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Tuesday, February 3, 2026

Tag: Internal Revenue Service (IRS)
January 26, 2026
News

Treasury Dept Cuts Contractor Responsible for Trump Tax Leaks.

PULSE POINTS

âť“WHAT HAPPENED: The U.S. Department of the Treasury has canceled all contracts with Booz Allen Hamilton following leaks of tax information, including tax returns belonging to President Donald J. Trump, by a former contractor.

👤WHO WAS INVOLVED: Former Internal Revenue Service (IRS) contractor Charles Edward Littlejohn, the Department of the Treasury, Secretary Scott Bessent, Booz Allen Hamilton, and President Trump.

đź“ŤWHEN & WHERE: The leaks occurred between 2018 and 2020, with Littlejohn sentenced in January 2024. The Treasury’s announcement was made on January 26, 2026.

đź’¬KEY QUOTE: “Canceling these contracts is an essential step to increasing Americans’ trust in government.” – Treasury Secretary Scott Bessent

🎯IMPACT: The Treasury Department is terminating 31 contracts with Booz Allen Hamilton, valued at $4.8 million annually and $21 million in total obligations.

IN FULL

The U.S. Department of the Treasury is canceling all contracts with Booz Allen Hamilton after a former contractor leaked tax information belonging to thousands of people, including President Donald J. Trump. The contractor, Charles Edward Littlejohn, had worked for Booz Allen Hamilton and was sentenced to five years in prison in 2024 after pleading guilty to the leaks.

Littlejohn provided tax data to The New York Times and the leftist website ProPublica between 2018 and 2020, a breach that prosecutors described as “unparalleled in the IRS’s history.” According to the Treasury Department, the leak impacted approximately 406,000 people, based on Internal Revenue Service data.

Treasury Secretary Scott Bessent stated on Monday, “President Trump has entrusted his cabinet to root out waste, fraud and abuse, and canceling these contracts is an essential step to increasing Americans’ trust in government. Booz Allen failed to implement adequate safeguards to protect sensitive data, including the confidential taxpayer information it had access to through its contracts with the Internal Revenue Service.”

The National Pulse reported in January 2024 that Littlejohn deliberately sought employment as a contractor to access President Trump’s tax returns and devised methods to extract data without raising internal suspicions. At his sentencing, Littlejohn admitted, “I made my decision with full knowledge that I would likely end up in a courtroom to answer for my serious crime. I used my skills to systematically violate the privacy of thousands of people.”

The Treasury Department has 31 contracts with Booz Allen Hamilton, worth $4.8 million in annual spending and $21 million in total obligations.

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January 20, 2026
William Upton
Crime
Politics

Anti-ICE Groups Could Be Stripped of Non-Profit Status. Here’s How.

PULSE POINTS

âť“WHAT HAPPENED: A nonprofit watchdog group, the Center to Advance Security in America (CASA), and Republicans on the House Ways and Means Committee are urging the Treasury Department and Internal Revenue Service (IRS) to begin investigating the tax-exempt status of leftist nonprofits, especially those behind violent anti-ICE protests in Minnesota.

👤WHO WAS INVOLVED: The Center to Advance Security in America (CASA), the House Ways and Means Committee, the U.S. Treasury Department, the IRS, and various leftist nonprofit organizations.

đź“ŤWHEN & WHERE: The letters were sent to the U.S. Treasury Department and IRS on Tuesday, January 20, 2026.

đź’¬KEY QUOTE: “Based on CCR’s fiscal sponsorship of an organization called, ‘Defend 612,’ we believe they may be in violation of one or more requirements for tax-exempt status under Section 501(c)(3), including, but not limited to, advocating for interference with federal immigration enforcement operations and advocating for ‘community defense’ against federal immigration authorities, insinuating the use of violence as a tactic.” — Center to Advance Security in America (CASA)

🎯IMPACT: Both the CASA and the House Ways and Means letters urge a broader federal approach that could result in a new framework for granting tax-exempt status and for how nonprofits operate in the United States.

