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The IRS official who led the tax-exempt organizations unit when Tea Party groups were targeted is now in charge of the IRS office responsible for ObamaCare, two Capitol Hill sources told Fox News.

The acknowledgement comes after the administration announced that the official’s successor -- who had only been on the job a few days -- would be retiring. And it fueled criticism of the agency, as the outgoing IRS commissioner prepared to face lawmakers’ questions at a hearing Friday morning.

“Stunning. Just stunning,” Senate Republican Leader Mitch McConnell said in reaction to the latest development.

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A national labor board which has long been accused of making union-friendly decisions was dealt another blow Thursday, after a second federal appeals court found President Obama exceeded his power when he bypassed the Senate to appoint its members.

The ruling by the 3rd U.S. Circuit Court of Appeals in Philadelphia once again threatened to upend the National Labor Relations Board's decisions. And it has the potential to stall the board entirely, as well as challenge other federal agencies that have similar appointees.

For now, the Obama administration has tried to disregard the court decisions -- it has already appealed a similar ruling, from a Court of Appeals in Washington, D.C., to the Supreme Court.

In the 2-1 decision from the Philadelphia court, judges said Obama had no constitutional authority to install attorney Craig Becker to the labor board in 2010 while the Senate was adjourned for two weeks.

This is what's known as a recess appointment. But the court said that under the Constitution recess appointments can be made only between sessions of the Senate, not any time the Senate is away on a break.

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Lois Lerner, the director of the IRS division that singled out conservative groups, is expected to invoke the Fifth Amendment Wednesday when she appears before the House Oversight and Government Reform Committee, Fox News has learned.

That means Lerner, head of the exempt organizations division, probably won’t answer any questions on what she knew about IRS agents going after Tea Party-related groups. That also means she probably won’t say why she sat on the information for so long before it became public.

Lerner’s attorney William Taylor III asked committee Chairman Darrell Issa, R-Calif., in a letter if she could skip Wednesday’s hearing since she would be pleading the Fifth.

Taylor argued in the letter that forcing Lerner to appear “would have no purpose other than to embarrass or burden her.”

Late Tuesday, the House oversight committee released a statement saying Lerner was still under subpoena and would be required to appear in the morning.

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   Speaker John Boehner (R-Ohio) on Wednesday said he believed it was “inconceivable” that President Obama did not learn sooner about the Internal Revenue Service’s political targeting of Tea Party groups.

   “It’s pretty inconceivable to me that the president wouldn’t know,” Boehner told Fox News’s Greta Van Susteren. “I’m just putting myself in his shoes. I deal with my senior staff every day. And if the White House had known about this, which now it appears they’ve known about it for about a year, it’s hard to imagine it wouldn’t have come up in some conversation.” …

   Boehner said top officials may have “attempted to insulate the president from this news.”

   “But with as many people that were involved in the audit, the number of people involved in the investigation, somebody — and the number of people in the White House that knew — it really is inconceivable that he wouldn’t have known about it,” he added.

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The Justice Department acknowledged late Friday that Attorney General Eric Holder was on board with a search warrant to obtain the personal emails of a Fox News reporter, as media and civil liberties groups continued to raise concerns about the case.

Following prior reports indicating that Holder had likely signed off on the search warrant, the Justice Department acknowledged Holder's involvement and defended the decision. It insisted the call to seek these files -- in the course of an investigation into a leak allegedly made by State Department contractor Stephen Jin-Woo Kim -- was legal.

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A law enforcement official earlier confirmed to NBC News that Holder did approve the search. The source told NBC News that the Fox News document was approved "at the highest levels -- and I mean the highest."

Holder's involvement would distinguish this case from one in which the phone records of AP journalists were seized. In that case, Holder had already recused himself by the time the records were obtained.

More details about the Fox News case continued to trickle out Friday. The New Yorker reported that U.S. Attorney Ronald Machen fought to keep the seizure of the emails secret, voicing concern that disclosing the warrant could prevent the government from monitoring the messages.

Two judges reportedly said the Justice Department should notify Rosen, but a chief judge overturned that in late 2010.

Authorities also obtained phone records for Fox News lines, including those for a number that matched the number of Rosen's parents.

