The Arizona Republic

Report finds $50M was used for IRS conference­s

- By Alan Fram

WASHINGTON — A government watchdog has found that the Internal Revenue Service spent about $50 million to hold at least 220 conference­s for employees between 2010 and 2012, a House committee said Sunday.

The chairman of that committee, Rep. Darrell Issa, R-Calif., also released excerpts of congressio­nal investigat­ors’ interviews at the IRS office in Cincinnati. Issa said the interviews indicated employees were directed by Washington to give tea party and other conservati­ve groups extra scrutiny.

The excerpts provided no direct evidence that Washington had ordered that screening. The top Democrat on that panel, Rep. Elijah Cummings of Maryland, contested Issa’s claim, saying none of the employees interviewe­d have so far identified any IRS officials in Washington as ordering that targeting.

Conference costs

The conference spending included $4 million for an August 2010 gathering in Anaheim, Calif., for which the agency did not negotiate lower room rates, even though that is standard government practice, according to a statement by the House Oversight and Government Reform Committee.

Instead, some of the 2,600 attendees received benefits, including baseball tickets and stays in presidenti­al suites that normally cost $1,500 to $3,500 per night. In addition, 15 outside speakers were paid a total of $135,000 in fees, with one paid $17,000 to talk about “leadership through art,” the House committee said.

The Treasury Department released a statement Sunday saying the administra­tion “has already taken aggressive and dramatic action to reduce conference spending.”

IRS spokeswoma­n Michelle Eldridge said Sunday that spending on large agency conference­s with 50 or more participan­ts fell from $37.6 million in the 2010 budget year to $4.9 million in 2012. The government’s fiscal year begins Oct. 1 the previous calendar year.

On Friday, the new acting commission­er, Danny Werfel, released a statement on the forthcomin­g report criticizin­g the Anaheim meeting.

“This conference is an unfortunat­e vestige from a prior era,” Werfel said. “While there were legitimate reasons for holding the meeting, many of the expenses associated with it were inappropri­ate and should not have occurred.”

The report by the Treasury Department’s inspector general, set to be released Tuesday, comes as the IRS already is facing bipartisan criticism after agency officials disclosed they had targeted tea party and other conservati­ve groups.

Agency officials and the Obama administra­tion have said that treatment was inappropri­ate, but the political tempest is showing no signs of ebbing and has put the White House on the defensive.

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