IN FULL

A nonprofit watchdog group, the Center to Advance Security in America (CASA), is pushing U.S. Treasury Secretary Scott Bessent and the Internal Revenue Service (IRS) to launch an investigation into the tax-exempt status of a Minnesota group they allege has been integral to funding violent anti-ICE demonstrations in the state. At the same time, Bessent is also being urged by the House Ways and Means Committee’s Republican members to launch a similar investigation into leftist nonprofits and efforts to interfere with U.S. Immigration and Customs Enforcement (ICE) operations.

“We are writing to formally request that the Internal Revenue Service begin an investigation to review the tax-exempt status of the above-referenced organization, Cooperation Cannon River [CCR],” the CASA letter reads, continuing, “Based on CCR’s fiscal sponsorship of an organization called, ‘Defend 612,’ we believe they may be in violation of one or more requirements for tax-exempt status under Section 501(c)(3), including, but not limited to, advocating for interference with federal immigration enforcement operations and advocating for ‘community defense’ against federal immigration authorities, insinuating the use of violence as a tactic.”

“We believe that after a proper investigation, the facts will show that CCR’s support for ‘Defend 612’ and funding of its potentially illegal activity will be sufficient evidence to revoke its tax-exempt status,” the watchdog group’s letter contends.

Likewise, the House Ways and Means letter is asking Bessent and the IRS to investigate a broader swath of nonprofits, which they say exploit tax-exempt status to promote “anti-American and/or pro-terrorist ideals” and engage in fraudulent activities that misuse taxpayer funds. “As the Ways and Means Committee continues to investigate every corner of the tax-exempt sector to root out this waste, fraud, abuse, and illegal activity, it is now abundantly clear the system is in desperate need of an overhaul,” Chairman Jason Smith (R-MO) wrote.

The National Pulse reported earlier this month that Secretary Bessent announced the IRS would soon form a task force charged with investigating instances of COVID-19 pandemic relief fraud and violations of 501(c)(3) tax-exempt status by nonprofits tied to the numerous Somali community-linked social services fraud schemes. However, both the CASA and the House Ways and Means letters urge a broader federal approach that could result in a new framework for granting tax-exempt status and for how nonprofits operate in the United States.

Already, the Ways and Means Committee has referred 11 nonprofits to the Treasury Department for investigation, citing allegations of antisemitism, terrorism ties, and illegal activities. Among those under scrutiny are The People’s Forum, accused of ties to the Chinese Communist Party (CCP), and other groups allegedly involved in anti-Israel protests and activities deemed unlawful.

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January 9, 2026
William Upton
Corruption
Crime

Trump Treasury Unleashes Financial Crimes Division on Minnesota.

PULSE POINTS

âť“WHAT HAPPENED: U.S. Treasury Secretary Scott Bessent announced on Friday that he has ordered the department’s Financial Crimes Enforcement Network (FinCEN) to begin a geographic targeting operation for the Minneapolis-St. Paul area, applying extra scrutiny to all businesses engaging in overseas money transfers.

👤WHO WAS INVOLVED: Treasury Secretary Scott Bessent, FinCEN officials, the Internal Revenue Service (IRS), Minnesota’s Somali immigrant community, and Governor Tim Walz (D).

đź“ŤWHEN & WHERE: The announcement was made on Friday, January 9, 2026.

đź’¬KEY QUOTE: “This will put a microscope on these businesses, advance prosecutions, and assist in the recovery of funds laundered internationally.” — Scott Bessent

🎯IMPACT: The Treasury Department order will require wire transfer businesses and banks to submit additional information to FinCEN on money transfers before the transactions will be allowed to process.

