The White House first learned of a draft report detailing abuses by IRS officials in targeting conservative groups in late April, though the top administration spokesman maintained on Monday that President Barack Obama was not notified of the emerging controversy at that time.

White House press secretary Jay Carney, in a bid to further the administration's public response to revelations that the IRS had singled out conservative groups seeking tax-exempt status for additional scrutiny, disclosed at his daily press briefing that White House counsel Kathy Ruemmler was informed of the report on April 24. She, in turn, told senior White House staff -- including chief of staff Denis McDonough -- of the then-incomplete report, though Carney said those details were never conveyed to Obama.

“To be clear, we knew the subject of the investigation and we knew of the nature of some of the potential findings, but we did not have a copy of the draft report,” said Carney. “We did not know the details, the scope or the motivation surrounding the misconduct, and we did not know who was responsible.”

The new details first offered by Carney come amid growing Republican clamor for more information about who in the White House found out about the IRS investigation, and when. The GOP has sought to cast the administration as either less-than-forthcoming about its knowledge of the investigation, or inept in keeping tabs on such a high-profile investigation.

The press secretary sought to characterize the administration's handling of the information as fairly routine. Carney said that the White House is typically notified of similar inspectors general drafts shortly before publication, and that the details of these reports can often change before publication. Moreover, Carney argued, the abuses at the IRS had ended about a year earlier, meaning that there was no way for the president to act to halt continued misconduct at the IRS.

Obama has said that he did not learn about the IRS controversy until press reports detailing some elements of the inspector general review of the IRS emerged in the press on May 10. Obama has condemned the misconduct, and sought the resignation of the acting IRS commissioner. But his actions haven't slowed Republican criticism of his management of the situation.

Carney said Monday that Obama was not informed by senior staff who were aware of the impending report so as to not compromise the investigation before it had been completed.

"This is not the kind of thing, when you have an ongoing investigation or an ongoing audit, that requires notification to the president because what is important is we wait until that kind of process is completed before we take action," he said.

Furthermore, the press secretary said that no other member of the White House staff sought to intervene in the final stages of the IRS report, because it would have been inappropriate to do so.

This story was originally published on Mon May 20, 2013 3:18 PM EDT

Aiming to advance a sweeping immigration reform bill by week’s end, senators on the committee considering the legislation planned marathon sessions to complete its edits, including the approval Monday of a compromise measure to implement a test system for taking foreign visa holders’ fingerprints when they exit the United States. 

In an effort to win over Republicans who favor using “biometric” criteria – like fingerprinting -- to monitor when foreigners leave the country, pro-reform members of the Senate Judiciary Committee approved an amendment sponsored by Sen. Orrin Hatch of Utah, a Republican considered to be a swing vote on the 18 member committee.  That amendment, a less stringent version of a biometric proposal that failed last week, would require the Department of Homeland Security to establish a fingerprinting system at the 10 U.S. airports with the highest international traffic within two years. After six years, that system would have to be in place at the nation’s 30 biggest airports. 

Chip Somodevilla / Getty Images

Senate Judiciary Committee holds a markup session on the immigration reform legislation in the Hart Senate Office Building on Capitol Hill May 20, 2013 in Washington, DC.

The biometric tracking is primarily aimed at monitoring visa overstays, which account for an estimated 40 percent of the undocumented population.  

It was adopted by a vote of 13-5.

Florida Sen. Marco Rubio, a Republican who is not on the Senate Judiciary Committee but was a key drafter of the Gang of Eight legislation, has been pushing for the biometric system. 

In a statement, Rubio applauded the passage of the Hatch amendment.

"The amendment adopted today is a good start and I will continue to fight to make the tracking of entries and exits include biometrics in the most effective system we can build when the bill is amended on the Senate floor," he said. 

Prior to the vote, Sen. Jeff Sessions of Alabama – who sponsored an attempt last week to immediately begin implementation of a fingerprinting system at all major air, sea and land ports – slammed the amendment as inadequate, disputing the idea that finalizing a nationwide system would be costly and unwieldy.

“Why we won’t do it and do it properly within a year or 18 months – completely -- I have no idea,” Sessions said.

Congress has previously passed legislation requiring a biometric exit system but has never implemented the program, citing cost, infrastructure challenges and opposition from major airlines.

Proponents of the Hatch measure said it would provide an important step towards implementing a more complete biometric system, which senators on both sides of the aisle agreed would provide the most failsafe method for tracking visa overstays as well as individuals who pose national security threats.

“I do not look at this, Senator Sessions, as a fig leaf,” said Democrat Sen. Dianne Feinstein of California. “I look at it as a start.”

Republican Sen. Jeff Flake of Arizona, another Gang of Eight member, added that all lawmakers are “frustrated” by the fact that a biometric system has not yet been implemented nationwide but that the Hatch measure would be the most “aggressive” mandate yet to start putting one in place.

Earlier Monday, senators also approved an amendment proposed by South Carolina Sen. Lindsey Graham, also a member of the Gang of Eight, that would void legal status for individuals who sought asylum in the United States but subsequently returned to the country from which they fled.

That measure was aimed at those like Boston Marathon suspect Tamerlan Tsarnaev, whose family had been granted asylum in the United States but who had returned to Russia prior to the terrorist attack.

Senators also unanimously approved an amendment to mandate better tracking of immigrants who have overstayed visas by mandating broad data-sharing between customs officials, federal law enforcement and intelligence personnel.  

The committee was slated for a late night Monday. As it began its fourth day of edits to the bill,  Chairman Sen. Patrick Leahy said he was optimistic that the panel could complete its work as early as Wednesday night. 

