Tag: irs

IRS Erroneously Awarded Millions in Tax Breaks to Noncitizens.

 WHAT HAPPENED: The Internal Revenue Service (IRS) paid $213 million in Earned Income Tax Credits (EITC) to foreign citizens with nonwork Social Security numbers in 2023 and 2024, according to a report from the agency’s inspector general. These numbers, issued for limited purposes such as accessing services, are not intended for work eligibility or tax credit claims.

 DETAIL: The report said the IRS lacks sufficient data from the Social Security Administration (SSA) to determine why certain nonwork Social Security numbers were issued, limiting the agency’s ability to automatically block improper claims. Investigators found the IRS identified about 12,600 suspicious returns through risk-based screening and manually reviewed roughly 5,100 of them, preventing nearly $11 million in improper payments. Auditors said the IRS’s current system relies heavily on manual reviews and cannot efficiently detect all ineligible claims because the agency does not receive complete information from the SSA about whether the Social Security numbers were issued solely for federal benefits, which would disqualify recipients from claiming the credit. The watchdog report also noted that refundable tax credits remain highly vulnerable to fraud, with the Earned Income Tax Credit alone generating an estimated $21.1 billion in improper payments in fiscal year 2025.

 IMPACT: The misuse of the EITC, a program designed to support low-income workers, not only drains taxpayer funds but also undermines trust in government oversight. In 2025 alone, the IRS estimated $21.1 billion in erroneous EITC payments, with both fraud and unintentional errors contributing to the problem. This ongoing issue highlights the need for improved interagency cooperation and data-sharing to prevent future losses.

 KEY QUOTE: “Having timely, updated, reliable eligibility information would enable immediate eligibility determinations and would avoid costly, resources intensive, post-filing determinations,” said Kenneth Corbin, chief of the IRS Taxpayer Services Division.

 FLASHBACK: In 2017, the inspector general recommended that the IRS collaborate with the SSA to improve data-sharing and prevent misuse of nonwork Social Security numbers. Despite initial exploration of the issue, no viable solution has been implemented in the years since.

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IRS weaponized Johnson Amendment to target conservative pastors while ignoring liberals, DOJ finds

Anew report released Thursday by the Task Force to Eradicate Anti-Christian Bias reveals what investigators describe as a “stark contrast” and a systemic double standard in how the Biden Internal Revenue Service policed American churches. 

“The Biden IRS … [opened] multiple investigations into Christian churches focused on the content of their sermons. The IRS asked these churches for detailed information about their operations, not just about the alleged violations,” the task force wrote. 

“But during the same time, when other houses of worship gave sermons that reflected different scriptural interpretations on culture war issues, or prayed for Democrat candidates, the Biden IRS appeared to take no action,” the group added.

The task force, which was established by President Donald Trump in an executive order last year, reviewed internal administration discussions, case files and prosecutorial decisions from the Biden administration across 17 federal agencies. 

Beyond the IRS’s apparent targeting of conservative Christian churches, the task force concluded that the Biden administration’s prosecution strategy, internal policies and practices demonstrated an overall anti-Christian bias that permeated throughout the federal government during that period.  

“No American should live in fear that the federal government will punish them for their faith,” said acting Attorney General Todd Blanche, who chaired the task force. “As our report lays out, the Biden Administration’s actions devastated the lives of many Christian Americans. That devastation ended with President Trump.” 

The task force determined that the Biden administration used the Johnson Amendment – a 1954 provision added to the tax code which prohibits 501(c)3 nonprofit organizations from endorsing or opposing political candidates – to probe churches that hold traditional Christian teachings, arguing those positions amounted to political support for Republican candidates. 

Though the amendment, in theory, limits what pastors whose churches have 501(c)3 nonprofit status can say in evaluating candidates running for political office, it has only been “sporadically enforced,” according to the Justice Department.

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Read the Shocking Story of A Obama and Hillary Criminal Scandal, Conspiracy and Coverup- That Until Now No One Knew About. I Have the American Hero and Whistleblower Who is a Witness to the Crime and is Willing to Testify.

This is a shocking story that every American needs to read.

More importantly, this is a story that President Trump and whoever is his new Attorney General of the United States needs to study.

This is a massive Obama and Hillary criminal conspiracy case we’re handing you, wrapped in a bow, ready for prosecution.

I’ve got the whistleblower and witness for you. His name is Bradley Birkenfeld. And he’s not just any whistleblower.

Brad is single-handedly responsible for uncovering the largest and longest-running tax evasion in IRS history.

He’s also the only whistleblower in the history of America to recover $40 billion for the US Treasury and US taxpayers.

That’s more than all the IRS whistleblowers in American history COMBINED.

And because of that, President Trump, my great friend Brad Birkenfeld, is the most deserving candidate for a pardon in the history of presidential pardons. Hint, hint.

Get ready. Here’s his remarkable story.

Brad was a successful Swiss private banker with many of the wealthiest American businessmen and women as his clients. These wealthy Americans were hiding their money offshore, in Swiss banks, to evade U.S. taxes.

