• With: Martha Boneta, Virginia Farmer/Tea Party Member; Kevin Kookogey, President of Linchpins of Liberty

    This is a rush transcript from "On the Record," July 25, 2013. This copy may not be in its final form and may be updated.

    GRETA VAN SUSTEREN, FOX NEWS HOST: A Virginia farmer and Tea Party member says she knows firsthand that the IRS scandal is very real. Martha Boneta says the IRS is targeting her. She joins us. Martha, we read about your story in The Washington Examiner. You're a farmer out in Virginia, is that correct?

    MARTHA BONETA, VIRGINIA FARMER/TEA PARTY MEMBER: (INAUDIBLE) Paris.

    VAN SUSTEREN: All right, and now -- Paris, Virginia. All right, what happened?

    BONETA: Well, you know, it was my childhood dream to be a farmer and I started farming. I never imagined that, you know, trying to fulfill my dream would involve so many hurdles with, you know, government overregulating. And they actually cited me for having a birthday party on private property for eight little girls.

    VAN SUSTEREN: All right. That's the -- that's the county.

    BONETA: Yes.

    VAN SUSTEREN: So if I get it right, is that the -- there's an environmental group. You have an organic farm.

    BONETA: Yes.

    VAN SUSTEREN: But an environmental group and the county were the ones who were sort of going after you and giving you a hard time on a birthday party and some other things on your farm.

    BONETA: That's correct.

    VAN SUSTEREN: And at some point -- that's still going on, your sort of dispute or turf war with them?

    BONETA: Yes.

    VAN SUSTEREN: At some point, though, all of a sudden, the IRS decides to audit you.

    BONETA: Yes. And as it's been reported, what was unusual and unique about this is that one of the officials in my county had disclosed that I was the subject of an IRS audit to more than one individual in my county before I ever even received the audit.

    VAN SUSTEREN: So he -- so -- do you have any idea how this official in the county knew about the audit before you knew about it?

    BONETA: That's all, you know, part of the investigation right now.

    VAN SUSTEREN: And in fact, the IRS -- there's an IRS watchdog looking at this, right, or Treasury?

    BONETA: Yes.

    VAN SUSTEREN: Now, in terms of the audit that you had, what kind of questions were they asking you in the audit?

    BONETA: A lot, a large volume of questions. What was unique about this is that some of the questions were directly pertaining to the issues that I had with the county.

    VAN SUSTEREN: All right, now one of the things the county was upset about, at least (INAUDIBLE) made some allegation you were running a boarding house or (INAUDIBLE)

    BONETA: Correct.

    VAN SUSTEREN: Were you running a boarding house there?

    BONETA: No. Not at all.

    VAN SUSTEREN: Ever running a boarding house?

    BONETA: No.

    VAN SUSTEREN: Why did they think you were running a boarding house, or why did they accuse you?

    BONETA: That's a very good question, and that was -- that's what made the audit itself unique because the questions were about a boarding facility, whether I had a boarding operation.

    VAN SUSTEREN: All right, so you have the county asking you or accusing you of having a boarding facility. You said you don't have one. And then suddenly, you have an IRS audit, and they ask you about a boarding house. Now, in your IRS -- in your tax return, did you ever take any deductions or get any -- or any income reflected for a boarding house?

    BONETA: No. Not at all.

    VAN SUSTEREN: OK. So this idea of the boarding house comes totally out of -- out of the air.

    BONETA: Correct.

    VAN SUSTEREN: Just that other than the fact that the county is asking you the same questions.

    BONETA: Yes. That's correct.

    VAN SUSTEREN: Is there -- is there anything else that -- about the IRS investigation that was peculiar?

    BONETA: Of course, the volume of questions was absolutely enormous. And you know, an auditor did come to the farm and ask me questions while I put eggs into egg cartons.

    VAN SUSTEREN: So this is -- so this is a -- how many acres do you have at this farm?

    BONETA: Shy of 70.