Lois Lerner who is at the heart of the Internal Revenue Service tea party scandal dismissed complaints that labor unions were not reporting millions of dollars in political activities on their tax forms, according to an email obtained by The Daily Caller News Foundation.
In 2007, Lerner responded directly to a complaint that some major labor unions reported completely different amounts of political expenditures when filing with the IRS and the Department of Labor. At the time she was the Director of Exempt Organizations for the Internal Revenue Service.
Lerner wrote, “We looked at the information you provided regarding organizations that report substantial amounts of political activity and lobbying expenditures on the DOL Form LM-2, but report little to no political expenditures on the Form 990 filed with the IRS.” “We believe this difference in reporting does not necessarily indicate that the organization has incorrectly reported to either the DOL or the IRS,” Lerner concluded.
In 2006, the year leading up to Lerner’s email, the national headquarters for the AFL-CIO reported no direct or indirect political expenditures with the IRS on their 990 form, leaving the line 81a blank. That same year, the AFL-CIO reported $29,585,661 in political activities with the Department of Labor.
Also in 2006 the Teamsters Union reported no political expenditures with the IRS while at the same time reporting $7,081,965 with the Labor Department.
Lerner admitted in the 2007 email, “The definition of political campaign activity required to be reported on Form LM2 coincides with the definition of political campaign activity expenditures required to be reported on Form 990.” It appears once again she was playing favorites and blindly looking away.