OVERNIGHT MONEY: Tea Party groups say their piece

He is beginning a 30-day comprehensive review of the agency, which will go much deeper than just the tax-exempt issue.

“We owe it to the American public to use this moment as an opportunity to take a hard look internally at the IRS and see where other deficiencies or risks may exit, and take action to address them,” he said.

{mosads}Top appropriators made clear the IRS’s budget will undergo a tough examination in the coming months.

Democrats offered little cover to the IRS, but urged a closer look at what happened in the years before the Obama administration.

Russell George, the Treasury inspector general for Tax Administration who outlined the targeting, is expected to release a new report on Tuesday that outlines excessive spending at IRS conferences.

That review found that the IRS spent $50 million on conferences for employees between 2010 to 2012.

George told the panel on Monday that what his probe discovered was “unprecedented,” and that the closest comparison that came to mind was the targeting of political enemies by the administration of Richard Nixon.

A key question is how IRS employees in Cincinnati came to identify tax-exempt applications for extra scrutiny. 

Congressional Republicans have expressed disbelief the practice could have been created by low-level employees acting out of bounds. George said in conducting his investigation of the practice, IRS employees were asked who gave the direction, and no one would answer the question.

On Tuesday, Ways and Means will hold their second hearing on the IRS scandal, the fifth overall in Congress, with six Tea Party groups that have been scheduled to give first-person accounts of the IRS’s targeting of conservative organizations.

John Eastman, the president of the National Organization for Marriage — a prominent group opposing same-sex marriage — is among those scheduled to appear, after the group announced plans last month to sue the IRS.

WHAT ELSE WE’RE WATCHING 

Plowing ahead: The Senate is still on working on a farm bill, with the aim of passing the sweeping measure sometime this week. Compromises have been made on contentious issues such as food stamp provisions, but Democrats are still pushing for additional cuts to farm subsidies and payment caps. 

Iran sanctions: The Senate Banking Committee will examine on Tuesday the implementation of sanctions against Iran with federal officials from the Treasury, State and Commerce departments. On Monday, the White House ramped up restrictions on the nation for failing to comply with international obligations. The sanctions specifically target Iran’s currency, the rial, authorizing sanctions on any foreign financial institutions that knowingly make significant transactions for the purchase or sale of the rial. 

To cut or not to cut: The Senate Budget Committee will discuss the fiscal and economic effects of pursuing austerity policies with several experts, including former Treasury Secretary Larry Summers, who also served as a top economic adviser to President Obama. Simon Johnson of MIT, a senior fellow at the Peterson Institute for International Economics, along with Salim Furth, senior policy analyst for macroeconomics at The Heritage Foundation, will join Summers on Tuesday.

FHA budget: A Senate Appropriations subcommittee will chat with Federal Housing Administration Commissioner Carol Galante and Housing and Urban Development Inspector General David Montoya about the FHA’s budget situation. The agency is facing significant losses and may need a taxpayer bailout later this year if their finances don’t improve. 

HHS budget: The House Education and the Workforce Committee will talk to Health and Human Services Department Secretary Kathleen Sebelius about her 2014 budget, which amounts to $80.1 billion. 

More jobs, please: The Roosevelt Institute will hold a discussion on how to create jobs as the economy continues to struggle. 

Senate Health, Education, Labor and Pensions Chairman Tom Harkin (D-Iowa), Sarah Bloom Raskin, member of the Federal Reserve Board of Governors, and Rep. Jan Schakowsky (D-Ill.) will be on hand to talk about the nagging issue.

ECONOMIC INDICATORS 

Trade Balance: The Commerce Department releases its April data on exports and imports of U.S. goods and services. 

WHAT YOU MIGHT HAVE MISSED

— CEOs concerned that US regulatory environment could hamper trade talks with EU

— Baucus names key tax aide

— House defense panel rejects Obama cap on top executive pay

— Corporate lawyer joins federal regulator

— Manufacturing drops to nearly four-year low

— Graham: ‘No evidence’ IRS targeting directed from White House

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