Internal Revenue Service employees and contractors owe a collective $50 million in back taxes, a new audit by the Treasury Department’s inspector general found.
Of the more than 3,800 IRS employees who owe back taxes, 2,000 have not even established a payment plan. More than 50 of these delinquent employees have remained employed by the IRS for five years or more. All told, nearly 150,000 federal employees failed to pay their taxes, owing a combined $1.5 billion.
Sen. Joni Ernst (R-IA), who requested the audit, says IRS employees&#8217; failure to pay taxes is particularly galling, considering the $80 billion the Inflation Reduction Act allotted to expand the agency&#8217;s audit capacity.
“Surely the irony and hypocrisy can’t be missed here: taxpayers are being forced to pay billions more to the IRS to audit America while the agency won’t even collect the tens of millions of dollars in unpaid taxes owed by its employees,” Ernst said.
The Treasury Inspector General for Tax Administration reviewed 1,068 cases where IRS management had initiated disciplinary action against employees for tax issues, and found that management often went easy on them. “76 employees were suspended. Most of these cases involved willful … cases resulting in the employee being suspended for less than 14 days,” the inspector general&#8217;s report said.
Of 70 cases where the IRS determined that an employee “willfully” engaged in tax misconduct between October 2021 and April 2023, only 20 were fired—even though the law says that all such employees should be terminated, barring intervention from the IRS commissioner.
“Although the law requires an employee who has either willfully not filed or willfully understated their taxes due to be removed, subject only to the IRS Commissioner’s mitigation, this disciplinary action is not always enforced,” it said.
The IRS was unrepentant in its response to <a class="c-link" href="https://www.tigta.gov/sites/default/files/reports/2024-07/2024100033fr.pdf" target="_blank" rel="noopener noreferrer" data-stringify-link="https://www.tigta.gov/sites/default/files/reports/2024-07/2024100033fr.pdf" data-sk="tooltip_parent">the audit</a>, writing that “for certain offenses, including the willful failure to file a tax return and willful understatement of a Federal tax liability, IRS employees shall be terminated unless the IRS Commissioner decides to mitigate the penalty of termination… The Commissioner exercised this authority.”
There was also an “additional list of 69 substantiated willful” violations which were referred to a “Review Board,” which recommended “mitigating” punishment due to factors such as the employee having worked at the IRS for many years or having gotten positive employee evaluations.
The IRS acknowledged to auditors that “there are no specific written descriptions of mitigation considerations, or policies and procedures, used by” the Review Board.
In addition to not firing employees with tax problems, the IRS also re-hired more than 500 people who had previously left the agency after having known tax, performance, or misconduct issues. More than 300 were hired despite having “unacceptable performance” in their previous tenure at the agency. More than 100 had tax issues, and 15 committed “fraud/theft.” Twenty-four had violated the section of the law that applies to willful tax problems, and 80 others had tax problems that the agency didn’t deem willful.
The inspector general had previously flagged the issue of re-hiring bad employees and as a result, the IRS had agreed to ensure that hiring managers had access to the personnel files of candidates applying for a second stint. But it apparently kept hiring them despite that.
A law “prohibits the IRS from rehiring former IRS employees who were involuntarily separated” for misconduct or poor performance, yet 10 employees fired between 2007 and 2022 were re-hired after the passage of that law.
On Monday, Sen. Ernst called on IRS Commissioner Daniel Werfel to fire offending employees, and refer them for criminal prosecution where appropriate.
Ernst said she is introducing the Audit the IRS Act, which would require “regular tax audits of agency employees” and the termination of those with “seriously delinquent tax debt.”

IRS Commissioner Daniel Werfel

IRS Employees Owe $50 Million In Back Taxes, Audit Finds

Internal Revenue Service (IRS)

Joe Biden

Joni Ernst

Taxes

Rep. <a href="https://www.dailywire.com/topic/matt-gaetz" target="_blank" rel="noopener">Matt Gaetz</a> (R-FL) is introducing a bill that would allow the federal income <a href="https://www.dailywire.com/topic/taxes" target="_blank" rel="noopener">tax</a> to be paid with <a href="https://www.dailywire.com/topic/bitcoin" target="_blank" rel="noopener">Bitcoin</a>, The Daily Wire can exclusively reveal.
The <a href="https://dw-wp-production.imgix.net/2024/06/GAETZ_244_xml.pdf" target="_blank" rel="noopener">legislation</a>, if enacted, would amend the Internal Revenue Code of 1986 with language ordering the Treasury secretary to develop a plan for accepting the popular decentralized digital currency.
&#8220;By enabling taxpayers to use Bitcoin for federal tax payments, we can promote innovation, increase efficiency, and offer more flexibility to American citizens,&#8221; Gaetz told The Daily Wire.
He continued, &#8220;This is a bold step toward a future where digital currencies play a vital role in our financial system, ensuring that the U.S. remains at the forefront of technological advancement.&#8221;
Gaetz recently traveled to El Salvador to attend the second inauguration of President Nayib Bukele. In 2021, Bukele led his country to become the first nation to adopt Bitcoin as legal tender.
He is an ally to former President <a href="https://www.dailywire.com/topic/donald-trump" target="_blank" rel="noopener">Donald Trump</a>, whose campaign recently <a href="https://www.cnbc.com/2024/05/21/trump-campaign-starts-taking-cryptocurrency-donations.html" target="_blank" rel="noopener">started</a> accepting crypto donations, drawing a contrast to the Biden administration&#8217;s <a href="https://www.bloomberg.com/news/articles/2024-06-24/crypto-may-become-the-new-trump-trade-bernstein-analysts-say" target="_blank" rel="noopener">crackdown</a> on the industry.
At a rally earlier this month, Trump <a href="https://x.com/TPostMillennial/status/1801764091452866850" target="_blank" rel="noopener">said</a> he would end President Joe Biden&#8217;s &#8220;war on crypto.&#8221; And he pledged, &#8220;We will ensure that the future of crypto and the future of Bitcoin will be made in America.&#8221;
Gaetz&#8217;s legislation would have the Treasury secretary &#8220;prescribe&#8221; regulations he or she deems necessary to receive payments on &#8220;certain&#8221; federal taxes with Bitcoin.
The congressman told The Daily Wire his proposal would &#8220;modernize our tax system by allowing federal income tax to be paid with Bitcoin.&#8221;
Provisions in the bill call for regulations that &#8220;specify when payment by such means will be considered received&#8221; and &#8220;require the immediate conversion of any bitcoin amount received to its dollar equivalent at the conclusion of any transaction.&#8221;
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It demands rules to &#8220;identify types of nontax matters related to payment by such means that are to be resolved by persons ultimately liable for payment and financial intermediaries, without the involvement of the Secretary.&#8221;
The bill also seeks to &#8220;ensure that tax matters will be resolved by the Secretary, without the involvement of financial intermediaries.&#8221;
Other sections tackle contracts related to receiving payment by Bitcoin, fees, and liability. There is also a provision that says the revised language would apply to payments made one year after enactment.
The Internal Revenue Service (IRS) already <a href="https://www.irs.gov/newsroom/taxpayers-should-continue-to-report-all-cryptocurrency-digital-asset-income#:~:text=WASHINGTON%20%E2%80%94%20The%20Internal%20Revenue%20Service,their%202022%20federal%20tax%20returns." target="_blank" rel="noopener">requires</a> people to report transactions related to digital assets and <a href="https://www.cnn.com/2024/04/08/success/taxes-crypto-digital-assets-bitcoin/index.html" target="_blank" rel="noopener">pay taxes</a> on income or gains from crypto.
A <a href="https://pro.bloombergtax.com/brief/cryptocurrency-tax-laws-by-state/" target="_blank" rel="noopener">handful</a> of states, including New Jersey and Kentucky, have begun to implement their own crypto tax regulations. Colorado has even <a href="https://www.denverpost.com/2022/09/21/colorado-accepts-cryptocurrency-taxes/" target="_blank" rel="noopener">approved</a> the use of cryptocurrency for tax payments.

