IRS sued by economist after his bank was shut down

Peter Schiff, a prominent economist, is suing the Internal Revenue Service for failing to comply with a Freedom of Information Act request regarding the shutdown of his Puerto Rico-based bank. Schiff alleges that the IRS withheld communications related to an international tax enforcement press conference, arguing that these records expose a conspiracy where the agency influenced regulators to close the institution without cause. This legal action highlights the tension between government transparency obligations and the protection of sensitive law enforcement investigations. The core of Schiff’s argument is that the IRS possesses evidence contradicting the official narrative that his bank was shut down for illicit activities like money laundering. He contends that no criminal charges were ever filed despite a lengthy investigation, suggesting the closure was politically motivated or intended to justify the expenditures of joint international tax efforts. By seeking internal correspondence, Schiff aims to demonstrate that the regulatory body acted independently of criminal findings and potentially collaborated with tax authorities to suppress his business operations. This case is relevant to open data because it underscores the critical role of FOIA in holding government agencies accountable for their actions and communications. It illustrates how access to public records can reveal potential overreach or lack of due process in financial regulation. For open data advocates, the lawsuit serves as a reminder that without robust transparency mechanisms, individuals may face significant hurdles in accessing information necessary to challenge government decisions or uncover hidden institutional behaviors.

Source: newsweek.com
Published on 2024-08-02

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