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Medical Firm Sues IRS For 4th Amendment Violation In Records Seizure

cold fjord writes "A healthcare provider has sued the Internal Revenue Service and 15 of its agents, charging they wrongfully seized 60 million medical records from 10 million Americans ... [The unnamed company alleges] the agency violated the Fourth Amendment in 2011, when agents executed a search warrant for financial data on one employee – and that led to the seizure of information on 10 million, including state judges. The search warrant did not specify that the IRS could take medical information, UPI said. And information technology officials warned the IRS about the potential to violate medical privacy laws before agents executed the warrant, the complaint said." Also at Nextgov.com.

37 of 365 comments (clear)

  1. IRS+scientology / fighting the IRS = no winners by girlinatrainingbra · · Score: 4, Insightful
    Scientology has been the only group that has fought the IRS and won, albeit with dirty tricks and pressure: http://en.wikipedia.org/wiki/Scientology#Dispute_of_religion_status : the IRS claimed that it was all above-board and had nothing to do with the tactics and push-through of Scientology
    http://en.wikipedia.org/wiki/Operation_Snow_White : the theft of private and privileged documents from the IRS offices and from other governmental agencies
    even Wikipedia thinks that CoS plays dirty and doesn't play fair

    If it takes that level of psychopathy and money and criminal activity in order to successfully fight against the IRS, what odds does a company with legitimate meritorious claims against the IRS have? None? :>(

    1. Re:IRS+scientology / fighting the IRS = no winners by Jah-Wren+Ryel · · Score: 5, Interesting

      Scientology has been the only group that has fought the IRS and won

      Huh? The IRS loses all the time. Even if you just narrow the list down to religious groups pushing the boundaries of what qualifies for the religious tax-exempt status, the IRS lost to a church that was endorsing political candidates.

      --
      When information is power, privacy is freedom.
  2. Not that it will happen. by Impy+the+Impiuos+Imp · · Score: 4, Insightful

    They seized 60 million records of 10 million people because of 1 possible tax cheat? Nice.

    To paraphrase a wise man recently, "I don't want to see who's getting slapped on the wrist. I want to see who's going to jail."

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  3. Scandalous! by Black+Parrot · · Score: 4, Insightful

    Let us know when you have the other side of the story.

    --
    Sheesh, evil *and* a jerk. -- Jade
  4. Re:New IRS dress code by Mitreya · · Score: 5, Interesting

    When will the IRS start issuing jack boots to all agents?

    I'd be more curious who gets the money if they win? From TFA:

    The suit seeks $25,000 in compensatory damages, per violation. The recordsâ(TM) seizure could impact up to one in 25 Americans, UPI said.

    I assume they will be passing that money to affected Americans?

  5. Re:Hazardous to our Health by cold+fjord · · Score: 5, Insightful

    Oh, it's more than that. The IRS is the key enforcer for the Affordable Care Act, also known as Obamacare.

    Your Next IRS Political Audit - The tax agency is getting vast new power in health care
    The IRS Is Accessing Your Health Records. You Trust Them?

    The US Government needs to get the problems at that agency fixed, now. Between this and the suppression of political groups going on, this is intollerable and undemocratic. What did Franklin say? A Republic, if you can keep it?

    The IRS’s Curious Immunity - It’s worse than the PATRIOT Act.

    --
    much of left-wing thought is a kind of playing with fire by people who don't even know that fire is hot - George Orwell
  6. What did you expect? by Anonymous Coward · · Score: 5, Insightful

    When everyone kept their mouths shut when the Warrantless Wiretapping was approved, did you expect it to stop there? Benjamin Franklin's quote about temporary safety fell upon deaf ears in the U.S. We are now the police state plutocracy we've always wanted. Good luck getting your privacy back.

  7. End the IRS by Alex+Vulpes · · Score: 4, Insightful
    We should abolish the IRS entirely. Just kill the dang thing.

    (Sorry if that sounds like a shameless political plug, but I'm starting to think that's what really needs to happen.)

    1. Re:End the IRS by squiggleslash · · Score: 4, Interesting

      I'm not scared of the IRS and I'm pretty sure, FWIW, that if I did make a single mistake on a tax return they would (a) be unlikely to notice, and (b) if they did notice they'd refund me the difference (or if the error means I owe more taxes, require I pay the difference, with interest. Either way, I end up paying what I should have done to begin with.)