Rep. Matt Gaetz

EXCLUSIVE: Matt Gaetz Introduces Bill To Allow Bitcoin Payments On Federal Income Tax

Bitcoin

Congress

Cryptocurrency

Donald Trump

Matt Gaetz

Politics

U.S. House of Representatives

The diversity, equity, and inclusion (DEI) training forced on criminal investigators with the Internal Revenue Service featured content from a transgender professor who called for the “death of whiteness” in an academic journal article.
The DEI training, <a href="https://www.judicialwatch.org/irs-woke-training/">obtained</a> by Judicial Watch, was part of a mandatory continuing education program at the IRS, and began with a section by Dafina Lazarus Stewart titled, &#8220;Cultural Inclusion Is About Justice.&#8221; Stewart, a transgender-identifying woman, <a href="https://morgridge.du.edu/about/faculty-directory/d-l-stewart">chairs a department</a> at the University of Denver and has focused much of her academic work on “whiteness,” even calling on other academics to “commit to the death of whiteness.”
Stewart, who focuses on “institutional transformation toward realizing equity and justice,” is the author of an <a href="https://www.tandfonline.com/doi/full/10.1080/09518398.2022.2061630">academic article</a> called “‘Dead Honky’ — Against The Technologies of (White) Violence.” The article <a href="https://www.breitbart.com/education/2022/07/11/dead-honky-college-education-department-chair-commits-death-whiteness/">calls for</a> Critical Race Theorists to “commit to the death of whiteness,” even arguing that “whiteness is itself a violence” and asking academics to use the “verbal effigy “‘dead honky.’”
The DEI training comes as the Biden administration has leveraged the federal bureaucracy to push far-left ideology on race and gender, <a href="https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/20/executive-order-advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government/">signing</a> multiple <a href="https://www.whitehouse.gov/briefing-room/presidential-actions/2021/06/25/executive-order-on-diversity-equity-inclusion-and-accessibility-in-the-federal-workforce/">executive orders</a> to institutionalize Critical Race Theory and radical gender ideology in federal agencies.
The portion in the training from Stewart asks questions such as, &#8220;whose culture in the room is under constant threat?” and “whose cultural safety is being sacrificed to allow the dominate [sic] culture to degrade the subordinate culture?”
The answers, based on a reading of Stewart&#8217;s work, likely have to do with the evils of &#8220;whiteness.&#8221; In &#8220;Dead Honky,&#8221; Stewart alleges that “whiteness pretends to be innocent,” but in reality “creates terror and violence.”
“Critical whiteness studies (CWS) in the field of higher education fails to account for … technologies of violence that characterize whiteness and which whiteness employs,” Stewart writes in the journal article. “I theorize technologies of (white) violence as enactments of: (1) malicious white terror; (2) rhetorical white innocence, mobilized through white contempt and white transmission; and, (3) pacifying white concession.”
The article was published in the International Journal of Qualitative Studies in Education, which has also published an <a href="https://www.breitbart.com/education/2022/07/08/education-journal-publishes-call-to-eradicate-whiteness-send-it-to-its-grave/">article</a> in which a different professor called for Critical Race Theorists to “do the work of disrupting, dismantling, and eradicating whiteness.” The <a href="https://www.tandfonline.com/action/journalInformation?show=aimsScope&amp;journalCode=tqse20">journal</a> publishes articles concerning “issues of racism (including whiteness, white racism, and white supremacy), capitalism, and its class structure,” as well as “gender identity, heterosexism, and homophobia.”
Stewart claims in another <a href="https://transreads.org/wp-content/uploads/2022/01/2022-01-16_61e44487ad812_HighImpactofWhitenessonTransStudentsinPostsecondaryEducationbyDafinaLazarus-StewartZNicolazzoz-lib.org_.pdf">article</a> that “whiteness as an ideology … reaches beyond race/racism to shape and reproduce other interlocking oppressive systems,” working to “undermine the success of trans students in US postsecondary education.”
The IRS’ <a href="https://www.irs.gov/about-irs/office-of-equity-diversity-inclusion-at-a-glance">Office of Equity, Diversity, and Inclusion</a> is led by <a href="https://www.irs.gov/about-irs/todays-irs-organization">Chief Diversity Officer</a> Carrie Holland. While Holland’s salary in her role is <a href="https://govsalaries.com/salaries/FD/internal-revenue-service?employee=carrie+holland">not yet</a> publicly available, her predecessor Valerie Gunter <a href="https://www.openthebooks.com/united-states-internal-revenue-service/?F_Name_S=Gunter&amp;Year_S=0">made $200,000</a> a year, <a href="https://www.census.gov/library/publications/2023/demo/p60-279.html">more than double</a> the median household income to push the DEI agenda.
Gunter confirmed in a <a href="https://cdn.ymaws.com/www.ifausa.org/resource/resmgr/newsletter/ifa_diversity_news_issue2.pdf">2021 interview</a> that her role was responsible for “ensuring training” on diversity, equity, and inclusion, as well as being the principal consultant on all DEI matters at the IRS, including DEI trainings.
“We have a [diversity and inclusion] education program which raises awareness around [equity, diversity, and inclusion], focuses on unconscious bias prevention, and cultural competency,&#8221; Gunter said, adding that the purpose is for managers to identify how DEI &#8220;concepts appear in real world working situations.”
The training for IRS agents is one of the latest examples of the DEI agenda being pushed throughout the federal government.
The Daily Wire previously <a href="https://www.dailywire.com/news/exclusive-leaked-nsa-doc-reveals-massive-woke-glossary-pushing-critical-race-theory-gender-ideology-on-govt-employees">revealed</a> that the National Security Association (NSA) created a 34-page DEI glossary that endorsed the tenets of Critical Race Theory and gender ideology, with definitions for terms like “queer theory,” “white fragility,” “settler colonialism,” and “transmisogyny.”
Other agencies in the federal government have funded projects that further gender ideology, with The Daily Wire recently revealing that the Biden administration will pour nearly $1 million of taxpayer funds into an effort to make biology courses more “inclusive” of those who identify as transgender by <a href="https://www.dailywire.com/news/biden-admin-pours-1-million-into-studies-aimed-at-denying-there-are-only-two-genders">denying that there are only two genders</a>.
Biden&#8217;s Health and Human Services Department also funded a study on the use of puberty blockers and cross-sex hormone treatment <a href="https://www.dailywire.com/news/republican-senators-blast-nih-for-3-million-grant-to-expand-medical-transitions-for-minors">to the tune of $3 million</a> despite transgender children’s hospitals admitting that the practice could result in <a href="https://www.dailywire.com/news/nih-funds-study-on-puberty-blockers-hormones-on-youth-despite-risk-of-sterilization">permanent sterilization</a>.
But while various agencies within the federal government have aggressively pushed ideological initiatives under President Biden, former Trump administration officials, as well as former President Trump himself, have <a href="https://www.washingtonexaminer.com/opinion/beltway-confidential/2731416/dislodging-the-real-threat-to-democracy-the-administrative-state/">discussed</a> plans to <a href="https://www.axios.com/2022/07/22/trump-presidency-schedule-f-federal-employees">gut the administrative state</a> should he be elected in 2024.
Some are advocating for a policy called Schedule F, which could remove civil service employment protections from unelected bureaucrats like the IRS&#8217;s Holland, empowering the president to fire unelected bureaucrats who may obstruct his policy objectives.