This story was originally published on Mon May 20, 2013 1:25 PM EDT

What’s worse for the Obama White House: For the controversies to be full-scale scandals that go all the way to the top?... Or for them to be the result of bureaucratic incompetence?... The latest IRS developments… On Obama’s Morehouse speech… Two unions now oppose the Senate immigration bill… Getting the Hillary ’08 band back together -- or not… And Virginia, meet E.W. Jackson.

Jonathan Ernst / Reuters

President Barack Obama crosses the South Lawn as he returns from travel to Atlanta via Marine One, at the White House, May 19, 2013.

*** Scandal or bureaucratic incompetency? Here’s a question for the Obama White House to ponder: What’s worse, for all the controversies -- especially the IRS targeting conservative-sounding groups -- to be a full-fledged scandal that goes all the way to the top? Or for them to be the result of bureaucratic incompetence? You could make an argument that the latter outcome could be just as damaging to the president, because it raises doubts about his competency and the public’s trust in government. As Time’s Joe Klein wrote last week, “It can, and will, be argued that the president is to blame for lousy management… Some in the Administration are saying that civil-service rules prevent Obama from firing the midlevel bozos. But what about the higher-ups? Why haven't the Democrats proposed a full-scale review of civil-service laws…? Such laws certainly hinder effective governance, which the Democrats are supposedly selling.” Of course, there are plenty of examples where you can argue that government has worked. Think of the rebuilding after Hurricane Sandy. Or the response to the Boston bombings. But government working in a crisis vs. government working every day are two different issues. And it’s never a good story when a White House has to respond to examples when the government ISN’T working for the American people.

*** Competency questions pile up: After all, the Democrats are the party of government, and Obama got elected, in part, by pushing competency (at least compared with the previous administration). The White House should hope its problems are political in nature, because that’s something they’ve proven adept at dealing with. But the competency questions for this administration are piling up: The Veteran’s Administration is a mess; their explanation on Benghazi is about the lack of communication and security procedures; and the IRS explanation is overworked and mistake-prone bureaucrats in Cincinnati. Right now, the White House is benefitting from those congressional Republicans who are desperately searching for “scandal.” What the White House should fear more is if Republicans use their “government is too big” argument to go to core of competency. 

*** The latest IRS developments: It’s worth noting that today’s “news” about the White House counsel being informed of the IRS audit was first confirmed at a Jay Carney press briefing last week. A senior administration also confirms to NBC News that White House Counsel Kathy Ruemmler did NOT inform the president. What’s not clear is if she gave a heads up to the rest of the senior staff. And what’s also not clear is how much detail Ruemmler was offered about the audit itself. Meanwhile, the Sunday New York Times offered a lengthy piece tracing what went wrong in that Cincinnati IRS office. “While there are still many gaps in the story of how the I.R.S. scandal happened, interviews with current and former employees and with lawyers who dealt with them, along with a review of I.R.S. documents, paint a more muddled picture of an understaffed Cincinnati outpost that was alienated from the broader I.R.S. culture and given little direction. Overseen by a revolving cast of midlevel managers, stalled by miscommunication with I.R.S. lawyers and executives in Washington and confused about the rules they were enforcing, the Cincinnati specialists flagged virtually every application with Tea Party in its name. But their review went beyond conservative groups: more than 400 organizations came under scrutiny, including at least two dozen liberal-leaning ones and some that were seemingly apolitical.”

*** Obama’s Morehouse speech: Also on Sunday, President Obama delivered a very personal commencement address at Morehouse College in Atlanta, GA. “Keep setting an example for what it means to be a man,” he told the graduates at the historically black college. “Be the best husband to your wife, or you’re your boyfriend, or your partner. Be the best father you can be to your children. Because nothing is more important.” The president added, “I was raised by a heroic single mom, wonderful grandparents -- made incredible sacrifices for me… But I sure wish I had had a father who was not only present, but involved. Didn’t know my dad. And so my whole life, I’ve tried to be for Michelle and my girls what my father was not for my mother and me. I want to break that cycle where a father is not at home, where a father is not helping to raise that son or daughter. “I want to be a better father, a better husband, a better man.” And pair Obama’s commencement address with the one his wife delivered on Friday at another historically black college (Bowie State): “Instead of dreaming of being a teacher or a lawyer or a business leader, they’re fantasizing about being a baller or a rapper… Please reject the slander that says a black child with a book is trying to act white.”

*** Two unions now oppose Senate immigration legislation: On the topic of immigration… The National Citizenship and Immigration Services Council, a union representing 12,000 U.S. Citizenship and Immigration Services officers, “will publicly oppose the Senate Gang of Eight immigration plan Monday, giving critics of the overhaul effort additional political ammunition as they work to defeat legislation working its way through the Senate Judiciary Committee,” NBC’s Carrie Dann reports. The reason for the opposition: The union believes the legislation “would fail to address an ‘insurmountable bureaucracy’ at the federal agency overseeing immigration documents.” Dann adds that this union joins the National Immigration and Customs Enforcement Council in its opposition to the Gang of Eight measure.

*** Getting the band back together -- or not: It should be hardly surprising that folks like Howard Wolfson, Patti Solis Doyle, and Mark Penn would NOT work on a Hillary Clinton presidential campaign if she decides to run in 2016, as the Washington Post reports. After all, none of these people went on to join her at the State Department like other trusted Hillary Inc. aides did. What’s more, Solis Doyle was sacked as campaign manager after Clinton lost Iowa. If Clinton runs, it would likely be a combination of trusted former aides, as well as some new blood. That’s often true for plenty of repeat presidential candidates. Yet there’s another way to look at this Washington Post piece: It’s a message to many outside of Hillary World, especially those who were critical of the ’08 Hillary campaign, that the whole band won’t be getting back together if she runs in ’16. And those folks might see this as a positive development.