IN FULL

U.S. Treasury Secretary Scott Bessent announced on Friday that he has ordered the department’s Financial Crimes Enforcement Network (FinCEN) to begin a geographic targeting operation for the Minneapolis-St. Paul area, applying extra scrutiny to all businesses engaging in overseas money transfers. The order will require wire transfer businesses and banks to submit additional information to FinCEN on money transfers before the transactions will be allowed to process.

“This will put a microscope on these businesses, advance prosecutions and assist in the recovery of funds laundered internationally,” Sec. Bessent said at a press conference announcing the new financial monitoring measures on Friday. He added, “Under Democratic Governor Tim Walz, welfare fraud has spiraled out of control. Billions of dollars intended for feeding hungry children, housing disabled seniors, and providing services for children in need were diverted to benefit Somali fraud rings.”


According to the Treasury Department, the geographic targeting order will “require banks and money transmitters located in Hennepin and Ramsey Counties, which include Minneapolis and St. Paul, to report additional information about funds transferred outside of the United States. These businesses will be required to file reports with FinCEN above certain transactions of $3,000 or more where the beneficiary is located outside of the United States.”

The Treasury Department contends the order will provide federal law enforcement with greater insight into the individuals overseas receiving money transfers, and help “advance prosecutions and assist in the recovery of funds laundered internationally.” As part of the operation, the department has notified four money transfer businesses that they are under investigation for suspicious financial activity.

In addition to the FinCEN geographic targeting order, Sec. Bessent announced that the Internal Revenue Service (IRS) will soon launch a task force charged with investigating instances of COVID-19 pandemic relief fraud and violations of 501(c)(3) tax-exempt status by nonprofits tied to the numerous Somali community-linked social services fraud schemes.

Bessent added that FinCEN is already on the ground in Minnesota and will also provide training to federal, state, and local law enforcement on how to utilize Treasury Department tools, such as Suspicious Activity Reports, to combat fraud. “We will not let the incompetence and recalcitrance of Governor Walz stop law enforcement from holding these perpetrators accountable,” Bessent said.

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November 6, 2025
Economy
News

Trump IRS Eases Paperwork Burden Related to Tips, Overtime.

PULSE POINTS

âť“WHAT HAPPENED: The Internal Revenue Service (IRS) and the Department of the Treasury announced penalty relief for employers regarding new reporting requirements on cash tips and qualified overtime compensation under the One Big Beautiful Bill Act (OBBB) for the 2025 tax year.

👤WHO WAS INVOLVED: The IRS, the Department of the Treasury, and employers, particularly in tipped industries such as hospitality.

đź“ŤWHEN & WHERE: The announcement applies to the 2025 tax year and was made following the signing of the OBBB into law in July 2025.

💬KEY QUOTE: “Tax year 2025 will be treated as a transition period for IRS enforcement and administration of the new information reporting requirements for cash tips and qualified overtime compensation under the OBBB.” – IRS Official Release

🎯IMPACT: Employers will not face penalties for failing to meet the new requirements in 2025, but full enforcement will begin in 2026.

IN FULL

In a move to ease burdens on businesses, the Internal Revenue Service (IRS) and the Department of the Treasury have granted penalty relief for the 2025 tax year for employers regarding new reporting requirements on cash tips and qualified overtime compensation under the One Big Beautiful Bill Act (OBBB). Signed into law by President Donald J. Trump in July 2025, the OBBB mandates that employers report specifics on cash tips and qualified overtime pay using forms like the W-2 and 1099.

With many companies—especially in service sectors reliant on tips—still scrambling to update their processes and paperwork, the IRS has labeled 2025 a grace period. During this time, no fines will be imposed for shortcomings in compliance.

Specifically, employers won’t be penalized for not isolating cash tips in reports, failing to note the occupations of tip earners, or leaving out aggregate qualified overtime figures for staff. To support workers’ deduction claims, the IRS urges businesses to share details like job codes and itemized tips or overtime through digital platforms or simple written notices.

