Politics

IRS Office That Targeted Tea Party Also Disclosed Confidential Docs From Conservative Groups

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The same IRS office that deliberatelytargeted conservative groups applying for tax-exempt status in the run-up to the 2012 election released nine pending confidential applications of conservative groups to ProPublica late last year.

The IRS did not respond to requests Monday following up about that release, and whether it had determined how the applications were sent to ProPublica.

In response to a request for the applications for 67 different nonprofits last November, the Cincinnati office of the IRS sent ProPublica applications or documentation for 31 groups. Nine of those applications had not yet been approved—meaning they were not supposed to be made public. (We made six of those public, after redacting their financial information, deeming that they were newsworthy.)

On Friday, Lois Lerner, the head of the division on tax-exempt organizations, apologized to Tea Party and other conservative groups because the IRS’ Cincinnati office had unfairly targeted them. Tea Party groups had complained in early 2012 that they were being sent overly intrusive questionnaires in response to their applications.

That scrutiny appears to have gone beyond Tea Party groups to applicants saying they wanted to educate the public to “make America a better place to live” or that criticized how the country was being run, according to a draft audit cited by many outlets. The full audit, by the Treasury Department’s inspector general for tax administration, will reportedly be released this week. (ProPublica was not contacted by the inspector general’s office.) (UPDATE May 14: The audit has been released.)  

Before the 2012 election, ProPublica devoted months to showing how dozens of social-welfare nonprofits had misled the IRS about their political activity on their applications and tax returns. Social-welfare nonprofits are allowed to spend money to influence elections, as long as their primary purpose is improving social welfare. Unlike super PACs and regular political action committees, they do not have to identify their donors.

In 2012, nonprofits that didn’t have to report their donors poured an unprecedented $322 million into the election. Much of that money — 84 percent — came from conservative groups. 

As part of its reporting, ProPublica regularly requested applications from the IRS’s Cincinnati office, which is responsible for reviewing applications from nonprofits.

Social welfare nonprofits are not required to apply to the IRS to operate. Many politically active new conservative groups apply anyway. Getting IRS approval can help with donations and help insulate groups from further scrutiny. Many politically active new liberal nonprofits have not applied.  

Applications become public only after the IRS approves a group’s tax-exempt status.

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.

One of the applications the IRS released to ProPublica was from Crossroads GPS, the largest social-welfare nonprofit involved in the 2012 election. The group, started in part by GOP consultant Karl Rove, promised the IRS that any effort to influence elections would be “limited.” The group spent more than $70 million from anonymous donors in 2012.

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.

Jonathan Collegio, a spokesman for Crossroads GPS, declined to comment today on whether he thought the IRS’s release of the group’s application could have been linked to recent news that the Cincinnati office was targeting conservative groups.

Last December, Collegio wrote in an email: “As far as we know, the Crossroads application is still pending, in which case it seems that either you obtained whatever document you have illegally, or that it has been approved.”

This year, the IRS appears to have changed the office that responds to requests for nonprofits’ applications. Previously, the IRS asked journalists to fax requests to a number with a 513 area code — which includes Cincinnati. ProPublica sent a request by fax on Feb. 5 to the Ohio area code. On March 13, that request was answered by David Fish, a director of Exempt Organizations Guidance, in Washington, D.C. 

In early April, a ProPublica reporter’s request to the Ohio fax number bounced back. An IRS spokesman said at the time the number had changed “recently.” The new fax number begins with 202, the area code for Washington, D.C. 

For more on the IRS and nonprofits active in politics, read Kim Barker's investigation, "How nonprofits spend millions on elections and call it public welfare", our Q&A on dark money, and our full coverage of the issue.  

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Legislature Passes Schoenberger’s Resolution Calling for Timely Release by FEMA of Advisory Base Flood Elevations for Rockland’s River Communities

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New City, NY (April 23, 2013) –The Rockland County Legislature unanimously passed Legislator Ilan Schoenberger’s resolution that calls upon the Federal Emergency Management Agency (FEMA) to expedite the release of Advisory Base Flood Elevations (ABFEs) for Rockland County that are essential to the restoration and rebuilding of properties in Rockland’s Hudson River communities that were damaged as a result of Hurricane Sandy in October of 2012.