Judicial Watch, IRS DEI Training

Mandatory IRS Diversity Training Includes Material From Trans Academic Who Called For ‘Death Of Whiteness’

Diversity Equity and Inclusion (DEI)

The GOP-led House will take up a &#8220;clean, standalone&#8221; bill to send more aid to Israel this week, House Speaker <a href="https://www.dailywire.com/topic/mike-johnson" target="_blank" rel="noopener">Mike Johnson</a> (R-LA) announced on Saturday.
This new measure is a departure from <a href="https://www.dailywire.com/news/12-house-dems-ignore-biden-veto-threat-help-pass-israel-aid-with-irs-cuts" target="_blank" rel="noopener">legislation</a> passed by the House in early November — with the help of a small group of Democrats who broke ranks — that coupled $14.3 billion in support for Israel with an offset slashing the same amount of funds meant for the <a href="https://www.dailywire.com/topic/internal-revenue-service-irs" target="_blank" rel="noopener">Internal Revenue Service (IRS)</a>.
“Given the Senate’s failure to move appropriate legislation in a timely fashion, and the perilous circumstances currently facing Israel, the House will continue to lead. Next week, we will take up and pass a clean, standalone Israel supplemental package,&#8221; Johnson <a href="https://www.politico.com/f/?id=0000018d-704f-d4fe-addf-7b5f3e320000" target="_blank" rel="noopener">said</a> in a Saturday letter.
&#8220;During debate in the House and in numerous subsequent statements, Democrats made clear that their primary objection to the original House bill was with its offsets,&#8221; Johnson added. &#8220;The Senate will no longer have excuses, however misguided, against swift passage of this critical support for our ally.&#8221;
Israel has been fighting Hamas in the Gaza Strip since early October — when the group initiated deadly terrorist attacks on Israeli soil — and in recent days, U.S. forces have begun to launch strikes on Iranian-backed militia targets across the Middle East in retaliation for the <a href="https://www.dailywire.com/news/three-american-troops-killed-dozens-injured-in-iran-backed-attack-all-because-biden-appeases-terrorists" target="_blank" rel="noopener">killing of three U.S. troops</a>.
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“The need to support our closest ally and our own forces in the region has never been more pressing, and many members of our Conference have urged immediate action,” Johnson said.
The Biden administration has requested that Congress approve more than $100 billion in supplemental funds for U.S. allies, humanitarian aid, and border security.
Bipartisan talks in the Senate could soon lead to a deal tying Biden&#8217;s request to border security reforms, but Johnson signaled frustration in his letter with how the negotiations have been conducted.
&#8220;While the Senate appears poised to finally release text of their supplemental package after months of behind closed doors negotiations, their leadership is aware that by failing to include the House in their negotiations, they have eliminated the ability for swift consideration of any legislation,&#8221; he said.
The White House released a statement on Saturday that highlighted how Johnson unveiled his new proposal as legislative text in the Senate was imminent after months of negotiations that included input from the Biden administration.
&#8220;We strongly oppose this ploy which does nothing to secure the border, does nothing to help the people of Ukraine defend themselves against [Russian President Vladimir] Putin’s aggression, and denies humanitarian assistance to Palestinian civilians&#8221; <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2024/02/03/statement-from-press-secretary-karine-jean-pierre-on-latest-house-republican-bill/" target="_blank" rel="noopener">said</a> White House press secretary Karine Jean-Pierre.

Speaker of the House Mike Johnson

Speaker Johnson Announces ‘Clean, Standalone’ Israel Aid Package

Speaker Johnson Announces 'Clean, Standalone' Israel Aid Package

Israel

Middle East

Mike Johnson

A former IRS contractor who leaked the tax returns of several wealthy and powerful individuals, including former President Donald Trump, was sentenced to five years in prison this week.
The U.S. Department of Justice <a href="https://www.dailywire.com/news/doj-announces-criminal-charges-against-man-for-allegedly-stealing-trump-tax-info-leaking-it-to-media">announced</a> criminal charges last September against 38-year-old Charles Edward Littlejohn, who was a contractor with the IRS from 2018 to 2020. Littlejohn pled guilty in October 2023 to unauthorized disclosure of tax returns and return information.
As a government contractor, Littlejohn &#8220;stole&#8221; Trump&#8217;s tax return information, the DOJ said on Monday, adding that he took steps to conceal his activities so he wouldn&#8217;t get caught. He also stole the tax return information of thousands of America&#8217;s wealthiest individuals, including figures like Jeff Bezos.
Judge Ana Reyes, a Biden nominee, imposed the maximum sentence on Littlejohn in federal court and compared him to those who participated in the January 6, 2021, riot at the U.S. Capitol.
“When you target the sitting president of the United States, you’re targeting the office and when you’re targeting the office of the president of the United States, you’re targeting democracy — you’re targeting our constitutional system of government,” she said, adding: “It cannot be open season on our elected officials — it just can’t.”
Acting Inspector General Heather Hill of the Treasury Inspector General for Tax Administration (TIGTA) said that the sentence should &#8220;serve as a warning to anyone who is considering emulating Mr. Littlejohn’s actions.&#8221;
&#8220;TIGTA relentlessly investigates individuals who illicitly access and disclose taxpayer information, regardless of their personal motivation,&#8221; she added. &#8220;TIGTA appreciates the commitment of the Criminal Division’s Public Integrity Section and the U.S. Attorney’s Office in ensuring those who abuse their positions of public trust are held accountable for their actions.&#8221;

