Liberty and justice for all United States persons abroad

The Isaac Brock Society

Posted on by Posted in Issues regarding US persons abroad 133 Comments

Shulman went through the first of at least two testimonies he is required to give concerning the #IRS scandal. Today, he appeared before the Senate Finance Committe. It did not go well for Mr. Shulman. He said he was “dismayed” and “saddened ” after reading the IG’s report that indicated targeting had gone on within the IRS concerning 501(c)(4) exemption. applications. In his usual instructive yet digressing style, he appeared to try and give the appearance  of acceptance that the the questions concerning the fairness of the IRS’ actions, were justified. Yet he did not apologize and claimed he wasn’t responsible for what happened regarding the targeting. Sounds rather like a terrified USC trying to appeal to the IRS that he/she wasn’t responsible for not filing a tax return, or an FBAR, since he/she had no knowledge of it, doesn’t it? Apparently the panel was not particularly sympathetic to Shulman (or Miller).

See the video of his comments at:

http://www.politico.com/story/2013/05/irs-scandal-doug-shulman-91665.html   (1:35)

Interestingly, Baucus took the unusual step of swearing each witness in. I wonder what level of risk that involves. I hear that famous phrase “under penalty of perjury” ringing deliciously in my ears!

“Shulman has come under fire for telling a House committee in March 2012 that the  IRS was “absolutely” not targeting conservative groups. He was briefed on the  program in May but never disclosed it to Congress before stepping down in  November at the end of a six-year term.”  If he could claim the IRS was not targeting in March 2012, it would appear that he knew it was going on. What difference does it make that he was briefed in May. What matters is that he knew, it was his responsibility to follow through and get to the bottom of it, given the seriousness of the matter. The fact he did not tell Congress is what should nail him. And what does that remind of us?  Willfulness. Willful blindness (NOT!). Hm, what’s the penalty for that?  Lying to Congress could land him 5 years in jail.

http://thehill.com/blogs/on-the-money/domestic-taxes/300969-former-irs-chief-i-didnt-know-full-story-before-i-left

Mr. Shulman’s testimony “frustrated Republicans already irritated by Miller’s contentious appearance before the  House Ways and Means Committee last Friday and shed little additional light on  when key figures in the White House and Treasury found out about the IRS  targeting.” I find it interesting that, although partisan-based, the Republicans seem to feel Obama is responsible so how could anyone not find Shulman responsible? It was his job to lead the IRS and knowing there was a problem, it is inexcusable that he did not investigate the full extent of it. Orrin Hatch said the fact Shulman and Miller found out in May 2012 and did not notify Congress amounted to “a lie of omission.”
http://thehill.com/blogs/blog-briefing-room/news/300573-dem-ex-irs-chief-lied-to-congress

A Democrat, Rep. Joseph Crowley, indicated he believed Shulman lied to Congress under oath when he told lawmakers last year that the agency  did not give special attention to certain groups.

http://www.cnn.com/2013/05/21/politics/irs-targeting/index.html?hpt=hp_inthenews

Baucus and Hatch sent a letter to the IRS on Monday seeking an exhaustive list of information about the case as part of a full investigation by their committee. There is a deadline (can’t find the original info) and there was no mention of any possibility of an extension. Hmmm, what kind of accuracy penalties, in addition to non-filing compliance, could we be looking at here?   LOL!

According to The Hill, the Justice Department has launced a criminal investigation into the matter. And Lois Lerner will plead the 5th tomorrow when appearing before the House Oversight Committee.

Tune in tomorrow to the House Oversight Committee hearing where Mr. Shulman will appear again.

 

 

 

133 thoughts on “How Does it Feel Mr. Shulman, How Does it Feel?”

  1. Can’t wait to the day when there is going to be a hearing about the harm done to minnows, immigrants and expats alike in OVDI. Doubt it’s going to happen, though, as all the people who joined the program are labelled “tax cheats”.

  2. Judging by the way the IRS is currently performing triage moving people from OVDI into Streamlined, I’d say lots of people already know!

