cThe Broken Welcome Mat: America\u2019s UnAmerican immigration policy, and how we should fix it.\u201d<\/a>   Follow her on Parler and Twitter: @HRaleighspeaks.<\/p>\n<\/div><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This week, the IRS issued a rare apology to billionaire Ken Griffin following the leak of sensitive data about him and other wealthy individuals. This unusual move highlights the agency&#8217;s acknowledgment of the breach&#8217;s seriousness, as it typically does not issue apologies<\/p>\n","protected":false},"author":536,"featured_media":2284430,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/06\/Untitled-design-2.png","fifu_image_alt":"","footnotes":""},"categories":[546],"tags":[8773,32990,32989,8362,24338],"class_list":["post-2284429","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-federalist","tag-corruption","tag-government-ethics","tag-institutional-rot","tag-irs","tag-taxation"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/06\/Untitled-design-2.png","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2284429","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/536"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2284429"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2284429\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2284430"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2284429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2284429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2284429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}