Man Who Leaked Trump Tax Returns Sentenced To 5 Years In Prison

Courts

Republican senators are questioning the <a href="https://www.dailywire.com/topic/internal-revenue-service-irs" target="_blank" rel="noopener">IRS</a> about its audit of a watchdog organization that has released reports on multiple Biden nominees to key federal positions.
Sen. <a href="https://www.dailywire.com/topic/jd-vance" target="_blank" rel="noopener">J.D. Vance</a> (R-OH) and Sen. Mike Braun (R-IN) sent a letter to IRS Commissioner Daniel Werfel on Thursday asking for answers about the agency’s investigation into the American Accountability Foundation (AAF), a nonprofit watchdog that has reported on several President Joe Biden’s nominees who were later withdrawn from consideration.
“The IRS is once again harassing conservative groups. It should be no surprise to see Joe Biden borrowing directly from the Obama playbook,” Vance posted on X, sharing the letter to Werfel. 
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
The IRS is once again harassing conservative groups. It should be no surprise to see Joe Biden borrowing directly from the Obama playbook.
I won&#39;t stand for it &#8211; <a href="https://twitter.com/SenatorBraun?ref_src=twsrc%5Etfw">@SenatorBraun</a> and I are demanding answers on this clear weaponization of our government. <a href="https://t.co/vRGGFfFq2F">pic.twitter.com/vRGGFfFq2F</a>
&mdash; JD Vance (@JDVance) <a href="https://twitter.com/JDVance/status/1725171030476411151?ref_src=twsrc%5Etfw">November 16, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
In September, the AAF was told by the IRS that it was being investigated about whether it &#8220;operates in accordance with section 501(c)(3) of the Internal Revenue Code.” 
&#8220;But, to date, the IRS has neither presented any evidence that AAF has failed to observe the requirements of section 501(c)(3) nor explained why AAF may be at risk of failing to observe those requirements,&#8221; Vance and Braun said. “We do not need to remind you that the AAF audit follows on the heels of an ugly chapter in the IRS’s history, during which the agency unfairly targeted conservative groups for scrutiny on the basis of their views.&#8221;
Vance and Braun asked Werfel if there had been any internal discussions on the AAF’s political orientation and why it was singled out for audit out of the thousands of nonprofits. 
The AAF repeatedly drew attention to Biden FCC chair nominee Gigi Sohn’s <a href="https://www.foxnews.com/opinion/gigi-sohns-fcc-nomination-trouble-because-radical-views-being-gay-nothing">claims</a> that Fox News was “state-sponsored propaganda.” After months of pressure and criticism from Republican lawmakers, Sohn withdrew her nomination. 
The AAF also raised red flags about two other failed Biden nominees, National Highway Traffic Safety Administration nominee Ann Carlson and FAA nominee Phillip Washington. The Biden administration withdrew Carlson&#8217;s nomination in May, and Washington withdrew from his nomination in March.
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On Wednesday, Sheldon Whitehouse (D-RI) tweeted out an article on the investigation and commented, “Someone seems nervous.”
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
Someone seems nervous 👀<a href="https://t.co/rX9in6vAry">https://t.co/rX9in6vAry</a> <a href="https://t.co/b453OlbMMp">pic.twitter.com/b453OlbMMp</a>
&mdash; Sheldon Whitehouse (@SenWhitehouse) <a href="https://twitter.com/SenWhitehouse/status/1724917041298055202?ref_src=twsrc%5Etfw">November 15, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
In a statement to The Daily Wire, AAF President Tom Jones said that the IRS and Whitehouse were trying to intimidate them. 
&#8220;These thuggish, Soviet-style, tactics of intimidation are things I never thought I&#8217;d see in America. This country was founded so that men would be free, yet today we have elected government officials publicly boasting over having their enemies punished. It&#8217;s a chilling warning about the state of our republic. We have a God-given right &#8211; indeed, a duty &#8211; to hold the powerful accountable and we will continue to do so no matter what petty tyrants and tin pot wannabe dictators like Sheldon Whitehouse have to say about it as he sits in his elite whites-only country clubs.&#8221;
During the Obama years, the IRS was heavily scrutinized after it reportedly targeted Tea Party groups.

