The Hunter Biden IRS whistleblower case has largely eclipsed another Tax Court development thatcould have serious consequences for US dynastic political families. Late last month, US Tax Court Judge David Gustafson reinvigorated a years-long whistleblower case concerning the Clinton Foundation, a charity run by Bill and Hillary Clinton.
Two forensic investigators-turned-whistleblowers, John Moynihan and Larry Doyle, filed a lawsuit over the IRS' apparent unwillingness to look into the charity's alleged misdeeds. Despite the IRS commissioner repeatedly trying to trash the case, the judge rejected the agency's latest motion to dismiss and asked for new arguments by June 30, 2023.
What's in the Clinton Foundation Whistleblower Case?
The story of the years-long case goes back to August 2017, when Doyle and Moynihan first submitted a whistleblower complaint with the IRS accusing the Clinton Foundation of tax crimes. However, in November 2018 they received a preliminary denial from the revenue service.
Nonetheless, the whistleblowers did not give up. On December 13, 2018, Doyle and Moynihan testified before the House Oversight and Government Reform Committee, suggesting that the Clinton Foundation owes the US government between $400 million and $2.5 billion in taxes. According to the forensic investigators, the charity does not operate as a tax-exempt 501(c)(3) organization, but acts as nothing short of a foreign agent.
"As such, the foundation should've registered under FARA (Foreign Agents Registration Act). Ultimately, the foundation and its auditors conceded in formal submissions that it did operate as a (foreign) agent, therefore the foundation is not entitled to its 501c3 tax-exempt privileges as outlined in IRS 170 (c)2," Moynihan stated at the time.
The two whistleblowers told US lawmakers that they had collected approximately 100 exhibits in excess of 6,000 pages, expressing bewilderment at the IRS' hesitation to investigate the Clinton Foundation case.
Tax Court Judge Busted IRS
Having received the final denial from the IRS to look into the issue in February 2019, Doyle and Moynihan filed a lawsuit with the US Tax Court.
On October 8, 2020 they scored their first victory: Tax Court Judge Gustafson ruled that the IRS' Whistleblower Office (WBO) had "abused its discretion" in trying to dismiss "specific credible documentation" put forward by Doyle and Moynihan, thereby allowing the case against the Clintons' charities to proceed.
The judge also raised concerns over the IRS' handling of the case and detailed mistakes in the filing of specific forms by the IRS Criminal Investigation (CI) division and omissions in its conclusions concerning the Clinton Foundation whistleblowers' complaint. Judging from the division's documentation, it remained unclear whether the IRS had used the information provided by the whistleblowers in any investigation into the charity. The judge noted, however, that he had reasons to believe that the IRS had engaged in some investigative activity concerning the Clinton charity in coordination with the FBI.
"Prompted by petitioners' [Doyle and Moynihan] allegations – explicit and detailed, with names, dates, and locations – the WBO’s email put a single direct question to CI: 'Can you please confirm that IRS CI is not working with these [whistleblowers] on any investigation with these [target] entities?' CI's reply was a non-answer that looks like it may have been a deliberate evasion: 'The claim was appropriately declined by criminal investigation.' But was CI 'working with' petitioners or not? CI did not say," Gustafson wrote at the time.
Besides this, in 2018 the CI "had to be asked three times to complete its Form 11369 for this case, giving 'unacceptable' responses to the WBO and grousing that it's 'somebody else’s job,'" the judge pointed out.
In April 2021, Tax Court Judge Gustafson suggested in his new ruling that the IRS Whistleblower Office had been withholding important information concerning the case: "The [IRS] Whistleblower Office must further investigate to determine whether CI proceeded with an investigation based on petitioners' information and collected proceeds… It seems clear we should remand the case to the WO so that it can explore this gap," the judge stated.
Durham Report Sheds New Light on Clinton Foundation Probes
Meanwhile, on October 26, 2021, Moynihan and Doyle announced that they had been approached and interviewed by Special Counsel John Durham, who at the time was investigating the origins and handling of the Trump-Russia probe.
Earlier, on September 24, 2021, The New York Times broke a story that the special counsel had sought information about the FBI's Clinton Foundation inquiry within the framework of his probe, which was launched in 2019.
Later, in May 2023, Special Counsel Durham revealed in his 306-page final report that the FBI's Washington, New York, and Little Rock, Ark., field offices had at least four ongoing probes into the Bill and Hillary Clinton charity's apparent "pay-to-play" schemes during the 2016 election cycle. Still, all four investigations were abruptly closed prior to the 2016 Election Day, with Hillary running as the Democratic presidential nominee.
Durham particularly pointed out that senior FBI and Justice Department officials engaged in slowing down and closing the aforementioned investigations. "Both senior FBI and department officials placed restrictions on how those matters were to be handled such that essentially no investigative activities occurred for months," the special counsel emphasized.
