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IRS screening of conservative groups 'not partisan' IRS screening of conservative groups 'not partisan'
(35 minutes later)
The head of the US tax authority and a top treasury investigator have denied the extra tax scrutiny given to conservative political groups was motivated by partisanship or politics.The head of the US tax authority and a top treasury investigator have denied the extra tax scrutiny given to conservative political groups was motivated by partisanship or politics.
In a congressional hearing, acting Internal Revenue Service commissioner Steven Miller apologised, saying tax agency staff made "foolish mistakes".In a congressional hearing, acting Internal Revenue Service commissioner Steven Miller apologised, saying tax agency staff made "foolish mistakes".
A senior Republican said the practice amounted to "political intimidation".A senior Republican said the practice amounted to "political intimidation".
The revelations have cast a shadow over President Barack Obama's second term.The revelations have cast a shadow over President Barack Obama's second term.
Mr Miller and another top staff member in the Internal Revenue Service (IRS) have resigned over the matter.Mr Miller and another top staff member in the Internal Revenue Service (IRS) have resigned over the matter.
Mr Obama has denounced the practice as unacceptable and Attorney General Eric Holder has said the FBI had launched a criminal inquiry into the matter. Mr Obama has denounced the practice as unacceptable and Attorney General Eric Holder has said the FBI has launched a criminal inquiry into the matter.
Friday's hearing was the first in a series of congressional inquiries on the affair. Friday's hearing in the House ways and means committee was the first in a series of congressional hearings on the affair.
"I want to apologise on behalf of the Internal Revenue Service for the mistakes that we made and the poor service we provided," Mr Miller told the panel."I want to apologise on behalf of the Internal Revenue Service for the mistakes that we made and the poor service we provided," Mr Miller told the panel.
"Partisanship and even the perception of partisanship has no place at the Internal Revenue Service.""Partisanship and even the perception of partisanship has no place at the Internal Revenue Service."
'Culture of cover-ups''Culture of cover-ups'
But leading Republicans on the committee said the misconduct was not simply a result of poor leadership.But leading Republicans on the committee said the misconduct was not simply a result of poor leadership.
"The reality is this is not a personnel problem. This is a problem of the IRS being too large, too powerful, too intrusive and too abusive of honest, hardworking taxpayers," House ways and means committee Chairman Dave Camp said at the opening of Friday's hearing."The reality is this is not a personnel problem. This is a problem of the IRS being too large, too powerful, too intrusive and too abusive of honest, hardworking taxpayers," House ways and means committee Chairman Dave Camp said at the opening of Friday's hearing.
He said the agency's misconduct appeared to be just one case of a "culture of cover-ups" in the Obama administration.He said the agency's misconduct appeared to be just one case of a "culture of cover-ups" in the Obama administration.
"It seems like the truth is hidden from the American people just long enough to make it through an election," Mr Camp said."It seems like the truth is hidden from the American people just long enough to make it through an election," Mr Camp said.
The IRS has acknowledged that beginning in 2010, staff in a Cincinnati, Ohio branch office delayed the filings for tax-exempt status of conservative groups with words such as "tea party" or "patriot" in their applications or that otherwise indicated their conservative orientation.The IRS has acknowledged that beginning in 2010, staff in a Cincinnati, Ohio branch office delayed the filings for tax-exempt status of conservative groups with words such as "tea party" or "patriot" in their applications or that otherwise indicated their conservative orientation.
Mr Miller testified on Friday that while the practice of maintaining a list of keywords that flagged conservative groups for extra review was "intolerable", it was a mistake and had merely been put together by civil servants trying to work more efficiently.Mr Miller testified on Friday that while the practice of maintaining a list of keywords that flagged conservative groups for extra review was "intolerable", it was a mistake and had merely been put together by civil servants trying to work more efficiently.
The practice of extra screening began in response to a Supreme Court ruling that loosened campaign finance rules, Mr Miller said.The practice of extra screening began in response to a Supreme Court ruling that loosened campaign finance rules, Mr Miller said.
The IRS saw an influx of 70,000 applications from groups seeking tax-exempt status, but under US tax law, the political campaigning could not be their "primary activity". The IRS saw an influx of 70,000 applications from political groups seeking tax-exempt status, but under US tax law, campaigning could not be their "primary activity".
Amid reports some of the groups were violating that threshold, the IRS deemed a certain level of review appropriate. Amid reports some of groups were violating that threshold, the IRS deemed a certain level of review appropriate.
DelaysDelays
J Russell George, the treasury department inspector general for tax administration, told the committee that he did not believe the actions by IRS staff were motivated by politics, and said his inquiry had found no suggestion anyone outside the tax agency influenced the practice.J Russell George, the treasury department inspector general for tax administration, told the committee that he did not believe the actions by IRS staff were motivated by politics, and said his inquiry had found no suggestion anyone outside the tax agency influenced the practice.
The list of watch words was assembled by a "determinations unit" based in Cincinnati, and there seemed to be little or no supervisory review of the list, he told the committee.The list of watch words was assembled by a "determinations unit" based in Cincinnati, and there seemed to be little or no supervisory review of the list, he told the committee.
"The determinations unit requested unnecessary information because of a lack of managerial review, at all levels," Mr Russell said.
"We concluded that determinations unit specialists lacked knowledge of what activities are allowed."
The IRS is an independent agency within the treasury department.The IRS is an independent agency within the treasury department.
The practice lasted for about 18 months until June 2011, when officials in Washington became aware of it, Mr George said.The practice lasted for about 18 months until June 2011, when officials in Washington became aware of it, Mr George said.
Mr George's investigation, revealed this week, found that 298 groups had been subjected to additional auditing. In those cases the IRS may have asked for lists of donors, the groups' positions on a range of issues, and whether the groups' senior members intended to run for public office.Mr George's investigation, revealed this week, found that 298 groups had been subjected to additional auditing. In those cases the IRS may have asked for lists of donors, the groups' positions on a range of issues, and whether the groups' senior members intended to run for public office.
Many of the applicants faced considerable delays in obtaining tax-exempt status, but none were turned down, he added.Many of the applicants faced considerable delays in obtaining tax-exempt status, but none were turned down, he added.
But some lawmakers expressed outraged that in previous hearings, senior figures at the IRS had denied any targeting of conservative groups.But some lawmakers expressed outraged that in previous hearings, senior figures at the IRS had denied any targeting of conservative groups.
"That isn't being misled. That's lying," said Mr Camp."That isn't being misled. That's lying," said Mr Camp.
Mr Miller said: "I did not mislead Congress, nor the American people. I answered the questions as they were asked."Mr Miller said: "I did not mislead Congress, nor the American people. I answered the questions as they were asked."
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.