IRS Agents Expanded Scrutiny Beyond ‘Tea Party’ Groups

Internal Revenue Service agents who singled out for extra scrutiny 501(c)(4) applications from groups with “Tea Party” in their name also screened organizations that criticized government spending and tax policy or said they were devoted to making “America a better place to live,” Reuters and The Wall Street Journal write.

The criteria, which evolved from 2010 to 2012 as IRS field office staff sifted through thousands of applications from entities seeking nonprofit status, were detailed in an investigative report by the Treasury Department’s inspector general for tax administration. The report is due to be made public this week but has been reviewed by some media outlets.

Since Friday’s apology by Lois Lerner, head of the IRS office that oversees tax-exempt organizations, over the agency’s examination of conservative groups, Republicans in Congress have stepped up calls for a deeper inquiry and plan to hold hearings on the matter, The New York Times and Bloomberg report.

According to the inspector general’s findings, Ms. Lerner knew in June 2011 that key words such as “Tea Party,” “Patriot,” and “9/12″ in the name of organizations applying for tax-exempt status triggered closer scrutiny.

Listen to Lois Lerner, head of the Internal Revenue Service’s tax-exempt division, discuss the agency’s audits during a meeting of the American Bar Association in Washington.