OVERNIGHT MONEY: Werfel back in hot seat

THURSDAY’S BIG STORY:

My, that’s a toasty seat: Internal Revenue Service acting director Danny Werfel will get another turn in the hot seat on Thursday to chat with lawmakers about the revelations in his 30-day review of the agency, the details of which hit with a thud on Monday.

As it turns out, the IRS was still improperly screening groups seeking tax-exempt status when Werfel took over in May — about two weeks after the targeting actions were revealed. 

Top congressional Democrats have argued that the agency also singled out liberal groups by putting them on the “be on the lookout” lists it used to flag applications that needed more attention. 

Werfel said he has suspended use of those so-called BOLO lists.

Lawmakers are sure to remind Werfel that they will be watching the agency’s progress and will call him back for updates. 

President Obama appointed Werfel last month and ordered the review after the IRS acknowledged the extra scrutiny.

On Wednesday, a government watchdog said that IRS officials did not have enough guidance in reviewing applications for tax-exempt status.

Nina Olson, the national taxpayer advocate, said the agency had violated a number of taxpayer rights in its targeting efforts. 

Olson blamed managerial problems and what she calls a “cultural difficulty” between the taxpayer advocate and the exempt organization division for the targeting. Her recommendations include the IRS posting its procedures online, and allowing up to $1,000 in compensation to aggrieved groups. 

{mosads}But the taxpayer advocate said that the “crisis” at the agency is far broader than just the targeting of Tea Party groups.

“The real crisis facing the IRS — and therefore taxpayers — is a radically transformed mission coupled with inadequate funding to accomplish that mission,” Olson said in a statement accompanying her mid-year report. 

“As a consequence of this crisis, the IRS gives limited consideration to taxpayer rights or fundamental tax administration principles as it struggles to get its job done.”

WHAT ELSE WE’RE WATCHING

Nominations go marching on: The Senate Banking Committee on Thursday will consider a slew of nominations, including several for the Securities and Exchange Commission, one for the National Credit Union Administration Board and for the president’s choice to head the Council of Economic Advisers, Jason Furman.

The panel will also consider Obama’s nomination of Rep. Mel Watt (D-N.C.) to take over the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac. If confirmed, Watt would take over for Edward DeMarco, who has headed up the agency since 2009 and has faced criticism from the White House and some Democrats for failing to consider principal reduction as a way to help some struggling homeowners.

Moving right along: The Senate Appropriations Committee will mark up two bills on Thursday: the $54 billion Transportation, Housing and Urban Development measure and the $34.8 billion Energy and Water Development bill, each approved by their respective subcommittees on Tuesday.

The companion House panel will also mark up its Transportation bill, as well as a revised report on the subcommittee budget allocations. The transportation measure provides $44.1 billion in discretionary spending, a reduction of $7.7 billion below the fiscal 2013 enacted level and $13.9 billion below the president’s budget request.

Fed policy: Off Capitol Hill, the Bipartisan Policy Center on Thursday will hold a discussion on how the Federal Reserve’s current monetary policy is affecting the economy and how to boost growth down the road, with Federal Reserve Governor Jerome Powell and other policy experts including Alice Rivlin, who is on the group’s debt-reduction committee and is the former head of the Congressional Budget Office and the White House’s budget office.

India trade policy: The House Energy and Commerce Committee on Thursday will take a closer look at India’s growing number of trade barriers and how they are harming U.S. businesses during a chat with policy experts and business leaders. U.S. firms are increasing their pressure on the Obama administration to take action if India is unwilling to change policies they argue are shutting them out of the world’s fastest growing market.

During his visit to India earlier this week, Secretary of State John Kerry called for bilateral investment treaty. No agreements were inked during the brief trip, but Kerry did say that Vice President Biden will visit that nation in July to keep the talks going.

LOOSE CHANGE

Suh-weet deal: Three sugar companies received the majority of the $1.1 billion in federal loans made to sugar processors this year, The Wall Street Journal reported on Wednesday.

The loans went to 17 sugar processors, including the makers of Domino Sugar, Big Chief and other brands. Just three companies, Amalgamated Sugar, Michigan Sugar and Western Sugar Cooperative, borrowed 55 percent of the funds. 

Wrap it up, maybe: The Senate on Thursday could pass a comprehensive immigration bill and they are getting an extra nudge from business groups. 

The U.S. Chamber of Commerce sent a 233-signature multi-industry letter on Wednesday urging members to, well, pass the major legislation thtey argue will not only protect borders but improve the competitiveness of U.S. firms. 

The signatories include national trade associations, state and local chambers of commerce and businesses of all sizes, sectors, and regions of the country.

“We believe that it is a strong, positive step toward establishing a sensible legal framework and enforceable guidelines that respect the rule of law, help protect U.S. borders, and meet the economic and social needs of America,” the groups wrote

ECONOMIC INDICATORS

Initial Claims: The Labor Department releases its weekly filings for jobless benefits. 

Mortgage Rates: Freddie Mac is releasing weekly data on fixed-rate mortgages, which remain around historic lows.

Existing Home Sales: The National Association of Realtors releases May figures for sales of existing homes. Existing-home sales are completed transactions across a broad range of housing types, including single-family homes. The housing market is showing signs of a rooted recovery, although there are concerns about the lack of inventory and tight credit conditions. 

Leading Indicators: The Conference Board will release its May batch of previously announced economic indicators: new orders, jobless claims, money supply, average workweek, building permits and stock prices.

Personal income: The Commerce Department releases May figures that measure income from all sources. The largest component of total income is wages and salaries, which is estimated using payrolls and earnings data from the employment report.

WHAT YOU MIGHT HAVE MISSED

— Senate group gets deal on student loans

— House panel approves energy spending bill

— No movement on farm bill, Peterson says

— House conservatives: Leaders must learn from farm bill

— Gay marriage ruling could have small net deficit impact

— ‘Too big to fail’ debate drags on

— Trade agenda pushed by leading business group

— Economy grew at slower 1.8 percent rate

— Candy companies gain ground in war with sugar producers over subsidies

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