Deputy Attorney General James Cole, the Justice Department's
second-in-command after Attorney General Eric Holder, told lawmakers
the IRS was being thoroughly and fairly investigated.
No decisions have been made on whether criminal activity had taken
place at the IRS, he said in testimony before a House of
Representatives Oversight and Government Reform subcommittee.
"The whole range of options are still open," said Cole, refusing to
be drawn on details of the ongoing probe.
The IRS's worst crisis in years erupted in May 2013 when a senior
staffer publicly apologized for what she termed "inappropriate"
extra scrutiny by the agency of applications for tax-exempt status
from conservative political groups.
Republicans were furious, accusing the IRS of singling out
conservatives for unfair treatment. The senior staffer, Lois Lerner,
became a lightning rod for criticism but the scandal had largely
faded from view by early 2014.
Then last month the IRS said it had lost emails written by and to
Lerner from 2009 to 2011 that congressional Republicans had been
seeking for their own investigation, which has been under way for
more than a year.
In written testimony released on Wednesday, Cole revealed that the
Justice Department's inquiry was widening to include the loss of the
emails. Lerner has since retired from the IRS.
Cole said the Justice Department did not learn about the email
losses, which the IRS has attributed to a failed computer
hard-drive, until news reports about them.
Republicans lawmakers' calls for the appointment of a special
prosecutor, as well as allegations that the probe was compromised
because a veteran Justice Department trial attorney working on it,
Barbara Bosserman, had donated $6,750 to President Barack Obama's
election campaigns over the past 10 years.
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Bosserman was not the "lead" investigator and based on federal laws,
her donations did not warrant her removal from the case, Cole said.
House Oversight and Government Reform Committee Chairman Darrell
Issa, who has competed with Ways and Means Committee Chairman Dave
Camp for control of the Republican probe, challenged Cole about the
outcome of Justice's investigation.
"You cannot spend taxpayer dollars if you do not have a belief that
it's going to lead to a crime. That would be a frivolous
investigation at some point, wouldn't it?" he said.Democrats accused
Republicans of hunting for "conspiracy theories" and trying to show
that the White House directed the IRS to target conservative groups.
"This is not the basis of a White House scandal. This is the latest
example of Republicans desperately searching for one, and then using
any excuse they can to manipulate the facts until they no longer
have any resemblance to the truth," said Representative Elijah
Cummings, the panel's top Democrat.
(Reporting by David Lawder; Editing by Kevin Drawbaugh and James
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