Sovereign Citizens

Jailed Sovereign Citizen Convicted For Tax Fraud, After IRS Mails $327K Refund To Prison

Jillian Rayfield | January 31, 2012, 5:39AM

A prison inmate in upstate New York was convicted on 11 counts of tax fraud after he filed -- and partially received -- tax returns worth around $890 million, using techniques he says he learned off of a sovereign citizen website.

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American Crossroads

Watchdogs Ask IRS To Probe Non-Profits Affiliated With Karl Rove And Obama Aides

Ryan J. Reilly | September 28, 2011, 11:35AM

Karl Rove

Two good government groups have formally asked the IRS to investigate the actions of Crossroads GPS, Priorities USA, American Action Network and Americans Elect, who they say should be inelligible for tax exempt status.

Under the Internal Revenue Code, officials with the Campaign Legal Center and Democracy 21 write, section 501(c)(4) organizations "are required to primarily engage in the promotion of social welfare in order to obtain tax exempt status."

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Peter LaBarbera

IRS Revokes Tax-Exempt Status For Group That Calls Gay Rights 'Demonic Manipulation'

Jillian Rayfield | August 3, 2011, 12:02PM

The IRS has revoked the tax-exempt status of Americans for the Truth About Homosexuality (AFTAH), a group whose leader once said that gay rights is "Satan's point of attack on the United States of America."

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Ron Johnson

Johnson $10M Payday Could Raise Red Flags For IRS

Susan Crabtree | June 30, 2011, 9:24AM

Sen. Ron Johnson (R-WI)

Sen. Ron Johnson's $10 million post-election windfall from his former company not only raises eyebrows among election lawyers, but the lump-sum payout also could raise serious red flags for the IRS, according to legal experts and accountants.

The Wisconsin Republican, a Tea Party favorite who defeated Sen. Russ Feingold (D-WI) last year, received a $10 million payment in deferred compensation from his former plastics company, Pacur, weeks after his $9 million self-financed 2010 campaign for Senate came to an end.

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Sovereign Citizens

Two AK Sovereign Citizens Lose Tax Case Which Allegedly Led To Plot To Kill Judge

Jillian Rayfield | May 31, 2011, 12:49PM

Lonnie and Karen Vernon, two sovereign citizens and militia members in Alaska, lost a court case over $180,000 in taxes they owe to the IRS, a case that allegedly led to a plot to kill a U.S. District Judge, an IRS employee, and two state troopers.

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IRS

St. Louis Man Threatened To Bomb IRS Facility, Say Feds

Ryan J. Reilly | December 10, 2010, 8:45AM

Aaron Johnson, a 20-year-old St. Louis, MO resident, was charged this week with threatening to blow up an IRS facility. Federal prosecutors charge in an indictment that on April 14, Johnson called an IRS facility on South Grand in St. Louis.

The facility is described in an indictment as a records facility known as a "lockbox" which was being operated by an unnamed U.S. bank. Johnson allegedly called the telephone number associated with the lockbox and threatened to "blow up" the facility.

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Campaign Finance

Report: Chamber Raises Hundreds Of Thousands From Foreign Companies

Rachel Slajda | October 5, 2010, 11:58AM

U.S. Chamber of Commerce CEO Tom Donohue

Think Progress, the reporting arm of the Center for American Progress, is out with a big story today about how the U.S. Chamber of Commerce raises hundreds of thousands of dollars from foreign nationals and corporations.

The Chamber is in the midst of a $75 million midterm ad campaign focused largely on supporting Republican candidates and has aired more than 8,000 ads so far. It also lobbied heavily against health care reform and financial reform.

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Duke Cunningham

Duke Cunningham To Judge: You And The IRS 'Have Killed Me'

Rachel Slajda | September 8, 2010, 4:36PM

Former Rep. Randy "Duke" Cunningham (R-CA)

Former Rep. Randy "Duke" Cunningham, currently serving a eight-year sentence for bribery convictions, wrote a letter to his sentencing judge accusing the judge of reneging on Cunningham's plea deal and siccing the "KGB IRS" on him.

Reporter Seth Hettena posted the the three page, hand-written letter, in which Cunningham says the IRS is bleeding him dry.

