Former IRS Official Refuses to Testify at Hearing

WASHINGTON (AP) -

The former Internal Revenue Service official at the heart of the controversy over the agency’s targeting of conservative groups once again refused to answer questions at a House hearing Wednesday amid signs that a congressional investigation into the affair may be stalling.

Lois Lerner headed the IRS division that improperly singled out tea party and other conservative groups for extra scrutiny when they applied for tax-exempt status during the 2010 and 2012 elections. On Wednesday she was recalled to testify before the House Oversight Committee for the second time in a year.

But just like the first time, she declined to answer questions about her involvement. Appearing with her lawyer, Lerner invoked her Fifth Amendment rights at least nine times in response to questions by committee Chairman Darrell Issa (R-Calif.).

Later, Lerner’s lawyer told reporters she didn’t testify because “we completely lost confidence in the fairness and impartiality of the forum.”

After Wednesday’s hearing, Issa suggested his committee’s investigation may become stalled without Lerner’s testimony.

“At this point, roads lead to Ms. Lerner,” Issa said. Without her testimony, he said, “it may dead-end at Ms. Lerner.”

Two other congressional committees, the Justice Department and the IRS’s inspector general are also investigating. But to date, none has publicly released evidence that anyone outside the IRS directed the targeting or knew about it while it was happening.

Last year, the IRS’ inspector general released a yearlong audit that found agents had improperly targeted conservative political groups for additional and sometimes onerous scrutiny when those groups applied for tax-exempt status.

The IRS watchdog blamed ineffective management by senior IRS officials for allowing it to continue for nearly two years during the 2010 and 2012 elections.

Since the revelations became public, much of the agency’s leadership has been replaced and the IRS has proposed new rules for handling applications from so-called social welfare organizations.

Conservatives and some liberal groups complain that the proposed rules would further limit political activity by tax-exempt groups. The IRS has received more than 140,000 comments on the proposed rules, by far a record for any proposed regulation, the agency said.