After resigning from his comfortable job at UBS in Switzerland, Brad made the decision to voluntarily walk into the DOJ in Washington, DC, to reveal the secret numbered bank accounts of 19,000 Americans hiding tens of billions of dollars at UBS in Switzerland.

It turns out that most of them were large donors to Obama, Hillary, and the Democrat Party.

In one remarkable act, Brad brought down the entire veil of hundreds of years of Swiss banking secrecy.

Do you remember who the leaders of America were back in 2009 when Brad was negotiating with the DOJ? President Obama, Vice President Biden, and Hillary Clinton as Secretary of State.

Brad naturally assumed he would be celebrated, thanked, and protected by the U.S. government for risking his life and giving up his lucrative banking career to help the US government collect tens of billions of dollars in stolen tax money.

Instead, the Obama Department of Justice persecuted and prosecuted Brad, putting him in prison for thirty months. Why would they do that?

To protect thousands of Democrat donors in these files of tax cheats. They didn’t want the files. They wanted to protect their big Democrat donors. They wanted to shut Brad up.

As a result of Brad’s testimony and evidence handed to the DOJ, not only was $40 billion recovered by the IRS, but 130 Swiss banks signed formal agreements and were fined by the US government to end their decades-long criminal conduct.

Three IRS amnesty programs were implemented, resulting in over 100,000 (and counting) US citizens now in tax compliance.

UBS agreed to a deferred prosecution agreement, paid a $780 million fine to the U.S. Treasury Dept. (a slap on the wrist to them), and agreed to release the names of only 4,700 American tax evaders. That’s out of 19,000 tax cheats on Brad’s file.

So, where did the other 14,300 names of tax cheats go? Obama sent Hillary Clinton to Switzerland to negotiate a deal with UBS to erase those names- and in return, Obama and Hillary gave UBS a sweetheart deal.

How evil and criminal was the Obama/Hillary cabal in Washington DC? On the very day my friend Brad was sent to prison (and remember, he is the hero who handed in these names of tax cheats), Obama was playing golf with the Chairman of UBS.

This is how crimes are covered up among friends in Washington DC.

Instead of making Brad a national hero, Obama’s DOJ forced Brad to accept one charge of conspiracy to commit tax fraud and put him in prison for 30 months. This was their way of shutting him up.

In all these years since my friend Brad exposed this massive criminal conspiracy and 19,000 tax cheats, the only person to go to prison is Brad Birkenfeld.

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Treasury Dept to reward fraud whistleblowers with up to 30% of fines

The Treasury Department launched a new program Monday to reward fraud whistleblowers with up to 30% of fines that are imposed on criminals.

“As promised, Treasury will reward whistleblowers who provide timely, actionable information on fraud, sanctions violations, and other significant illicit finance activity,” Treasury Secretary Scott Bessent said in a statement.

“President Trump has been clear that Americans have a right to know that their tax dollars are not being diverted to fund acts of global terror or to fund luxury cars for fraudsters. At Treasury, we follow the money, and we strongly encourage individuals to come forward with credible tips to help safeguard our financial system.”

The Treasury Department’s Financial Crimes Enforcement Network submitted a proposed rule to the Federal Register on Monday for the whistleblower payment program.

The program includes tipsters of Medicaid and Medicare fraud, according to The New York Post.

The launch comes after Bessent visited Minnesota in January, which is where Somali immigrants allegedly defrauded government welfare programs of at least $9 billion since 2018.

The reward payments will be directly from the fines, meaning that no taxpayer money will be used, according to confidential Treasury documents that the Post obtained.

“Individuals located in the United States or abroad who provide information may be eligible for awards if the information they provide leads to a successful enforcement action that results in monetary penalties exceeding $1,000,000,” one of the documents reads.

The Internal Revenue Service runs a similar program.

The program comes after Vice President JD Vance on Friday held the first meeting of a new anti-fraud task force that he is leading.

FinCEN also issued an advisory on Monday, warning financial institutions about fraud schemes targeting government programs such as Medicare and Medicaid.

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Gavin Newsom’s wife and her firm pocketed $3.7M from her ‘gender stereotypes’ charity, unearthed IRS filings reveal…days after her sanctimonious rant at the press

Jennifer Siebel Newsom stole the spotlight at her husband’s Planned Parenthood press conference last month when she scolded reporters for not asking enough about the ‘war on women’.

But now, financial filings obtained by the Daily Mail suggest the First Partner of California may have to answer some tough questions of her own. 

IRS documents from recent years show Gavin Newsom‘s wife has been paying herself and her company, Girls Club LLC, up to a third of her nonprofit’s entire income each year – pocketing over $3.7 million over the past decade. 

Siebel Newsom, 51, runs the Representation Project, a charity that fights against ‘intersectional gender stereotypes’ and ‘harmful gender norms’. 

The organization brings in between $1 million and $1.7 million a year in grants and donations, with roughly $300,000 of it going straight to her and her company in recent years, according to financial records. 

