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 TotalApprovedRate Right-leaning24883%11145% Left-leaning2910%2070% (“Progressive”)(7)7100% NA21-- Total298 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 Organizations Lois Lerner EO Determinations Cincinnati (Applications) EO Examinations Dallas (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