      I seriously doubt that the number of people terrified of the IRS is particularly large. I know there are a lot of irresponsible tax evaders who want all the benefits of civilization with none of the duties it entails who hate the IRS, but that's rather different.

      --
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  8. Re:Hazardous to our Health by Attila+Dimedici · · Score: 4, Insightful

    The US Government needs to get the problems at that agency fixed, now.

    What problem? The issues you are referring to are features of the IRS that led to it being chosen for its role as the key enforcer of the Affordable Care Act, not bugs that would lead those who passed that law to consider it unwise to give it that additional power.

    --
    The truth is that all men having power ought to be mistrusted. James Madison
  9. Re:Propaganda by cold+fjord · · Score: 5, Informative

    They had a search warrant for financial data regarding one former employee, and they took tens of millions of medical records too, which they weren't entitled to.

    Warrant said they could take A, they took A and B.....ZZZZZZZZ. Everything from B on was unrelated information to the investigation proper, and not covered by the warrant. They stepped over the line, despite being warned. How is this confusing to you?

    --
    much of left-wing thought is a kind of playing with fire by people who don't even know that fire is hot - George Orwell
  10. Re:They're just getting a head start on Obamacare. by Microlith · · Score: 4, Insightful

    They now have a mandate to have EVERYBODY's.

    Really now? Where in the legislation does it say that the IRS has the right to access health records?

  11. Re:Hazardous to our Health by I'm+New+Around+Here · · Score: 5, Insightful

    Sadly, the guys who idolize President Obama don't care about this story, or the many others. To them, it's just the conservatives/GOP showing their hatred of the first black president, nothing more.

    So, I've given up hope that they will see the light of what this administration is like. They'll keep voting for guys like him, who will bring this country down very soon. There is no avoiding that fate. I'm not clamoring for revolution, but I think a civil war is coming.

    --
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  12. Re:Hazardous to our Health by Dishevel · · Score: 4, Funny

    and, At this point what difference does it make?

    --
    Why is it so hard to only have politicians for a few years, then have them go away?
  13. Re:They're just getting a head start on Obamacare. by AuMatar · · Score: 5, Insightful

    If you weren't making it up, you could link to the exact part of the law.

    --
    I still have more fans than freaks. WTF is wrong with you people?
  14. Re:Why didn't the company encrypt the medical data by Charliemopps · · Score: 5, Insightful

    You clearly have no idea how such systems work. My guess is that the IRS served their warrant and then demanded read only ODBC/API access to the companies systems. The company's DBAs likely balked at the idea... I know I would... and said "listen, if you have that sort of access, you could violate Hipaa if you submit the wrong query. We're very stringent on what we allow to be run against our tables" But the IRS being the IRS said "Fuck you, we're the IRS" and went right ahead. Once you have a legit login and password the data is no longer encrypted for you.

    Knowing the ramifications of what the IRS were doing, the company likely logged their queries. The IRS's DBAs likely were worried the company in question could potentially get a court injunction to stop their access so their first query was likely "Select * from customers;" and dumped the entire table to a local table. Then company in question likely saw this, freaked out, but realized any lawsuit they filed would likely be quashed by "We have an ongoing investigation" yada yada... so they kept quiet about it until the original case was over.

    I'm just guessing but I've been in similar situations and the governments admins are pricks and usually don't have a clue what they are doing. Violating hipaa is VERY easy to do if you don't know what you're doing. So much so that many people don't even want to work in departments that have access to such information. Make a typo in your query and you're getting walked out the door.

  15. Re:New IRS dress code by vux984 · · Score: 4, Insightful

    I assume they will be passing that money to affected Americans?

    Suing the government for massive amounts of money, in terms of society as a whole, is about as productive as sending yourself a wire transfer. A bunch of fees and no net gain.

    Any money the IRS would pay out, would simply have to be collected back from the people.

  16. Re:Hazardous to our Health by amiga3D · · Score: 4, Insightful

    It's not about Republican versus Democrat. Everywhere it counts they are the same. When it comes to fucking over the country they are bipartisan. They differ only on peripheral issues that, while important to the public, are irrelevant to the things which really matter to those who rule. Things like abortion, religion, racism, affirmative action, and gay marriage are just hot button issues used to divide the public so that the elite can rule us better. As long as we're hating each other over things that don't matter to our rulers then it's all good. You can give up though, it's hopeless. Every single time I pointed out how bad GW Bush was all any of his supporters had to say was "he's not as bad as those evil Democrats" and when I point out the fallacies of the Obama administration all I get is "at least he's better than those evil neo-cons!" People have their side and they are oblivious to anything other than how bad the other side is.

