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Spending at IRS back in the spotlight

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Spending at IRS back in the spotlight

The embattled IRS is under renewed scrutiny for its spending on everything from contracts to wine and romance novels.


House Oversight and Government Reform Committee Chairman Darrell Issa (R-Calif.) released a report Tuesday accusing the IRS of awarding contracts which could be worth more than $500 million to a small firm because a top agency official had a cozy relationship with the companys CEO.


Meanwhile, the Treasury inspector general released a separate report raising red flags about lax oversight of millions of dollars spent on agency-issued employee credit cards.


The developments add to the scandal that has surrounded the agency in the wake of disclosures last month that the IRS wrongly targeted conservative groups applying for a tax exemption. That story is also taking a dramatic turn after the top Democrat on the House Ways and Means Committee released documents on Monday revealing that progressive groups were also scrutinized by the IRS.


Congress is moving back into hearing mode.


Issas panel will meet Wednesday to investigate contract spending at the IRS and the Ways and Means committee will convene on Thursday to hear testimony from the agencys new leader, Daniel Werfel.


Ahead of Wednesdays hearing, Issa released a report providing new details about the IRS contracts. The report centers on agreements between the agency and Strong Castle Inc. President Braulio Castillo.


In a six-month period starting in late summer 2012, Castillo and the IRS signed agreements that could be worth more than $500 million.


The report attributes the lucrative contracts to a problematic and abusive relationship between Castillo and IRS contracting official Gregory Roseman, the agencys deputy director of enterprise networks and tier systems support.


By inappropriately using a personal relationship and abusing a provision designed to help disadvantaged businesses, the IRS and Strong Castle have made a mockery of fair and open competition for government contracts, Issa said in a statement.


Castillo and the IRS didnt immediately comment on the report. Castillo and Roseman will appear [did appear] before the Oversight committee on Wednesday.



When the Oversight committee convened, Rosman pleaded the fifth.


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IRS held ‘lavish’ conference in swanky Atlanta hotel

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Inspector general: IRS credit cards used to purchase porn

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You duplicated this thread.

Yah, no shit. Tons of 404 and 500 errors today. Dumped cookies and cache. Hope that makes it better.

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