FOXNews.com: IRS UNDER FIRE: Reps Threaten to Tighten Budget Amid Scandals

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IRS UNDER FIRE: Reps Threaten to Tighten Budget Amid Scandals Jun 3rd 2013, 21:02 Leaders of the House committee that controls federal agencies' purse strings threatened Monday to crack down on the IRS budget, on the heels of internal probes that found the agency targeted conservative groups and also spent millions on lavish conferences.  Republicans on the House Appropriations Committee, who summoned the agency's new acting chief to testify, warned that the agency's funding would come under the microscope.  Chairman Hal Rogers, R-Ky., said the committee might even consider placing "conditions" on the agency's budget allowing Congress to monitor its spending.  Rep. Ander Crenshaw, R-Fla., head of the subcommittee hosting the hearing on Monday, said Congress will "have to think very carefully about the amount of money that we provide to the IRS."  He noted that the agency has requested $12.9 billion for 2014 -- or $1 billion more than it got for 2013.  "We cannot in good conscience continue to provide hard-earned taxpayers' dollars and have them use those funds to abuse the rights of American citizens," he said.  Acting IRS Commissioner Danny Werfel delivered a brief opening statement before the committee. He said the public trust "has been violated," and said he is committed to restoring it. He was asked about two growing controversies -- over the targeting of conservative groups, and also over a forthcoming inspector general report expected to show the agency spent roughly $50 million on conferences from 2010 to 2012.  Rogers said he was "absolutely appalled" by the conference spending.  Democratic Rep. Jose Serrano, though, cautioned against cutting funding to the IRS. The New York lawmaker said doing so is "asking for more trouble," though he blasted the IRS program as inappropriate.   Meanwhile, the White House on Monday stood by claims that administration officials were not involved in the IRS' targeting of Tea Party groups after claims surfaced that the program was directed by Washington.  White House Press Secretary Jay Carney said Monday the administration is "concerned" about both developments. But he defended the administration following claims by an unnamed IRS employee that the targeting program was directed by Washington.  The inspector general, Carney said, "both in testimony and in his report, found no evidence that outsiders -- those outside the IRS -- influenced the behavior that took place there."  He said: "That is the conclusion of the independent inspector general.  And we certainly have seen no other evidence to contradict that."  Rep. Darrell Issa, R-Calif., on Sunday called Carney a "paid liar" as he discussed the IRS situation. Carney, though, said Monday he's "not going to get into a back-and-forth with" Issa.  Issa was pointing to interviews with an IRS field agent involved in the division that targeted Tea Party groups. Partial transcripts were released Sunday by the House Oversight and Government Reform Committee, which Issa chairs.  The agent in the Cincinnati office told congressional investigators that he or she was told by a supervisor in March 2010 to search for Tea Party groups applying for tax-exempt status and that "Washington, D.C., wanted some cases."  The agent said that by April the office had held up roughly 40 cases and at least seven were sent to Washington. The agent also said a second IRS employee asked for information on two other specific applicants in which Washington was interested in.  When asked by congressional investigators about allegations and press reports about two agents in Cincinnati essentially being responsible for the targeting, the agent responded:  "It's impossible. As an agent we are controlled by many, many people. We have to submit many, many reports. So the chance of two agents being rogue and doing things like that could never happen. ... They were basically throwing us underneath the bus."  The administration has denied involvement in the scandal, repeatedly saying it was limited to the Cincinnati office.  Still, involvement of IRS officials in Washington does not necessarily mean anyone at the Treasury Department level or above was involved.  Carney urged lawmakers to wait for investigators to gather the facts before reaching a judgment on the matter.

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