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Jerry Kane

Man Who Killed Arkansas Police Officers Had Anti-Government Views (VIDEO)

Justin Elliott | May 24, 2010, 12:08PM

Jerry Kane

On Thursday, two police officers pulled over a white van in West Memphis, Arkansas, for a traffic stop, and the driver opened fire with an AK-47, killing the officers, according to police.

The driver of the van was Jerry Kane, who traveled the country giving a debt-elimination seminar and had recently spoken of killing IRS agents and being stopped at a "Nazi checkpoint" in New Mexico. Kane and his 16-year-old son were killed shortly after in a shootout with police in a Walmart parking lot. Two other police were wounded in the second shootout.

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Florida Republican Party

Crist Switch Puts GOP Spending Scandals At Center Of Florida Race

Justin Elliott | April 29, 2010, 9:09AM

Florida Gov. Charlie Crist and former state House Speaker Marco Rubio

With the expected news that Florida Gov. Charlie Crist is opting to run for Senate as an independent, the general election is set to have two major candidates -- Crist and presumptive GOP nominee Marco Rubio -- tarred by the wide-ranging spending scandal that is rocking the state Republican Party.

The scandal -- in which GOP officials are accused of spending party money on lavish personal expenses along with other financial malfeasance -- is tailor-made for attacks ads come the general election season, which is shaping up to be a three-way contest among Crist, Rubio, and likely Democratic nominee Rep. Kendrick Meek.

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Right-wing extremism

Going To Extremes: The Obama Era's Top Ten Anti-Government Flare-Ups

Zachary Roth | April 1, 2010, 6:35PM

Clockwise from top left: David Stone, Sr., John Patrick Bedell, Joseph Stack and James von Brunn

The charges filed this week against nine members of the Hutaree Christian militia group have re-focused attention on the resurgence over the last year or so of the broader militia movement.

That resurgence has been driven in part, say experts, by the election of President Obama. But during the Obama era, threats of anti-government violence -- and even the real thing -- have become more widespread. In fact, with disaffected Americans from Massachusetts to California freaking out against the Feds en masse, it sometimes seems that going postal has become all the rage. Of course, in some cases, that anti-government animus long predates the election of our current president. But there seems to be something about the current climate that's contributing to the rash of incidents.

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C Street

Ohio Pastors File IRS Complaints Over C Street House

Rachel Slajda | April 1, 2010, 9:58AM

C Street House

The C Street Center, a boarding house for Christian lawmakers made famous by its role in the Ensign and Sanford scandals, is facing two complaints from a group of Ohio pastors. The pastors allege that the center is improperly using its tax status to offer below-market rents to members of Congress -- a charge that could ensnare the members as well.

The 13 pastors, who say they're concerned about the separation of church and state, filed one complaint with the IRS arguing that C Street has improperly declared itself a "church" for taxation purposes on February 23. Their second IRS complaint, filed this week and obtained by TPM, alleges that C Street's rent is much lower than market price. The problem, according to the complaint, is that the members are either not paying taxes on that extra income, or that they're receiving unreported gifts.

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U.S. Attorneys

Obama U.S. Attorney Pick Criticized Over Role In Disputed Bond Deal

Justin Elliott | March 31, 2010, 1:25PM

President Barack Obama and Michael Ormsby

Mike Ormsby, President Obama's nominee to be U.S. Attorney in eastern Washington state, is being called unfit for the job by critics of his role in a 1990s bond deal that ultimately resulted in Ormsby's firm paying $1.4 million to the IRS.

Ormsby's critics, who include the former mayor of Spokane, sent a letter to President Obama and Senate leaders about a year ago when Ormsby's name was first floated for the job. Now, with Ormsby's formal nomination earlier this month, the issue is surfacing again.

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Joe Stack

Stack's Daughter: My Dad Was A Hero For Standing Up To The Man (VIDEO)

Justin Elliott | February 22, 2010, 8:34AM

The daughter of the man who allegedly flew a plane into an IRS building in Austin, killing one person and injuring a dozen others, says her father is a hero because he stood up to the system.

"I think too many people lay around and wait for things to happen. But if nobody comes out and speaks up on behalf of injustice, then nothing will ever be accomplished," Samantha Bell told Good Morning America.

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Joe Stack

Suspected Austin Pilot's Past Racked By Tax Problems

Justin Elliott | February 19, 2010, 10:00AM

The IRS Echelon 1 Building in Austin.