  17. Re:They're just getting a head start on Obamacare. by cold+fjord · · Score: 5, Insightful

    The IRS is the one that is charged with ensuring that everyone has insurance, not with keeping and maintaining medical records.

    Lets use the ever popular car analogy. The Department of Motor Vehicles checks to make sure that you have car insurance. The Department of Motor Vehicles doesn't keep copies of the maintenance records, oil changes, refueling, car washes, and tune-ups. The IRS is like the DMV - they will check to make sure that you have insurance, they shouldn't have your health records. This is over the line.

    I would hope your wouldn't actually want that. The most charitable thing you can say at the moment is that they apparently have more power than they can manage is a responsible way, let along legal way.

    --
    much of left-wing thought is a kind of playing with fire by people who don't even know that fire is hot - George Orwell
  18. It's SO WEIRD to read stuff like this. by Anonymous Coward · · Score: 5, Insightful

    After all those years of the current anti-Obama crowd desperately defending the shamefully illegal shenanigans of GWB's administration, I just don't quite know how to react to seeing them implode over this Obama-related stuff.

    Why couldn't you get this angry at Bush Corp when it was doing similar or worse stuff? Why did you try so hard to dismiss any criticism of the unlawful (and almost always far worse) behavior of people such as GWB, Cheney, Rumsfeld, Rove, et al?

    I'm not suggesting it is wrong for you to be critical of current events, because we should all be crying foul. But it would be nice if you objected when everyone does it, and not just when it's the other team.

    1. Re: It's SO WEIRD to read stuff like this. by Redmancometh · · Score: 4, Insightful

      Obama administration I mean. Gwb gave them a strong start...but they are continuing all of this. As a rule of thumb under gwb illegal atrocitied were perpatrated....under obama they are nice n legal.

    2. Re:It's SO WEIRD to read stuff like this. by Anarchduke · · Score: 4, Interesting

      I'm not sure how this piece of crap got modded "Insightful" The 47% of people paying no taxes is complete crap. Its true that 47% of people don't pay one particular form of tax but most of them pay a bigger percentage of their income in taxes then Mitt Romney does.

      --
      who prays for Satan? Who in 18 centuries has had the humanity to pray for the 1 sinner that needed it most? ~Mark Twain
    3. Re:It's SO WEIRD to read stuff like this. by Anarchduke · · Score: 4, Informative

      Let me google that for you.
      Nope, Richard Armitage was a long time Republican who, prior to being given a job by newly elected President Reagan was an aide to Republican Senator Bob Dole. In the interests of denying Republicans another chance to rewrite history, I had to contradict your - possibly unintentional - misinformation.

      --
      who prays for Satan? Who in 18 centuries has had the humanity to pray for the 1 sinner that needed it most? ~Mark Twain
  19. Lots of us were down on Bush, too. by Ungrounded+Lightning · · Score: 4, Informative

    Why couldn't you get this angry at Bush Corp when it was doing similar or worse stuff?

    Lots of us were down on Bush, too.

    You just probably thought we were lefties. B-)

    --
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  20. Re:They're just getting a head start on Obamacare. by techno-vampire · · Score: 5, Insightful

    The most charitable thing you can say at the moment is that they apparently have more power than they can manage is a responsible way, let along legal way.

    It may be more accurate to say that certain IRS agents think they have far more power than they actually do and have let their mistake go to their heads.

    --
    Good, inexpensive web hosting
  21. Re:They're just getting a head start on Obamacare. by adrn01 · · Score: 4, Insightful

    I believe part of the law states that insurance companies must spend a minimum of 80% of premiums on actual health care.
      How would the IRS, or whatever body is supposed to police that part of the law, verify what is ACTUALLY being spent on that, versus what the insurance companies are CLAIMING they spend?
      If seizing medical records en-masse was their solution, perhaps a better method might be needed. Still, that might be what is going on here.