Durham Report and Hunter Biden IRS Whistleblower Case May Help
Judge Gustafson's May 30 ruling gives an opportunity to Doyle and Moynihan to incorporate Durham’s allegations in their forthcoming court filings, which they should submit no later than June 30, as per Just the News, a US independent media outlet founded by award-winning investigative journalist John Solomon
In addition, a specific recent ruling in a Tax Court case titled Berenblatt vs. IRS Commission could also come in handy for the Clinton Foundation whistleblowers, the media outlet noted.
"Whistleblowers may be granted limited discovery if they make a significant showing that there is material in the IRS’s possession indicative of bad faith on the IRS’s part in connection with the case or of an incomplete administrative record compiled by the IRS," the ruling stated concerning the Berenblatt vs. IRS Commission.
The IRS' lax handling of the Doyle and Moynihan complaint, as well as the agency's ambiguous conduct and apparent unwillingness to look into the Clinton Foundation appear especially suspicious in light of the FBI's closure of a whopping four probes into the charity.
Previously, similarly controversial behavior by IRS, FBI, and DoJ officials was exposed by Hunter Biden IRS whistleblowers.
On May 26, 2023, IRS supervisory criminal investigator Gary Shapley appeared before the US House Ways and Means Committee and provided seven bombshell documents totaling 23 pages to confirm his claims regarding the apparent "preferential treatment" of Hunter Biden, the son of President Joe Biden. The documents presented by the agent indicated that starting from at least 2020, DoJ officials made repeated attempts to thwart his investigation.
Shapley blew the whistle in April. After that, the IRS veteran and his 12 subordinates were expelled from the probe at the request of the DoJ. What's more, one of Shapley's subordinates, who asked his seniors about the rationale behind booting the team out, was threatened and silenced by IRS officials.
What Will Happen to Clinton Foundation if Doyle and Moynihan Win?
Wall Street analyst and investigative journalist Charles Ortel has been conducting a separate private investigation into the Clinton Foundation for the last several years. Ortel is an old hand in exposing potential financial fraud: he was the first to raise a red flag about General Electric (GE) shortly before the company's stock crashed in 2008.
In an interviews with Sputnik, the Wall Street analyst repeatedly drew attention to the FBI, DoJ, and IRS' failures to see obvious discrepancies in the Clinton Foundation's operations and financial documentation. Per Ortel, the charity's case remains the largest unprosecuted fraud ever.
Separately, the analyst referred to the US mainstream media's unwillingness to touch upon the matter, too. The US mainstream press either silences or ridicules attempts to investigate the Clinton Foundation's apparent "pay-to-play" schemes much in the same vein as it tried to trash the Hunter Biden "laptop from hell" story.
26 November 2019, 17:02 GMT
"The judge [Gustafson] and his staff likely have extensive evidence indicating that the entity originally known as 'The William J. Clinton Presidential Foundation' and subsequently operating under many other names is not validly authorized by the IRS or by any other government to conduct charitable activities as a nonprofit organization," Ortel told Sputnik. "Nonetheless, Bill Clinton and his associates have solicited more than $2 billion in the guise of charity but have failed to account for its financial results in the manner required by applicable laws and regulations."
"Because Bill Clinton also is active politically and pursuing personal profit, there is great suspicion that the Clinton Foundation Charity Network is the core of an illegal conspiracy where donors seeking political favors from Clinton and his globalist allies exchange contributions for favors inside America and around the world. The Clinton approach and past failures by many governments to purge charity fraud and political corruption from the system likely inspired the Biden family to follow the Clinton script. Who knows how many other politicians will milk supposed charities for personal and political gain?" the Wall Street analyst pointed out.
If Doyle and Moynihan win their case in the US Tax Court and subsequent IRS/FBI investigations into the Clinton Foundation are conducted in good faith, it is likely that the alleged fraud and pay-to-play schemes would be proven, according to the analyst.
He believes that the Clinton Foundation should be placed in conservatorship and run by a nonpartisan group of Trustees, who would then be charged with constructing accurate records from October 23, 1997 to present.
"This course may not be possible because there are major defects in the known public record calling into question whether 'The William J. Clinton Presidential Foundation' actually existed after April 25, 2005 when Articles of Incorporation and Bylaws were defectively amended," Ortel continued. "In a worst case scenario for the Clinton family and for 'Trustees,' all 'revenues' of 'The Clinton Foundation' would become taxable personal income to the co-conspirators while some expenses might be tax deductible. On top of this financial burden, fines and penalties and interest might also be assessed."
"Not only should the FBI investigate the Clinton Foundation fraud conspiracy, but appropriate government authorities must investigate why current and former presidents who illegally abuse public charities are insulated and protected from prosecution and then discipline all bad actors involved forcefully and publicly," the Wall Street analyst concluded.