The Corner

IRS Erased Key Records in Lawsuit, NetJets Says

There may be a pattern involving the IRS losing e-mails and other key computer records. For months, the House Oversight Committee has been pursuing the lost e-mails of Lois Lerner and other figures in the IRS tax-exempt organization scandal. 

Now, the private-jet company NetJets is claiming in a lawsuit that as part of its tax dispute with the agency the IRS “wiped clean a number of computer hard drives containing emails and other electronic documents that the Government was required to produce.”

NetJets sued the IRS in 2011, claiming that it improperly applied a ticket tax on users of its aircraft that is meant for commercial airline passengers. The IRS countersued claiming that NetJets “has failed, neglected or refused to pay its federal tax liabilities . . . in full.” But its argument was undercut in 2012 when Congress changed the tax code to make it clear the air-passenger-ticket tax doesn’t apply to private firms such as NetJets, whose customers buy time-shares in planes operated by the company.

In its latest court filing, NetJets claims the IRS has been concealing evidence. Its lawyers say the computers of three key IRS employees were wiped clean, including the computer of “an excise-tax policy manager and a key decision maker regarding the application of the section 4261 ticket tax to whole and fractional aircraft-management companies.”

Should the Republicans take the Senate this November, a key early goal should be to use the budget process to ensure the IRS doesn’t suffer more e-mail “accidents” in the future. 

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