Judge David Gustafson, who presides over a U.S. tax court, has once more refused to dismiss an Internal Revenue Service whistleblower case alleging wrongdoing by the Clinton Foundation and postponed the decision, according to Just the News.
The judge previously denied a similar request by the IRS to dismiss the case that has dragged on since 2017 and in 2020 ordered the IRS to reveal if it conducted a criminal investigation into the Clinton Foundation citing a gap in their record keeping.
The judge in his ruling gave the whistleblowers, John Moynihan and Larry Doyle, time to update their case before the court prior to June 30 and mandated that the IRS has the opportunity to respond by July 28. The judge observed that the IRS has not yet responded despite requests to update the court with fresh evidence.
Mr. Moynihan and Mr. Doyle, two forensic financial auditors, allege and have testified in Congress that they had reason to believe that the Clinton Foundation was a front for unlisted foreign lobbying. They accuse the foundation of "began acting as an agent of foreign governments early in its life and throughout its existence...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."
The Clinton Foundation has for its part acknowledged that past audits have revealed their share of problems but insist that they have always tried to follow the law and disputed the whistleblower's allegations. Judge Gustafson nevertheless allowed the case to proceed and cited nonpublic evidence that the FBI and IRS may have worked in tandem on a criminal investigation of the Clinton Foundation and thought that it was possible that the Foundation did not disclose this with the court.
Ironically, Durham's report contained some details of the FBI's four investigations into the Clinton business model. Last week the judge ruled again on the whistleblowers' side. His ruling read, "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."
This may turn out poorly still for Hillary Clinton. The IRS has come under fire for its alleged politicization in how it has handled Hunter Biden's tax investigation. An IRS whistleblower told CBS that "There were multiple steps that were slow-walked — were just completely not done — at the direction of the Department of Justice...When I took control of this particular investigation, I immediately saw deviations from the normal process. It was way outside the norm of what I've experienced in the past." McCarthy's compromise package deal with President Biden would cut off $21 billion in funding to the IRS and leaves the number of tax agents stable.