FBI Opens Criminal Probe of U.S. Tax Agency, Audit Cites Disarray
U.S. Attorney General Eric Holder said on Tuesday he had ordered the FBI to open a criminal probe in a growing scandal over the Internal Revenue Service’s targeting of conservative political groups for extra tax scrutiny.
Holder’s announcement came about four hours before an inspector general’s report on the IRS portrayed the tax agency as plagued by disarray and “insufficient oversight” during its struggles to review the cases of hundreds of advocacy groups that claimed they should be tax exempt.
The audit, which drew some backlash from IRS officials, also underscored what the agency had acknowledged last Friday: that the IRS had used “inappropriate criteria” for evaluating tax-exempt groups, in part by singling out scores of conservative Tea Party and “Patriot” organizations for increased scrutiny.
The report by the Treasury Inspector General for Tax Administration sharply criticized the way the IRS had screened the conservative groups, citing poor management and processing delays. The report suggested that such practices could damage public confidence in the agency.