  22. Re:other than Cheney and Rumsfeld by Anonymous Coward · · Score: 5, Insightful

    It certainly appears that the Obama administration went after political opponents with the IRS. Can you point out when the Bush administration did that with either the IRS or FBI against political opponents? I don't recall that happening.

    You may recall the Obama administration going after Fox News repeatedly. What comparable thing happened under the Bush administration? I don't recall that happening.

    Nixon was actually right about the war in Vietnam, and extracted the US from it. There isn't much doubt that the US was correct about going to war in Afghanistan, and all of the causes of action against Iraq were correct (banned long range missiles, obstruction, crimes against humanity, etc.) except the active WMD programs. The WMD programs were in stasis, just waiting for Saddam to complete his breakout of sanctions using the Oil for Food money to bribe UN members and politicians around the world. If Iraq was able to break out of the sanctions regime, there is no doubt those WMD programs would restart. Oh, and don't forget, Saddam had the government mime as if they still had WMD material to fool the Iranians. He didn't think the West in general, and the US specifically, would act. He guessed wrong.

    Since the IRS under the Obama administration was asking extremely intrusive questions of conservative political groups, and then forwarding that information to liberal groups, I guess that counts as spying too. You think the Bush administration did that? Not so much.

    Other than working in the White House, I don't recall that either Cheney or Rumsfeld were ever implicated in any part of the Watergate scandal. So unless you have something, you have nothing as the basis for a smear.

    I don't think you nailed this one other than successfully identifying where two people worked for a short period.

  23. Re:They're just getting a head start on Obamacare. by hedwards · · Score: 4, Interesting

    This isn't necessarily over the line.

    The article doesn't state it, but it looks like they probably imaged the entire HDD, which is normal, and that resulted in them having copies of all those medical records. And because the records themselves were not properly stored the IRS now has access to them.

    Sounds to me more like the firm is concerned with covering their own asses for not having properly secured the data in the first place. Laptops have a tendency to be stolen or otherwise walk off, and if they lost the records that easily, I'd want to change insurers.

  24. Re:They're just getting a head start on Obamacare. by Anonymous Coward · · Score: 5, Informative

    If you read it, you would know.

    Nancy said we had to "pass it to find out what was in it". When you are a jillionaire insider trader, like her, you don't care what it says. You can buy your own hospital if you don't like ObamaCare.

    That's because the House and Senate were each debating and amending the bill(s) simultaneously, IIRC. This was done on both sides to speed up the process I guess. If either one or both passed it would go to the other side and a joint committee work out something both sides agree to, and since it was so big, there was a lot of room for differences between what they pass and what the committee pooped out. I'm pretty sure that's what she meant.

  25. Re:They're just getting a head start on Obamacare. by camg188 · · Score: 5, Informative

    Really now?...

    Where in the legislation does it say they could seize the 60 million records they are accused of taking, "despite knowing that these medical records were not within the scope of the warrant?"
    Where in the legislation does it say they can target specific political affiliations to deny/delay tax exempt status or use special scrutiny as a bullying tactic?

    If these aren't bright enough red flags for you:
    The Patient Protection and Affordable Care Act

    Sec. 1502-IN GENERAL.-Part III of subchapter A of chapter 61 of the Internal Revenue Code of 1986 is amended by inserting after subpart c the following new subpart:
    SEC. 6055. REPORTING OF HEALTH INSURANCE COVERAGE
    (b) FORM AND MANNER OF RETURN
    (1)
    (B)
    (iv) such other information as the Secretary may require

    Where 'Secretary' refers to the Secretary of the Treasury. This section describes what is to be reported to the IRS. Sections (i) through (iii) specify name, address, tax id number and policy information. Section (iv) is completely open ended.

  26. Editors: Check Your Sources by guttentag · · Score: 4, Informative

    Disclaimer: I am a former Washington Post journalist

    First of all, TFA is at The Washington Times. That alone makes its credibility dubious. The Washington Times was founded by Sun Myung Moon (crazy "Unification Church" cult leader) who stated that the purpose of the "newspaper" was to be "the instrument in spreading the truth about God to the world." Moon was convicted that same year of filing false federal income tax returns and conspiracy and served 13 months in prison. The Times has long been known as a conservative shill (although it has a decent sports section) that had to be financially supported by Moon's "church" to survive. Moon spent nearly $2 billion of his followers' money over 20 years to keep the paper afloat.

