House chairman sees IRS targeting as part of pattern of intimidation, cover-ups

By Stephen Ohlemacher

Associated Press

Published: Friday, May 17 2013 9:44 a.m. MDT

Ousted IRS chief Steve Miller, center, arrives on Capitol Hill, in Washington, Friday, May 17, 2013, to testify before the House Ways and Means Committee hearing on the Internal Revenue Service (IRS) practice of targeting applicants for tax-exempt status based on political leanings.

Charles Dharapak, Associated Press

Enlarge photo»

WASHINGTON — The Internal Revenue Service's improper use of tougher scrutiny of conservative groups seeking tax-exempt status seems part of a broader pattern of intimidation and cover-ups by the Obama administration, a top House Republican said Friday.

The accusation by House Ways and Means Committee Chairman Dave Camp, R-Mich., came as his panel held the first congressional hearing into the tax agency's improper targeting of tea party and other conservative groups. At a session that saw the IRS face harsh criticism from members of both parties, the just-ousted acting chief of the agency, Steven Miller, expressed regret for the heightened reviews.

"I want to apologize on behalf of the Internal Revenue Service for the mistakes that we made and the poor service we provided," Miller told the committee. "The affected organizations and the American public deserve better. Partisanship and even the perception of partisanship have no place at the Internal Revenue Service."

Miller conceded that "foolish mistakes were made" by IRS officials trying to handle a flood of applications for tax-exempt status. He said the process that resulted in conservatives being targeted, "while intolerable, was a mistake and not an act of partisanship."

Though Miller and another top IRS official are stepping down, Camp said that would not be enough.

"The reality is this is not a personnel problem. This is a problem of the IRS being too large, too powerful, too intrusive and too abusive of honest, hardworking taxpayers," Camp said.

Friday's hearing is the first of what are expected to be many on the subject by congressional panels. Underscoring the seriousness of the episode, Miller was sworn in as a witness, an unusual step for the Ways and Means panel and one that could put Miller in jeopardy if he is later shown to have misled lawmakers with his testimony.

Camp referred to a "culture of cover-ups and intimidation in this administration," but offered no other examples.

The administration has been forced on the defensive about last September's terrorist attack in Benghazi, Libya, that killed the U.S. ambassador and three other Americans, and the government's seizure of The Associated Press' telephone records as part of a leaks investigation.

Republicans are hoping to link the issues in an effort to raise questions about President Barack Obama's credibility and make it harder for him to press a second-term agenda.

Camp's remark about cover-ups drew a sharp retort from the committee's top Democrat, Rep. Sander Levin of Michigan. Levin said if the hearing became a preview of the 2014 political campaigns, "we'll be making a very, very serious mistake."

Even so, Levin also was harshly critical of the IRS's treatment of conservative groups, saying the agency "completely failed the American people." He said Lois Lerner, who heads the IRS division that makes decisions about tax-exempt groups, should be "relieved of her duties."

Miller said the IRS struggled to efficiently handle growing numbers of applications for tax-exempt status.

The agency has said between 2008 and 2012, the number of groups applying for tax-exempt status as so-called social welfare groups more than doubled. Along with that was an increase in complaints that such groups were largely engaging in electoral politics, which is not supposed to be their primary activity.

"I do not believe partisanship motivated the people" at the IRS who engaged in the harsher screening for conservative groups, Miller said.

In recent months, Republicans on the Ways and Means panel had repeatedly asked the IRS about complaints from conservative groups that their applications were being treated unfairly.

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