Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by Law.com, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!

X

More On

FBI launches IRS investigation

Criminal probe will look into agency’s scrutiny of conservative groups

The Federal Bureau of Investigation (FBI) has its eye on the Internal Revenue Service (IRS).

Yesterday, Attorney General Eric Holder announced that he has launched a criminal investigation into the IRS’ flagging of conservative groups for extra scrutiny when they applied for tax-exempt status. Last week, the IRS admitted to and apologized for flagging about 300 groups with the words “tea party” or “patriot” in their names for extra scrutiny. The flagging took place during the 2012 election campaigns, but the agency maintains that its actions weren’t politically motivated.

According to a report the Treasury Inspector General for Tax Administration released yesterday, the IRS’ managers allowed the practices to continue for more than a year and a half. President Obama called the findings “intolerable and inexcusable” and has promised to hold any wrongdoers in the IRS accountable for their actions.

At a press conference, Holder told reporters that the IRS’ actions were “if not criminal, they were certainly outrageous and unacceptable, but we are examining the facts to see if there were criminal violations.”

Capitol Hill conservatives are calling for the resignation of the IRS’ acting commissioner, Steven Miller, and the head of the agency’s tax-exempt organizations office, Lois Lerner. Miller is attending meetings on Capitol Hill concerning the scandal.

Read the Huffington Post, Reuters the Wall Street Journal for more about the IRS investigation.

For more InsideCounsel coverage of the IRS and non-profits, read:

IRS apologizes for scrutinizing conservative groups

The division of the IRS responsible for tax exemptions has failed to do its job

A proposal to overhaul tax-exempt law

The last political loophole is found in non-profits

Ashley Post

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.