    Second, The Washington Times article doesn't even claim to have done any reporting on its own... it cites some article from UPI that isn't readily available on UPI's home page or even by searching UPI for "IRS." Ultimately found the "article" here. It's a 9-paragraph blog posting. UPI was once a respectable news agency like AP or Reuters, but its relevance diminished to the point where it was bought out in 2000 by... you guessed it: Sun Myung Moon. UPI's White House correspondent retired the next day after 57 years with the organization. These days UPI doesn't even have a White House correspondent, and its finances have gotten so bad that it relies on free articles contributed by college students.

    The UPI blog posting cites a Courthouse News Service article: John Doe Company sued 15 John Doe IRS agents in Superior Court. The plaintiff's attorney alleges that the records affected may include those of "politically controversial members of the Screen Actors Guild and the Directors Guild, and prominent citizens in the world of entertainment, business and government, from all walks of life." He goes on to complain that the unnamed IRS agents "decided to use John Doe Company's media system to watch basketball, ordering pizza and Coca-Cola, to take in part of the NCAA tournament," but "Plaintiff's attorney Robert E. Barnes declined to elaborate on the complaint's allegations, saying he will have more information 'in a few months.'"

    Why publish a story no one can verify, since all you can say for now is that that unnamed people at the IRS are illegally snooping on unnamed politically controversial people through an unnamed medical firm? Because it helps fuel the fire driving the current Republican party line of "the IRS is evil and Obama is responsible." Because some ignorant blogger might pick it up and run with it, thinking that The Washington Times and UPI are real news organizations, and not even bother to look for the source of this story. Great job Timothy.

    1. Re:Editors: Check Your Sources by Corporate+T00l · · Score: 4, Insightful

      The fact that there was a court case filed on this topic is not much of a news story. If you went through court filings, you can find any number of bizarre and conspiratorial lawsuits filed against the government everyday, all over the place.

      The real mystery is how a run-of-the-mill everyday nutcase filing gets to the front page of Slashdot. The answer to that has everything to do with the Washington Times, and guttentag's comment.

  27. Re:They're just getting a head start on Obamacare. by cold+fjord · · Score: 5, Insightful

    This wasn't a laptop, this was servers. Probably a pretty substantial setup too. I wouldn't be surprised if it was a cluster of big RISC boxes with a substantial SAN. Where you are thinking, "HDD," think disk storage array, a big one.

    Sounds to me more like the firm is concerned with covering their own asses for not having properly secured the data in the first place.

    It is clearly indicated the agents went outside what was in the warrant, were warned about it, and took the data anyway - just to get some financial data on one former employee. I would normally expect you to be outraged about this sort of thing, violated warrant, government overreach and all.

    --
    much of left-wing thought is a kind of playing with fire by people who don't even know that fire is hot - George Orwell
  28. Re:They're just getting a head start on Obamacare. by AK+Marc · · Score: 5, Insightful

    You missed the joke. Last I've read, IRS regulations are added at a rate greater than a human can read. Ignorance of the law is no excuse, even when the law is unknowable. So go read the the laws and let us know which one causes the problem. By the time you finish reading it, you'll be dead, and have violated many of them before you managed to read them (or interpreted them differently than some random judge)

  29. Not about the 80% by dutchwhizzman · · Score: 4, Interesting

    This was not about the 80% spending rule. This was about the financial data on one individual, that just happened to be an employee at this company. If he worked at McDonalds, they'd have been pulling records on 60 million hamburgers.

    --
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  30. Re:They're just getting a head start on Obamacare. by JosKarith · · Score: 5, Insightful

    You'll probably find that just knowing some of those laws violates another law...

    --
    'Don't worry' said the trees when they saw the axe coming, 'The handle is one of us.'
  31. Re:Better than awful still better by Hatta · · Score: 4, Insightful

    It would have meant health care rates would have fallen after the GOP voted in the health care reforms they were asking for, like caps on malpractice and allowing insurance to be sold across state lines.

    The GOP had 8 years to pass health care reform under Bush. You don't really believe they would have passed anything, do you? You're not that much of a sucker, are you?

    BTW, if you cap malpractice, who pays for the health care of someone who was injured by malpractice? If the slip of a knife causes someone to require tens of thousands of dollars of health care, where is that going to come from? This wouldn't be a problem under single payer, btw. What's the conservative solution? Let the market sort it out?

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