A US tax court judge is allowing a whistleblower complaint to proceed against the Clinton Foundation after finding that the IRS "abused its discretion" when it attempted to dismiss allegations of wrongdoing by the nonprofit, according to Just The News.
Judge David Gustafson found that whistleblower John Moynihan - a former Drug Enforcement Agency (DEA) official, and Larry Doyle, a corporate tax compliance expert "provided 'specific credible documentation' supporting their allegations" of potential legal violations by the Arkansas-based charity.
Gustafson, who struck down the IRS's request for a summary motion, said that the agency's Whistleblower Office wrongly denied the pair's claims on the basis of the IRS's Criminal Investigation (CI) office saying in an email that the complaint was closed.
The judge said he had reason to believe from the evidence that the IRS and the FBI engaged in some investigative activity.
The record "fails to support the WBO's conclusion that CI had not proceeded with any action based on petitioners' information. Accordingly, we deny the motion on the grounds that the WBO abused its discretion in reaching its conclusion, because not all of its factual determinations underlying that conclusion are supported by that record," Gustafson wrote. -Just The News
The judge also suggested that the FBI was involved in an IRS investigation - citing nonpublic information in his ruling which was contained within IRS records in which the whistleblowers relay their exchanges with law enforcement.
"The FBI in [redacted] has thanked us profusely and praised our report excessively. As one individual close to the investigation commented to me, 'you and your colleagues have saved numerous federal agents thousands of hours of work.'"
Meanwhile, it was reported in late September that US Attorney John Durham is looking into the Clinton Foundation's alleged tax issues.
The pair of whistleblowers are financial forensic investigators who believe that the Clinton Foundation may have violated IRS codes relating to the Organization and Operational Tests for a 501c3 public charity with specific details addressing Misrepresentations and Misuse of Donated Public Funds. On top of that, they also addressed their probable cause assertion that the Clinton Foundation acted as an agent in violation of IRS code and the Foreign Agent Registration Act. These whistleblowers also highlighted that private foundations, including the Gates Foundation, that have donated to the Clinton Foundation are themselves subject to taxation based on IRS codes relating to Donors' Responsibilities. Ultimately, Doyle and Moynihan maintained that the Clinton Foundation could be subject to paying tax on anywhere from $400mm to potentially as much as $2.5 billion of revenue.
Doyle and Moynihan have amassed 6,000 documents in their nearly two-year investigation through their private firm MDA Analytics LLC.
"The investigation clearly demonstrates that the foundation was not a charitable organization per se, but in point of fact was a closely held family partnership,” said Doyle, who formerly worked on Wall Street and has been involved with finance for the last ten years conducting investigations.
“As such it was governed in a fashion in which it sought in large measure to advance the personal interests of its principals as detailed within the financial analysis of this submission and further confirmed within the supporting documentation and evidence section. -The Hill
And so, with Gustafson's ruling, the case moves forward - with Moynihan and Doyle's latest filing asking the court permission to take a deposition from the chief of accounting compliance for the state of Arkansas, Jimmy Corley. According to JTN, the court has sealed the request.