 

ABFEs are the recommended elevation of the lowest floor of a building calculated to reduce the risk of floodwaters in the event of catastrophic events. FEMA issued ABFE data for Westchester County, NYC and several counties in New Jersey, including neighboring Bergen County, when it determined that the current Flood Insurance Rate Maps (FIRMs) might not provide adequate levels of protection for restoration of damaged structures or new construction in light of the damage that was caused by the October storm.  ABFE data was not issued for Rockland County, however, at the urging of Rockland County’s Fire and Emergency Services and Planning Department, FEMA agreed to issue ABFE data in a two-month time period.

 

 “Why FEMA did not provide Rockland with advisory information at same time it was provided to Westchester and Bergen Counties is a question for another day,” said Legislator Schoenberger. “Why we now have to wait two months for our data is the current question.  I am pleased that my colleagues supported my request for swift action.   This advisory information is crucial to ongoing restoration, future planning and necessary to ensure that property is protected in the event of future occurrences. “ 

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Lowey Statement on 2014 Budget Request

Congresswoman Nita Lowey (D-Westchester/Rockland) today issued the following statement regarding President Obama’s budget request for fiscal year 2014:

 

“President Obama’s proposal is a good guide to boosting job growth and reducing our deficit over the long term. I have already supported more than $2.5 trillion in deficit reduction, and as the senior Democrat on the House Appropriations Committee, I look forward to working with the President and my colleagues in the House and Senate to find ways to continue to responsibly reduce our deficit while investing in economic and job growth.

 

“I am pleased that the President’s budget would cancel the dangerous, arbitrary and across-the-board budget cuts known as “sequestration” that went into effect in March and are already hurting our economy and cutting critical services for families in the Lower Hudson Valley. If allowed to continue, these cuts will lead to over $4 million in reduced funding for schools in Westchester and Rockland Counties and a potential loss of over $1.3 million for critical medical research in the region.  Ending these senseless cuts is one of the most important steps we can take to keep our economic recovery on track and protect American families.

 

“The President’s budget also includes badly-needed funding to help our veterans, expand access to early childhood education, improve our homeland security and prevent gun violence. President Obama’s proposal for a new Transition Assistance Program called Transition GPS would help our veterans adjust to civilian life after completing their service, and increased funds would support ongoing efforts to end veteran homelessness and reduce the shameful backlog in the VA Health Care System.

 

“The Securing the Cities program, which helps New York law enforcement detect and prevent a radiological or nuclear attack, would also continue to receive support under the President’s proposal.  In New York City alone, this critical program has helped to train over 13,000 law enforcement officers in radiological and nuclear detection. The Administration also seeks to further invest in early childhood education, including over $2 billion for the President’s new Preschool for All and Preschool Development Grants initiatives as well as increases for Child Care Development Block Grants and Head Start.

 

“Following the tragedy in Newtown, additional funding being requested by the President is essential to prevent gun violence and expand mental health treatment through improved recordkeeping and background check systems, assistance to help recognize early signs of mental illness and training for 5,000 new mental health professionals.

 

“While I have concerns about some of the President’s proposed changes to programs that are important to seniors and middle-class families, I share his commitment to enacting a balanced plan that will sustain economic growth and believe that both parties can and must come together to end the budget gridlock in Washington.”

Capitol Offenses: Bribes, Wires, and Little Surprise

by Joe Sexton--ProPublica

Here at ProPublica, we’re great believers in the idea that public revelation of scandal leads to reforms. Over the years, we’ve seen plenty of evidence that sunshine is a disinfectant, from the New Orleans police department to California’s nursing board.

But I have to admit that there may be one pestilent corner of the body politic where such cause and effect physics don’t yet seem to apply, a black hole within which the forces of greed have to date overwhelmed all good sense and every call for redemption.

 

You’ve already guessed, of course, that we’re talking about Albany, New York.

Like many of the notorious outposts on America’s map of graft, Albany has a storied history of dishonest behavior. When Abraham Lincoln wanted to push the 13th Amendment through a recalcitrant Congress, his Secretary of State, William Seward, told the president he’d need to make some ethically dicey promises, work best left to an operative skilled in the darkest arts of politics.

“I’ll fetch a friend from Albany,” Seward, a former New York governor, is quoted as saying in the movie "Lincoln." “Spare you the exposure and liability.”

It doesn’t appear much has changed. This week alone, the United States Attorney for the Southern District of New York went before the cameras twice to announce indictments of state legislators. Thursday’s announcement – Bronx Assemblyman Eric Stevenson was arraigned on bribery charges – came with a twist: a legislator had been wearing a wire for the Feds for months, maybe years.