  8. Schulman on 2011 OVDI:

    “As I’ve said all along, the goal is to get people back into the U.S. tax system,” Shulman said. “Combating international tax evasion is a top priority for the IRS. We have additional cases and banks under review. The situation will just get worse in the months ahead for those hiding assets and income offshore. This new disclosure initiative is the last, best chance for people to get back into the system.”

    That lie and targeting of USP’s abroad has cost my husband and me dearly. The IRS can’t get people out of OVDI into Streamlined fast enough. This is a double blow for us now that lawmakers are considering a return to residency based taxation in the US of A. It seems that those willing to lie low (wilful tax evasion), will certainly fare much better than those who made efforts to do what they considered ‘the right thing’.

  9. @Just Me
    This is very good. I wonder if we could consider trying a somewhat different approach or emphasis than we have in the past in order to try and stop pressing the buttons that label us as rich fat cats and tax cheats? Something that doesn’t ignite the “paying our fair share” label. Perhaps just a simple list of non-accusatory facts of what Constitutional rights are being violated. The most obvious one is OVDI and the 8th Amendment. We have an unexpected “in” that we have not had before. The tone of how we do it matters.
    I found I was able to register on the WH petitions site by simply using my old zip code and a hot mail address. Maybe this could address old comments of not being able to send email because rep/sen sites only accepting “local” communications.
    Also, since we have listened to some of the more vocal critics in the two hearings anyone who falls into their constituencies be urged to write. Example-I am from OH and in the oversight hearing, Jordan from OH and Turner (who would be my rep) would be two to tell my story in such a way as to make them identify with me as a person (rather than simply a potential voter).Turner actually tried to do this with Shulman at the opening of his (Turner’s) comments and my impression was Shulman sort of laughed at him. Turner represents Oakwood (the suburb of Dayton where Shulman is from). Oakwood is much more affluent than the average area in the district. Chances are good that Jordan likely knows my Lima republican cousins who are lawyers (though that may not be something I could use…).
    At any rate, it may be worth trying.

  10. Thanks for the link, Just Me.

    My comment in reply to Roger’s:

    Thanks for your thoughtful comment, RogelioC. Why is this issue not in the media?

    Why did Commissioner Shulman repeatedly ignore the Taxpayer Advocate Service, Nina Olson’s TADs, both for US and international taxpayers?

    Will the new Acting Commissioner pay attention and communicate with Nina Olson on the issues she has identified as one of his first responsibilities?

    There is serious collateral damage done by the US’s citizenship-based taxation laws — and the IRS is taking advantage of decades of turning a blind eye for now outrageous penalties for $0.00 or very little actual tax owed to the US.

    And now we have FATCA. Shameful tactics of the IRS and the US Congress that has built the monstrosity of Tax Code. Faux reciprocity — will the US Congress allow full reciprocity for FATCA to every country of the world?

    It is apparent that US Persons who left the US to live in other countries have had and continue to have punitive action from IRS and Congress as they are stated and perceived “traitors”. The real tax evaders, for the most part, reside within the shores of the US, not offshore.

  11. Here is one reply about Roger in reply to Jackie Bugnion:

    30 minutes ago

    Roger Conklin is just one of many hare-brained Ayn Rand sociopathic Republicans.

  12. @Calgary…

    I saw your comment and Rogers and have added my own (too long) comment. I should probably pull this Hill article out and make a separate post of it, also I think I will send some emails to the various Representatives mentioned there, to document the abuse of FBAR penalty application.

  13. @Calgary…

    Btw, I could not help but respond to that comment on Roger…

    Do you personally know Roger Conklin to make such charges? I thought not. I will try hard not to retaliate with equal mis-characterizations of you, but a few do come to mind.. 🙂

    That said, even if he were as you charge, and he is NOT, that still does not diminish the correctness of his comments. I know it is easier to name call or make hyperbolic generalizations than deal with the substantive issues he raises, but you should try, even though it is more fun to make scurrilous comments.

