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June 21, 2018
Judicial Watch Obtains IRS Documents Revealing McCain’s
Subcommittee Staff Director Urged IRS to Engage in "Financially
Ruinous†Targeting
McCain minority staff director Henry Kerner to IRS official
Lois Lerner and other IRS officials: "the solution is to audit so many
that it becomes financially ruinousâ€
(Washington, DC)– Judicial Watch today released newly obtained
internal
IRSdocuments,
including material revealing that Sen. John McCain’s former staff
director and chief counsel on the Senate Homeland Security Permanent
Subcommittee, Henry Kerner, urged top IRS officials, including
then-director of exempt organizations Lois Lerner, to "audit so many
that it becomes financially ruinous.â€
Kerner was appointedby President Trump as Special Counsel for the United States Office of Special Counsel.
The explosive exchange was contained in notes taken by IRS employees at
an April 30, 2013, meeting between Kerner, Lerner, and other
high-ranking IRS officials. Just ten days following the meeting, former
IRS director of exempt organizations Lois Lerner admitted that the IRS
had a policy of improperly and deliberately delaying applications for
tax-exempt status from conservative non-profit groups.
Lerner and other IRS officials met with select top staffers from the
Senate Governmental Affairs Committee in a "marathon†meeting to
discuss concerns raised by both Sen. Carl Levin (D-MI) and Sen. John
McCain (R-AZ) that the IRS was not reining in political advocacy groups
in response to the Supreme Court’sCitizens Uniteddecision. Senator
McCain had been the chief sponsor of the McCain-Feingold Act and called
theCitizens Uniteddecision, which overturned portions of the Act, one
of the "worst decisions I have ever seen.â€
In the full notes of an April 30 meeting, McCain’s high-ranking staffer
Kerner recommends harassing non-profit groups until they are unable to
continue operating. Kerner tells Lerner, Steve Miller, then chief of
staff to IRS commissioner, Nikole Flax, and other IRS officials, "Maybe
the solution is to audit so many that it is
financiallyruinous.â€
In response, Lerner responded that "it is her job to oversee it all:â€
Henry Kerner asked how to get to the abuse of organizations claiming
section 501 (c)(4) but designed to be primarily political. Lois Lerner
said the system works, but not in real time. Henry Kerner noted that
these organizations don’t disclose donors. Lois Lerner said that if
they don’t meet the requirements, we can come in and revoke, but it
doesn’t happen timely. Nan Marks said if the concern is that
organizations engaging in this activity don’t disclose donors, then the
system doesn’t work. Henry Kerner said that maybe the solution is to
audit so many that it is financially ruinous. Nikole noted that we have
budget constraints. Elise Bean suggested using the list of
organizations that made independent expenditures. Lois Lerner said that
it is her job to oversee it all, not just political campaign activity.
Judicial Watch
previously
reportedon the 2013 meeting. Senator McCain
then
issued a statementdecrying
"false reports claiming that his office was somehow involved in IRS
targeting of conservative groups.†The IRS previously blacked out the
notes
of the meetingbut Judicial Watch found the notes among subsequent documents released by the agency.
Judicial Watch
separately
uncoveredthat
Lerner was under significant pressure from both Democrats in Congress
and the Obama DOJ and FBI to prosecute and jail the groups the IRS was
already improperly targeting. In
discussing
pressurefrom
Senator Sheldon Whitehouse (Democrat-Rhode Island) to prosecute these
"political groups,†Lerner admitted, "it is ALL about 501(c)(4) orgs
and political activity.â€