The collective shiver in the Capitol scored pretty well on the Richter scale.

But evidently, there was more to fear than future indictments. Stevenson, on a recording, seems to have given some thought to the idea he might one day be busted.

Were he to be caught, he threatened, “somebody’s going to the cemetery.”

 Murder. Now, that would still rate as a pretty unusual Albany crime, at least outside the novels of William Kennedy.

Anyway, as a lifelong New Yorker, I went searching for a novel insight into all the wrongdoing. I took the handy guide offered on Wednesday by The New York Times after the week’s first round of indictments.

I started at the array of photos and applicable misdeeds – really, it resembled a yearbook layout former State Comptroller Alan Hevesi might have put together in the prison library – and re-read the news accounts behind the lineup of photos: the indictments and the plea deals, the teary allocutions and the withering remarks from federal judges; the repeated, and ultimately erroneous declarations that Albany had hit rock bottom, the pledges of reform, the terms of the jail sentences and the hours of community service assigned.

The cases pretty well run the gamut. Veterans, freshmen, members of the State Senate and State Assembly. Democrats. Republicans. Payoffs and paybacks, sex and drugs.

Not all the names will be familiar to people outside New York. Not all the names, in fact, will be familiar to New Yorkers. The relative anonymity of our representatives in Albany might have something to do with their proclivities. I’ll do my best to help everyone keep things straight.

First off, I can’t say I found any magical thread linking them all. But a few noteworthy patterns did emerge that suggested that, for whatever reason, these folks have a powerful belief that they enjoy impunity.

One consistent problematic habit: They love to shop. Really love to shop. We’re talking Buzz Bissinger style shopping. Big ticket items.

A Bentley, for instance, for Carl Kruger, a powerful state senator who, among other noteworthy achievements, had taken a stand against gay marriage. Parking certainly wasn’t a problem. He and his boyfriend lived, along with the boyfriend’s mother, in a house originally built for a mobster. The architect for the house, prior to being slain on orders of the mobster, had thought to include a driveway.

Diane Gordon, a fairly undistinguished lawmaker from Brooklyn, got rung up on some fairly non-routine bribery counts. She was looking for more than a car. She wanted a house. Maybe more than one. But however many, they had to have, among other amenities, walk-in closets.

“One hand washes another,” she once told her co-conspirator. Right, and then, hands washed, Gordon needed to get back to that ample closet and pick out the day’s outfit for Albany.

Pedro Espada might be one Albany felon known outside New York. The state senator’s exploits – using a health care operation in a disadvantaged part of the Bronx to line his impeccably tailored pockets – made Page 1 of the Times with some frequency.

Part of his front page appeal was his famously expensive taste for sushi and lobster. Turns out, though, his crowning food shopping achievement was the $5,000 he and others spent eating at Yonkers Raceway. I repeat – 5 grand spent at Yonkers. For crimes that boggle the mind that one’s hard to beat.

Then, of course, there was Assemblyman Brian McLaughlin. He’s the guy who was simultaneously a legislative leader and the boss of the nation’s largest municipal labor council. Even in Albany, you’d think that might have constituted a red flag. Conflict? What conflict?

In the end, McLaughlin wasn’t that conflicted. He stole from both the state and his union – and, yes, a Little League team, too – and had to forfeit some $3 million to the court.

I actually don’t know what he shopped for. But suffice it to say the man had options.

At his sentencing, McLaughlin made a bid for leniency. He’d turned things around. He was in Alcoholics Anonymous, though that might not have been the addiction he needed to address first.

The judge wasn’t much moved. He noted that the size and variety of McLaughlin’s thefts – “brazen and perversely creative” were his precise words – “staggers the mind.”

McLaughlin got a decade in a federal lockup.

Which leads me to what turned out to be both my funniest and most dispiriting moment – hey, like I said, this is an Albany story – as I worked my way through The Times’s presentation of perps.

While, sure, I chuckled darkly at recalling that Hiram Monserrate, prior to taking up his Assembly seat in Albany, had retired from the New York City Police Department on a psychiatric disability. Worrying that he might be a danger to himself or others, news reports asserted, the department moved quickly to strip him of his guns.

Great. Take away his guns, but give him a gavel, and a member item budget. Alas, physical violence was Monserrate’s undoing, his assault of his girlfriend hastening his departure from the Capitol.

