Tea Party Lawsuits Over IRS Targeting Settled for Peanuts
By The Daily Bell Staff - November 02, 2017

At first glance, it might seem like some justice has finally been delivered.

The Department of Justice has settled a class-action lawsuit brought by Tea Party groups from across the country. The government has admitted that what happened was a violation of rights.

Back before the 2012 election, the IRS started scrutinizing certain non-profit applications more closely. Political organizations seeking tax exempt status as non-profits are pretty typical. But for some reason, the IRS decided to delay over 400 applications.

Most of the groups that were flagged for more scrutiny had “Tea Party” or “Patriot” in their names. The routine applications were delayed, and instead, the IRS sent out requests for more information. These requests were not standard, nor was there any legal reason for the IRS to need such information.

Tea Party groups were asked to list the names of their financial backers, and identify any members who might want to run for office. The groups were also asked intrusive questions about their policial beliefs.

The scandal amounted to political intimidation. Tea Party groups were targetted based on their political beliefs. They were then scrutinized by one of the most powerful government agencies.

The IRS was chilling free speech, and scaring Americans into silence. The message they sent was that by participating in a Tea Party group, you might just become the target of the IRS.

And who wouldn’t fear being on the radar of the IRS? Just look how they tried to ruin on woman’s life.

Catherine Engelbrecht founded King Street Patriots and True the Vote. She had never run into any trouble with the IRS. But after she applied for tax-exempt status for the groups, she started getting audited. Not the non-profit, but an entirely unrelated business.

The business had been in operation for about 20 years and had never been the subject of a federal inquiry. Only after Engelbrecht filed for non-profit status for her groups was the business targetted by multiple government agencies.

The IRS audited the business and Engelbrecht’s personal finances going back years. Then her business was visited by OSHA, Occupational Health and Safety Administration. They issued in excess of $20,000 in fines “though the agency wrote that it found nothing serious or significant.”

Then, the Burea of Alcohol Tobacco and Firearms and FBI opened inquiries into the business. These were eventually dropped after no wrongdoing was found.

All this scrutiny heaped on Engelbrecht shows that these Tea Party groups were not silly to fear the repercussions from the government. The message was loud and clear. Curtail your political involvement, unless you want the government to harass you. Stop speaking out against the government, unless you want your business targetted, and family intimidated by government agents.

Make no mistake, this targetting by the IRS was a serious matter. It really did put people’s liberty on the line. And it is impossible to tell just how much this suppressed a budding political movement intent on shrinking government.

So you might be wondering, just how much did the Tea Party groups get in compensation for being targeted by the most powerful, well-funded government on Earth?

The Settlement

There were two lawsuits that the DOJ settled. One involved 41 groups, and although the IRS admitted to wrongdoing, those groups will get no financial redress.

The other lawsuit involved 428 groups. The DOJ settled with them for $3.5 million. No, not $3.5 million each, $3.5 million in all, spread across all those groups, after the attorney fees. Fees for class action suits often range from 25-35% of the total award. That means each Tea Party group that was targetted and intimidated by the government should expect about $6,000 in recompense.

That is a pretty cheap price to pay to suppress hundreds of liberty-related organizations. I’d say the IRS got quite the deal. For one low price, they intimidated and harassed over 450 groups of people most opposed to the unjust organization.

Louis Lerner, who was responsible for the targeting, was allowed to retire. Although she knew about it and covered it up, she never faced any legal repercussions.

Attorney General Sessions apologized on behalf of the government and said that the IRS owes the targetted groups an apology as well. But the IRS decided not to comment.

The settlement was peanuts for serious wrongdoing. It does nothing to curtail this type of behavior by government agents in the future.

