DARRELL E. ISSA. CALIFORNIACHAIRMANJOHN L. MICA, FLORIDAMICHAEL R. TURNER. OHIOJOHN J. DUNCAN. JR.. TENNESSEEPATRICK T. MCHENRY, NORTH CAROLINAJIM JORDAN. OHIOJASON CHAFFETZ. UTAHTIM WALBERG. MICHIGANJAMES LANKFORD. OKLAHOMAJUSTIN AMASH, MICHIGANPAUL A. GOSAR, ARIZONAPATRICK MEIEHAN, SCOTT DI-ZSJARLAIS. TENNESSEETREY GOWDY. SOUTH CAROLINABLAKE FARENTHOLD, TEXASDOC HASTINGS, WASHINGTONM. LUMMIS. WYOMINGROB WOODALL, GEORGIATHOMAS MASSIE. KENTUCKYDOUG COLLINS. GEORGIAMARK MEADOWS, NORTH CAROLINAKERRY L. BENTIVOLIO. MICHIGANRON DLSANTIS, FLORIDALAWRENCE J. BRADYSTAFF DIRECTORONE HUNDRED THIFITEENTH CONGRESSCttungress at the Glniteh StatesJlanuse of COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM2157 RAYBURN House OFFICE BUILDINGWASHINGTON, DC 20515-6143(202) 225-507?.FACSIMII I MINOHIW 2213-5051April 23, 2014The Honorable Eric H. Holder, Jr.Attorney GeneralUnited States Department of Justice950 Avenue, NWWashington, DC 20530Dear Mr. Attorney General:ELIJAH E. CUMMINGS, MARYLANDRANKING MINORITY MEMBERCAROLYN B. MALONEY. NEW YORKELEANOR HOLMES NORTON.DISTRICT OF COLUMBIAJOHN F. TIERNEY. MASSACHUSETTSWM. LACY CLAY. MISSOURISTEPHEN F. MASSACHUSETTSJIM COOPER. TENNESSEEGERALD E. CONNOLLY, VIRGINIAJACKIE SPEIER. CALIFORNIAMATTHEW A. CARTWRIGI-IT. L. TAMMY DUCKWORTH, ILLINOISROBIN L. KELLY, ILLINOISDANNY K. DAVIS. ILLINOISPETER WELCI-I, VERMONTTONY CAFIDENAS, CALIFORNIASTEVEN A. HORSFORD. NEVADAMICHELLE LUJAN GRISHAM, NEW MEXICOVACANCYThe Committee on Oversight and Government Reform continues to examine the InternalRevenue Service?s targeting of conservative tax-exempt applicants. We are deeply dismayedthat the Department of Justice may have contributed to this inappropriate treatment byconsidering prosecution of tax?exempt groups engaged in political speech.I This information,released by Judicial Watch, damages the integrity of the Department and undermines itsfundamental mission of ?fair and impartial administration ofjustice for all Americans.?2 Werequest your assistance as we examine this matter.On May 8, 2013, Richard Pilger, Director of the Election Crimes Branch oftheDepartment?s Public Integrity Section, e-mailed Lois Lerner, then?Director of the ExemptOrganizations Division, writing: ?[W]hen you have a moment, would you call me? I have beenasked to run something by you.?3 After Mr. Pilger and Ms. Lerner spoke, Ms. Lernersummarized the conversation in an e?mail to Nikole Flax, then?chief of staff to ActingCommissioner Steve Miller. She wrote:I got a call today from Richard Pilger Director Election Crimes Branch at DOJ. Iknow him from contacts from my days there. He wanted to know who at IRS theDOJ folks could talk to about Sen. Whitehouse idea at the hearing that DOJ couldpiece together false statement cases about applicants who ?lied? on their 1024s saying they weren?t planning on doing political activity, and then ttuning aroundand making large visible political expenditures. DOJ is feeling like it needs torespond, but want to talk to the right folks at IRS to see whether there areSee Gregory Koite, On eve of Tea Party scandal, discussed criminal probes, USA TODAY, Apr. 16, 2014.2 U.S. Dep?t of Justice, About DOJ, 3 E?mail from Richard Pilger, U.S. Dep?t of.Iustice, to Lois Lerner, Internal Revenue Serv. (May 8, 2013). 209188]The Honorable Eric H. Holder, Jr.April 23, 2014Page 2impediments from our side and what, if any damage this might do to IRSprograms.4Ms. Lerner asked veteran IRS official Nan Marks to arrange the meeting,5 but it is unclear whatadditional steps the Department took to coordinate with the IRS about the targeting of tax-exempt applicants.This e?mail is shocking on several levels. As an initial matter, this e?mail is furtherevidence that the Administration?s targeting and inappropriate treatment of conservative tax-exempt applicants was the result of political pressure from prominent Democrats to ?fix theproblem? posed by the Supreme Court?s Citizens United decision.6 Information obtained by theCommittee shows that beginning in 2010, the President and congressional Democrats loudly andaggressively criticized the Court?s decision and conservative nonpro?t groups that they believedwould bene?t from it.7 This e?mail makes clear that the Justice Department, like the IRS and theSecurities and Exchange Commission, played a role in a govemment?wide effort to targetpolitical speech.8 Certainly, as is apparent in this e?mail, the Department felt the need to dosomething in response to Democratic rhetoric against nonpro?t political speech.More unbelievably, this e?mail also suggests that the Department actually consideredprosecuting nonpro?t groups for their political activities. Even more astounding, the Departmentconsidered prosecuting these groups for actions that are legal for 501(c)(4) nonpro?ts underfederal tax law that is, engaging in political speech.9 The Department?s use of alleged falsestatement on the tax?exempt application is an unfortunate instance of prosecutorial ?gotcha,?targeting these victims for supposed ?lies? about activities that they are legally allowed to do. Inthis way, the tactics suggested by Mr. Pilger appear to be nothing more than harassment by theJustice Department of groups engaged in otherwise lawful activity.Other e-mails show just how outrageous the Department?s tactics were. As Ms. Lernerwrote to her colleagues, the law does not support the prosecution of a nonpro?t for making falsestatements about political speech. She wrote:Whether there was a false statement or fraud regarding an [sic] description of analleged political expenditure that doesn?t say vote for or vote against is not4 E?mail from Lois Lerner, lntemal Revenue Serv., to Nikole Flax, Internal Revenue Serv. (May 8, 2013). 