In the aftermath of the conclusion of special counsel John Durham’s ‘Russiagate’ investigation, a U.S. tax judge has revived a whistleblower case involving a foundation founded by former President Bill Clinton and former first lady Hillary Clinton.
According to Just the News, the Clinton Foundation case has been revived after Durham noted in his investigation report that there were “significant failures to investigate allegations against” the charity.
According to the report, “the judge has once again invigorated a lengthy whistleblower case alleging IRS misconduct involving the controversial Clinton Foundation.”
Previously, U.S. Tax Court Judge David Gustafson had rejected an IRS request to dismiss the 2017-filed whistleblower lawsuit. Notably, he instructed the tax agency three years ago to reveal whether or not it had conducted a criminal investigation into the foundation. According to the publication, his request was prompted by a mysterious “gap” in the IRS’s records, which raised suspicions and prompted further investigation.
After the IRS filed a new motion to dismiss the case, all parties involved have presented their arguments over the past year. However, on Monday, Judge Gustafson delayed ruling on these motions and requested new arguments in light of three recent precedent-setting court decisions.
The decision frustrates the IRS’s efforts to bring the matter to a close, causing the agency further annoyance.
Gustafson noted in his ruling that the three recent decisions in other tax cases “may affect the parties’ positions on the pending motions.” “We will order additional filings so the parties can respond to these recent opinions.”
The judge granted an extension to federal agent-turned-whistleblower John Moynihan and corporate tax compliance expert Larry Doyle. The deadline for revised arguments is June 30, while the IRS has until July 28 to respond.
This means that it is highly likely that the case will continue for several more months, according to Just the News.
In a congressional hearing nearly five years ago, Doyle and Moynihan, two reputable forensic financial investigators, revealed the existence of their 2017 IRS whistleblower complaint against the foundation. Monday’s ruling adds new complexity to the case.
In December 2018, Moynihan and Doyle testified before a House committee that they believed the foundation improperly acted as a foreign lobbyist by accepting foreign donations and then attempting to influence U.S. policy.
Moynihan testified at the time that the foundation “began acting as an agent of foreign governments early in its existence and continued to do so throughout its existence.” Therefore, the organization should have registered under FARA (Foreign Agents Registration Act).
“Ultimately, the foundation and its auditors conceded in formal submissions that it did operate as a (foreign) agent; therefore, the foundation is not entitled to its 501c3 tax-exempt privileges as outlined in IRS 170 (c)2,” he added.
The foundation acknowledged that previous internal audits identified compliance issues with certain practices, but asserted that these issues have been resolved.
In October 2020, Judge Gustafson denied the IRS’s request for summary judgment, allowing the whistleblower case to proceed. In his decision, he cited non-public evidence indicating the possibility of a joint FBI and IRS criminal investigation into the foundation.
Gustafson suggested that the IRS Whistleblower Office may be in possession of undisclosed evidence related to the case.
More on this story via Conservative Brief:
“There are facts and information, uniquely within the knowledge of the Whistleblower Office that need to be considered in connection with the resolution of the petitioner’s claim,” he wrote in May 2021. CONTINUE READING…