Judge dismisses IRS targeting cases

WASHINGTON—A Republican-appointed federal judge has thrown out a lawsuit brought by more than 40 conservative groups the Internal Revenue Service (IRS) singled out for extra scrutiny.

Judge Reggie Walton, a George W. Bush appointee, made the ruling in large part because the IRS has now granted most of the groups tax-exempt status—even though it took years to get it in some cases. Walton also said individual IRS employees could not be held liable for their actions.

Becky Gerritson, president of the Wetumpka (Ala.) TEA Party, one of the groups involved in the suit, called the judge's opinion outrageous: “That’s like a judge telling a burglary victim that even though she was robbed two years ago, since she does not currently have the thieves in her house, she has no case.”

Jay Sekulow, chief counsel with the American Center for Law & Justice (ACLJ), which represents the groups, said the decision is disappointing and would be appealed: “It does not deter our efforts to seek justice for our clients.”

Gerritson said more than the delay, the groups brought the suit because of IRS intimidation, invasion of privacy, and leaking confidential taxpayer information—“not to mention the ensuing coverup.”

In May 2013, Lois Lerner, then the director of the IRS tax-exempt division, acknowledged that her department had improperly scrutinized conservative groups and delayed their applications for tax-exempt status. The action limited the organizations' involvement in the 2010 and 2012 elections and effectively killed some of the groups.

Lerner initially apologized for the targeting, but since then she has twice refused to testify before Congress, invoking her Fifth Amendment right, on the grounds it might incriminate her.

The ACLJ filed a lawsuit last year against the IRS on behalf of 41 organizations in 22 states. So far, 28 have received tax-exempt status following long delays; seven are still pending; five withdrew their applications; and the IRS closed the file on one group that refused to answer invasive questions. Some IRS inquiries went as far as asking groups about the content and frequency of their prayers.

Rep. Jim Jordan, R-Ohio, one of the leading Republicans investigating the IRS targeting, blasted Thursday's court decision as a “sad day for liberty.” Jordan cited Texas businesswoman and activist Catherine Engelbrecht, who in March told Congress that after two decades of audit-free living, she was subjected to inquiries by the IRS, FBI, Occupational Safety and Health Administration (OSHA), the Texas Commission on Environmental Quality, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The agencies have investigated or audited Engelbrecht a combined 15 times since 2010—when she applied for tax-exempt status for her two conservative non-profit organizations.

“If that isn’t unwarranted harassment, I don’t know what is,” Jordan said in a statement. “If such grievances don’t warrant redress by our federal courts, I don’t know what does.”

Walton did not rule on the merits of the case but instead said there is no evidence the targeting is likely to happen again.

“If the IRS was allowed to target and harass Americans on such a large scale with no repercussions, then what will stop them in the future?” Gerritson asked.