WASHINGTON — Neither Lois Lerner nor any other IRS official will face criminal charges in the political controversy over the processing of applications for tax-exempt status, the Justice Department announced Friday.

The decision closes a two-year investigation into accusations that stoked outrage among Republicans in Congress, who alleged bias in the tax agency’s treatment of conservative and tea party groups.

In a letter notifying members of Congress of its decision, the Justice Department said that while investigators had found “mismanagement, poor judgment and institutional inertia” within the agency, there was no proof that any IRS employee had targeted a political group based on its viewpoints or obstructed justice.

“We found no evidence that any IRS official acted based on political, discriminatory, corrupt or other inappropriate motives that would support a criminal prosecution,” the letter stated.

Lawyers for Lerner, who headed the division that processes applications for tax-exempt status at the time and has since retired, said their client had fully cooperated and was gratified but not surprised by the news.

“Anyone who takes a serious and impartial look at the facts would reach the same conclusion as the Justice Department,” the lawyers, Paul Hynes and William Taylor, said.

A political firestorm broke out two years ago with the release of an inspector general’s audit that said IRS agents had improperly singled out tea party and other conservative groups for extra scrutiny during the 2010 and 2012 elections.

The disclosure set off investigations by the Justice Department and multiple congressional committees, with Republicans routinely pressing FBI and Justice Department officials for updates on the probe – as recently as Thursday – during their visits to Capitol Hill.

Rep. Jason Chaffetz, chairman of the House Oversight and Government Reform Committee, said “Congress will continue to seek accountability for the American people.”

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