Monday, May 13, 2013

IRS Shared Confidential Information With Pro Publica

Pro Publica is a George Soros funded organization They describe themselves as a not for profit newsroom. According to this post the IRS sends them information on not for profit organizations that have tax exempt status. One assumes there are some details of not for profit activities that are available to the general public and by simply completing the proper forms Pro Publica receives that information from the IRS. Groups who have applied for not for profit status but whose application is pending enjoy IRS confidentially apparently in theory but not necessarily in practice.
To their credit, Pro Publica is extremely candid when they reveal:
On Nov. 15, 2012, ProPublica requested the applications of 67 nonprofits, all of which had spent money on the 2012 elections. (Because no social welfare groups with Tea Party in their names spent money on the election, ProPublica did not at that point request their applications. We had requested the Tea Party applications earlier, after the groups first complained about being singled out by the IRS. In response, the IRS said it could find no record of the tax-exempt status of those groups — typically how it responds to requests for unapproved applications.)
Just 13 days after ProPublica sent in its request, the IRS responded with the documents on 31 social welfare groups.
Okay so far so good. Then:
Applications were sent to ProPublica from five other social welfare groups that had told the IRS that they wouldn’t spend money to sway elections.  The other groups ended up spending more than $5 million related to the election, mainly to support Republican presidential candidate Mitt Romney. Much of that money was spent by the Arizona group Americans for Responsible Leadership. The remaining four groups that told the IRS they wouldn’t engage in political spending were Freedom Path, Rightchange.com II, America Is Not Stupid and A Better America Now. 
The IRS also sent ProPublica the applications of three small conservative groups that told the agency that they would spend some money on politics: Citizen Awareness Project, the YG Network and SecureAmericaNow.org. (No unapproved applications from liberal groups were sent to ProPublica.)
The IRS cover letter sent with the documents was from the Cincinnati office, and signed by Cindy Thomas, listed as the manager for Exempt Organizations Determinations, whom a biography for a Cincinnati Bar Association meeting in January says has worked for the IRS for 35 years. (Thomas often signed the cover letters of responses to ProPublica requests.) The cover letter listed an IRS employee named Sophia Brown as the person to contact for more information about the records. We tried to contact both Thomas and Brown today but were unable to reach them.
After receiving the unapproved applications, ProPublica tried to determine why they had been sent. In emails, IRS spokespeople said ProPublica shouldn’t have received them.
“It has come to our attention that you are in receipt of application materials of organizations that have not been recognized by the IRS as tax-exempt,” wrote one spokeswoman, Michelle Eldridge. She cited a law saying that publishing unauthorized returns or return information was a felony punishable by a fine of up to $5,000 and imprisonment of up to five years, or both.
In response, ProPublica’s then-general manager and now president, Richard Tofel, said, "ProPublica believes that the information we are publishing is not barred by the statute cited by the IRS, and it is clear to us that there is a strong First Amendment interest in its publication.”
ProPublica also redacted parts of the application to omit financial information.
There it is from Pro Publica's web site. Yes, the IRS did breach its trust and furnish confidential information to a third party. Ms. Cindy Thomas had better lawyer up. If criminal charges are not brought against her it's almost a sure bet a civil action will be.

2 comments:

BOSurvivor said...

If you are scoring at home does this count as an IRS scandal separate from the harass the Tea Party scandal? That would be four scandals the administration is juggling, not counting Fast and Furious.

Hoosierman said...

I'm losing count. Don't forget the HHS scandal. I've been meaning to write a post on it but something more important keeps pushing it back.