GOP report: Top IRS official considered admitting targeting before 2012 election -- but didn’t

A top IRS official considered going public with the agency’s targeting of conservative groups at a hearing just months before the 2012 presidential election but ultimately decided against revealing the bombshell news, according to a new report from a GOP-led House committee.
Then-Deputy Commissioner Steven Miller wrote in an email in June 2012, about a month before a House Ways and Means subcommittee hearing, that he was weighing whether to testify to “put a stake” in the “c4” issue -- apparently a reference to allegations about politics playing a role in the agency’s denial of tax-exempt, 501(c)(4) status to conservative-leaning groups.
“I am beginning to wonder whether I should do [the hearing] and affirmatively use it to put a stake in politics and c4,” Miller told his chief of staff, Nikole Flax, in a June 2012 email obtained by the House Committee on Oversight and Government Reform.
Miller ultimately testified at the July 25 hearing but never revealed his knowledge of the misconduct.
“Because he did not, he did a great disservice to the American taxpayers,” the House oversight committee report states.
The detail is one of many findings and allegations in the 226-page Republican-authored report, obtained by Fox News in advance of its release on Tuesday. The report highlights numerous examples of what House Republicans say is agency officials misleading congressional investigators and trying to slow their investigations.
Miller testified before Congress on at least six occasions as deputy commissioner and later as acting commissioner, from May 2012 until May 2013, when he was forced to resign.
During a final hearing, Miller apologized for the agency’s “poor service” but maintained the targeting was not motivated by politics.
The report states: “Though Miller was never asked as directly as [Commissioner Doug] Shulman about the targeting … Miller likewise never told Congress about the IRS misconduct. Miller’s multiple missed opportunities to tell Congress about the targeting continued the IRS’s pattern of failing to inform Congress.”
Now-retired IRS official Lois Lerner, in charge of the agency’s tax-exempt division during the 2010-2012 targeting, eventually revealed the scandal at an American Bar Association event in May 2013 -- roughly six months after President Obama won re-election and just days before an inspector general report on the allegations was scheduled for release.
“They used names like Tea Party or Patriots and they selected cases simply because the applications had those names in the title,” she said at the time. “That was wrong, that was absolutely incorrect, insensitive and inappropriate.”
Maryland Rep. Elijah Cummings, the top Democrat on the House oversight committee, on Monday accused the authors of the GOP-generated report of taking information out of context and selectively releasing information.
“It is revealing that the Republicans -- yet again -- are leaking cherry-picked excerpts of documents to support their preconceived political narrative without allowing committee members to even see their conclusions or vote on them first,” he said in a statement. “By leaking information to reporters on condition that they not disclose it to Democrats, Republicans are intentionally bypassing the normal congressional vetting process designed to distinguish fact from fiction.”
The report follows a recent congressional budget agreement for fiscal 2015 that cuts IRS funding to roughly fiscal 2000 levels, which agency officials argue will make oversight and other jobs even more difficult.
Other conclusions in the report, including several already made public, are that the Obama administration appears so far to have done an incomplete investigation and at times has been uncooperative.
“Only a month after Attorney General (Eric) Holder announced the administration’s investigation, then-FBI Director Robert Mueller was unable to answer basic questions about the status,” the report states. “Even as recently as July 2014, after the IRS informed Congress that it had destroyed two years of Lerner’s e-mails, the FBI continued its refusal to provide any information about its investigation.”
In addition, the Justice Department at one point was willing to pursue criminal prosecutions against the tax-exempt groups, based on information obtained by the IRS, according to documents obtained by House GOP investigators.
And the IRS failed to provide sufficient internal oversight, the report concludes.
“Congress created administrative oversight entities within the Executive Branch to ensure the IRS carries out its mission efficiently and responsibly,” the report states. “These entities -- specifically, the IRS Oversight Board and the Treasury Inspector General for Tax Administration -- exist to ensure that IRS misconduct does not occur and, if it does, to identify and address it immediately. In the case of the IRS’s targeting of conservative tax-exempt applicants, these administrative oversight entities failed in their missions.”