The most recent IRS filings up to March 2024 show Siebel Newsom, who’s also the beneficiary of a multi-million-dollar trust from her wealthy family, receives a $150,000 annual salary from the Representation Project, and her company took another $150,000 from the charity’s funds. 

Her unusually high compensation to her and her company has recently sparked criticism from charity watchdogs – with a Daily Mail analysis showing Siebel Newsom and her nonprofit colleagues earn more than 95% of charities of a similar size. 

‘As [Governor Newsom] continues his national rebrand tour, the fact that he and his wife put one third of their “charity” revenues into their own pockets will undoubtedly raise red flags in the eyes of middle class Americans,’ Caitlin Sutherland, executive director of the conservative transparency nonprofit Americans for Public Trust, told the Daily Mail, referencing the $300,000 paid to Siebel Newsom and her firm.

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DHS just told IRS to ‘sit down.’ They’re taking over investigating employers and illegals…

Something pretty big just went down behind the scenes in the federal government, and it could end up changing the entire illegal immigration game.

According to a new report, the Department of Homeland Security appears to be stepping in and taking a more aggressive role in investigating illegal employment inside the United States.

And no, they’re not politely coordinating with the IRS. They basically just told them to “take a seat.”

DHS is reportedly bypassing the IRS and using its own investigative team to dig into the relationship between employers and illegal workers.

For years, everyone avoided this tactic. Why? Because the uniparty knew it would actually break the pipeline, and God knows they don’t want that to happen.

Now, Trump’s DHS is moving directly into the driver’s seat.

This move is big, and it caught the attention of several people online who follow this stuff closely.

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Appeals Court Allows ICE to Access Taxpayer Data

A federal appeals court has allowed Immigration and Customs Enforcement (ICE) to access taxpayer information.

In a 3–0 decision on Feb. 24, the court unanimously disagreed with several nonprofit organizations’ argument that ICE violated the Administrative Procedures Act, which governs how federal agencies develop regulations.

U.S. Circuit Judge Harry Edwards, who wrote the opinion for the court, said ICE did not engage in the type of final action subject to the Act and that the agency otherwise followed federal restrictions on data sharing.

“Furthermore, if we find, as we do, that the ‘best reading’ of the statute does not support Appellants’ position, then no agency action may countermand the court’s judgment,” the judge wrote in the ruling.

The court also cited a “straightforward” and “crystal clear” statute that outlines when it is acceptable for the IRS to disclose tax return information.

“[The statute’s] text unambiguously authorizes IRS to disclose taxpayer address information,” Edwards wrote.

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President Trump Files $10 Billion Lawsuit Against IRS for Leaking His Tax Returns

President Trump, Eric Trump, Don Jr., and the Trump Org filed a lawsuit against the IRS for leaking their tax returns.

They are seeking $10 billion in damages.

In September 2023, federal prosecutors charged a former IRS contractor who worked for the agency from 2018 to 2020 with unlawfully obtaining and disseminating the tax details of a high-ranking public official and numerous affluent Americans to media outlets.

According to court documents and an official press release from the Department of Justice, Charles Littlejohn, 38, of Washington, D.C., stole tax return information associated with a high-ranking government official, referred to as Public Official A  – now known as Donald Trump. He then disclosed this information to a news organization identified as News Organization 1 – now known as The New York Times.

Littlejohn reportedly stole IRS information on thousands of wealthy people. The stolen information was then disseminated to two news outlets (New York Times and ProPublica).

“In July and August 2020, Littlejohn separately stole tax return information for thousands of the nation’s wealthiest individuals. Littlejohn was again able to evade IRS detection. In November 2020, Littlejohn disclosed this tax return information to News Organization 2, which published over 50 articles using the stolen data. Littlejohn then obstructed the forthcoming investigation into his conduct by deleting and destroying evidence of his disclosures,” the DOJ previously said.

Littlejohn was only sentenced to five years in prison. Political leaders said he should have been sentenced to 60 years.

“The IRS wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization to the New York Times, ProPublica and other left-wing news outlets, which was then illegally released to millions of people,” a spokesperson for Trump’s legal team told CNBC.

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‘Loyal Public Servants’: Whistleblowers Punished for Exposing Hunter Biden Protection Scheme Reach Settlement

Compensation being paid, and DOJ using ‘this example’ to train federal prosecutors.

Two former FBI officials who were punished under the Biden administration for their efforts to expose a protection scheme for first son Hunter Biden now have reached settlements in their lawsuits.

Hunter Biden, of course, faced both gun and tax charge convictions, cases that could have left him behind bars for years.

Then his daddy gave him a get-out-of-jail free card through a presidential pardon that Joe Biden actually signed, unlike many of his pardons that were issued through autopen signatures.

The settlements were reached for former Supervisory Special Agent Gary Shapley and Special Agent Joe Ziegler who had charged illegal retaliation against them.

The settlements with the IRS and Justice Department (DOJ) “included significant compensation for damages and a requirement for new training for federal prosecutors to deter future whistleblower retaliation.”

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