The California Franchise Tax Board suspended the licenses of two businesses owned by Joe Stack because of unpaid taxes or failure to submit returns, KCRA in Sacramento reports.

Stack, who allegedly flew a small plane into a building with IRS offices in Austin yesterday -- reportedly killing at least one person inside -- railed against the tax system in the note he is thought to have written before allegedly carrying out the attack.

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Joe Stack

Stack's Company Web Site Traces Path From CA To Austin

Justin Elliott | February 18, 2010, 4:58PM

The IRS Echelon 1 Building in Austin.

The cached version of Joe Stack's software engineering firm, Embedded Art, says Stack's mission was to "advance the art of programming, one project at a time; by achieving an optimum balance between cost, schedule, functionality, reliability, and maintainability."

Stack, who allegedly flew a small plane into an Austin building containing IRS offices today, "founded the business in 1983 in Southern California, under the name Prowess Engineering."

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Joe Stack

Crash Pilot Appears To Have Written Anti-IRS, Anti-Corporate Screed

Zachary Roth | February 18, 2010, 2:45PM

Joe Stack, the Texas man who this morning, say law enforcement officials, flew a plane into an Austin building that houses a local IRS office, appears to be the author of a lengthy online screed, lashing out at the IRS, the federal government, and big corporations, and referring to his coming death.

The rant reflects many of the same populist, anti-government, anti-tax, and anti-corporate themes that have surfaced around the country over the last year. It is entitled, and concludes: "Well, Mr. Big Brother IRS man, let's try something different; take my pound of flesh and sleep well."

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Bailout Bailed Out

Obama Admin Grants Mega Tax Break To Citi In Bailout Deal

Justin Elliott | December 16, 2009, 2:35PM

Citigroup CEO Vikram Pandit and Barack Obama

Did the Obama Administration just deliver a $38 billion stealth bailout to Citigroup?

According to several outside experts the answer is yes, but the Treasury is maintaining an IRS ruling that granted Citi a $38 billion tax break was routine and proper. The Washington Post first reported the news of the IRS ruling in a front-page story today.

The IRS decision came as part of a deal for Citi to pay back $20 billion, which was announced earlier this week amid mutual back-patting. One benefit for Citi is being freed from salary restrictions.

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Scott Rothstein

GOP Govs Group Got Whopping $200,000 From Accused Fraudster

Justin Elliott | November 17, 2009, 9:56AM

Scott Rothstein (inset)

The Republican Governors Association got a $200,000 donation last year from Fort Lauderdale attorney Scott Rothstein, who is being accused of a fraud worth as much as $1 billion. The RGA did not respond to requests for comment about the contribution, and it's not known whether the money has, or will be, returned.

Rothstein was until his fall a top donor and fundraiser for Florida Gov. Charlie Crist, who is now locked in a hotly contested U.S. Senate primary with conservative Marco Rubio.

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Scott Rothstein

FBI: Accused Fraudster's Scheme Could Exceed $1 Billion

Justin Elliott | November 12, 2009, 2:47PM

Scott Rothstein

Estimates of the size of the investment scheme allegedly carried out by politically connected Fort Lauderdale attorney Scott Rothstein have now soared to $1 billion, up from $500 million, which was up from $100 million. Meanwhile, Rothstein is still free and was even taped Monday having a lunchtime cocktail at Fort Lauderdale's Capital Grille.

Civil charges were brought in the case Monday by the IRS and authorities have seized his 87-foot yacht and several sports cars, but Rothstein, who was a top moneyman for Gov. Charlie Crist known for his expensive tastes, has not been charged criminally.

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Jenny Beth Martin

Top Tea Partier, Husband, Owed IRS Half A Million Dollars

Zachary Roth | October 8, 2009, 2:36PM

Jenny Beth Martin

A top activist with the anti-tax Tea Party movement has had a personal brush with federal tax collectors. Jenny Beth Martin, a co-founder and national co-ordinator for the Tea Party Patriots, owed, with her husband, over half a million dollars to the IRS when the pair filed for bankruptcy last year, according to filings examined by TPMmuckraker.

The couple's bankruptcy filing, made in August 2008 to the US Bankruptcy Court for Georgia's Northern District, stated that Martin and her husband Lee Martin, of Woodstock, Georgia, owed the IRS $510,000, after making a payment of $16,640 that June. The couple also owed just over $71,000 to Ford Motor Credit, the automaker's financing arm.

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