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IRS regulations allow tax-exempt social welfare organizations to engage in some political activity but it cannot be their primary mission.
The back-and-forth over George's investigation overshadowed an appearance before Ways and Means on Thursday by Danny Werfel, who President Barack Obama appointed to head the IRS last month.
Werfel has repeatedly criticized those actions, replaced several top officials who he said bore some responsibility and has erected new procedures aimed at speeding work on tax-exempt applications and learning more about what happened.
Werfel has said he found mismanagement but no purposeful wrongdoing at the IRS. Camp said Thursday that Werfel's conclusion was "incomplete" because Werfel did not interview several former top IRS officials, including former commissioner Douglas Shulman.
Werfel also came under Republican fire for his agency's request for a $1 billion budget increase next year, about 10 percent, with several lawmakers recounting revelations about costly agency conventions and videos some workers made.
"Until the IRS proves that it can responsibly manage its current funds, the IRS will not see one more dime in taxpayer funding," Camp said.
Werfel said no decisions had yet been made on the agency's previous plans to distribute $70 million in bonuses to employees, payments that have been required by union contracts. He said bargaining was underway.