*** Meet E.W. Jackson: Virginia Republicans this year are conducting an intriguing experiment in Virginia, a state Obama has twice carried in presidential contests, that’s elected Democrats to U.S. Senate seats the last three times senate elections have been held: Can it win in 2013 with a ticket of candidates who are best known for being VERY conservative and VERY outspoken on social issues? Well, here is E.W. Jackson, a black minister who was nominated to be the GOP’s Lt. Gov. nominee joining Ken Cuccinelli at the top of the ticket. “The newly minted Republican nominee for lieutenant governor of Virginia once compared Planned Parenthood to the Ku Klux Klan and bemoaned black voters’ ‘slavish devotion’ to the Democratic Party — past statements that are likely to inflame the culture-war politics of the state’s 2013 elections,” Politico writes. Indeed, Jackson makes Cuccinelli look moderate on social issues. And this is what happens when you nominate candidates via a convention rather than a primary. Does anyone think that Jackson would have won the GOP’s Lt. Gov. primary? For what it’s worth, the nomination of Cuccinelli as attorney general four years ago was seen by some Republicans as a problem (and a potential opportunity for the Democrats). As it turned out, the top of the ticket could shield itself at the time. Of course, “LG” is more of a “running mate” feel and will be more difficult for Cuccinelli to shield himself from Jackson.

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President Barack Obama's team emerged on Sunday to defend his handling of revelations that the IRS had targeted conservative groups for scrutiny, as senior Republicans conceded they lacked evidence — so far — that the president directed the abuses.

Republicans appeared on the Sunday talk show circuit with hopes of sustaining their political momentum generated during this past week, one of the toughest weeks of Obama's presidency. A series of controversies — that the IRS had targeted conservative groups, new questions about the administration's response to last year's terrorist attack in Benghazi, and news that the Department of Justice seized phone records of Associated Press journalists as part of an investigation regarding national security leaks — have forced the White House onto the defensive.

Senate GOP Leader Mitch McConnell said the IRS controversy amounted to evidence of a "culture of intimidation" by the administration. But he and Rep. Dave Camp, R-Mich., admitted they lacked evidence that the targeting of conservatives was ordered by the White House.

"We don't have anything to say that the president knew about this," said Camp, who chairs the House committee looking into the IRS controversy, on NBC's "Meet the Press."

McConnell also could not point to evidence of presidential involvement in the IRS's scrutinizing of conservatives, though the Kentucky senator argued that a need for more information justified emerging investigations into the controversy.

"I don't think we know what the facts are," he said, appearing separately on "Meet the Press" on Sunday. "The investigation has just begun, so I'm not going to reach a conclusion about what we may find."

Republicans have used the IRS controversy, along with the administration's other struggles as of late, to unify their party in Congress, and gain political traction against Obama. But their ability to sustain this momentum hinges on their ability to weave together these missteps into a more damning, overarching story about the administration.

But the White House has begun to push back. A top White House adviser, Dan Pfeiffer, emerged on Sunday to assert that the administration had handled the IRS fiasco properly.

 "There is no question that Republicans are trying to make political hay here," Pfeiffer said on "Meet the Press" of the IRS controversy.

Pfeiffer sought to undercut Republicans' criticism by asserting that Rep. Darrell Issa, R-Calif., a top GOP critic of the administration who is in charge of White House oversight, was actually aware of an inspector general's investigation into the IRS abuses as early as last fall. To that end, Pfeiffer argued that even if the president were aware of the investigation of the IRS at an earlier point, it would have been inappropriate to become involved with or interfere with the inquiry.

Pfeiffer also sought to push back on Republican criticism of the administration's response to last year's terrorist attack in Benghazi, Libya, which left four Americans dead, including U.S. Ambassador Christopher Stevens. The White House aide argued that Republicans had essentially circulated "doctored" versions of emails — original copies of which the administration released this week — that they had known about for months in order to ding the administration. Pfeiffer said the ploy was a sign that Republicans were "getting desperate."

McConnell said he thought it was clear that the administration had "made up a tale" about Benghazi last fall, so close to the presidential election, because admitting to having presided over a terrorist attack would have been politically inconvenient for Obama.

"The talking points clearly were not accurate, and I think getting to the bottom of that is an important investigation," he said.

This story was originally published on Sun May 19, 2013 7:55 AM EDT

IRS scandal takes center stage on Capitol Hill. What new comes out? … The White House is in damage-control mode – how they’re managing the three controversies … GOP tries to tie IRS to health care … Obama needs to fix IRS because credibility of government and his second-term agenda is at stake … From New York to L.A., two mayor’s races will be a focus next week – one because another scandal-ridden ex-congressman tries to make a comeback. … Bloomberg group goes after AZ Sen. Flake (R).

Charles Dharapak / AP

Ousted IRS chief Steve Miller arrives on Capitol Hill, Friday, May 17, 2013, to testify before the House Ways and Means Committee on the Internal Revenue Service (IRS) practice of targeting applicants for tax-exempt status based on political leanings.

*** And the venting begins: One thing is fairly certain: there will be fireworks today on Capitol Hill when ex-IRS Commissioner Steve Miller and Treasury Inspector General Russell George testify before the House Ways and Means Committee beginning at 9:00 am ET. But the question is what new information comes from the hearing? There will be plenty of bloviating, but it could also clarify what we don’t know, like: (1) The missing why? Was there political motivation on any level, and (2) What took so long for this to come out? Was this really simply a sloppy shortcut? It was clear in timeline that this was all discovered to be a problem early in 2012 and perhaps as far back as 2011, so what took so long for the IRS to admit it? Expect these to be among the most intriguing questions that get asked but dodged. And, of course, this is only the beginning of what’s going to be a busy season of IRS hearings.

