House investigators soon talked to workers in the Cincinnati office, who said everything they did came from Washington. Elizabeth Hofacre, in charge of processing tea-party applications in Cincinnati, told investigators that her work was overseen and directed by a lawyer in the IRS Washington office named Carter Hull.
Now comes Mr. Hull's testimony. And like Ms. Hofacre, he pointed his finger upward. Mr. Hull—a 48-year IRS veteran and an expert on tax exemption law—told investigators that tea-party applications under his review were sent upstairs within the Washington office, at the direction of Lois Lerner.
In April 2010, Hull was assigned to scrutinize certain tea-party applications. He requested more information from the groups. After he received responses, he felt he knew enough to determine whether the applications should be approved or denied.
But his recommendations were not carried out.
Michael Seto, head of Mr. Hull's unit, also spoke to investigators. He told them Lois Lerner made an unusual decision: Tea-party applications would undergo additional scrutiny—a multilayered review.
Mr. Hull told House investigators that at some point in the winter of 2010-11, Ms. Lerner's senior adviser, whose name is withheld in the publicly released partial interview transcript, told him the applications would require further review:
Q: "Did [the senior adviser to Ms. Lerner] indicate to you whether she agreed with your recommendations?"
A: "She did not say whether she agreed or not. She said it should go to chief counsel."
Q: "The IRS chief counsel?"
A: "The IRS chief counsel."
The IRS chief counsel is named William Wilkins. And again, he is one of only two Obama political appointees in the IRS.
Ms. Hofacre of the Cincinnati office testified that when she was given tea-party applications, she had to kick them upstairs. When she was given non-tea-party applications, they were sent on for normal treatment. Was she told to send liberal or progressive groups for special scrutiny? No, she did not scrutinize the applications of liberal or progressive groups. "I would send those to general inventory." Who got extra scrutiny? "They were all tea-party and patriot cases." She became "very frustrated" by the "micromanagement" from Washington. "It was like working in lost luggage." She applied to be transferred.
For his part, Mr. Hull backed up what he'd told House investigators. He described what was, essentially, a big, lengthy runaround in the Washington office in which no one was clear as to their reasons but everything was delayed. The multitiered scrutiny of the targeted groups was, he said, "unusual."