And yes, it was charming to revisit Mike Cole’s night out with interns. He got so drunk with them he wound up spending the night on the floor on an intern’s bedroom. His punishment was the loss of $9,000 and a helping of Albany irony: He no longer would serve as the ranking member of the Assembly Committee on Alcoholism and Drug Abuse.

No, my favorite revelation was learning of the posh trappings at one of the federal prisons that wound up housing several of Albany’s malefactors.

This was The Daily News’s portrait of the federal facility in Otisville, N.Y.

“The prison’s store doubles as a delicatessen, serving up such favorites as rib steak, gefilte fish, kugel, salmon, chorizo and smoked oysters. It’s only a 90-minute drive for visitors from the city, and it has bocce courts, horseshoe pits and enough room to play soccer. Convicts could stay up until 2 a.m. on Friday and Saturday nights watching HBO, Showtime and Cinemax … Memorial Day and the Fourth of July are celebrated with cookouts serving hamburgers, hot dogs, watermelon and potato salad.”

“The food is right. The commissary is right. The officers don’t bother you. There are a lot of courses you can take. You had weights inside and outside, free weights and machines,” one inmate told The News. “Food, activities, TV and movies, and visitations are the four things you judge a facility by. Things were good.”

The latest assortment of Albany’s finest might well then take heart. If things go badly at trial, ask for Otisville, a federal lockup that appears to be the next best thing to Albany.

Governor Cuomo Launches the New York State Office for New Americans

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27 Opportunity Centers to Help Immigrants Fully Participate in New York's Civic and Economic Life

 

Albany, NY Governor Andrew M. Cuomo today announced the launch of the Office for New Americans, the first statewide office with a sole focus to assist our state's immigrants in their efforts to contribute to the economy and become a part of the family of the New York.

 

The cornerstone of the Office of New Americans is a network of 27 neighborhood-based Opportunity Centers, hosted within existing community-based organizations, throughout the State. The centers will help New Americans learn English, prepare them for the U.S. citizenship exam, and help them start and grow businesses so they can fully participate in New York State’s civic and economic life.

 

“By establishing the Office for New Americans, we are helping our state live up to the promise of the Lady in our Harbor and ensure that New York remains a land of opportunity for all," Governor Cuomo said. "New York State and City were built by the working hands of immigrants who traveled thousands of miles to pursue the limitless possibilities of the American Dream. The Office for New Americans builds on this promise and will help harness the strong work ethic and energy of our immigrants so we can reinvigorate our economy, create jobs and reconnect to our state’s rich history of opportunity."

 

The Office of New Americans (ONA) will also be supported by the New York State New Americans Hotline, a toll-free, multi-lingual information center, as well as by an ONA-dedicated website to guide New Americans to available resources. The hotline number is 800-566-7636 and the website is www.newamericans.ny.gov.

 

“I applaud Governor Cuomo for creating the Office for New Americans,” said New York Department of State Secretary of State Cesar A. Perales, whose department will oversee ONA. “Providing access to English language training and other services is vital for the full participation of New Americans in our State’s civic and economic life. We eagerly await the many positive contributions they will make to our State and our economy as a result of this initiative.”

 

At the center of this effort is the creation of the 27 Office for New Americans Opportunity Centers, which are located in areas of the State with high concentrations of newcomers. At the centers, ONA will pioneer a community-based education system using state-of-the-art technology and community volunteers, to support New Americans and give them the tools they need to succeed. The public will have access to a network of educational, advocacy and referral services including workplace language skills, business planning, loan access information, consumer protection and community engagement. Each center is also supported by a team of rotating attorneys who are experts in immigration law.

 

For a complete list of all Office for New Americans locations throughout New York State, see below.

 

 

 

New York State is committed to strengthening its welcoming environment for New Americans and facilitating their success in numerous ways, including:

 

  • Increasing access to English-for-Speakers-of-other-Languages (ESOL) training.
  • Preparing New Americans for the naturalization process.
  • Connecting New Americans to business resources to harness their entrepreneurial spirit.
  • Developing and leveraging the professional skills of New Americans.
  • Maximizing the number of young people receiving Deferred Action for Childhood Arrivals.
  • Strengthening the connections between New Americans and their communities through civic engagement and other opportunities.
  • Reduce exploitation of New Americans by scammers and con artists.
  • Marshal State resources to better serve New Americans.

