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A Treasury Department inspector general concludes that "ineffective management" is to blame for the singling out of some conservative groups.
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Activists are calling for a full investigation, and possibly lawsuits, following revelations that the IRS flagged so-called patriot groups for scrutiny in applications for federal tax-exempt status. Groups say they were asked about rallies, Facebook and Twitter activity.
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The sudden eruption of second-term scandals in his administration will have many costs for President Obama, but surely the most grievous will be the lost opportunity to transcend the partisan wars of Washington, his fondest dream for his second term, much as it was for his first. Now it seems destined to be dashed once again.
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Echoing comments made Monday by President Obama, Attorney Gen. Eric Holder also said that even if no laws were broken it was "outrageous" for the IRS to focus on groups who identified themselves as "patriots" or "tea party" supporters when they applied for tax-exempt status.
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The extra scrutiny given to some conservative groups' applications for tax-exempt status has sparked outrage. Acting IRS Commissioner Steven Miller blames "shortcuts," not politics. He and other IRS officials didn't alert Congress to what was happening when they could have last year.
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As part of its inappropriate scrutiny of conservative applicants for tax-exempt status, the IRS wanted copies of tweets and personal information about board members.
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Groups that focused on issues such as government spending, taxes and making America "a better place to live" were given extra scrutiny when they applied for tax-exempt status, according to news reports. That's in addition to the "tea party" and "patriot" groups the IRS has apologized for singling out.
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Republican lawmakers on Sunday called for a full investigation of the Internal Revenue Service after it was revealed Friday that it had singled out Tea Party and other conservative groups for heightened scrutiny in applications for tax-exempt status.
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The targeting by IRS workers in Cincinnati of the filings of conservative groups for added scrutiny was an innocent mistake, said an agency official who apologized. But President Obama's critics see more nefarious motives in the action.
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During the 2012 campaign, some organizations complained they were being unfairly scrutinized. A top IRS official said groups that included the words "tea party" or "patriot" in applications for tax-exempt status were subjected to additional reviews.