*** The White House reboot: Damage-control mode continues for the White House. Today, it’s trying to stay the course and make that pivot back to jobs with another leg of the president’s Middle Class Jobs and Opportunity Tour. Today, the president heads to Baltimore, where he stops by an elementary school at 11:35 am ET, then makes remarks at 1:20 pm ET at Ellicott Dredges. At 2:15 pm ET, he’ll head to a community center that works with families on job training. They’ve been trying to make this pivot for a while. The first event last week in Austin was overshadowed by the Benghazi hearing. Today, it’ll be overshadowed by the IRS hearing. After sitting on its hands for a few days, the White House is now in overdrive when it comes to damage control. Not just announcing new actions on IRS and on diplomatic security, but it was hard to watch TV after 3 p.m. yesterday and not see a key White House political aide on the tube: Carney, Palmieri and Pfeiffer all blitzing the airwaves.

*** How the White House is trying to fix the three fronts: On Benghazi, the White House is pushing that it’s all political and the president will talk about security at embassies. That was the point he attempted to drive home yesterday. Of course, his pronouncement regarding diplomatic security begs the question, where was this response last week, last month, last year. Clearly, the White House wants to put the issue of funding diplomatic security (something that’s been cut) back in Congress lap. It was a fairly transparent rhetorical move by the White House yesterday. On the IRS, they’re trying to show they’re on top of it…now. Naming Daniel Werfel is putting someone there who seems to have a non-partisan resume. He worked for George W. Bush, for example. But he’s no household name. Werfel’s appointment won’t have the impact on the public psyche that a more high-profile nominee would have had. But he checks the boxes of competency, bipartisanship, and he can vet. On the AP, it’s striking how much Obama went out of his way to stand by Attorney General Eric Holder. There’s no wiggle room there, and it’s because the Holder issue has been personal to him. The president has always felt that Holder’s unpopularity on the hill was a proxy for the president himself. The president believes Republicans on the hill have used Holder as a punching bag, believing they can attack Holder in ways they can’t with Obama. That’s why Obama’s been more sympathetic to Holder -- even though many White House aides, past and present, believe Holder’s been very politically naïve in how he’s run the Justice Department and has made himself an easy target.

*** GOP tries to tie IRS scandal to health care: It’s been a tough week for the White House, perhaps the worst of Obama’s second term. And we know exactly where GOP’s headed to try and advance the story more broadly. They’re headed to health care. Two IRS officials are already exiting the IRS, and now a third person has become a target. NBC’s Lisa Myers confirms this story that Sarah Hall Ingram, who was in charge of the tax exempt office from 2009 to 2012, is now in charge of the IRS’s Affordable Care Act office. The blaring headline Republicans want out of this is the person involved in targeting the Tea Party at the IRS is now in charge of running health care (!!!). That’s not exactly the case, however, as the IRS has a relatively small role in implementing health care as compared to Health and Human Services, which is the agency setting up the exchanges to be rolled out this fall. But why let an inconvenient reality get in the way of a good political talking point.

*** Bigger picture – the IRS scandal is important because it’s all about the credibility of government: At the heart of this IRS scandal and why it matters is how important the credibility of government is to Obama second-term agenda. Democrats want to show government run correctly can make your life better; Republicans want to say government stands in the way. The IRS scandal cuts right to that argument and extends out to health care (as noted above) and immigration. The IRS, on a good day, isn’t well liked by the public. It’s feared. But if it’s proven to be inept or corrupt, it will only harm the public trust even more than Washington’s done for so long as it is. And it’ll be easy to sell a swing voter on the idea that while, say, immigration reform is a good idea, do you have confidence Washington can make it work? Ditto with health care? That’s why it is so important for Obama to be on top of the IRS from here on out and restore credibility to the agency. Whatever comes out on IRS, with reporters turning up every stone and Republicans picking at every piece of carcass, the White House and Treasury better be first or it will undermine even further credibility.

*** New York to L.A.: Two mayors races in the two biggest cities in the country will be big next week – one because there will be a result (in L.A.) and second because of Anthony Weiner. In Los Angeles, voters head to the polls Tuesday to pick between two Democrats to be the next mayor – Eric Garcetti and Wendy Greuel. Garcetti continues to be the slight favorite and Greuel appears to be running out of money. She had to loan herself $100,000. Meanwhile, Weiner might jump into the mayor’s race next week. WNBC reported spotting Weiner shooting a campaign-style video at his childhood home in Brooklyn. And Weiner’s entry will transform the race into a circus, at least next week, and who knows, maybe for the rest of the campaign. By the way, with Weiner’s wife as close to Hillary Clinton as anyone, how do the Clintons keep their distance from Weiner, or do they? Either way, nobody benefits more from Weiner’s entry than the headline writers at the Daily News and the Post.

*** Bloomberg gun group targets AZ senator: Mayors Against Illegal Guns is going up with an ad campaign hitting Arizona Sen. Jeff Flake (R), NBC’s Kasie Hunt reports. It features an Arizona couple, whose son was killed in the Aurora, CO, theatre shooting, who say Flake didn’t keep his word to them that he would vote in favor of tougher background checks. Republicans, though, believe that by voting for the Lindsey Graham (R-SC) alternative bill, they did vote for some background-check strengthening. The group has gone up against New Hampshire Republican Sen. Kelly Ayotte, and has also pledged – though notably they have not yet -- to go up against Democrats in Alaska, Arkansas, and North Dakota, despite Democrats urging them not to.