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  • Varangian Guard

    The actions they took were directly out of a playbook that HRC adapted from Alinsky’s Rules for Radicals. She was one of his direct pupils and was sharp enough to see that RforR was not enough. She had to take the revolution inside of the Gub. Since she was denied the candidacy in 2008 the plan had to get started with BHO and the plan was to let her take the reigns afterward like she was promised. But…like anything the Clinton’s touch, the act is inappropriate and verges on the border (if not outright obliterates it) of illegality. Just kind of ruins the whole atmosphere due to the stench.

    • Don Duncan

      The law is a control mechanism used by TPTB. It is whatever controls. This explains contradictory and bizarre decisions by the courts on all levels, unConstitutional laws passed by unaccountable legislators who routinely violate their oath directly and indirectly, and an executive branch that makes and “invents” law directly and indirectly. No one without money/power is safe. This is the chaos that govt. was created to protect us from.

      The populace feel threatened and insecure (not protected) but can’t (won’t) identify the source of their problem. This leaves them open to be easily manipulated by divide/conquer tactics. See the ever increasing polarization and social/political discontent as a symptom.

  • Don Duncan

    Catherine tried to use “the system” to repeal or reform the system. She played by the rules, as taught by the rule makers, for the rule makers. She got punished. What did she learn? She continued to play by the rules, going to her rulers and asking them for justice. She got no justice. What did she learn? What did the populace learn? Did they rise up and renounce the “system”? Or did they put it out of their mind and go on with life?

    And entertainment, opiate of the masses, grows in popularity. Why? Political zombies need a distraction to keep them from feeling anxiety that their “willful blindness” induces.

    Reality may be ignored, but the price must be paid.

  • allstardave

    Just another example of Washington Corruption with ALL Citizens and Taxpayers as victims. What a shame our current “Swamp Drainers” are just as unwilling to seek Justice as the last bunch of Crooks.

  • Victor Doyle

    Americans – what changes things in our government is not talk or complaints to our representatives – but actions like voting them out of office – Not supporting their ideas – remember the Boston Tea Party – dump the stuff that supports their efforts and things change quick! We the American People can take back control of our Government but must be done together and look around you its starting to happen!

    • Col. Edward H. R. Green

      Just withhold your consent, and their power over you collapses like a house of cards.

      For a full analysis of this fact, read “Discourse on Voluntary Servitude” by Etienne de la Boetie.

  • comrade

    HI, the world we live in is and always has been corrupt
    a true reflection of the human species
    greedy eyed psychopathic in nature
    everything is based on rape and pillage
    slavery exploitation of the weak
    the world is built on the rubble of …………….PSYCHOPATHY!!!!!

  • comrade

    One thug nation (super power) after another has
    raped and pillaged the world …..nothing until the end days will change this fact !!!!!

    • Katzenjammer

      Don’t despair Karl. Our slippery Hegelian cycles -aided and abetted by flamboyant Molotov cocktails – will momentarily set us free on the edge of the Abyss.

  • Ideas Time

    I wonder how many people know that the ir s is not a federal agency? They are no more federal than the federal reserve is. They are a Puerto Rico Trust and a division of the imf per case law.

    • Paul_Morphy

      You’re either out of your mind or been reading too much Peter Schiff material. Go ahead and neglect to pay your taxes and you’ll see just who the IRS is!!

      • Col. Edward H. R. Green

        Thank you, statist, for your mindless and despicable support of coercive taxation, legalized theft, but theft nonetheless.

        You “think” that because the theft is legalized that it is legitimate, something other than theft, and the thugs at the IRS are noble heroes who do the “good work” of enforcement of that theft.

        Like all laws that violate legitimate individual rights, including one’s private property rights, which extend to every single cent of one’s income regardless of the type and amount, such laws are unjust and immoral, and that which is unjust does not oblige one to obey it.

        Therefore, do not merely avoid, but actively evade this legalized theft, and exercise your right to self-defense, up to the use of deadly force, should government goons confront you in order to rob you of that which doesn’t belong to their employer, to them, or other government-designated recipients (welfare recipients, etc.).