 

“We applaud Governor Cuomo for envisioning a strong State-wide infrastructure and building key partnerships with immigrant communities across New York,” said Chung-Wha Hong, Executive Director of the New York Immigration Coalition. “ONA programs will harness the enormous energy and talent of the State’s diverse immigrant communities, strengthening our economy for the benefit of all.”

 

New York State ranks second in the nation in immigrant population, a total that includes more than 1.2 million immigrants who reside outside the New York City area. More than one in four New York State residents of working age is foreign-born. This presents a major opportunity for economic growth, as 18 percent of small business owners in the U.S. are foreign-born. And that rate is even higher in New York, where 29 percent of all small businesses are owned by immigrants.

 

 

 

Office for New Americans Opportunity Center Locations:

 

  • Albany – Literacy New York – Albany Public Library – 161 Washington Avenue, 2nd Floor, Albany, NY, 12210
  • Bronx (University Heights) – Research Foundation of CUNY/Bronx Community College – 2155 University Avenue, Bronx , NY 10453
  • Bronx (Mott Haven) – Mercy Center — 401 East 145th Street, Bronx, NY 10454
  • Brooklyn (Midwood) – FEGS Health & Human Services – 938 Kings Highway, Brooklyn, NY 11223
  • Brooklyn (Williamsburg) – Opportunities for Better Tomorrow – 280 Wyckoff Street, Brooklyn, NY 11237
  • Brooklyn (Bay Ridge) – Arab American Association of NY – 7111 5th Avenue, Brooklyn, NY 11209
  • Dutchess (Poughkeepsie) – Catholic Charities of Dutchess County – Dutchess Community College – 218 Church Street, Poughkeepsie, NY 12601
  • Erie (Buffalo) – Catholic Charities of Buffalo – 20 Herkimer Street, Buffalo, NY 14213
  • Manhattan (Washington Heights) – Hispanic Federation – Northern Manhattan Coalition for Immigrant Rights – 664 West 182nd Street, New York, NY 10033
  • Manhattan (Washington Heights) – Research Foundation of CUNY/Manhattan – 560 West 181st Street, 10033
  • Manhattan (Chinatown) – Chinese-American Planning Council – 165 Eldridge Street, New York, NY 10002
  • Monroe (Rochester) – Rochester Collaborative for New Americans (Catholic Family Center) – Rochester Public Library, Somali Community of Western, NY – 87 North Clinton, Rochester, NY 14604
  • Nassau (Hempstead) – Economic Opportunity Commission of Nassau County – 134 Jackson Street, Hempstead, NY 11550
  • Nassau (Freeport) – Literacy Nassau – 187 Smith Street, Freeport, NY 11520
  • Onondaga (Syracuse) – Catholic Charities of Onondaga County – 527 Salina Street, Syracuse, NY 13202
  • Orange (Newburgh) – Catholic Charities of Orange County – Orange County Community College – 319 Broadway, Newburgh, NY 12550
  • Queens (Jackson Heights) – Make the Road – 92-10 Roosevelt Avenue, Jackson Heights, NY 11237
  • Queens (Jackson Heights) – Queens Community House – 74-09 37th Avenue, Jackson heights, NY 11372
  • Queens (Flushing) – Korean Community Services – Chinese-American Planning Council & the MinKwon Center for Community Action – 35-56 159th Street, Flushing, NY 11358
  • Queens (Flushing) – YMCA – 138-46 Northern Boulevard, Flushing, NY 11354
  • Rockland (Spring Valley) – Haitian-American Cultural and Social Organization – 24 West Street, Spring Valley, NY 12231
  • Staten Island – YMCA – 285 Vanderbilt Avenue, Staten Island, NY 10301
  • Suffolk (Brentwood) – Make the Road – CARECERN – 1090 Suffolk Avenue, Brentwood, NY 11717
  • Tompkins (Ithaca) – Catholic Charities of Tompkins/Tioga – 315 North Cayuga Street, Ithaca, NY 14850
  • Utica – Mohawk Valley Resource Center for Refugees – 309 Genesee Street, Utica, NY 13501
  • Westchester (New Rochelle) – United Community Center of Westchester – New Rochelle Public Library – 360 North Avenue, New Rochelle, NY 10801
  • Westchester (White Plains) – Westchester Hispanic Coalition – Westchester Community College – 46 Waller Avenue, White Plains, NY 10605
  • Article sponsored by Ramapo Times Career Search

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