North Korean websites back online after widespread Internet outage

Prominent North Korean websites were back online Tuesday after an hours-long shutdown that led to speculation by some researchers and web watchers that the country's Internet connections could be under cyberattack.
South Korean officials told the Associated Press that Internet access to the North's official Korean Central News Agency and the Rodong Sinmun newspaper were working normally Tuesday after being inaccessible earlier. Those sites are the main channels for official North Korea news, with servers located abroad.
The outage came less than a week after the U.S. vowed an unspecified response to a massive hacking attack against Sony Pictures Entertainment over the release of the comedy film "The Interview." The plot of the comedy centers on the assassination of North Korean leader Kim Jong Un, leading to widespread speculation that the country was responsible for the attack. Late last week, the FBI publicly blamed North Korea in the incident, though Pyongyang has denied involvement.
The White House and the State Department on Monday declined to say whether the U.S. government had any role in North Korea's Internet problems.
"We have no new information to share regarding North Korea today," White House National Security Council spokesperson Bernadette Meehan told Fox News. "If in fact North Korea’s Internet has gone down, we’d refer you to that government for comment."
North Korean diplomat Kim Song, asked Monday about the Internet attack, told The Associated Press: "I have no information."
North Korea is one of the least connected countries in the world. Few North Koreans have access to computers, and even those who do are typically able to connect only to a domestic intranet that works with its own browsers, search engine and email programs, according to South Korea's Unification Ministry. Though North Korea is equipped for broadband Internet, only a small, approved segment of the population has any access to the World Wide Web. More than a million people, however, are now using mobile phones in North Korea. The network covers most major cities but users cannot call outside the country or receive calls from outside.
Doug Madory, the director of Internet analysis at New Hampshire-based Dyn Research, a company that studies Internet connectivity, said the problems were discovered over the weekend and grew progressively worse to the point that "North Korea's totally down."
"They have left the global Internet and they are gone until they come back," he said.
He said one benign explanation for the problem was that a router may have suffered a software glitch, though a cyberattack involving North Korea's Internet service was also a possibility.
Routing instabilities are not uncommon, but this particular outage had gone on for hours and was getting worse instead of better, Madory said.
"This doesn't fit that profile," of an ordinary routing problem, he said. "This shows something getting progressively worse over time."
Another Internet technology service, Arbor Networks, which protects companies against hacker attacks, said its monitoring detected denial-of-service attacks aimed at North Korea's infrastructure starting Saturday and persisting Monday. Such attacks transmit so much spurious data traffic to Internet equipment that it becomes overwhelmed, until the attacks stop or the spurious traffic can be filtered and discarded to allow normal connections to resume.
President Obama said Friday that the U.S. government expected to respond "proportionately" to the hacking of Sony, which he described as an expensive act of "cyber vandalism" that he blamed on North Korea. Obama did not say how the U.S. might respond.
"We aren't going to discuss, you know, publicly operational details about the possible response options or comment on those kind of reports in anyway except to say that as we implement our responses, some will be seen, some may not be seen," State Department spokeswoman Marie Harf said last week.

NYC protesters say they won't stop demonstrations despite de Blasio's wishes

Activist groups in New York City have rejected a call by Mayor Bill de Blasio to hold off on any new demonstrations until after the funerals of two NYPD officers who were ambushed and murdered Saturday in Brooklyn. 
The killings have aggravated tensions between police, City Hall, and protesters who have staged regular demonstrations since a Staten Island grand jury refused to indict an officer earlier this month in connection with the death of 43-year-old Eric Garner. Amateur video appeared to show the officer putting Garner in a chokehold while questioning him over the sale of untaxed cigarettes. 
"We are in a very difficult moment. Our focus has to be on these families," de Blasio said Monday at police headquarters. "I think it's a time for everyone to put aside political debates, put aside protests, put aside all of the things that we will talk about in all due time."
However, the Rev. Al Sharpton told Reuters late Monday that de Blasio's request was too "ill-defined" to heed. 
"Is a vigil a protest? Is a rally?" Sharpton asked. 
Another group, The Answer Coalition, said it would go ahead with a long-planned march Tuesday evening, and denounced the mayor for what it called an "outrageous" attempt to chill free speech. The New York Post reported that a few dozen protesters staged a "die-in" at Grand Central Terminal before marching toward Times Square. 
"We will not let recent tragic moments derail this movement," one protester shouted. "This is the revolution and we will not be repressed."
De Blasio's relations with the city's police unions have tumbled to an extraordinary new low following Saturday's shooting, which the gunman claimed was retaliation for the deaths of Garner and Michael Brown in Ferguson, Missouri.
In a display of defiance, dozens of police officers turned their backs to de Blasio at the hospital where the officers died Saturday night, and Patrolman's Benevolent Association President Patrick Lynch said the mayor had "blood on his hands" for enabling the protesters.
Late Monday, de Blasio and New York Police Commissioner William Bratton held a joint press conference at which Bratton claimed to have spoken with leadership of all the police unions, and claimed they have agreed on "standing down" until after the funerals of the officers.
The funeral for one of the officers, Rafael Ramos, is scheduled for Saturday. Arrangements for the funeral of his partner, Wenjian Liu, are pending the arrival of relatives from China. 
Despite Bratton's apparent efforts at conciliation, the murders of Ramos and Liu has blown open a rift with the police force unlikely to heal soon. some pundits say the level of animosity between the unions and de Blasio had reached a critical point and the officers were even more inflamed than when thousands of officers stormed City Hall and stopped traffic on the Brooklyn Bridge in 1992 to protest Mayor David Dinkins' efforts to create a civilian oversight board.