Lawmakers At Odds On Budget As Possible Government Shutdown Looms

Senators Question IRS Over Audit Of Conservative Org That Vets Biden Nominees

JD Vance

The GOP-led House is trying to set a fiscally responsible example starting with its plan to <a href="https://www.dailywire.com/news/house-gop-proposes-israel-aid-offset-by-irs-budget-cuts" target="_blank" rel="noopener">offset $14.3 billion</a> in aid for <a href="https://www.dailywire.com/topic/israel" target="_blank" rel="noopener">Israel</a> by slashing the same amount of funds meant for the <a href="https://www.dailywire.com/topic/internal-revenue-service-irs" target="_blank" rel="noopener">Internal Revenue Service (IRS)</a>, according to Speaker <a href="https://www.dailywire.com/topic/mike-johnson" target="_blank" rel="noopener">Mike Johnson</a> (R-LA).
In an interview on &#8220;Fox News Sunday,&#8221; Johnson shot back at Senate Majority Leader <a href="https://www.dailywire.com/topic/chuck-schumer" target="_blank" rel="noopener">Chuck Schumer</a> (D-NY), who claimed the legislation — which passed with bipartisan support on Thursday — was not a &#8220;serious&#8221; proposal.
&#8220;It’s really surprising to hear Sen. Schumer say that it’s not a serious proposal,&#8221; Johnson said, noting that the amount matches what the Biden administration sought from Congress, along with tens of millions of dollars for other national security issues such as Ukraine&#8217;s fight against Russian invaders.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
WATCH: <a href="https://twitter.com/SpeakerJohnson?ref_src=twsrc%5Etfw">@SpeakerJohnson</a> on his plan to avoid a government shutdown and pass aid for Israel and Ukraine. <a href="https://t.co/c0B77hCPOG">pic.twitter.com/c0B77hCPOG</a>
&mdash; Fox News Sunday (@FoxNewsSunday) <a href="https://twitter.com/FoxNewsSunday/status/1721193680554394054?ref_src=twsrc%5Etfw">November 5, 2023</a></blockquote>
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&#8220;What they don&#8217;t like is that in the House, we&#8217;re trying to be good stewards of the taxpayers’ resources,&#8221; he added. &#8220;We offset that spending. Instead of printing new dollars and/or borrowing it from another nation to send over to fulfill our obligations and help our ally, we want to pay for it. What a concept, and we’re trying to change how Washington works.&#8221;
The House Republican measure aims to further cut the budget of the IRS after President Joe Biden secured $80 billion through the Inflation Reduction Act to bolster and modernize the agency over 10 years — with an agenda to commit <a href="https://www.cnbc.com/2022/08/08/reconciliation-bill-includes-nearly-80-billion-for-irs-funding.html" target="_blank" rel="noopener">more than half</a> of the money to enforcement, particularly in <a href="https://www.nytimes.com/2023/04/06/business/economy/irs-tax-treasury.html#:~:text=WASHINGTON%20%E2%80%94%20The%20Internal%20Revenue%20Service,down%20on%20wealthy%20tax%20evaders." target="_blank" rel="noopener">going after wealthy tax evaders</a> — only for up to <a href="https://www.bloomberg.com/news/articles/2023-06-08/yellen-says-cut-to-irs-rebuild-won-t-affect-near-term-plans" target="_blank" rel="noopener">$21.4 billion</a> to get clawed back as part of a <a href="https://www.dailywire.com/news/biden-signs-bill-to-increase-debt-ceiling-avoid-federal-default" target="_blank" rel="noopener">debt ceiling deal</a> in June.
<a href="https://www.dailywire.com/news/12-house-dems-ignore-biden-veto-threat-help-pass-israel-aid-with-irs-cuts" target="_blank" rel="noopener">Twelve Democrats</a> broke ranks and joined with the vast majority of Republicans in approving the legislation, even after the White House signaled that Biden would veto the measure. Schumer claimed the House GOP plan &#8220;wastes precious time at a moment when we need to help Israel, Ukraine and send humanitarian aid to Gaza ASAP.&#8221; He <a href="https://www.dailywire.com/news/schumer-announces-senate-wont-even-consider-house-gop-israel-aid-proposal" target="_blank" rel="noopener">vowed</a> Senate would ignore it and &#8220;work on our own bipartisan emergency aid package that includes funding for aid to Israel, Ukraine, humanitarian aid including for Gaza, and competition with the Chinese Government.&#8221;
Johnson, who became speaker late last month, is starting his reign with an eye toward fiscal restraint. He spoke to anchor Shannon Bream about his <a href="https://www.dailywire.com/news/speaker-johnson-floats-laddered-stop-gap-measu" target="_blank" rel="noopener">methodical approach</a> to averting a government shutdown later this month while bringing forth individual spending bills. And Johnson emphasized that changing the &#8220;trajectory&#8221; leading to the federal debt reaching $33.6 trillion must be a top priority, even when it comes to providing emergency assistance to U.S. ally Israel as it fights Hamas following its terrorist attacks last month.
Though some have criticized the House GOP legislation by <a href="https://www.dailywire.com/news/house-gop-proposal-to-offset-israel-aid-with-irs-cuts-would-increase-deficit-cbo-finds" target="_blank" rel="noopener">seizing</a> on a Congressional Budget Office (CBO) analysis that <a href="https://punchbowl.news/cbo_estimate_for_the_israel_security_supp_approp_act_2024/" target="_blank" rel="noopener">found</a> the offset idea would decrease revenues by $26.8 billion over 10 years and therefore increase the federal deficit by $12.5 billion over that time period, Johnson shrugged off the critique, saying, &#8220;Only in Washington can you cut funding, add a pay-for to a new spending measure, and they say it’s terrible for the deficit.&#8221;
In addition, Johnson signaled openness to providing funds to tackle other national security concerns raised by the Biden administration, including the war in Ukraine and border security, but stressed they must be considered in the &#8220;proper order.&#8221;

Speaker Mike Johnson

Speaker Johnson Hopes To ‘Change’ Washington Starting With Israel Aid Offset By IRS Cuts

Speaker Johnson Hopes To 'Change' Washington Starting With Israel Aid Offset By IRS Cuts

U.S.