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We now know that Lois Lerner, the Director of Exempt Organizations for the Internal Revenue Service - who refused to testify before a House committee by invoking the Fifth Amendment - has a paper trail that reveals her direct involvement in sending intrusive and harassing questionnaires to Tea Party groups in 2012.

As you know, we represented 27 Tea Party organizations in 17 states. Of those, 15 received their tax-exempt status after lengthy delays, 10 are still pending, and two clients withdrew their applications because of frustration with the IRS process.

Consider the timeline. We now know through her own testimony and from the Inspector General's report that Lerner was briefed about this unlawful targeting scheme in June 2011. But nine months later, beginning in March 2012, she sent cover letters to many of our clients - demanding additional information and forwarding intrusive questionnaires. In fact, in March and April of 2012, Lerner sent 15 letters to 15 different clients (including those who were approved after lengthy delays and those who are still pending).

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Meanwhile, one of the country's most prominent liberal legal scholars called Wednesday for Holder to be "fired," joining the growing list of left-leaning pundits slamming his department's pursuit of journalists' phone and email records.

Jonathan Turley, an attorney and law professor at George Washington University, hammered Holder in a USA Today column Wednesday. He charged that Holder has "supervised a comprehensive erosion of privacy rights, press freedom and due process," aided by Democrats who looked the other way.

But in the wake of the reporter records scandal, Democrats are starting to join with Republicans in questioning whether Holder continues to be the right man to lead the Department of Justice in President Obama's second term.

Turley, in his column, referenced a recent call by the Republican National Committee chairman for Holder's resignation. "Unlike the head of the RNC, I am neither a Republican nor conservative, and I believe Holder should be fired," Turley wrote.

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Interviews with an IRS field agent involved in the agency targeting Tea Party groups for additional vetting appear to contradict the White House assertion that rogue agents, not the administration, were behind the effort, according to partial transcripts released Sunday by the House Oversight and Government Reform Committee.

The agent in the Cincinnati office, in which the targeting took place, told congressional investigators that he or she was told in March 2010 by a supervisor to search for Tea Party groups applying for tax-exempt status and that “Washington, D.C., wanted some cases.”

The agent said that by April the office had held up roughly 40 cases and at least seven were sent to Washington. In addition, the agent said, a second IRS employee asked for information on two other specific applicants in which Washington was interested.

When asked by congressional investigators about allegations and press reports about two agents in Cincinnati essentially being responsible for the targeting, the agent responded:

“It's impossible. As an agent we are controlled by many, many people. We have to submit many, many reports. So the chance of two agents being rogue and doing things like that could never happen. … They were basically throwing us underneath the bus.”
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The group had one objective: to serve the political goals of
its founder, the IRS said. A 501(c)(4) group can spend some
funds on political advocacy, but electioneering cannot be its
sole reason for existence or comprise a majority of its
spending.

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You know this has been a major non-story?

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The National Security Agency currently is collecting the telephone records of millions of U.S. customers of Verizon under a top secret court order, Britain's Guardian newspaper said Wednesday.

The order was granted by the secret Foreign Intelligence Surveillance Court on April 25 and was good until July 19, the newspaper said. The order requires Verizon, one of the nation's largest telecommunications companies, on an "ongoing, daily basis" to give the NSA information on all telephone calls in its systems, both within the U.S. and between the U.S. and other countries.

The newspaper said the document, a copy of which it had obtained, shows for the first time that under the Obama administration the communication records of millions of U.S. citizens were being collected indiscriminately and in bulk, regardless of whether they were suspected of any wrongdoing.

The Associated Press could not authenticate the order because documents from the court are classified.

Verizon spokesman Ed McFadden said Wednesday the company had no comment. The White House declined comment and referred questions to the NSA. The NSA had no immediate comment.

Under the terms of the order, the phone numbers of both parties on a call are handed over, as is location data, call duration, unique identifiers, and the time and duration of all calls. The contents of the conversation itself are not covered, The Guardian said.

The broad, unlimited nature of the records being handed over to the NSA is unusual. FISA court orders typically direct the production of records pertaining to a specific named target suspected of being an agent of a terrorist group or foreign state, or a finite set of individually named targets. NSA warrantless wiretapping during the George W. Bush administration after the 9/11 attacks was very controversial.