*** 2016 roundup – Going after Hillary: Republicans tried to pin Benghazi on Hillary Clinton (here, for example). Democrats see 2016 politics at play. Opponents are readying a scandal-filled movie about her life. She still leads by a lot in a New Hampshire poll. … Vice President Joe Biden appears to be continuing preparations for a run in 2016, but he not only trails Clinton by a lot in early polling, he also remains a punch line for late-night comics. … Rand Paul heads to New Hampshire Monday … Bobby Jindal was in New Hampshire over the weekend …  Marco Rubio accused the White House of creating a “culture of intimidation” on MSNBC’s The Daily Rundown, yet some conservatives are still hammering him for his pursuit of comprehensive immigration. … Chris Christie was showing Prince Harry around the Jersey Shore. He also went negative despite huge leads in his bid for reelection this year. … Maryland Gov. Martin O’Malley (D) signed one of the toughest gun laws in the country.

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The outgoing head of the IRS disputed Republicans’ suspicions that the tax-collecting agency’s targeting of conservatives was motivated by partisanship at the first congressional hearing on the scandal.

Steven Miller, the acting commissioner of the IRS who submitted his resignation from that role earlier this week, appeared on Friday to face lawmakers’ pointed questions about the revelations that IRS officials had inappropriately singled out conservative groups for extra scrutiny.

But he and J. Russell George, the IRS inspector general whose report unearthed the controversy that has dominated Washington this week, testified that there was no evidence of political motivations among IRS employees who targeted conservative advocacy groups applying for nonprofit status. They instead blamed incompetence.

“I do not believe that partisanship motivated the practices of the people described in the IG report,” Miller said. “I think that what happened here was that foolish mistakes were made by people who were trying to be efficient in their work.”

GOP lawmakers also repeatedly sought to ferret out any information as to whether Miller had talked with White House officials about the targeting of conservatives, or – more ominously – had shared confidential tax information with the administration. (The implication of that line of questioning involved last year’s presidential election, when Republican nominee Mitt Romney’s own tax practices became an issue in the election.)

To that end, George testified that he told the Treasury Department's general counsel and deputy secretary Neal Wolin of the investigation before the 2012 election.

In the week following the first revelations of the inspector general report, conservatives have seized upon the scandal to ding President Barack Obama, demanding criminal prosecutions of IRS officials, and accusing the president (as Sen. Marco Rubio, R-Fla., did Thursday) of a “culture of intimidation.” GOP members of the committee spent much of the hearing trying to advance that narrative

But Miller repeatedly – and, at times, tersely – disputed speculation that IRS officials were deliberately targeting ideological opponents of the Obama administration, and denied that he had misled Congress in previous testimony about the IRS’s actions. When asked sharply by Committee Chairman Dave Camp, R-Mich., how he would characterize his previous, inaccurate testimony to Congress, Miller shot back: "I always answer questions truthfully, Mr. Camp."

Miller, the ousted acting commissioner of the IRS, was the primary object of lawmakers’ scrutiny at Friday’s hearing, particularly Republicans who expressed incredulity and outrage at the IRS fiasco.

“Is this still America?” asked Rep. Kevin Brady, R-Texas, who said the IRS controversy were evidence of a government “drunk on power.”

Republicans came to the hearing armed with plenty of outrage and examples of Tea Party groups from their home districts running into red tape in their nonprofit applications, which they used to pummel Miller throughout the hearing. The outgoing commissioner parried their attacks by responding that he was not permitted to comment on specific cases.

Democrats spent the bulk of the committee’s hearing, though, warning their GOP colleagues against cultivating evidence of a scandal where there is none. Rep. Sander Levin, D-Mich., asked both Miller and George, the inspector general, whether they had unearthed any evidence of political motivation in IRS officials’ scrutiny of conservatives.

They replied identically: “We did not, sir.”

Those answers scarcely satisfied Republicans, who have sensed a major opportunity – combined with simultaneous controversies this week involving the Obama administration’s handling of last year’s terror attack in Benghazi, and the Department of Justice’s seizure of Associated Press journalists’ phone records – to play offense against the White House.

For their part, Democrats have largely tried to match Republicans in their outrage at the IRS controversy, led by the president himself. Obama said this week that he was “angry” at the IRS for its actions, and asked for Miller’s resignation. Obama named Daniel Werfel, who currently serves as controller of the Office of Management and Budget, as the new acting IRS commissioner on Thursday.

Jason Reed / Reuters

Outgoing acting IRS Commissioner Steven Miller listens at a House Ways and Means Committee hearing on the Internal Revenue Service targeting conservative groups on Capitol Hill, May 17, 2013.

The president has said he didn’t learn about the actions taken by the IRS to target conservative and Tea Party groups until details of the inspector general report leaked to the media last Friday.

But while the controversy will likely spur plenty of future hearings into the IRS wrongdoing, Friday’s testimony – for now – could help limit the political fallout to the IRS itself.

“As acting commissioner I want to apologize on behalf of the IRS for the mistakes that we made and the poor service that we provided,” Miller said in his opening statement. He said later in the hearing that he should ultimately be held accountable for IRS employees’ missteps, but denied that meant he was personally involved in directing political targeting.

Related stories:

Obama names acting IRS chief, denies knowledge of IRS report

This story was originally published on Fri May 17, 2013 7:43 AM EDT

President Barack Obama will appoint a White House budget officer to the be the new acting Internal Revenue Service commissioner, an announcement made following a fresh declaration from the president that he knew nothing about the inspector general’s report detailing improper IRS actions until it was leaked.

After announcing the resignation of acting IRS Director Steven Miller on Wednesday evening, the president emerged Thursday afternoon to answer questions from the press about actions taken by IRS employees to single out conservative and Tea Party advocacy groups for extra scrutiny in their applications for nonprofit status.