The House GOP <a href="https://rules.house.gov/bill/118/hr-Israel-Supplemental" target="_blank" rel="noopener">plan</a> to <a href="https://www.dailywire.com/news/house-gop-proposes-israel-aid-offset-by-irs-budget-cuts" target="_blank" rel="noopener">offset $14.3 billion</a> in aid for <a href="https://www.dailywire.com/topic/israel" target="_blank" rel="noopener">Israel</a> by slashing the same amount of funds meant for the <a href="https://www.dailywire.com/topic/internal-revenue-service-irs" target="_blank" rel="noopener">Internal Revenue Service (IRS)</a> would add to the federal deficit, according to a new analysis.
A cost estimate released by the Congressional Budget Office (CBO) <a href="https://punchbowl.news/cbo_estimate_for_the_israel_security_supp_approp_act_2024/" target="_blank" rel="noopener">found</a> the proposed $14.3 billion cut to IRS funding would &#8220;decrease revenues by $26.8 billion over the 2024–2033 period, resulting in a net increase in the deficit of $12.5 billion over that period&#8221; if enacted this month, relative to CBO&#8217;s May 2023 baseline.
The analysis by the nonpartisan agency gave congressional Democrats more ammunition to criticize the GOP measure, which they had claimed would benefit rich tax dodgers. &#8220;Shocking! Turns out letting wealthy people and corporations evade their taxes isn&#8217;t fiscally responsible,&#8221; <a href="https://twitter.com/WaysMeansCmte/status/1719722329796755929" target="_blank" rel="noopener">quipped</a> the X account for the House Ways and Means Committee Democrats.
New House Speaker <a href="https://www.dailywire.com/topic/mike-johnson" target="_blank" rel="noopener">Mike Johnson</a> (R-LA) indicated the plan was meant to be a starting point for negotiations with the Democrat-controlled Senate, describing it as a <a href="https://twitter.com/kayleighmcenany/status/1719077935238222161" target="_blank" rel="noopener">&#8220;first draft&#8221;</a> during an interview with Fox News. He also said the United States is &#8220;not just going to print money and send it overseas&#8221; and that he believes the American people would say that &#8220;standing with Israel and protecting the innocent over there is in our national interest and is a more immediate need than IRS agents.&#8221;
President Joe Biden asked Congress to approve roughly <a href="https://www.nytimes.com/2023/10/20/us/politics/bidens-funds-israel-ukraine.html" target="_blank" rel="noopener">$106 billion</a> in national security-related funds, including $14.3 billion for Israel — which is now at war following Hamas&#8217; deadly terrorist attacks on Israeli soil earlier this month. Biden&#8217;s request also sought $61.4 billion for Ukraine in its fight against Russia, as well as money for Taiwan and the Indo-Pacific, humanitarian assistance, and border security.
Some GOP lawmakers in Congress have called for <a href="https://twitter.com/chiproytx/status/1718038950609092964" target="_blank" rel="noopener">stand-alone bills</a> and <a href="https://twitter.com/RepAndyBiggsAZ/status/1719731726639870439" target="_blank" rel="noopener">demanded</a> more fiscal oversight. Others have <a href="https://www.politico.com/live-updates/2023/10/24/congress/bidens-big-bill-in-trouble-ukraine-israel-border-00123292" target="_blank" rel="noopener">signaled they are open</a> to linking financial assistance packages. Minority Leader <a href="https://www.dailywire.com/topic/mitch-mcconnell" target="_blank" rel="noopener">Mitch McConnell</a> (R-KY) delivered remarks on the Senate floor on Tuesday in which he said threats to the <a href="https://www.dailywire.com/topic/united-states" target="_blank" rel="noopener">United States</a> are <a href="https://www.dailywire.com/news/mcconnell-warns-of-intertwined-threats-amid-debate-over-israel-and-ukraine-aid" target="_blank" rel="noopener">&#8220;intertwined&#8221;</a> and called on Washington to rally behind its allies. A bipartisan, 60-vote coalition is needed to overcome a filibuster in the upper chamber.
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IRS Commissioner Daniel Werfel reportedly <a href="https://www.dailywire.com/news/irs-chief-claims-14-3-billion-israel-aid-offset-would-cost-90-billion-report" target="_blank" rel="noopener">said</a> the proposed offset for Israel aid would cost $90 billion, according to Washington Post reporter Jacob Bogage, who conveyed the comments <a href="https://twitter.com/jacobbogage/status/1719474212576858201" target="_blank" rel="noopener">in a post to X</a> on Tuesday. &#8220;All of those funds go to increased scrutiny on tax evasion going on at the highest wealth levels,&#8221; Werfel said, adding that the IRS would be &#8220;leaving money on the table.&#8221;
The House GOP proposal aims to further cut the budget of the IRS after Biden secured $80 billion through the Inflation Reduction Act to bolster and modernize the agency over ten years — with an agenda to commit <a href="https://www.cnbc.com/2022/08/08/reconciliation-bill-includes-nearly-80-billion-for-irs-funding.html" target="_blank" rel="noopener">more than half</a> of the money to enforcement, particularly in <a href="https://www.nytimes.com/2023/04/06/business/economy/irs-tax-treasury.html#:~:text=WASHINGTON%20%E2%80%94%20The%20Internal%20Revenue%20Service,down%20on%20wealthy%20tax%20evaders." target="_blank" rel="noopener">going after wealthy tax evaders</a> — only for up to <a href="https://www.bloomberg.com/news/articles/2023-06-08/yellen-says-cut-to-irs-rebuild-won-t-affect-near-term-plans" target="_blank" rel="noopener">$21.4 billion</a> to get clawed back as part of a <a href="https://www.dailywire.com/news/biden-signs-bill-to-increase-debt-ceiling-avoid-federal-default" target="_blank" rel="noopener">debt ceiling deal</a> in June. A preliminary CBO analysis <a href="https://www.budget.senate.gov/imo/media/doc/CBO%20Preliminary%20Score%20of%20IRS%20Rescissions%206-1-23_Redacted.pdf" target="_blank" rel="noopener">estimated</a> a $21.4 billion IRS cut would increase the deficit by $19 billion over ten years because of lost revenue.

House GOP Proposal To Offset Israel Aid With IRS Cuts Would Increase Deficit, CBO Finds

Congressional Budget Office (CBO)

House Republicans

The <a href="https://www.dailywire.com/topic/internal-revenue-service-irs" target="_blank" rel="noopener">Internal Revenue Service</a> (IRS) estimates that the gross tax gap amounts to at least $688 billion, resulting from Americans’ non-filing, underpaying, and underreporting of their taxes.
In a Thursday press release, the IRS <a href="https://www.irs.gov/newsroom/irs-updates-tax-gap-projections-for-2020-2021-projected-annual-gap-rises-to-688-billion" target="_blank" rel="noopener">characterized</a> the tax gap increase as “a significant jump” from previous years’ estimates, though noncompliance was at around 15 percent. IRS Commissioner Danny Werfel said that the agency would apply Inflation Reduction Act (IRA) funds into compliance efforts, namely targeting those with higher incomes and wealth.
“With the help of Inflation Reduction Act funding, we are adding focus and resources to areas of compliance concern, including high-income and high-wealth individuals, partnerships and corporations,” said Werfel. “These steps are urgent in many ways, including adding more fairness to the tax system, protecting those who pay their taxes and working to combat the tax gap.”
Last month, the IRS <a href="https://www.irs.gov/newsroom/irs-to-establish-special-pass-through-organization-to-help-with-high-income-compliance-efforts-new-workgroup-to-blend-current-employees-and-new-hires-to-focus-on-complex-partnerships-other-key-areas" target="_blank" rel="noopener">announced</a> that it would establish a 3,700-member special pass-through organization within its Large Business and International (LB&amp;I) Division to assist in raising high-income compliance. The newest LB&amp;I Division followed an earlier <a href="https://www.irs.gov/newsroom/irs-announces-sweeping-effort-to-restore-fairness-to-tax-system-with-inflation-reduction-act-funding-new-compliance-efforts" target="_blank" rel="noopener">announcement</a> pledging to “shift attention to [the] wealthy from working-class taxpayers” using an Artificial Intelligence-bolstered detection system.
The IRS promised to ensure audit rates wouldn’t increase for those earning less than $400,000 annually and additional safeguards for those claiming the Earned Income Tax Credit. It also promised to began investigations into 75 of the largest industry partnerships in the nation by the end of the month.
Earlier this week, the IRS <a href="https://microsoft.gcs-web.com/node/31951/html%23d530324dex991.htm" target="_blank" rel="noopener">told</a> Microsoft it owed $28.9 billion in tax for 2004 to 2013, plus penalties and interest. Microsoft responded that it disagreed with the IRS determination, and that it has paid over $67 billion in taxes since 2004. Microsoft also said its taxes paid under the Tax Cuts and Jobs Act would decrease the IRS estimation by up to $10 billion.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
In the largest audit in U.S. history, the IRS rejected Microsoft’s attempts to channel profits to a small factory in Puerto Rico that burned Windows software onto CDs. <a href="https://t.co/Kr460cDtnf">https://t.co/Kr460cDtnf</a>
&mdash; ProPublica (@propublica) <a href="https://twitter.com/propublica/status/1712845812592410674?ref_src=twsrc%5Etfw">October 13, 2023</a></blockquote>
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According to the IRS, one percent in compliance equals about $46 billion in collections. That 15 percent noncompliance, therefore, amounts to about $688 billion.
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Last year’s compliance efforts yielded over $4.9 trillion in taxes, penalties, interest, and user fees.
The IRS noted in Thursday’s announcement that it anticipated its enforcement efforts and taxpayers’ late payments to shrink the tax gap by $63 billion, achieving 86.3 percent compliance. The projected share of taxes paid between 2014-2016 was 87 percent. The IRS stated that the decline in compliance was due to changes in types of income and how that income is reported, not a shift in compliance behavior.
Taxes owed due to nonfiling increased from $41 billion in 2017-2019 to $77 billion in 2021. Taxes owed due to underreporting increased from $445 billion in 2017-2019 to $542 billion in 2021. Taxes owed due to underpayment increased from $64 billion in 2017-2019 to $68 billion in 2021.
However, the IRS noted that noncompliance may be greater than their estimates. The agency cited their shortcomings in oversight on pandemic credits, offshore activities, digital assets, cryptocurrency, corporate income tax, and income from flow-through entities and illegal activities as factors that likely rendered their $688 billion figure too low.
The IRS also announced that the estimate was the first given for a single tax year, breaking away from prior practice of issuing biennial tax gap projections.
Tax gap estimates and projections rely on compliance behavior derived from the most recent completed audits. This latest estimate was gleaned from the 2014-2016 tax years’ audits. The IRS estimated the tax liability to have increased by 38 percent from those years to 2021.

