The House Ways and Means Subcommittee on Oversight held a hearing regarding the EO audit selection process and internal controls.  Jay McTigue, director of strategic issues of the Government Accountability Office (GAO) testified concerning the GAO report released July 23, which found that “some of EO’s internal controls are adequate, and align with established selection standards; however, there were several areas where EO’s controls were not well designed or implemented.”

IRS Commissioner John Koskinen testified that the GAO’s report “found no evidence of organizations being selected in an unfair or biased manner.” Commissioner Koskinen also described the steps the IRS was taking to implement the recommendations in the report, including updating all Internal Revenue Manual sections pertaining to the EO function, expanding monitoring procedures, improving the documentation of the audit selection process, providing additional training to “classifiers” responsible for referrals, increasing tracking and maintenance of closed case files, and ensuring diversity among referral committee members by changing from a volunteer selection process to an assignment selection process.