"I can assure you that I certainly did not know anything about the I.G. report before the I.G. report had been leaked ... through the press," said Obama. "Typically, the I.G. reports are not supposed to be widely distributed or shared. They tend to be, you know, a process that everybody's trying to protect the integrity of. But, what I'm absolutely certain of is that the actions that were described in that I.G. report are unacceptable."

The president declined to endorse appointing an independent counsel to investigate the controversy -- an idea that some Republicans have demanded. The criminal investigation initiated by the Justice Department, combined with the administration's efforts to cooperate with lawmakers in their investigations, Obama argued, should be sufficient.

"I think it's going to be sufficient for us to be working with Congress," he said.

Just hours after that event, the White House said that Daniel Werfel, current controller of the Office of Management and Budget, would be named acting IRS chief, effective May 22.

In a press release, Obama said, "The American people deserve to have the utmost confidence and trust in their government, and as we work to get to the bottom of what happened and restore confidence in the IRS, Danny has the experience and management ability necessary to lead the agency at this important time."

Later Thursday, NBC News confirmed that a second top Internal Revenue Service official has announced plans to leave the agency. An internal IRS memo says that Joseph Grant, commissioner of the agency's tax exempt and government entities division, will retire June 3.

Of the three controversies that dominated Washington this week, the IRS issue has proven the most politically noxious for Obama.

The White House has also been besieged by new questions about its response to last year's terrorist attack against a diplomatic installation in Benghazi, Libya, along with revelations that the Justice Department had monitored Associated Press journalists' phone records.

The IRS and AP cases have been particularly thorny politically for one of Obama's top allies in the cabinet, Attorney General Eric Holder, who on Wednesday faced grilling on Capitol Hill for his role in both controversies. Republicans renewed some of their longstanding demands that Holder resign his position, demands which the president rejected on Thursday.

"I have complete confidence in Eric Holder as attorney general," Obama said.

After weathering blistering criticism from Republicans, the administration has begun trying to craft its response to all three issues.

To that end, Obama on Thursday announced new measures meant to enhance security for U.S. diplomatic postings abroad as part of the administration's continued reaction to the Benghazi incident.

"I am intent on making sure we do everything we can to prevent another tragedy like this from happening again," Obama said at the White House.

His remarks come amid intensified efforts by Republican members of Congress to probe the Obama administration's reaction to the Sept. 11, 2012 attacks, which left four Americans dead, including U.S. ambassador Christopher Stevens.

The administration has sought to turn the narrative on that matter in its favor beginning Wednesday, when it released emails documenting how the administration crafted its first public responses to the attack.

Obama called on members of Congress in both parties to "come together" and work to authorize legislation to help fortify embassies and other diplomatic installations as a tribute to the deceased in Benghazi.

Jason Reed / Reuters

President Barack Obamaand Turkish Prime Minister Recep Tayyip Erdogan arrive for a joint news conference in the White House Rose Garden in Washington, May 16, 2013.

Still, the controversy involving the AP helped prompt the administration to renew its efforts to have Congress authorize a federal shield law that would protect journalists from having to disclose confidential details of their work in court.

"To the extent that this case has prompted renewed interest with respect to how do we strike that balance properly, I think that now's the time for us to revisit that legislation," Obama said. "I think that's a worthy conversation to have."

Whether any of Obama's actions will placate Republicans, who are eager to use these controversies to gain political traction and slow or halt the president's second-term agenda, remains to be seen.

Lawmakers in both parties plan a series of high-profile hearings, beginning on Friday, on each of the controversies. And Republicans in particular have been eager to make political hay of the administration's recent missteps.

Speaking before the president this morning on Capitol Hill, House Speaker John Boehner, R-Ohio, said the controversies were a mark of “remarkable arrogance” by the president and his administration, though Boehner said that the Republican-controlled House was still primarily focused on the business of legislating.

NBC's Peter Alexander and Kelly O'Donnell contributed to this report.

Related stories:

• First Thoughts: White House makes moves to stop the political bleeding
• Obama calls IRS flap 'inexcusable,' announces resignation of acting IRS chief

This story was originally published on Thu May 16, 2013 12:06 PM EDT

A bipartisan group of lawmakers on Thursday proposed major changes to military laws for sexual assault cases, backing a bill to prevent military commanders from handling sexual assault cases that involve their subordinates. 

"We believe enough is enough. It is time to change this system that has been held over since George Washington that is simply not working today for the men and women who are serving," said Sen. Kirsten Gillibrand, D-N.Y., a member of the Armed Services Committee who is spearheading the legislation.

"What does it say about us as a people, as a nation, as the foremost military in the world, when some of our servicemembers both men and women have more to fear from their fellow soldiers than from the enemy?" asked Sen. Susan Collins, R-Maine.

The bill would take serious sexual assault cases completely out of the military's chain of command if the potential sentence amounts to more than a year in prison -- the equivalent of a felony in a civilian court.

"When any single victim of sexual assault is forced to salute her attacker, clearly our system is broken," Gillibrand said.

The military has resisted such sweeping changes in the past, but a recent string of incidents has increased pressure on Defense Department leaders to change the policy. The top Air Force officer charged with preventing sexual assault was accused of attacking a woman in a Virginia parking lot, and a soldier at Fort Hood tasked with sexual assault prevention is under investigation for sexual abuse.

Collins and Gillibrand spoke at a press conference Thursday morning, where she was joined by an array of colleagues from both house of Congress and from both parties, including Collins, and Reps. Dan Benishek, R-Mich., and Krysten Sinema, D-Ariz.

Gillibrand's bill also requires that a decision about how a sexual assault case is handled -- whether it goes to trial and how the court-martial proceeds -- is made by someone who holds a rank equivalent to colonel.