In an official statement, the IRS explained: “Forms W-2 and 1099 for tax year 2025 will not be updated to account for the OBBB-related changes. Therefore, tax year 2025 will be treated as a transition period for IRS enforcement and administration of the new information reporting requirements for cash tips and qualified overtime compensation under the OBBB.”

This waiver is limited to 2025. From 2026 onward, full penalties will apply for non-adherence to the reporting rules. The IRS also plans to release further instructions to assist filers in deducting eligible tips and overtime when submitting their 2025 returns next year.

Image by Alpha Photo.

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November 4, 2025
NatSec
Podcast

Republicans Move to End Tax-Exempt Status for CAIR, Other Groups With Islamist Terror Connections.

PULSE POINTS

âť“WHAT HAPPENED: Representative Chip Roy (R-TX) introduced legislation to strip tax-exempt status from groups with ties to terrorism.

👤WHO WAS INVOLVED: Rep. Chip Roy, organizations like the Council on American-Islamic Relations (CAIR).

đź“ŤWHEN & WHERE: Legislation introduced Tuesday; focusing on U.S.-based organizations with ties to terrorism.

đź’¬KEY QUOTE: “It is absurd that the U.S. has provided organizations with ties to terrorism tax-exempt status in the U.S.—resulting in the American people inadvertently subsidizing terror against themselves.” – Chip Roy

🎯IMPACT: The bill aims to cut off financial advantages for groups exploiting tax exemptions while maintaining ties to terrorism.

IN FULL

Representative Chip Roy (R-TX) has introduced legislation that would prevent American taxpayers from “inadvertently subsidizing” groups with ties to terrorism. Filed on Tuesday, the No Tax Exemptions for Terror Act would prevent organizations linked to extremist groups, such as the Council on American-Islamic Relations (CAIR), from attaining tax-exempt status with the Internal Revenue Service (IRS).

“It is absurd that the U.S. has provided organizations with ties to terrorism tax-exempt status in the U.S.—resulting in the American people inadvertently subsidizing terror against themselves,” Roy told the media, adding: “It is ridiculous, and we should have ended this long ago.”

The bill specifically targets groups that exploit charitable tax exemptions while maintaining connections to terrorism. For example, CAIR, which defines itself as a charity, was identified by the FBI as an unindicted co-conspirator in the 2007 Holy Land Foundation investigation. Evidence from that case demonstrated CAIR’s founders participated in a meeting with Hamas supporters in 1993.

“No organization with ties to terrorism should receive a tax benefit,” Roy said. “For example, the Council on American-Islamic Relations (CAIR) should immediately be stripped of their 501(c)(3) status.” He further noted, “CAIR has ties with Hamas, the Muslim Brotherhood, and other extremist organizations that routinely use violence and commit horrific acts to advance their political agenda.”

Roy also pointed out that CAIR’s national executive director praised Hamas’ October 7 attacks against Israel, calling it another example of why such organizations should lose their tax-exempt status. “This must end,” he stated.

The National Pulse reported on Monday that CAIR is one of the dark money funders of Zohran Mamdani, the Democrats’ socialist candidate for New York City mayor. Campaign finance records show the group—with alleged ties to Islamic extremists—both directly and indirectly funneled hundreds of thousands of dollars to Mamdani’s mayoral campaign over the last year.

In addition, Muslim activist Linda Sarsour claims CAIR has been instrumental in pushing the broader American Mulsim community to contribute to Mamdani, making its impact far larger than data suggests.

Image by Wruizlaw.

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October 8, 2025
Politics

IRS to Furlough Half Its Staff as Democrats’ Government Shutdown Continues.

PULSE POINTS

âť“WHAT HAPPENED: The Internal Revenue Service (IRS) announced it will furlough nearly half of its workforce as the government shutdown continues into its second week.

👤WHO WAS INVOLVED: The IRS, President Donald J. Trump, Senate Democrats, and the National Treasury Employees Union.

đź“ŤWHEN & WHERE: Announced on Wednesday, as the shutdown entered its second week, affecting IRS operations nationwide.