IRS Estimates American Underpayment Caused $688 Billion Tax Gap

Economy

Money

<a href="https://www.dailywire.com/topic/hunter-biden" target="_blank" rel="noopener">Hunter Biden</a> sued the <a href="https://www.dailywire.com/topic/internal-revenue-service-irs" target="_blank" rel="noopener">IRS</a> on Monday over alleged violations of his privacy when agents went to Congress with details of the agency’s investigation into Biden’s taxes.
Biden is under pressure from federal investigators and prosecutors and has adopted an adversarial stance since a plea deal fell apart in July. The first son’s approach to federal officials mirrors his stance toward Republicans accusing him of engaging in corrupt overseas business dealings.
Biden’s lawsuit targets the IRS, alleging that two whistleblowers who made claims of misconduct leaked sensitive information about his taxes to Congress. The lawsuit claims the leaks violated federal tax laws and Biden’s right to privacy, according to <a href="https://www.washingtonpost.com/national-security/2023/09/18/hunter-biden-lawsuit-irs/" target="_blank" rel="noopener">The Washington Post</a>.
Biden “has no fewer or lesser rights than any other American citizen, and no government agency or government agent has free reign to violate his rights simply because of who he is,” the lawsuit says.
IRS agents Gary Shapley and Joseph Ziegler went to Congress to expose what they said was a double standard in the way the IRS and Department of Justice had handled the investigation into Biden’s tax affairs and purchase of a firearm. The whistleblowers said they were blocked from pursuing lines of questioning that had the potential of implicating Biden’s father, President Joe Biden. They also said Hunter was given favorable treatment, such as unnecessary warnings ahead of certain investigative actions.
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The lawsuit claims that the whistleblowers revealed certain information to Congress that could only be gained from viewing Hunter’s personal tax information.
“This assault on Mr. Biden’s rights involved the public disclosure of his confidential tax information during more than 20 nationally televised and non-congressionally sanctioned interviews and numerous public statements,” the lawsuit says, according to the Post.
The whistleblower made “detailed allegations regarding the specific tax years under investigation, the amounts of deductions, the nature of those deductions, and allegations of liability regarding specific tax years and the amount thereof, that could only be known to them based on a review of the physical tax returns themselves,” the lawsuit says.
A plea agreement Hunter’s legal team negotiated with Delaware U.S. Attorney David Weiss, before Weiss was named special counsel, fell apart after the judge in the case began asking about the limits on immunity granted by a diversion agreement on a gun charge. The failed deal would have included Hunter pleading guilty to two misdemeanor tax charges.

