IRS Targeting:By the Numbers

Committee on Ways & Means

Background

• May 14, 2013: TIGTA Audit Report, “Inappropriate Criteria Were Used to Identify Tax-Exempt Applications for Review”– Detailed IRS targeting of certain groups

based on political beliefs

• June 25, 2013: Werfel Report, “Charting a Path Forward at the IRS”– Acknowledged IRS failures, but claimed no

intentional targeting

Review of Applications Subject to Inappropriate Scrutiny

(May 2010-May 31, 2012)

# % of Total Approved RateRight-leaning 248 83% 111 45%Left-leaning 29 10% 20 70%(“Progressive”) (7) 7 100%NA 21 -- --Total 298

Summary: 298 subject to extra scrutiny, 248 were right-leaning

Inappropriate Requests: Donor Lists

• IRS Inappropriately asked 501c4 applicants for their donor lists.

• Risk: any information sent to the IRS as part of the application is made public when the application is approved, this would include donor lists.

• 89% of the groups subjected to this request were right leaning.

Director, Exempt OrganizationsLois Lerner

EO DeterminationsCincinnati

(Applications)

EO ExaminationsDallas

(Audits)

Untold Targeting Story:IRS Surveillance & Audit Program

• IRS surveillance program called:

“Review of Operations” or ROO – Cincinnati flags for ROO if uncertain.– Dallas flags for ROO based on complaints.

• Surveillance by Dallas office builds a file.

• File to 3-person committee decides whether to

audit.

Untold Targeting Story:IRS Surveillance & Audit Program

• 83% of Cincinnati-Washington referrals for surveillance were for right-leaning groups.

• 94% of groups selected for surveillance by Dallas based on complaints were right-leaning. Of these:

• 100% of groups selected for full-blown audit were right-leaning.

When discovered this summer

IRS suspended ROOs and audits.

IRS Targeting:By the Numbers

Committee on Ways & Means