The FISA court order, signed by Judge Roger Vinson, compelled Verizon to produce to the NSA electronic copies of "all call detail records or telephony metadata created by Verizon for communications between the United States and abroad" or "wholly within the United States, including local telephone calls," The Guardian said.

The law on which the order explicitly relies is the "business records" provision of the USA Patriot Act.

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It's not just the IRS.

A second federal agency is facing a probe and accusations of political bias over its alleged targeting of conservative groups.

The allegations concern the Environmental Protection Agency, which is being accused of trying to charge conservative groups fees while largely exempting liberal groups. The fees applied to Freedom of Information Act requests -- allegedly, the EPA waived them for liberal groups far more often than it did for conservative ones.

The allegations are under investigation by the House Energy and Commerce Committee and the House Oversight and Government Reform Committee, which is also holding hearings on the Internal Revenue Service targeting of conservative groups.

"I don't think it is fair at all. It is not fair to the American taxpayer -- the American taxpayer should expect and demand that the EPA treats everyone equally in regard to these requests," said Pennsylvania Republican Rep. Tim Murphy, a member of the Energy and Commerce Committee. "This cannot be tolerated. As we see more federal agencies with this kind of bias, it is and should be a concern for all of us."

Research by the Competitive Enterprise Institute (CEI), a conservative Washington, D.C., think tank, claims that the political bias is routine when it comes to deciding which groups are charged fees. Christopher Horner, senior fellow at CEI, said liberal groups have their fees for documents waived about 90 percent of the time, in contrast with conservative groups that it claims are denied fee waivers about 90 percent of the time.

"The idea is to throw hurdles in our way," charged Horner, who says he decided to look into the fee structure after the EPA repeatedly turned down his group for waivers.

"In 20 cases of ours, since the beginning of last year, we were expressly denied, or denied by them simply refusing to respond, in 18 out of 20 cases," said Horner, explaining that the batting percentage for fees waived in favor of liberal groups is overwhelming.

"Earth Justice was batting 17 out of 19, the Sierra Club was the worst, at 70 percent granted, 11 out of 15. You add up some other groups and we found that 75 out of 82 groups granted, because these are the groups that the EPA has decided are the favored groups."

The EPA has denied any favoritism.

Acting EPA Administrator Bob Perciasepe told the House Energy and Commerce Committee on May 16 that "our policy is to treat everybody the same," and the agency is considering pursuing an investigation.

In a statement to Fox News, the EPA said: "The Office of Inspector General received from the Environmental Protection Agency the official request to look into this matter just over a week ago, so the request is currently under review by the OIG at this early stage."

But Horner, who has studied federal government agency practices as the author of "The Liberal War on Transparency: Confessions of a Freedom of Information 'Criminal,'" says that charging fees or denying information requests is a underhanded method that government agencies use to try and stymie the free flow of information or political dissent.

"This is no different than denying a group that you don't agree with ... whether you are the IRS or the EPA, their tax-exempt status," said Horner.

"You're talking about essentially making or breaking them, or at a minimum, snuffing out their ability to pursue their objectives."
Murphy said treating groups differently is simply not right.

"We are hoping that the acting administrator of the EPA can already send a message out to his people that this will not be tolerated," Murphy said. "It is wrong. Similar with the people with the IRS who testified that, 'well some of things may not be illegal,' they can still be wrong. People expect their government to not be acting in these ways, but to be fair and just and truthful in these informational quests and in their investigations."

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The Obama administration on Tuesday defended officials' use of private email accounts to conduct government business and denied that they were in any way "secret" -- though the public faces hurdles in gaining access to that information.

The Associated Press reported earlier that some of President Obama's political appointees were using "secret" government emails accounts -- a situation that could complicate their responsibility to turn over emails under public records requests and congressional inquiries.

One of those officials, Health and Human Services Secretary Kathleen, denied that her account was "secret" when asked by Fox News about the report.

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Carney said all their email accounts, public and otherwise, were subject to congressional oversight and requests by citizens under the U.S. Freedom of Information Act.

"There's nothing secret," Carney said.

But if it's not secret, it's certainly difficult to find.

The AP reviewed hundreds of pages of government emails released under the federal open records law and couldn't independently find instances when material from any of the secret accounts it identified was turned over. Congressional oversight committees told the AP they were unfamiliar with the few nonpublic government addresses that AP identified so far, including one for Sebelius.