Former New York Mayor Rudolph Giuliani accused de Blasio late Monday of fueling an "atmosphere of hate" toward officers.

"I don't put the blood of these police officers on the mayor's doorstep," Giuliani told Fox News. "I lost police officers, Bloomberg lost police officers. What I do hold him responsible for is letting those demonstrations get out of control. ... He's guilty of creating an atmosphere of police hatred in certain communities."   

Chickenwood Cartoon

Satanic Temple, Christian state senator mount dueling displays outside Michigan Capitol

LANSING, Mich. –  Christians and Satanists put up competing displays Sunday on the Michigan Capitol grounds as Christmas week got underway.
The Detroit chapter of the Satanic Temple set up its "Snaketivity Scene" featuring a snake offering a book called "Revolt of the Angels" as a gift. The snake is wrapped around the Satanic cross on the 3-feet-by-3-feet display. Capitol rules require that displays have to be taken down each night.
In a videotaped interview with the Lansing State Journal, Satanic Temple spokeswoman Jex Blackmore said her group doesn't worship Satan but does promote individuality, compassion and views that differ from Christian and conservative beliefs.
Blackmore said that the "holiday season is a time of year that is celebrated in many different ways."
"Having our government endorse one singular viewpoint or method of celebrating the season is problematic when we have a diverse community of people in Michigan," she said.
Word of the Satanic Temple's plans led state Sen. Rick Jones, a Grand Ledge Republican, to erect a Nativity scene on Friday featuring baby Jesus, Joseph and Mary. He put it back up Sunday morning.
Jones said he was happy to "represent the light and not the darkness."
"They could have put theirs up in July or April or sometime. They didn't need to put it up in the Christmas season," Jones said. "That's OK. We're going to ignore them. I'm not afraid of the snake people. I'm sure that Jesus Christ is not afraid."
Blackmore told MLive.com her group is "really pleased to be part of what is perhaps a new holiday tradition at the Capitol."
Martin Diller, a 28-year-old who served two tours in Iraq with the Michigan National Guard and one in Afghanistan, visited the Capitol grounds after attending Mass at St. Thomas Aquinas Parish in East Lansing. He said he wanted to see how the constitutional rights issue played itself out.
"A few of my friends in the military, we like to see the First Amendment in use," Diller said. "We all went overseas, we fought for it, it's kind of interesting to see it in action."