209282]5 Id.6 See, H. COMM. ON OVERSIGHT REFORM, LOIS INVOLVEMENT IN THE IRS TARGETING OFTAX-EXEMPT ORGANIZATIONS (Mar. 1 1, 2014).7 See Memorandum from Majority Staff, H. Comm. on Oversight Gov?t Reform, to Members, H. Comm. onOversight Gov?t Reform, ?Interim update on the Committee?s investigation ofthe Internal Revenue Service?sinappropriate treatment of certain tax?exempt applicants? (Sept. 17,2013).8 See Memorandum from Majority Staff, I-I. Comm. on Oversight Gov?t Reform, to Member, H. Comm. onOversight Gov?t Reform, ?The SEC and Political Speech? (July 22, 2013); Memorandum from Majority Staff, H.Comm. on Oversight Gov?t Reform, to Members, H. Comm. on Oversight Gov?t Reform, ?Interim update onthe Committee?s investigation ofthe Internal Revenue Service?s inappropriate treatment ofcertain tax?exemptapplicants? (Sept. 17,2013); H. COMM. ON OVERSIGHT REFORM, LOIS INVOLVEMENT IN IRSTARGETING OF TAX-EXEMPT ORGANIZATIONS (Mar. 11,2014).9 See I.R.C. 501(c)(4); Treas. Reg. The Honorable Eric H. Holder, Jr.April 23, 2014Page 3realistic under current law. Everyone is looking for a magic bullet or scapegoat there isn?t one. The law in this area is just hard.?Instead, as Lerner indicated in another e?mai1, those individuals pushing for the prosecution ofpolitically active nonpro?ts for ?tax fraud? were seeking to ?shut these down?? She elaborated:?One IRS prosecution would make an impact and they wouldn?t feel so comfortable doing stuff.So, don?t be fooled about how this is being articulated it is ALL about 501(c)(4) orgs andpolitical Mr. Pi1ger?s communications with Ms. Lerner are also striking for their timing. Theyshow that the IRS and the Justice Department were actively considering efforts to target tax-exempt organizationsjust two days before Ms. Lerner?s public apology for the targeting.? Thisinformation certainly undermines the sincerity of Ms. Lemer?s apology, but it calls into questionyour reaction that targeting was ?outrageous? and ?unacceptab1e.?l4 These comments ringhollow in light of evidence that your subordinates apparently colluded with the IRS to targetnonprofit groups less than a week before.We are severely disappointed in the Depa1tment?s apparent contribution to theAdministration?s targeting of tax?exempt applicants. With your constant reminders about theDepartment?s limited criminal justice resources,? we would have hoped that the Departmentwould better focus its prosecutorial resources. To examine fully the Department?s apparent rolein targeting tax?exempt applicants and the Department?s coordination with the IRS on thismatter, we ask that you produce the following material as soon as possible, but no later than May5, 2014:1. All documents and communications referring or relating to 501(c)(4) tax?exemptorganizations or applicants for 501(c)(4) tax?exempt status for the period January 1,2009, through the present.2. All documents and communications between or among Lois Lerner and employees of theDepartment of Justice for the period January 1, 2009, through the present.3. All documents and communications referring or relating to the potential prosecution oftax?exempt organizations for alleged false statements made on Internal Revenue Serviceforms for the period January 1, 2009, through the present.'0 E?mail from Lois Lerner, Internal Revenue Serv., to Suzanne Sinno et al., Internal Revenue Serv. (Mar. 27, 2013).188327]E-mail from Lois Lerner, Internal Revenue Serv., to Nikole Flax et a1., lntemal Revenue Serv. (Mar. 27,2013).'2 Id.'3 See Rick Hasen, Transcript of Lois Lerner '5 Remarks at Tax Meeting Sparking IRS Controversy, ELECTION LAWBLOG (May 11, 2013, '4 Rachael Weiner, Holder has ordered IRS investigation, WASH. POST, May 14, 2013.'5 See, Press Release, U.S. Dep?t oflustice, Statement by Attorney General Holder on SentencingCommission?s Vote to Approve Reductions in Sentencing Guidelines for Nonviolent Drug Offenders (Apr. 10,2014). The Honorable Eric H. Holder, Jr.April 23, 2014Page 4In addition, we ask that you make Richard Pilger available for a transcribed interview withCommittee staff. Please have your staff contact the Committee staff as soon as possible, but nolater than April 29, 2014, to schedule this interview.The Committee on Oversight and Government Reform is the principal oversightcommittee of the House of Representatives and may at ?any time? investigate ?any matter? as setforth in House Rule X. Please Contact David Brewer or Tyler Grimm with the Committee staffat 202-225-5074 if you have any questions. Thank you for your attention to this matter. Sincerely,. (I I/If/niildcicc: The Honorable Elijah E. Cummings, Ranking Minority Member