The White House said the practice was also used by previous administrations, but its scale across the government remains a mystery: Most federal agencies have failed to turn over lists of political appointees' email addresses, which the AP sought under the Freedom of Information Act more than three months ago. The Labor Department initially asked the AP to pay more than $1 million for its email addresses.

The AP asked for such addresses following last year's disclosures that former chiefs at the Environmental Protection Agency had used separate email accounts at work. The practice is separate from officials who use personal, nongovernment email accounts for work, which generally is discouraged due to laws requiring that most federal records be preserved.

Having separate accounts could put an agency in a difficult spot when it is compelled to search for and release emails as part of congressional or internal investigations, civil lawsuits and public records requests. That's because employees assigned to compile such responses would necessarily need to know about the accounts to search them. Secret accounts also drive perceptions that government officials try to hide actions or decisions.

"What happens when that person doesn't work there anymore? He leaves and someone makes a request (to review emails) in two years," said Kel McClanahan, executive director of National Security Counselors, an open government group. "Who's going to know to search the other accounts? You would hope that agencies doing this would keep a list of aliases in a desk drawer, but you know that isn't happening."

Agencies where the AP so far has identified secret addresses, including the Labor Department and HHS, said maintaining nonpublic email accounts allows senior officials to keep separate their internal messages with agency employees from emails they exchange with the public. They also said public and nonpublic accounts would always be searched in response to official requests and the records would be provided as necessary.

In its review, the AP found only one instance of a secret address being published: An email from Labor Department spokesman Carl Fillichio to 34 coworkers in 2010 was turned over to an advocacy group, Americans for Limited Government. It included as one recipient the nonpublic address for Seth D. Harris, now the acting labor secretary, who maintains at least three separate email accounts.

Google can't find any reference on the Internet to the secret address for Sebelius.
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The Labor Department initially asked the AP to pay slightly more than $1.03 million when the AP asked for email addresses of political appointees there. It said it needed to pull 2,236 computer backup tapes from its archives and pay 50 people to pore over old records. Those costs included three weeks to identify tapes and ship them to a vendor, and pay each person $2,500 for nearly a month's work. But under the department's own FOIA rules -- which it cited in its letter to the AP -- it is prohibited from charging news organizations any costs except for photocopies after the first 100 pages. The department said it would take 14 weeks to find the emails if the AP had paid the money.

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Late last year, the EPA's critics -- including Republicans in Congress -- accused former EPA Administrator Lisa Jackson of using an email account under the name "Richard Windsor" to sidestep disclosure rules. The EPA said emails Jackson sent using her Windsor alias were turned over under open records requests. The agency's inspector general is investigating the use of such accounts, after being asked to do so by Congress.

An EPA spokeswoman described Jackson's alternate email address as "an everyday, working email account of the administrator to communicate with staff and other government officials." It was later determined that Jackson also used the email address to correspond sometimes with environmentalists outside government and at least in some cases did not correct a misperception among outsiders they were corresponding with a government employee named Richard Windsor.

Although the EPA's inspector general is investigating the agency's use of secret email accounts, it is not reviewing whether emails from Jackson's secret account were released as required under the Freedom of Information Act.

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Rep. Jerrold Nadler, a New York Democrat, disclosed this week that during a secret briefing to members of Congress, he was told that the contents of a phone call could be accessed "simply based on an analyst deciding that."
If the NSA wants "to listen to the phone," an analyst's decision is sufficient, without any other legal authorization required, Nadler said he learned. "I was rather startled," said Nadler, an attorney and congressman who serves on the House Judiciary committee.

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FBI Director Robert Mueller told the Senate Judiciary Committee Wednesday, yes, the government does use drones over U.S. soil for surveillance — but not too much.

When asked by Sen. Chuck Grassley (R-Iowa) about the use of unmanned aircraft, Mueller said “Our footprint is very small. We have very few,” according to Wired.
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n May of this year, Attorney General Eric Holder revealed that the Obama administration had killed four Americans using drones in Yemen and Pakistan. Sen. Rand Paul (R-Ky.) also showed letters sent by Holder that said “the President has the power to authorize lethal force, such as a drone strike, against a U.S. citizen on U.S. soil, and without trial.”

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