Inspector General Finds 5% Compliance Rate With Regulations on Certain IRS Contracts

Published May 23, 2013 12:41pm ET



The Internal Revenue Service has come under heavy criticism from both Republicans and Democrats in recent days after an inspector general’s report detailed “inappropriate criteria” used to identify certain applications of mainly conservative organizations for special review resulting in long delays in processing and invasive inquiries. The acting commissioner of the IRS himself admitted to “horrible customer service” and “foolish mistakes.” But another report issued by the Treasury Department inspector general just two weeks earlier found that the vetting process for tax-exempt organizations was not the only flawed aspect of the agency’s practices.

The report was issued on April 30, 2013, and was titled “Cost-Reimbursement Contracts  Did Not Fully Comply With Federal Acquisition Regulation [FAR] Revisions.”  The findings make the title seem like an understatement:

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