A U.S. federal judge ruled that a tax evasion complaint against the Clinton Foundation should go forward. Bill and Hillary Clinton’s organization is accused of evading up to $2.5 billion in taxes, according to a report by Just The News.
U.S. Tax Court Judge David Gustafson denied the Internal Revenue Service’s (IRS) dismissal on Oct. 8, after two tax experts filed a complaint against the Clinton family charity for tax exemption violations.
The judge ruled that the whistleblowers, John Moynihan, a former Drug Enforcement Administration official, and Larry Doyle, a corporate tax compliance expert, “provided ‘specific credible documentation’ supporting their allegations.”
For the judge, the IRS “abused its discretion” in trying to dismiss the allegations against the Clinton Foundation.
Gustafson said the IRS Complaints Bureau (WB) mistakenly denied Moynihan and Doyle’s allegations simply because the IRS Criminal Investigation (CI) office sent an email saying that the issues in the complaint were closed.
The record “fails to support the WBO’s conclusion that CI hadn’t 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.
According to a report by renowned researcher John Solomon for Just The News, Moynihan and Doyle are financial investigators who filed a complaint with the IRS alleging that the Clinton Foundation violated tax laws governing tax-exempt charities.
The investigators reviewed the Clinton Foundation’s tax returns, other publicly available data, and interviewed several of the foundation’s employees. They also tried to compare what was spent on charitable donations and how much was set aside for items such as travel, salaries and administrative expenses.
Among other things, they found that about 60 percent of the foundation’s income was spent on items such as salaries, travel, and grants. Moynihan said he believed that a good charity would only spend about 15 percent on those things.
Instead of a charity, Doyle and Moynihan categorized the foundation as a “closely held partnership.”
Researchers believe the Clintons owe between $400 million and $2.5 billion in taxes. They also said they found cases of “pay to play” behavior among donors, the foundation, and Hillary Clinton’s position as secretary of state—which she held from 2009 to 2013.
Based on an interview with a former employee, the whistleblowers said that Bill Clinton regularly “mixed and matched, on an ongoing basis, his business with that of the foundation.”
While the Clinton Foundation denies the complainants’ allegations, the judge’s decision means that the case will go forward, as he asked the Treasury and the complainants for a timetable of next steps.
The case file shows that Moynihan and Doyle have asked the court for permission to take a statement from Jimmy Corley, the head of accounting compliance for the state of Arkansas, as their next witness. The court sealed the request.