Opens in a new tab

501(c)(4) progress: W&M to get IRS emails, Issa apologizes

March 7, 2014

We didn't learn anything new about how the Internal Revenue Service used to handle 501(c)(4) applications at the contentious Congressional hearing this week, but since its dramatic ending, things have changed.

In case you missed the hearing, Lois Lerner was back before the House Oversight and Government Reform Committee as it continued its investigation into the IRS' questionable tactics in reviewing applications for that favorable tax-exempt status.

Issa motions to cut off Cummings mic IRS hearing 6March2014The quick recap is that Lerner showed up but once again took the Fifth and didn't testify.

An irked Rep. Darrell Issa (R-Calif.), chair of the committee, ended the hearing early and abruptly. In doing so, Issa literally cut off ranking Democrat Rep. Elijah Cummings (D-Md.) as he was speaking, making a throat-slashing motion to get Cummings' mic muted.

Following the contentious closing of the hearing, Cummings' Democratic colleagues called for sanctioning Issa for "the offensive and disrespectful manner" in which he conducted the hearing. The effort failed by a 211-185 vote along party lines.

Issa did, however, have some second thoughts about his actions. Last night he called Cummings and apologized. Cummings accepted Issa's gesture.

"My sincere hope is that as we move forward, we will respect the opinions of all members of the committee, we will proceed in a deliberate and considered manner to obtain the facts, we will refrain from making accusations that have no basis in fact, and we will seek resolution rather than unnecessary conflict," Cummings said in a statement following Issa's call.

Now the House Oversight leaders can get back to being, as my tax blogging pal Peter J. Reilly describes them, political frenemies.

I'm not sure I'd go that far. I'm just hoping that lawmakers at least try to be adults while they're ostensibly doing their jobs.

Document stack being carriedIRS releasing documents: The spirit of cooperation appears to have struck the IRS, too.

Ways and Means Chairman Dave Camp (R-Mich.) announced today that the tax agency has agreed to hand over documents pertaining to the tax-writing committee's separate investigation into the 501(c)(4) applications and subsequent proposed rule making changes in that area.

"The IRS has decided to finally make Lois Lerner's documents and emails available to the Committee. This is a significant step forward and will help us complete our investigation into the IRS' targeting of conservative groups," said Camp in a statement announcing the IRS decision.

Camp and his Republican colleagues believe that the material from Lerner they have reviewed so far indicates that "Washington, D.C. orchestrated the targeting of groups applying for tax-exempt status, surveillance of existing tax-exempt groups and formed the proposed 501(c)(4) rules designed to push conservative groups out of the public forum."

The rest of Lerner's documents, produced before she retired under pressure from her job as head of the IRS' Exempt Organization's office, are "key to determining the level of wrong doing and deception committed by this agency," said Camp.

Expect there to be continuing disagreement along party lines as to just what all this new paperwork and digital communication means.

But based on the reaction to the Issa incident, I'm hopeful that the two sides will make efforts to be more respectful during the ongoing investigation process. It is, after all, going to continue until the Nov. 4 midterm elections.

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
confused office worker
8 workplace benefits questions to ask this enrollment season

October 26, 2026

Millions of U.S. workers are now deciding what workplace benefits, some of which also offer…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment