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House holds first hearings on IRS tax targeting US tax agency 'not partisan' in screening scandal
(35 minutes later)
The US Congress is holding the first in a series of hearings on the tax authority's practice of targeting conservative political groups for extra scrutiny ahead of the 2012 election. The head of the US tax authority and a top treasury investigator have said the extra scrutiny given to conservative political groups was not motivated by partisanship.
On Friday, the acting Internal Revenue Service Commissioner faces tough questioning from House Republicans. In a congressional hearing, acting Internal Revenue Service commissioner Steven Miller apologised, saying tax agency staff made "foolish mistakes".
Steven Miller said he will resign over the matter, which has roiled President Barack Obama's administration. Mr Miller has resigned over the matter, which has roiled the White House.
Mr Obama, a Democrat, has denounced the practice as unacceptable. President Barack Obama, a Democrat, has denounced the practice as unacceptable.
He has named Daniel Werfel as acting IRS commissioner, effective from 22 May.He has named Daniel Werfel as acting IRS commissioner, effective from 22 May.
'Need the facts'
Also testifying on Friday was J Russell George, the treasury department inspector general for tax administration, who led the internal inquiry that sparked much of the uproar.
Friday's hearing in the House ways and means committee is the first in a series of Congressional hearings on the matter.
The Internal Revenue Service (IRS) has acknowledged that staff members at a branch office in Cincinnati, Ohio, targeted groups filing for tax-exempt status for extra scrutiny if their names included words like "patriot" or "Tea Party" that marked them as conservative.The Internal Revenue Service (IRS) has acknowledged that staff members at a branch office in Cincinnati, Ohio, targeted groups filing for tax-exempt status for extra scrutiny if their names included words like "patriot" or "Tea Party" that marked them as conservative.
In some instances, the groups were asked to provide lists of members, volunteers and donors, and their applications for tax-exempt status were delayed.In some instances, the groups were asked to provide lists of members, volunteers and donors, and their applications for tax-exempt status were delayed.
The practice began in 2010 after the US Supreme Court loosened restrictions on political groups' ability to raise and spend money on political campaigns.The practice began in 2010 after the US Supreme Court loosened restrictions on political groups' ability to raise and spend money on political campaigns.
The IRS has described the practice as a bureaucratic shortcut not motivated by political or partisan bias.The IRS has described the practice as a bureaucratic shortcut not motivated by political or partisan bias.
Republicans, meanwhile, have expressed outrage. The IRS is an independent agency within the treasury department, and although an internal treasury department inquiry found no evidence the staff members had been pushed by anyone outside the agency, Republicans say they are sceptical.Republicans, meanwhile, have expressed outrage. The IRS is an independent agency within the treasury department, and although an internal treasury department inquiry found no evidence the staff members had been pushed by anyone outside the agency, Republicans say they are sceptical.
"We need to know where the facts are," Republican House Speaker John Boehner said on Thursday. "Somebody made a decision to do this, and I doubt that it was some low-level employees in the Cincinnati field office.""We need to know where the facts are," Republican House Speaker John Boehner said on Thursday. "Somebody made a decision to do this, and I doubt that it was some low-level employees in the Cincinnati field office."
Senior Republicans have also said they will investigate whether IRS officials lied to Congress, for instance by withholding details of the targeting.Senior Republicans have also said they will investigate whether IRS officials lied to Congress, for instance by withholding details of the targeting.
Also expected to testify on Friday is J Russell George, the treasury department inspector general for tax administration, who led the internal inquiry that sparked much of the uproar.
In addition to Mr Miller, Joseph Grant, commissioner of the IRS's tax-exempt and government-entities division, said on Thursday that he was stepping down within a month.In addition to Mr Miller, Joseph Grant, commissioner of the IRS's tax-exempt and government-entities division, said on Thursday that he was stepping down within a month.
This week, Attorney General Eric Holder said the FBI had launched a criminal inquiry into the matter.This week, Attorney General Eric Holder said the FBI had launched a criminal inquiry into the matter.
At a news conference on Thursday, Mr Obama said his administration would identify the management lapses that allowed the targeting to occur.At a news conference on Thursday, Mr Obama said his administration would identify the management lapses that allowed the targeting to occur.
"I think we're going to be able to figure out exactly what happened, who was involved, what went wrong, and we're going to be able to implement steps to fix it," he said."I think we're going to be able to figure out exactly what happened, who was involved, what went wrong, and we're going to be able to implement steps to fix it," he said.
In addition to Friday's hearing in the House ways and means committee, at least one other House committee and a Senate committee plan hearings.In addition to Friday's hearing in the House ways and means committee, at least one other House committee and a Senate committee plan hearings.