IRS "Scandal"

Last May, the Treasury Inspector General issued a flawed audit into the agency’s handling of applications for tax-exempt status, failing to even mention that progressive groups were also singled out or that the Inspector General had uncovered no evidence of any political motivation. Since then, House Republicans have not discovered a single piece of evidence showing political motivation or White House involvement.

Investigations by the numbers:

$18 Million Amount of taxpayer money that the IRS has spent responding to committee requests related to the so-called “investigations.”

120,000: Number of total work hours spent by IRS employees to accommodate the “investigations.”

1 million: Number of pages documents provided by the IRS to Congressional Committees without any indication of political motivation.

60: Number of interviews conducted by Congressional Committees with current and former IRS employees.

19: Number of Congressional hearings where IRS personnel have answered questions related to the investigation.

5,500: Number of IRS employee emails that the Inspector General’s chief investigator reviewed – and concluded no indication of political motivation – before the TIGTA audit was published.

NOTE: The IG failed to even mention this investigator-led review of emails until it was revealed in July 2013, two months after the audit was published. “There was no indication that pulling these selected applications was politically motivated,” the head of investigations wrote in an e-mail to the senior staff at TIGTA on May 3, two weeks before the audit was published. “The email traffic indicated there were unclear processing directions and the group wanted to make sure they had guidance on processing the applications so they pulled them. This is a very important nuance.”

Protecting Karl Rove and the Koch brothers:

Applications for 501(c)(4) status have nearly doubled between 2010 and 2012 to 3,357, and 501(c)(4) spending has skyrocketed. In 2006, $1 million was spent by 501(c)(4) organizations. In 2010, $92 million was spent. And in 2012, $256 million was spent by 501(c)(4) organizations.

The (c)(4) designation presently allows organizations to keep their donors secret. That is exactly the secrecy that the Republicans are trying to preserve. Why? Because the three largest spenders representing fully 51% of the total are a who's who list of Republican political operatives. Karl Rove’s Crossroads GPS spent $71 million. Americans for Prosperity, the Koch brothers, spent $36 million. The American Future Fund, also the Koch brothers, spent $25 million.

That’s $132 million of the $256 million that the Federal Election Committee had reported, according to the Center for Responsive Politics. Republicans are not trying to stand up for the rights of social welfare organizations, but rather to preserve the secrecy around the Republicans' big campaign efforts.

Press:

Press Release: New IRS Information Shows “Progressives” Included on BOLO Screening List
Slate: New IRS Scandal: Lois Lerner Thought About Doing Something, Then Didn’t Do It
PBS NewsHour: Rep. Sandy Levin on IRS Investigation: “This should not be an inquisition”
Center for Public Integrity: Hobbled IRS can't stem 'dark money' flow

Additional background resources:

Email from TIGTA Head of Investigations noting the review of 5,500 emails and concluding: “There was no indication that pulling these selected applications was politically motivated.”
PowerPoint presentation dated July 28, 2010 instructing screeners how to screen applications.
Meeting minutes from July 28, 2010 presentation.
Letter from Ways and Means Committee Ranking Member Levin to Inspector General J. Russell George calling on him to explain his serious failure in leaving out critical details in the IG Audit.
Memo from Ranking Member Levin laying out new findings that undermine the IG's Audit.