In 2016, Republicans will be fighting to hold Senate majority

Senate majority in hand, ascendant Republicans are set to challenge President Obama and the Democrats on Capitol Hill come January. But a much tougher election map two years from now could force the GOP right back into the minority.
In November 2016, Republicans will defend 24 seats, Democrats 10. Seven of the GOP seats are in states that President Barack Obama won with 50 percent or more of the vote in 2012.
It's a stark reversal from this past November, when Democrats were the ones contending with a brutal map, including candidates running in seven states Obama had lost. Democrats were crushed on Election Day, losing nine seats and their Senate majority.
It will be a tough climb for Democrats to make up those losses, and there's no guarantee they will. But coming off November's trouncing, Democrats sound eager about their chances in states such as Wisconsin, Pennsylvania and Illinois, while Republicans are preparing more to defend past victories than try to score new ones.
"There's no doubt about it, it's going to be a bigger challenge than 2014," said Sen. Ron Johnson of Wisconsin, among the Republicans at the top of the Democrats' pickoff list. "But I think we have a really good opportunity here in the next couple years. We will reach out to the other side. I think Americans, Wisconsonites, will find out that we're not the party of `no.' "
Sen. Brian Schatz of Hawaii, one of the Democrats likely to be safely re-elected in 2016, said his party already is eyeing a path to retake control of the Senate. Democrats would have to gain a net of four seats if there's a Democrat in the White House -- because the vice president can cast tie-breaking votes in the Senate -- or five if the GOP wins the presidency.
"Picking up four or five seats is no small task, but we are certainly in a position to do so," Schatz said. "The electorate is going to be different and I think Democratic elected officials and candidates and most importantly voters are going to be excited for a presidential race, and we're excited to play offense."
Democrats faced strong headwinds on numerous fronts in November: Obama's low approval ratings, a scandal involving Department of Veterans Affairs' hospitals, the Ebola outbreak, the rise of Islamic State extremists. Compounding everything was the painfully slow economic recovery.
It's too soon to say what new issues may arise in the next two years or how strong the economy will be. But presidential elections can favor Democratic congressional candidates by increasing turnout of young and minority voters, and Democrats will not have to spend time distancing themselves from an unpopular incumbent.
Operatives in both parties are looking at many of the states Obama won in 2012, plus a few others, as the most contested places in 2016 where Democrats could try to defeat Republicans. In addition to Wisconsin, Pennsylvania and Illinois, the list includes New Hampshire, Ohio, North Carolina and Florida.
Democrats are concerned mainly about defending seats in Colorado and Nevada, where Senate Democratic leader Harry Reid faces what could be a bruising re-election fight if he seeks a sixth term.
Some analysts and Republican strategists say that as tough as the map looks for the GOP, there are some factors in the GOP's favor. Republicans have strong incumbents in Democrat-friendly states, such as Kelly Ayotte in New Hampshire, Rob Portman in Ohio, and Marco Rubio in Florida, if he runs for re-election rather than the presidency.
The GOP's strong showing in November gave them breathing room with a 54-seat majority, making it that much harder for Democrats to make up the difference. States such as New Hampshire or Illinois may be easier for Republicans to defend than strongly GOP-leaning Arkansas, Louisiana and others were for the Democrats this year.
"In the face of what can seem to be a very steep climb for the Republicans you really have to look at each individual race and ask yourself about the vulnerability of each of those candidates," said Ross Baker, a political science professor at Rutgers University. "These Republicans are pretty skillful politicians. I don't see Kelly Ayotte as a particularly easy mark for the Democrats."
Sen. Roger Wicker, R-Miss., who will lead the National Republican Senatorial Committee through 2016, acknowledged a "difficult map." But, he added, "You take them one by one and I feel very, very good about it."
"The main thing that helps our candidates is, state by state, the fact that they've tended to business, they've been diligent legislators and taken care of the home folks," Wicker said.
Republicans' fortunes may depend in part on how the newly GOP-controlled Senate functions and whether incoming Majority Leader Mitch McConnell of Kentucky can advance legislation or gets hamstrung by the tea party faction in his caucus led by Sen. Ted Cruz, R-Texas, another potential White House candidate.
"The key question is will the Republicans want to work with us or will the tea party pull them too far over," said Sen. Chuck Schumer, D-N.Y.

Yankees foundation reportedly will pay for education of murdered NYPD cop's kids

A foundation founded by late New York Yankees owner George Steinbrenner reportedly will cover the education costs for the sons of one of the two NYPD officers murdered in a daylight ambush Saturday afternoon.
The New York Daily News reported that the Yankee Silver Shield Foundation will pay for the education of Officer Rafael Ramos' 13-year-old son Jaden and another son who is in college. 
Ramos, 40, and his partner, Officer Wenjian Liu, were killed as they sat in their squad car in the Bedford-Stuyvesant section of Brooklyn. The gunman, 28-year-old Ismaaiyl Brinsley, killed himself a short time later in a Brooklyn subway station.
Later Saturday, Jaden Ramos paid tribute to him in a Facebook post.
"Today I had to say bye to my father. He was their [sic] for me everyday of my life," the post read. "He was the best father I could ask for. It's horrible that someone gets shot dead just for being a police officer. Everyone says they hate cops but they are the people that they call for help. I will always love you and I will never forget you. RIP Dad."
Ramos' aunt, Lucy Ramos, told reporters Sunday afternoon that, "I hope and pray that we can reflect on this tragic loss of lives that has occurred so that we can move forward and find an amicable patch to a peaceful coexistence."
The officer's cousin, Ronnie Gonzalez, told The Wall Street Journal that Ramos was "a God-loving man" who was devoted to his wife and sons. 
"I wish I could be half the man my cousin was," Gonzalez said. "He was sweet. He didn’t deserve ... to die."
Steinbrenner, who died in 2010, started the Silver Shield foundation in 1982 after seeing TV news coverage of the funeral of an NYPD officer killed in the line of duty. The officer was survived by his wife and four young children. 
"George could not forget the image of the children." foundation co-founder James E. Fuchs said in a statement on the organization's website. He was concerned about their education and who would help with the cost."
The foundation provides for the education of children of New York City firefighters and police officers, as well as New York, New Jersey, and Connecticut state troopers and Port Authority employees who die in the line of duty. It has also helped 700 children who lost a parent in the Sept. 11, 2001 terror attacks.