It would also allow each military service's chief of staff to establish courts, empanel juries and pick judges to hear sexual assault cases, and write into law a proposal from Defense Secretary Chuck Hagel that prevents commanders from overturning sexual assault convictions or reducing guilty findings to lesser offenses.

Carolyn Kaster / AP

Senate subcommittee on Personnel Chair Sen. Kirsten Gillibrand, D-N.Y. addresses the third panel on Capitol Hill in Washington, Wednesday, March 13, 2013, during the subcommittee's hearing on sexual assault in the military.

The event was held in advance of a planned meeting at the White House on the issue. President Barack Obama was to meet with Hagel, Chairman of the Joint Chiefs of Staff General Martin Dempsey, the military service chiefs, military service secretaries, and the senior enlisted advisers.

Gillibrand and other lawmakers met earlier this month with top White House advisers -- the meeting was led by Valerie Jarrett, who is personally close to the president -- to discuss the problem.

This story was originally published on Thu May 16, 2013 11:25 AM EDT

Obama White House moves to stop the bleeding… Success on whether the controversies stay a one-week story rather than a months-long one depends on the follow-through, especially regarding the IRS controversy… But it also depends on whether the GOP overplays it hand… Classic Obama: White House takes days to find the right response… Don’t lose sight on Syria… House votes to repeal Obamacare… Sanford’s first day back… And new Quinnipiac poll: McAuliffe up slightly in Virginia.

*** Trying to stop the bleeding: After his most difficult stretch of days since winning re-election, President Obama on Wednesday tried to stop the bleeding with two different moves just more than an hour apart -- all in an effort to keep a bad week from turning into a bad month and perhaps ending any chances of a serious legislative agenda. First, at 5:00 pm ET, his White House released 100 pages of emails and documents related to the crafting of the talking points to describe the Sept. 11, 2012 attack in Benghazi. The emails revealed more agency politics (between CIA and the State Department) than electoral politics (as Republicans had accused). Second, a little after 6:00 pm ET, Obama delivered a statement announcing that Treasury Secretary Jack Lew had accepted the resignation of the acting IRS commissioner in the wake of the controversy that the tax agency had targeted conservative-sounding groups for additional scrutiny in their application for tax-exempt status. The president also announced that new safeguards would be put in place to prevent it from happening again, and he pledged to work with Congress to get it fixed. And today at noon ET, he holds a news conference -- with Turkish Prime Minister Erdogan -- where he’ll likely answer reporters’ questions about both actions. There was also an effort to stop the bleeding on a third front: The White House said it supports the re-introduction of a media-shield bill after the Justice Department’s seizure of AP phone records. (Of course, it’s the somewhat watered down version of the shield law that had originally passed the House in 2009 and died in the Senate when Dems had 60 votes.)  

Kevin Lamarque / Reuters

President Barack Obama delivers a statement from the East Room of the White House, May 15, 2013.

*** Success depends on the follow-through… : So will yesterday’s actions keep a bad week from turning into a bad month? The answer: It depends on the follow-through, especially as it relates to the IRS issue, which has always been the most problematic controversy for the White House because it’s the easiest one for the public to understand. The immediate challenge for the White House -- besides disciplining IRS employees who engaged in this targeting -- is to find a tough-guy replacement whom the public knows and trusts (a retired Republican, CEO, top cop, you get the idea) to take over the agency’s reins. Make no mistake, this IRS issue has united a Republican Party that had been fraying on topics like immigration, the budget and to a lesser extent guns. So the real test for the White House is to stick to the follow-through and not allow the Republican Party to own it. The more bipartisan the outrage is at the IRS (and assuming there is no connection to the administration in some meaningful way), the more the White House believes it can insulate itself politically on the issue. But if credibility cannot be restored at the IRS, it really does hamper the administration’s ability to implement health care and it certainly doesn’t help get Republicans on board with immigration reform. It’ll be QUITE easy for a Republican to argue: Obama can’t run the IRS, what makes you think he can run health care or secure the border? 

*** … And also whether the GOP overplays its hand: But there’s also a danger for Republicans: Do they overplay their hand when it comes to the IRS? Already, the Benghazi talking-point emails don’t reveal the political conspiracy that many Republicans and conservatives had openly theorized, and they also reveal that Susan Rice -- whose reputation was dragged through the mud -- was a relatively innocent victim (though no one likes to be exposed as someone who was simply following a set of talking points about which they had little input). What’s more, the Benghazi emails have all come down to State Department spokeswoman Victoria Nuland’s concerns. Were they simply about trying not to hinder the investigation into the Islamic extremists in the attack (as Democrats say)? Or were they about trying to clean the State Department’s hands (as Republicans allege)? By the way, as for how government works, this email release reveals something that many in Washington have known for years but the public is less familiar with: These emails show how deputies are often the ones making key governmental decisions, with the principals later signing off.

*** Taking days to find that right response: All that said, yesterday’s moves were typical of Team Obama -- it often takes them days to find a suitable response to a controversy. Think Jeremiah Wright (which it finally solved with a famous speech), the bitter/cling remarks (which it first embraced and them condemned), and the BP spill (which took several tries to strike the right tone). Obama supporters argue that taking time to find the right response is more of a virtue than a vice, especially when dealing with complex issues. Additionally, they might say this criticism is more of a reflection on a 24-7 media culture than demands immediate answers and explanations. But there’s also no doubt that the White House would prefer finding a suitable response on Day 1 than Day 4 or 5. And, as we said above, we’re not sure the Obama White House has still found that sweet-spot response on these controversies; a lot is riding on its replacement pick to head the IRS.   

