A government watchdog has found for the first time that confidential tax records of several political candidates and campaign donors were improperly scrutinized by government officials, but the Justice Department has declined to prosecute any of the cases.

Its investigators also are probing two allegations that the Internal Revenue Service “targeted for audit candidates for public office,” the Treasury’s inspector general for tax administration, J. Russell George, has privately told Sen. Chuck Grassley.

n a written response to a request by Mr. Grassley, the ranking Republican on the Judiciary Committee, Mr. George said a review turned up four cases since 2006 in which unidentified government officials took part in “unauthorized access or disclosure of tax records of political donors or candidates,” including one case he described as “willful.” In four additional cases, Mr. George said, allegations of improper access of IRS records were not substantiated by the evidence.Mr. Grassley has asked Attorney General Eric H. Holder Jr. to explain why the Justice Department chose not to prosecute any of the cases. The Iowa Republican told The Washington Times that the IRS “is required to act with neutrality and professionalism, not political bias.”The investigation did not name the government officials who obtained the IRS records improperly, nor did it reveal the identities or political parties of the people whose tax records were compromised. By law, taxpayer records at the IRS are supposed to be confidential.

The disclosures deal another blow to the IRS and the Obama administration, which are still grappling with revelations that IRS agents inappropriately targeted conservative groups seeking tax-exempt status for extraordinarily burdensome scrutiny during President Obama’s first term. Amid that furor over the abuse of the agency’s powers, the IRS has denied that the tax records of political candidates or donors were improperly accessed.

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EXCLUSIVE: Feds admit improper scrutiny of candidate, donor tax records – Washington Times.