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Federal judge orders IRS to explain lost emails

By WTOP Staff

STEPHEN OHLEMACHER
Associated Press

WASHINGTON (AP) — A federal judge on Thursday ordered the IRS to explain under oath how it lost a trove of emails to and from a central figure in the agency’s tea party controversy.

U.S. District Judge Emmet G. Sullivan gave the tax agency a month to submit the explanation in writing. Sullivan said he is also appointing a federal magistrate to see whether the lost emails can be obtained from other sources.

Sullivan issued the order as part of a Freedom of Information Act lawsuit by Judicial Watch, a conservative watchdog group. He said the IRS declaration must be signed, under oath, by the appropriate IRS official.

“I’m going to hold tight to that Aug. 10 declaration,” Sullivan said.

The IRS says it lost the emails in 2011 when Lois Lerner’s computer crashed. At the time, Lerner headed the IRS division that processes applications for tax-exempt status. She has since retired.

Lerner, who refused to answer questions at two House committee hearings, has become a central figure in several congressional investigations over the handling of tea party applications. At both hearings, Lerner cited her Fifth Amendment right not to incriminate herself.

IRS Commissioner John Koskinen has testified on the lost emails before Congress at least three times. Each time he was under oath.

Koskinen said he first learned there was a problem with Lerner’s computer in February but didn’t learn that emails were lost until April. The IRS notified Congress June 13.

Judicial Watch lawyer Ramona Cotca complained that the IRS never informed her group or the court about the lost emails, even though Sullivan had ordered the IRS to produce documents related to the information request on a monthly basis.

Geoffrey Klimas, a Justice Department lawyer representing the IRS, said the agency had no legal obligation to tell Judicial Watch about emails that may have been destroyed two years before the group filed its request for information.

Judicial Watch filed a series of requests with the IRS shortly after the tea party controversy erupted in May 2013. Among its requests, the watchdog group wanted communications Lerner had with others concerning the handling of applications for tax-exempt status since Jan. 1, 2010.

Judicial Watch filed a lawsuit against the IRS in October, saying the agency didn’t produce any documents. Since then, the IRS started to produce some documents in February, Cotca said.

On Thursday, Cotca asked Sullivan to conduct a limited discovery to determine what happened to the emails, perhaps compelling testimony from IRS officials. But Sullivan said that would be premature.

Klimas noted that the tax agency’s inspector general is conducting an investigation into the lost emails. Klimas said the inspector general has asked the IRS not to question witnesses that may have information about the lost emails to avoid interfering with its investigation.

Sullivan said the sworn IRS statement should include information about the inspector general’s concerns.

Sullivan said he would assign federal magistrate John Facciola to look into ways of obtaining the IRS records from other sources, though it is unclear how much information could be recovered.

In 2011, the IRS had a policy of backing up emails on computer tapes, but the tapes were recycled every six months, Koskinen told Congress. He said Lerner’s hard drive was recycled and presumably destroyed, after technicians in the agency’s criminal investigations unit tried unsuccessfully to restore it.

The IRS was able to generate 24,000 Lerner emails from the 2009 to 2011 period because she had copied in other IRS employees, Koskinen said. As part of the congressional investigations, the IRS said it is producing a total of 67,000 emails to and from Lerner, covering the period from 2009 to 2013.

IRS lawyers are due back in federal court Friday before a different judge for a hearing on the lost emails in a separate lawsuit filed by a group called True the Vote. The group, which says it advocates for the integrity of elections, sued the IRS over delays in its application for tax-exempt status.

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Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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