Texas Nonprofit Is Cleared After GOP-Prompted AuditGroup Says Probe Was 'Political Retaliation' by DeLay Allies
By R. Jeffrey Smith
Washington Post Staff Writer
Monday, February 27, 2006; Page A03
The Internal Revenue Service recently audited the books of a Texas nonprofit group that was critical of campaign spending by former House majority leader Tom DeLay (R-Tex.) after receiving a request for the audit from one of DeLay's political allies in the House.
The lawmaker, House Ways and Means Committee member Sam Johnson (R-Tex.), was in turn responding to a complaint about the group, Texans for Public Justice, from Barnaby W. Zall, a Washington lawyer close to DeLay and his fundraising apparatus, according to IRS documents.
Johnson, a member of the subcommittee responsible for oversight of the tax agency, sparked the IRS's interest by telling IRS Commissioner Mark W. Everson in a letter dated Aug. 3, 2004, that he had "uncovered some disturbing information" and received complaints of possible tax violations.
Johnson said he was sure the IRS would follow up. "I ask you to report back your findings of each of these investigations directly to me," he told Everson in the letter, according to a copy obtained by The Washington Post.
http://www.washingtonpost.com/wp-dyn/content/article/2006/02/26/AR2006022601227.htmlUPI:
DeLay pals sparked audit of Texas groupWASHINGTON, Feb. 27 (UPI) -- Texans for Public Justice, a non-profit group, recently survived a tax audit its leaders say was prompted by allies of embattled Republican Rep. Tom Delay.
"This audit was political retaliation by Tom DeLay's cronies to intimidate us for blowing the whistle on DeLay's abuses," Craig McDonald, the group's founder and head, told the Washington Post. "Enlisting the IRS to intimidate critics is a dirty trick reminiscent of Richard Nixon."
McDonald discovered, using the Freedom of Information Act, that Sam Johnson, a Texas Republican, told IRS Commissioner Mark Everson that he had "uncovered some disturbing information" about Texans for Public Justice. Johnson was reportedly responding to a complaint from Barnaby Zall, a Washington lawyer with ties to DeLay.
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http://www.upi.com/NewsTrack/view.php?StoryID=20060227-040802-8116rRolling Stone:
DeLay's IRS HammerFeb 27, 2006
Texans for Public Justice, the non-profit watchdog group I profiled in Rolling Stone's year-end Mavericks Issue, is the source of all Tom DeLay's troubles. They're the group that filed the original criminal complaints that led to the (now-former) House Majority Leader being indicted on charges of money laundering.
Turns out they were just put through the wringer by the IRS.
Why? Because a DeLay loyalist, Rep. Sam Johnson of Texas, who serves on the House Ways and Means committee demanded an audit. In truly Nixonian fashion, he cited nebulous "disturbing information" about the group's finances and demanded that an IRS commissioner "report back your findings of each of these investigations directly to me."
After a 13 month investigation, TPJ's books were declared clean as a whistle.
"This audit was political retaliation by Tom DeLay's cronies to intimidate us for blowing the whistle on DeLay's abuses," Rolling Stone Maverick Craig McDonald told the WaPo. "Enlisting the IRS to intimidate critics is a dirty trick reminiscent of Richard Nixon . . . It is not a crime to report a crime, as we did with DeLay."
http://www.rollingstone.com/politics/nataffdaily/story/9399602/delays_irs_hammer?rnd=1141148300037&has-player=true&version=6.0.12.1040