*** Don’t lose sight on Syria: While today’s news conference with Turkish Prime Minister Erdogan will likely be dominated by questions regarding the domestic controversies over the last several days, don’t lose sight how important Erdogan’s visit is regarding Syria. The situation there has become a HUGE problem for Turkey, which is the United States’ most important ally in the Middle East besides Israel. And Turkey wants the U.S. to take a greater role in resolving the civil war in Syria. 

*** House votes to repeal Obamacare: Also today, around 5:00 pm to 6:00 pm ET per NBC’s Luke Russert, the House will hold its 38^th vote -- per NBC’s count -- to repeal part or all of the federal health-care law. House Republicans are quick to point out that today’s vote is only the third time Republicans have voted to FULLY repeal the law; the other efforts were regarding parts of the law. As the New York Times wrote earlier this week, “Three dozen is a lot for a bill that currently has no prayer of becoming law. But the figure …  actually understates the amount of time Republicans have devoted to litigating and trying to dismantle the president’s biggest legislative accomplishment. The repeal vote, which is likely to occur Thursday, will be at least the 43rd day since Republicans took over the House that they have devoted time to voting on the issue. To put that in perspective, they have held votes on only 281 days since taking power in January 2011. (The House and Senate have pretty light legislative loads these days, typically voting only three or four days a week.) That means that since 2011, Republicans have spent no less than 15 percent of their time on the House floor on repeal in some way.”

*** Are we witnessing Holder’s last hurrah? Before 5:00 pm yesterday, the biggest story in Washington was Eric Holder’s combative hearing with House Republicans. Few punches were pulled, and personal frustrations surfaced rather easily. There is clearly no love lost between Holder and Darrell Issa, for instance. While the hearing was all over the map, Holder struggled to explain when he recused himself in the national security leak investigation. While he explained WHY he recused himself, the fact he had nothing in writing or could not say when was something that just seemed odd for America’s top law enforcement official to admit. How does he not have the recusal in writing? Don’t lawyers put everything in writing?

*** Sanford’s first day back: Don’t miss Jessica Taylor’s dispatch of Mark Sanford first day back on Capitol Hill. “As Sanford took his official oath late Wednesday afternoon, he echoed the same themes of redemption he used in his winning campaign. ‘I stand before you with a whole new appreciation for the God of second chances,’ Sanford said. The Republican’s return nearly 13 years after he left Capitol Hill is all the more remarkable for his having overcome the scandal that derailed his governorship.” 

*** New poll: McAuliffe up slightly in Virginia: And in Virginia’s gubernatorial race, a new Quinnipiac poll shows Terry McAuliffe (D) with a slight lead over Ken Cuccinelli (R) among registered voters, 43%-38%. That pretty much mirrors our NBC/Marist poll from last week, which had it McAuliffe 43%, Cuccinelli 41% with registered voters -- although among likely voters, the numbers were reversed: Cuccinelli 45%, McAuliffe 42%. 

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This story was originally published on Wed May 15, 2013 5:01 PM EDT

As the White House faces a trio of burgeoning controversies that have put the administration and agencies throughout Washington on the defensive, Attorney General General Eric Holder reiterated before a House panel Wednesday that he was not involved in the Justice Department's decision to seize two months of phone records from Associated Press journalists as a part of a leak probe.

LIVESTREAM: House Judiciary Committee hearing

The Justice Department has also opened an investigation into revelations that the Internal Revenue Service targeted conservative groups applying for tax-exempt status for additional scrutiny. In testimony before the House Judiciary Committee, Holder said that prosecutors are looking at several different statutes in the investigation of those actions. 

He said those potential violations could include an IRS statute that requires employees to do their jobs without favoritism, civil rights laws, the Hatch Act that restricts a federal employee's political activities, or the law against making false statements to investigators.

“The facts will take us wherever they take us,” he added, promising a nationwide investigation. 

Asked about the leak probe, Holder confirmed that Deputy Attorney General James Cole authorized the subpoenas on AP reporters' phone records after Holder recused himself from the matter.

Brendan Smialowski / AFP - Getty Images

Attorney General Eric Holder is sworn in during a hearing of the House Judiciary Committee on Capitol Hill May 15, 2013 in Washington, DC.

Holder first announced Tuesday that he had recused himself from the AP leak probe because he had previously been questioned by the FBI about the intelligence breach.

He added Wednesday that he also turned over his own phone records as a part of that questioning. 

He told the committee that he recused himself because he was one of the “relatively limited number of people” who had first-hand knowledge of the leaked information – and also because he had more regular communication with reporters than Cole.

“I was a possessor of the information that was ultimately leaked,” he added. “And the question then is, who of those people who possessed that information – which was a relatively limited number of people  within the Justice Department – who of those people actually spoke in an inappropriate way to the Associated Press,” he added.

In response to questions, he said that he did not know the date of his recusal for certain and that there was not a written record of it.  He also said that the White House would not have been informed of the recusal. 

Holder has been widely criticized by Republicans for DOJ's handling of the matter, scrutiny Holder noted at the beginning of his remarks.

"The head of the [Republican National Committee] called for my resignation in spite of the fact that I was not the person who was involved in that decision," he said.

The routine Justice Department oversight hearing became a hot ticket after two scandals – the DOJ probe and the revelations about the IRS – erupted since the end of last week. The Obama administration also continues to be dogged by lingering questions over its administration’s response to the Sept. 11, 2012 attack on a diplomatic outpost in Benghazi.

In opening remarks he was set to deliver before the House Judiciary Committee, Holder says the Justice Department “has taken critical steps to prevent and combat violent crime, to confront national security threats, to ensure the civil rights of everyone in this country, and to safeguard the most vulnerable members of our society.”

NBC's Pete Williams contributed to this report. 

This story was originally published on Wed May 15, 2013 1:07 PM EDT