North Korea issues new threat against US over hacking claims as Obama weighs action

North Korea issued a new threat against the United States late Sunday and accused President Barack Obama of "recklessly" spreading rumors that Pyongyang is behind last month's devastating cyberattack on Sony Pictures.
The long statement from the powerful National Defense Commission warned of strikes against the White House, Pentagon and "the whole U.S. mainland, that cesspool of terrorism."
Such rhetoric is routine from North Korea's massive propaganda machine during times of high tension with Washington. But the statement also underscores Pyongyang's sensitivity at a movie whose plot focuses on the assassination of its leader Kim Jong Un, who is the beneficiary of a decades-long cult of personality built around his family dynasty.
The North Korean statement offered no details of a possible response, but warned that the country's 1.2 million-member army is ready to use all types of warfare against the U.S.
"Our toughest counteraction will be boldly taken against the White House, the Pentagon and the whole U.S. mainland ... by far surpassing the 'symmetric counteraction' declared by Obama," said the commission's Policy Department in a statement carried by the official Korean Central News Agency.
The latest threat came hours after President Obama confirmed that he was considering returning North Korea to the State Department's list of state sponsors of terrorism. Obama, who previously promised in his year-end press conference on Friday to respond "proportionately" to the attack, has termed the breach as an act of "cybervandalism that was very costly, very expensive" as opposed to an act of war.
"We're going to review those through a process that's already in place," Obama told CNN's "State of the Union" in an interview broadcast Sunday. "I'll wait to review what the findings are." 
North Korea spent two decades on the list until the Bush administration removed it in 2008 during nuclear negotiations. Only Iran, Sudan, Syria and Cuba remain on the list, which triggers sanctions that limit U.S. aid, defense exports and certain financial transactions.
But adding North Korea back could be difficult. To meet the criteria, the State Department must determine that a country has repeatedly supported acts of international terrorism, a definition that traditionally has referred to violent, physical attacks rather than hacking.
Obama's other options, which include sanctions targeting high-level North Korean officials and retaliatory cyberattacks, are limited. The U.S. already has trade penalties in place and there is no appetite for military action.
Also Sunday, Sony lawyer David Boies told NBC's "Meet The Press" that the studio would distribute "The Interview," a comedy starring Seth Rogen and James Franco as bumbling journalists tapped by the CIA to assassinate Kim Jong Un. Sony scrapped a planned Christmas Day release of the film after receiving terror threats targeting movie theaters from the hackers, who refer to themselves as the Guardians of Peace. 
"What Sony has been trying to do is to get the picture out to the public," while protecting the rights of company employers and moviegoers, Boies said. He added that theaters "quite understandably" decided not to show the film as scheduled because of the threats. "You can't release a movie unless you have a distribution channel," he said.
In the CNN interview, Obama renewed his criticism of Sony's decision to shelve "The Interview," despite the company's insistence that its hand was forced by the theaters' refusal to show it.
Obama suggested he might have been able to help address the problem if given the chance. "You know, had they talked to me directly about this decision, I might have called the movie theater chains and distributors and asked them what that story was," he said.
Sony's CEO has disputed that the company never reached out, saying he spoke to a senior White House adviser about the situation before Sony announced the decision. White House officials said Sony did discuss cybersecurity with the federal government, but that the White House was never consulted on the decision not to distribute the film.
"I think we've got to recognize that this is not a Sony security problem," Boies said. "This is a national security problem."