May 23, 2013

IRS official who took the Fifth has been replaced

By Stephen Ohlemacher / The Associated Press

WASHINGTON — Moving quickly to stem a raging controversy, the new acting head of the Internal Revenue Service started cleaning house Thursday by replacing the supervisor who oversaw agents involved in targeting tea party groups.

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In this May 22, 2013, photo, Lois Lerner listens on Capitol Hill in Washington. A day after she refused to answer questions at a congressional hearing, Lerner has been replaced as director the Internal Revenue Service division that oversaw agents who targeted tea party groups. Danny Werfel, the agency's new acting commissioner, told IRS employees in an email Thursday, May 23, 2013, that he has selected a new acting head of the division, staying within the IRS to find new leadership. (AP Photo/J. Scott Applewhite)

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A day after she refused to answer questions at a congressional hearing, Lois Lerner was placed on administrative leave, according to congressional sources.

Sen. Chuck Grassley of Iowa, a senior Republican on the Senate Finance Committee, said Lerner was asked to resign but refused, so she was placed on leave. An IRS spokeswoman said the agency could not comment on Lerner's status because it was a private personnel matter.

Danny Werfel, the agency's new acting commissioner, told IRS employees in an email that he had selected a new acting head of the division, staying within the IRS to find new leadership.

Ken Corbin, a 27-year IRS veteran, will be the new acting director of the agency's exempt organizations division. Corbin currently is a deputy director in the wage and investment division, where he oversees 17,000 workers responsible for processing 172 million individual and business tax returns, Werfel said.

Werfel's email Thursday made no mention of Lerner. But congressional aides who were briefed on the matter confirmed that Lerner was placed on paid administrative leave. The aides spoke on condition of anonymity because a personnel matter was involved.

"From all accounts so far, the IRS acting commissioner was on solid ground to ask for her resignation," Grassley said in a statement. "The IRS owes it to taxpayers to resolve her situation quickly. The agency needs to move on to fix the conditions that led to the targeting debacle. She shouldn't be in limbo indefinitely on the taxpayers' dime."

Lerner's lawyer, William W. Taylor III, did not immediately respond to requests for comment.

Lerner is the IRS official who first publicly disclosed on May 10 that IRS agents had been targeting tea party and other conservative groups for additional scrutiny when they applied for tax-exempt status. At the time she apologized on behalf of the IRS, but it wasn't enough to stop a firestorm of criticism from the White House and Congress.

If Lerner, a career civil servant, is dismissed she would become the third IRS official to lose their job in the scandal. Last week, President Barack Obama forced acting IRS Commissioner Steven Miller to resign, replacing him with Werfel, a former White House budget official who started at the IRS on Wednesday.

Also last week, Joseph Grant, one of Miller's top deputies, announced plans to retire June 3, according to an internal IRS memo. Grant had just been named commissioner of the agency's tax exempt and government entities division, which includes the agents that targeted tea party groups. Grant had been the acting head of the division since 2010.

Lerner provided one of the most electric moments since the controversy erupted when she unwaveringly — but briefly — defended herself before the House Oversight and Government Reform Committee on Wednesday.

"I have not done anything wrong," she told the committee, reading from a written statement. "I have not broken any laws, I have not violated any IRS rules or regulations, and I have not provided false information to this or any other congressional committee."

Then, she refused to answer lawmakers' questions, invoking her constitutional right against self-incrimination. A few minutes later, she was excused. As she boarded an elevator, several of the men who escorted her briefly jostled with TV camera operators who were trying to film her.

(Continued on page 2)

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