FBI starts criminal probe of IRS as report details unfair treatment

 

McClatchy Washington Bureau

The Internal Revenue Service asked “unnecessary, burdensome questions” of conservative groups seeking tax-exempt status, questions that unfairly delayed the applications, according to an investigative report obtained Tuesday by McClatchy.

Ultimately, the organizations were told the information was not needed, according to the report by the Treasury inspector general for tax administration. The report, which has not yet officially been made public, has fueled allegations of abuse of government power to target the rising tea party political movement.

“The report’s findings are intolerable and inexcusable,” President Barack Obama said in a statement Tuesday evening after reading the report.

“The federal government must conduct itself in a way that’s worthy of the public’s trust, and that’s especially true for the IRS. The IRS must apply the law in a fair and impartial way, and its employees must act with utmost integrity. This report shows that some of its employees failed that test.”

He said he directed Treasury Secretary Jack Lew “to hold those responsible for these failures accountable, and to make sure that each of the Inspector General’s recommendations are implemented quickly, so that such conduct never happens again.”

While the report from Inspector General J. Russell George gave no indication that he encountered legal violations in his audit, Attorney General Eric Holder said Tuesday that he’s ordered a criminal investigation of the IRS actions.

“The FBI is coordinating with the Justice Department to see if any laws were broken in connection with those matters related to the IRS,” Holder told reporters. “Those were, I think as everyone can agree, if not criminal, they were certainly outrageous and unacceptable.”

At the same time, pressure mounted on the Obama administration Tuesday to disclose who in the White House knew about the actions by the IRS. The inspector general’s report said it found no evidence of influences from outside the IRS.

“Unfortunately, the report raises more questions than it answers,” said House Oversight Committee Chairman Rep. Darrell Issa, R-Calif.

“What we do know for sure is that the IRS personnel responsible for granting tax exemptions systematically targeted conservative groups for extra scrutiny, and that officials in Washington, D.C., were aware of this practice, even while publicly claiming that it never happened,” Issa said.

Leaked portions of the report emerged Monday and sparked a firestorm in the nation’s capital. The leaks suggested that top IRS officials, including current acting chief Steven Miller, were aware of the unusual targeting of conservative groups as far back as at least May 2012. Lower level officials knew about it at least since April 2010.

The full report obtained Tuesday concluded that the Cincinnati-based Determinations Unit developed and used inappropriate criteria that effectively slowed down applications when an organization had tea party or other political names. It said the IRS agreed with most but not all of the unit’s recommendations.

“Although the IRS has taken some action, it will need to do more so that the public has reasonable assurance that applications are processed without unreasonable delay in a fair and impartial manner in the future,” the report said.

Email: khall@mcclatchydc.com; Twitter: @KevinGHall; Email: dlightman@mcclatchydc.com; Twitter: @lightmandavid

Read more Politics Wires stories from the Miami Herald

  •  

FILE - In this April 18, 2013 file photo, National Intelligence Director James Clapper testifies on Capitol Hill in Washington. The White House and key lawmakers are standing by Clapper despite his admission that he gave misleading statements to Congress on the how much the U.S. spies on its own. Clapper’s apology to lawmakers was made public the first week in July. In March he said that U.S. spies do not gather data on Americans _ something National Security Agency leaker Edward Snowden revealed as false by releasing documents showing the NSA collects millions of U.S. phone records

    Clapper unscathed after 'erroneous' remarks

    As the director of national intelligence, James Clapper has told Congress that the regime of Moammar Gadhafi would likely prevail in Libya, that Egypt's Muslim Brotherhood party was "largely secular" and that the National Security Agency doesn't collect data on millions of Americans.

  •  

FILE - In this Sept. 11, 2010 file photo, Temeka Williams, right, of Detroit, uses her EBT/Bridge Card tokens for a purchase from Elizabeth and Gary Lauber from Sweet Delights at the Farmer's Market in Detroit. House approval of a scaled-back farm bill is setting up what could be an even bigger fight over food stamps and the role of domestic food aid in the United States.

    Republicans to tackle cuts in food stamp program

    House approval of a scaled-back farm bill is setting up what could be an even bigger fight over food stamps and the role of domestic food aid in the United States.

  • A guide to proposed Texas abortion restrictions

    Texas lawmakers are poised to cast a final vote on tough new abortion restrictions less than two weeks after the Republican-led Senate failed to finish work on the legislation during a chaotic end to the first special session. Here's a look at the legislation and what's at stake:

Miami Herald

Join the
Discussion

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Miami Herald uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here.

Have a news tip? You can send it anonymously. Click here to send us your tip - or - consider joining the Public Insight Network and become a source for The Miami Herald and el Nuevo Herald.

Hide Comments

This affects comments on all stories.

Cancel OK

  • Videos

  • Quick Job Search

Enter Keyword(s) Enter City Select a State Select a Category