        If they should murder you, in the name of “law enforcement”, all they’ll have (so long as you have hidden what they’ve come to steal) is your dead body, but they will not have your obedience.

  • SupremeLaw

    Lois G. Lerner has now failed to produce APPOINTMENT AFFIDAVITS that were required of her when she was initially hired by DOJ’s Criminal Division, soon after she graduated from law school circa December 1978; and, she has also failed to produce the second OATH required of her when she was appointed in January 1981 as Special Assistant to the U.S. Attorney for the Eastern District of Virginia:
    For relevant authority on this point, please see the holdings in U.S. v. Pignatiello:
    Now, I must ask you this key question: why have so many so-called “alternative news sources” chosen to ignore these simple facts, admitted on DOJ letterhead in reply to proper FOIA Requests? WHAT’S WRONG WITH THIS PICTURE? ANYONE???

  • C

    I gave to the tea party and got audited the next year. Did anybody else have this happen?

    • rouge1

      My mom and brother did.

  • Don Murray

    Let me ask this question. From whose pocket did the 3.5 million come? Certainly not anyone from the IRS. It came from my pocket as a tax payer. As it stand right now not one person from the IRS was, in any way, penalized for their admitted wrong doing. Nothing, nada, zip.

    • SupremeLaw

      The whole story is MUCH worse then a low-ball settlement most probably arranged by attorneys representing the organizations applying for tax-exempt status. Documents have already been obtained indicating a specific intent to commence criminal prosecutions of the people who prepared those applications. But, no matter how hard I have tried to discuss with alternative media my own malicious prosecution, instigated by 2 rogue IRS agents from Colorado and Wyoming, there is ONLY ONE brave American woman who hosted me on her talk show immediately after I was released. At one pre-trial hearing, the Federal “robe” in Cheyenne, Wyoming, actually apologized for attempting to characterize The Credential Investigation as a “pathological obsession”. But, at that same hearing she secretly signed an “order” that eventually landed me in a BOP hospital in Missouri, where I was threatened with forced injection of brain-damaging drugs. Congress defines such threats as torture. Praise God, after many prayers I was finally released dppm after launching two separate lawsuits at the U.S. District Court in Springfield, Missouri. One of those lawsuits proved that all BOP personnel have failed to disclose APPOINTMENT AFFIDAVITS required by the U.S. Constitution and several Acts of Congress which have implemented that Oath of Office Clause. 5 U.S.C. 5507 clearly bars Federal officers from being paid if they have not timely executed that one credential! I will acknowledge some very recent journalism admitting that the federal government is now a criminal enterprise, an assessment that we published at least 5 years ago!

    • SupremeLaw

      > From whose pocket did the 3.5 million come? Answer: Holder’s DOJ collected billions in settlements from the 2008 sub-prime mortgage-backed securities implosion. Now, we are reading that Holder disbursed those funds to his favorite liberal organizations. Here’s one list prepared by the University of Southern California up to December 2016:

  • LIARS all of them


  • JRR7

    No accountability in Washington.

  • RevnantDream
  • Alan777

    “For some reason” , no, because of Democrat partisan criminal behavior.

  • Mel Hatfield

    The elitist individuals and groups never pay for wrongdoing. Never have and never will.

  • henrybowman_az

    Like fools, we expect the government to give us justice against the government, which is like playing a game where the referees all work for the opponents. When we finally get tired of being suckers, there is always one remaining solution, and $6,000 will buy a more than sufficient quantity of it.

  • teabagger_1

    Obama, like most leftists, is super paranoid. People like Clinton and Obama fear the truth as it is the antithesis to their ideology.

  • Bill Ross

    In general, predators will be predators UNLESS the prey AGAIN INSIST that “crime does not pay” and, make it so, as is ALREADY happening:

    How much more is needed before it is acknowledged that whining to those foolishly trusted to administer “the law” or influencing your choices, in general, is FUTILE: