IRS and TIGTA Management Failures Related to 501(c)(4) Applicants Engaged in Campaign Activity

Publication

IRS and TIGTA Management Failures Related to 501(c)(4) Applicants Engaged in Campaign Activity

Senate Committee on Homeland Security and Governmental Affairs
;
Permanent Subcommittee on Investigations

Abstract

The Permanent Subcommittee on Investigations of the Senate Committee on Homeland Security and Governmental Affairs conducted an investigation into the facts that led to widespread condemnation of how the IRS handled 501(c)(4) applications. The Subcommittee investigation resulted in a Majority Staff report finding that the IRS used inappropriate screening criteria when it flagged for increased scrutiny applications based upon the applicants' names or political views rather than direct evidence of their involvement with campaign activities. The Subcommittee also examined at a previous TIGTA report that criticized the IRS for subjecting conservative groups to delays, burdensome questions, and mismanagement, it failed to disclose that the IRS subjected liberal groups to the same treatment. The report recommends that the IRS should restore statutory standard, replace the facts and circumstances test, use FEC data and improve forms, and amend the TIGTA report.