    However, given you comments, I can see your ears may not be open to anything that challenges your ideological certainty. Just make a baseless charge and move own rather than face the uncomfortable reality that you could be wrong.

    A movie title analogy comes for you comes to mind. Eyes Wide Shut.

  14. “Urge President Obama to appoint a special prosecutor in the IRS scandal. Please sign this petition and share it with your friends.”

    Are you kidding? Schulman got his marching orders from Obama. All Obama wants to see is more revenue streams. He will do whatever he can to shove this mess so far under the public radar that no-one will be able to find it with a pick and shovel. And as far as the tea party is concerned, there is no sympathy from them for anything other than the fact that THEY were picked on. Still think the homelanders care about what happens to us? Not a chance in hell.

  15. @nobledreamer

    Sounds like a good idea. I am going to try to get an appointment with my Democrat Representative Rick Larsen, or his tax aide. Will use your ideas

  18. The IRS Scandal, Day 15

    IRS Executive Announcement, Ken Corbin Has Been Selected to be the Acting Director, Exempt Organizations, Tax Exempt/Government Entities Division
    The Atlantic: The IRS Scandal Is a Test: Is It Too Hard to Fire Misbehaving Bureaucrats?
    The Atlantic: The IRS Scandal Isn’t About Taxes—It’s About Disclosure
    Bloomberg: IRS Hearings Express Lawmakers’ Outrage With Few Revelations
    CBS News: IRS Scandal May Reduce Audit Risk
    Forbes: IRS Takes The Fifth, But You Can’t, by Robert W. Wood
    Fox News: How Political Pressure on the IRS Began
    The Hill: Coburn: Constituents Linking IRS Audits to Mitt Romney Donations
    The Hill: IRS’s Lerner Placed on Administrative Leave After Refusing to Testify
    Mother Jones: Who Will Stick Up For the IRS?
    National Law Journal: IRS Official May Have Unwittingly Lost Right to Silence
    National Review: Cues from Above: The White House and the IRS, by Charles Krauthammer
    National Review: Lois Lerner Directly Involved in IRS Targeting, Letters Show
    New York Times: IRS Suspends Official at Center of Storm
    Politico: Poll: 42 Percent Rate IRS Job Poor
    Politico: IRS Official Defies Washington
    Real Clear Politics: Pelosi Blames “Bush Appointee” For “Politicized” IRS Scandal
    U.S. News & World Report: IRS-Targeted Group: ‘We Want the Truth’ Fact-Finding Is the Aim of Conservative Lawsuit Against IRS
    USA Today: IRS Replaces Official Involved in Tea Party Controversy
    Wall Street Journal op-ed: A Battering Ram Becomes a Stonewall: The IRS’s Leaders Refuse to Account for the Agency’s Corruption and Abuse, by Peggy Noonan
    Wall Street Journal: IRS Places Official at Center of Controversy on Leave
    Washington Post editorial: Why Did the IRS Stay Silent?
    Washington Post: How the IRS Scandal Is Like ‘The Simpsons’
    Washington Post: IRS Official Lois Lerner Placed on Leave Amid Scandal
    Washington Post: IRS Replaces Official Who Publicly Revealed Targeting of Tea Party Groups
    Washington Post: The Unwelcome Role of the IRS in Obamacare
    Weekly Standard: Senators Call for Lois Lerner to Be Fired


  19. How the IRS scandal is like ‘The Simpsons’

    Congress has so far held three hearings on the Internal Revenue Service’s targeting of conservative groups. And, all of those hours can be summed up in just four words: “I didn’t do it.”

    Those words were, of course, made famous by one Bart Simpson, the mischievous little boy on the greatest show ever.

  20. IRS Hearings — Next Steps??

    Politico: IRS news poised to slow — leaving questions of what’s next

    Members themselves are partially to blame for the slower pace about to kick in. The three committees investigating the misconduct — House Ways and Means, House Oversight and Government Reform and Senate Finance — have buried the agency under mountains of questions and document requests.

