A newly obtained watchdog report described how the "inappropriate" IRS program that flagged conservative groups for extra scrutiny led to massive delays, with some organizations stuck waiting years to find out about their applications.
The findings were contained in a highly anticipated inspector general's report, obtained by Fox News, on a practice that IRS officials first acknowledged on Friday.
The report revealed that the program began as far back as 2010. The Treasury Inspector General for Tax Administration concluded that it was the result of "ineffective management" and "inappropriate criteria" which must be corrected.
Describing the impact of the IRS program, the report said the flawed criteria led to Tea Party and other groups being singled out and subjected to "substantial delays." More than 80 percent of the cases it reviewed were left open more than one year, and some were left in limbo for more than three years.
Separately, Reps. Darrel Issa, R-Calif., and Jim Jordan, R-Ohio, described these delays as a "state of purgatory" for conservative groups as they sought tax-exempt status.
The IG report said: "As of December 17, 2012, many organizations had not received an approval or denial letter for more than two years after they submitted their applications. Some cases have been open during two election cycles (2010 and 2012)."
Further, the report said this delay meant potential donors could have been "reluctant" to provide funding to the groups.
"In addition, some organizations withdrew their applications and others may not have begun conducting planned charitable or social welfare work. The delays may have also prevented some organizations from receiving certain benefits of the tax-exempt status," the report said.
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