Hunter Biden

Hunter Biden Sues IRS Over Whistleblower Leaks

Delaware

Department of Justice

Lawsuit

Attorneys working with one of the <a href="https://www.dailywire.com/topic/internal-revenue-service-irs" target="_blank" rel="noopener">Internal Revenue Service (IRS)</a> agent <a href="https://www.dailywire.com/topic/whistleblower" target="_blank" rel="noopener">whistleblowers</a> in the criminal investigation of <a href="https://www.dailywire.com/topic/hunter-biden" target="_blank" rel="noopener">Hunter Biden</a> released their client&#8217;s notes in response to an <a href="https://www.dailywire.com/topic/fbi" target="_blank" rel="noopener">FBI</a> agent&#8217;s testimony casting doubt on a key claim.
IRS supervisory special agent Gary Shapley wrote down that Delaware&#8217;s U.S. Attorney David Weiss stated in an October 2022 meeting that he was &#8220;not the deciding person&#8221; when it came to bringing charges in the case, as shown in a document obtained and <a href="https://www.scribd.com/document/671103439/Shapley-notes#fullscreen=1" target="_blank" rel="noopener">published</a> by <a href="https://www.cbsnews.com/news/hunter-biden-see-irs-whistleblower-gary-shapleys-handwritten-notes-meeting/" target="_blank" rel="noopener">CBS News</a>.
Shapley&#8217;s attorneys <a href="https://empowr.us/shapley-attorneys-provide-hand-written-notes-to-house-committees-regarding-weiss-meeting/" target="_blank" rel="noopener">wrote</a> to the leaders of the House Judiciary Committee on Wednesday declaring that they were sharing an unredacted copy of the notes in response to a <a href="https://www.washingtonpost.com/politics/2023/09/12/hunter-biden-fbi-transcript-weiss-sobocinski/" target="_blank" rel="noopener">Washington Post report</a> that revealed Thomas Sobocinski, a senior FBI agent also involved in the Biden inquiry, told the congressional panel that he left the same October 2022 meeting believing that Weiss did have the authority to bring charges.
&#8220;According to the Washington Post story, Mr. Sobocinski reportedly failed to recall in his interview with Committee staff certain details of the meeting recorded in SSA Shapley’s email,&#8221; attorneys Tristan Leavitt and Mark Lytle said in their letter.
&#8220;However, Mr. Sobocinski apparently acknowledged that he took no notes in the meeting, nor did he document it in any contemporaneous fashion afterwards,&#8221; they added. &#8220;By contrast, SSA Shapley took notes during the meeting. These notes, combined with his fresh memory of the meeting, formed the basis for the email he sent later that day and corroborate his current recollection.&#8221;
Shapley&#8217;s email correspondence was previously given to the House Ways and Means Committee and then <a href="https://twitter.com/JsnFostr/status/1672223928561926144" target="_blank" rel="noopener">disclosed</a> to the public. Similar to his handwritten notes, Shapley&#8217;s email expressed that Weiss had told investigators at the October 2022 meeting he was not the &#8220;deciding person&#8221; when it came to charges. Shapley&#8217;s IRS superior, Darrell Waldon, replied by thanking Shapley and saying, &#8220;You covered it all.&#8221;
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Shapley, who was joined by fellow IRS agent <a href="https://www.dailywire.com/news/ex-fbi-agent-says-irs-whistleblower-was-right-bidens-were-tipped-off-during-investigation" target="_blank" rel="noopener">Joseph Ziegler</a> in coming forward as a whistleblower, brought forth allegations that the criminal inquiry into Biden was <a href="https://www.dailywire.com/news/plurality-of-americans-lack-confidence-in-dojs-hunter-biden-inquiry-poll" target="_blank" rel="noopener">slow-walked by top officials</a> in a way that could have precluded serious charges.
Amid increasing scrutiny on his years-long investigation, Weiss went from saying he had the <a href="https://static.foxnews.com/foxnews.com/content/uploads/2023/07/2023.06.30-David-Weiss-1.pdf" target="_blank" rel="noopener">&#8220;ultimate authority&#8221;</a> to acknowledging discussions with Department of Justice (DOJ) officials <a href="https://www.politico.com/f/?id=00000189-403e-d0a8-a59b-dffe47490000" target="_blank" rel="noopener">who &#8220;assured&#8221; him</a> that he would have power to bring charges outside of his district if it proved necessary.
Weiss and Biden&#8217;s legal team eventually settled on a plea agreement involving tax evasion and gun charges that could have kept the first son out of prison. But the agreement — <a href="https://www.dailywire.com/episode/ep-1774-hunter-s-sweetheart-plea-deal-and-the-continuing-biden-coverup3" target="_blank" rel="noopener">dubbed a &#8220;sweetheart plea deal&#8221;</a> by Republicans — fell apart this summer after a judge raised concerns about an immunity clause.
The DOJ indicated last week that Weiss, now with special counsel powers, intends to <a href="https://www.dailywire.com/news/breaking-special-counsel-david-weiss-to-indict-hunter-biden-filing-says" target="_blank" rel="noopener">seek an indictment</a> against Biden on gun charges by the end of the month, while one of Biden&#8217;s lawyers <a href="https://www.nytimes.com/2023/09/06/us/politics/hunter-biden-indictment-gun-charges.html" target="_blank" rel="noopener">argued</a> in a statement that a pre-trial diversion agreement &#8220;remains valid and prevents any additional charges from being filed.&#8221;
<a href="https://www.dailywire.com/news/mccarthy-announces-formal-impeachment-inquiry-against-biden">House Speaker Kevin McCarthy</a> (R-CA) has indicated that the prospect of the first son receiving &#8220;special treatment&#8221; is an <a href="https://twitter.com/Olivia_Beavers/status/1701715899248726504">area of interest</a> for investigators as they engaged in an impeachment inquiry against President Joe Biden. The White House has <a href="https://www.dailywire.com/news/white-house-calls-on-media-to-help-fight-against-biden-impeachment-inquiry">called on the media</a> for assistance in fending off the inquiry.

Gary Shapley

IRS Whistleblower Notes Released To Counter FBI Agent’s Testimony On Hunter Biden Probe

IRS Whistleblower Notes Released To Counter FBI Agent's Testimony On Hunter Biden Probe

Whistleblowers

The Internal Revenue Service lost millions of sensitive tax records of individuals and businesses, according to a new watchdog report. 
The Treasury Inspector General for Tax Administration released a <a href="https://www.tigta.gov/sites/default/files/reports/2023-08/2023ier007fr.pdf" target="_blank" rel="noopener">report</a> last week finding that the IRS was not “adequately” safeguarding tax information when shipping it to and from processing centers. The watchdog found that the IRS can&#8217;t locate records that were supposed to be transferred from a facility in California to Kansas City, Missouri, and the agency is also missing thousands more records that were stored in Utah.
“Our review identified that the IRS is not adhering to its own internal guidelines when sending large volumes of sensitive taxpayer information to and from its Tax Processing Centers,” the watchdog report said, adding, “As a result, the IRS is unable to identify, notify, and/or offer protection to taxpayers when sensitive tax information is lost in the mail and at risk for potential identity theft.”
The watchdog said it found seven empty boxes that should have contained around 170 microfilm cartridges at a facility in Ogden, Utah, POLITICO <a href="https://www.politico.com/news/2023/08/10/watchdog-irs-tax-records-00110637" target="_blank" rel="noopener">reported</a>. The cartridges hold up to 2,000 images each, and IRS employees at the facility did not know where they were. The report added that tax records from the 2010 fiscal year were supposed to be transferred from a facility in Fresno, California, to an IRS processing center in Kansas City after the California facility shut down — but the IRS couldn&#8217;t locate those records either. 
“The lack of documentation identifying the specific taxpayers whose tax information is included in a lost package has impacted the IRS’s ability to notify and protect taxpayers,” the report added.
The IRS blamed underfunding for the problem, claiming that it has been forced to place employees responsible for inventories in other jobs, according to POLITICO. The IRS said it is “confident that as the backlog of non-tax documents is processed, the remaining cartridges will be incorporated.”
President Joe Biden’s Inflation Reduction Act passed last year included $80 billion in new funding for the IRS for the next ten years, allowing it to hire additional agents. The additional funding for the IRS was broken into four categories: enforcement, operations support, business system modernization, and taxpayer services, <a href="https://taxfoundation.org/blog/irs-funding-plan-inflation-reduction-act/" target="_blank" rel="noopener">according</a> to the Tax Foundation. The IRS <a href="https://www.irs.gov/pub/irs-pdf/p3744.pdf" target="_blank" rel="noopener">said</a> some of the new funding would specifically go toward “cutting-edge technology, data, and analytics to operate more effectively.” 
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Republicans on Capitol Hill have criticized the IRS for multiple instances of alleged mishandling of sensitive tax information. In 2021, the IRS destroyed 30 million paper tax returns, which “horrified” tax experts. GOP lawmakers also questioned the agency after ProPublica published an expose that included information from thousands of tax returns from wealthy Americans.

IRS Lost Millions Of Sensitive Taxpayer Records: Watchdog

General

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