💬KEY QUOTE: “Taxpayers around the country will now have a much harder time getting the assistance they need, just as they get ready to file their extension returns due next week.” – Doreen Greenwald, National Treasury Employees Union President.

🎯IMPACT: Taxpayers face delays, increased wait times, and backlogs while IRS operations are curtailed.

IN FULL

The Internal Revenue Service (IRS) has announced that nearly half of its workforce will be furloughed as the government shutdown continues into its second week. According to an updated contingency plan posted on the agency’s website, only 39,870 employees, or 53.6 percent of its workforce, will remain on the job. Most IRS operations are now closed.

The shutdown stems from Senate Democrats blocking six attempts to pass a short-term federal funding measure. The agency’s initial contingency plan allowed operations to continue for the first five business days using funds from previous appropriations. However, the ongoing shutdown has forced the IRS to scale back its workforce significantly.

Doreen Greenwald, president of the National Treasury Employees Union, warned that taxpayers should expect delays. “Taxpayers around the country will now have a much harder time getting the assistance they need, just as they get ready to file their extension returns due next week,” she stated. Greenwald also emphasized that the growing backlog of work will frustrate taxpayers further as the shutdown persists.

The notice to IRS workers confirmed that furloughed employees and those remaining on the job will receive back pay once the shutdown ends. However, the Trump administration recently cautioned that there is no guarantee of back pay for federal workers during a shutdown unless Congress explicitly appropriates money for the back pay. Last week, the administration estimated that approximately 750,000 federal employees across various agencies would be furloughed, with some potentially losing their jobs.

The IRS, which employed roughly 100,000 workers at the end of 2024, has seen its workforce reduced to around 75,000 as a result of mass layoffs earlier this year.

Image by Alpha Photo.

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October 6, 2025
Politics

Social Security Chief Frank Bisignano Takes Dual Role as IRS CEO.

PULSE POINTS

âť“WHAT HAPPENED: Treasury Secretary Scott Bessent appointed Social Security Administration Commissioner Frank Bisignano as CEO of the Internal Revenue Service (IRS), a newly created position.

👤WHO WAS INVOLVED: Scott Bessent, Frank Bisignano, and the Treasury Department.

đź“ŤWHEN & WHERE: Announcement made Monday; roles involve the IRS and Social Security Administration.

đź’¬KEY QUOTE: Sec. Bessent said that Bisignano “[H]as already made important and substantial progress [at the SSA], and we are pleased that he will bring this expertise to the IRS as we sharpen our focus on collections, privacy, and customer service in order to deliver better outcomes for hardworking Americans.”

🎯IMPACT: Bisignano will oversee daily IRS operations while continuing as SSA Commissioner.

IN FULL

Treasury Secretary Scott Bessent on Monday announced the appointment of Frank Bisignano, the current Social Security Administration (SSA) Commissioner, to a newly created role as CEO of the Internal Revenue Service (IRS). The position is designed to manage the daily operations of the tax agency.

The Treasury Department explained that Bisignano will continue his responsibilities at the SSA while taking on the additional leadership role at the IRS. Bessent remarked, “The IRS and SSA share many of the same technological and customer service goals. This makes Mr. Bisignano a natural choice for this role.”

Sec. Bessent continued, stating that Bisignano “has already made important and substantial progress [at the SSA], and we are pleased that he will bring this expertise to the IRS as we sharpen our focus on collections, privacy, and customer service in order to deliver better outcomes for hardworking Americans.”

This appointment follows a series of leadership changes at the IRS. The agency’s most recent commissioner, Billy Long, a former auctioneer and congressman, resigned in August after just two months in the position.

Bisignano, prior to his government service, held roles as a Wall Street executive and served as CEO of Fiserv, a financial services and payments company. In his new role as IRS CEO, he will report directly to Bessent, who remains the acting IRS commissioner.

Image by Alpha Photo.

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