    The IRS and the inspector general are working on responses — but it’s going to take longer than anyone would like. That could mean that it will be several more weeks until new revelations on the scandal come to light.

    And when the documents are ready, they could come all at once.
    …
    Congress has heard from an inspector general, disgraced IRS officials and a senior member of the Obama administration.

    Next up, the conservative targets.

    Issa reached an agreement on Wednesday with Maryland Rep. Elijah Cummings, the top Democrat on the Oversight Committee, to bring groups targeted by the IRS to testify about their experience. That process could start as early as June, according to sources who asked to remain anonymous.

    Meanwhile, Issa and Rep. Charles Boustany, the chairman of the Ways and Means oversight subcommittee, said panel staffers have begun privately interviewing IRS employees both in Washington and the Cincinnati field office where the misconduct originated — a process that will continue in the coming weeks.

    “We’re coordinating with the Oversight and Government Reform Committee to do transcript interviews with all of the Cincinnati employees,” Boustany said.

    …

    Not all members are willing to wait for more deadlines and delays.

    … warned of the prospect of a special prosecutor if the IRS doesn’t cooperate with Congress.

    But Issa — no stranger to tough talk — is dismissing such talk. He’s opting to keep the scandal inside the committees already tasked with the investigation.

    “This is what our committee does, investigate and propose reforms,” Issa said. “We do it well.”

    Reform talk

    As the dust settles, expect to hear more talk from both Congress and the White House about what might be done to make good on pledges to never allow the IRS to become embroiled in such a scandal again.

    Camp told reporters on Thursday that Congress needs to change the way the IRS does business.

    “Clearly, at first look, I think giving the IRS less discretion is going to be important to do,” Camp told reporters on Thursday.

    For Issa, the ultimate goal of his hearings will be to identify areas where the IRS needs to be overhauled.

    “Our challenge will be to get reform,” Issa said. “That will be our exit strategy.”

  21. @Calagary411

    Wouldn’t it be nice if the outrage and the investigations centered on Americans Abroad, Citizenship taxation and IRS OVDP targeting and penalty abuse instead, where real financial harm was done, and not just political harm.

  22. @Calgary411

    There are too many comments there, but I put one up anyway

    Wouldn’t it be nice if the outrage and the investigations centered on the targeting of Americans Abroad, Citizenship taxation and IRS OVDP penalty abuse instead, where real financial harm was done, and not just political harm.

    They wouldn’t need hearings and investigations, they could just read the most recent National Tax Advocate Reports to Congress, which is right in front of their noses and they continue to ignore…

    Although, they might want to call Shulman to task for stonewalling and ignoring Nina Olson Tax Advocate Directive to rescind his “bait and switch” practices.

    Here, have a read yourself.

    Title: The IRS’s Offshore Voluntary Disclosure Program “Bait and Switch” May Undermine Trust for the IRS and Future Compliance Programs

    http://1.usa.gov/10fs8Qr

    Title: The IRS’s Offshore Voluntary Disclosure Programs Discourage Voluntary Compliance by Those Who Inadvertently Failed to Report Foreign Accounts

    http://1.usa.gov/VRJVsc

    Title: Challenges Persist for International Taxpayers as the IRS Moves Slowly to Address Their Needs

    http://1.usa.gov/TLFb9l

  23. Excellent comment, Just Me, with all they need to look at if they really WANT to research the international individual taxation story and how Nina Olson’s findings have been ignored by the IRS, Treasury, Congress.

    I feel few really understand the concept of citizenship-based taxation. It goes right over their heads. Then throw in the terms like FBAR, OVDP, OVDI, FATCA. You have provided a succinct reader-friendly summary.

    If only, as you point out, EYES were not WIDE SHUT.

  24. I’ve been feeding the Wyoming crew: Barrasso, Lummis, Enzi. I copy pasted your guys Hill comments to them last night. Enzi confirmed to me last week in an email that they have indeed discussed RBT in their committees (as was documented in Ways and Means, in the house)

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