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ir The IRS did not name the donors or the nonprofit groups to which they contributed. But the agency's confirmation of an investigation in May could have had a chilling effect on politically active groups that have become integral to campaigns. In the 2010 congressional elections, a number of groups incorporated as nonprofits under Section 501(c)(4) of the tax code spent millions on political ads without disclosing their donors. The groups predominantly supported Republican candidates and causes in 2010, though both parties are expected to use them in the 2012 presidential and congressional elections. Several key Republican members of Congress questioned whether the investigation was politically motivated. The IRS said the examinations were started by career civil servants and there was no influence from anyone outside the agency. Rep. Dave Camp, R-Mich., chairman of the House Ways and Means Committee, said he is troubled that the IRS did not explain why the investigations were started in the first place. He said the guidance issued by the IRS left open the door for future audits, after new guidance is issued. "I will continue my investigation until the complete story behind the actions of the IRS has been told," Camp said. Story continues below

#adwrap_mid_article___FLIGHT_HASH__ { float: left; width: 300px; margin: 10px 10px 10px 0pt; }#adwrap_mid_article___FLIGHT_HASH__ .mid_article_ad_label { display: none; }#adwrap_mid_article___FLIGHT_HASH__ .mid_article_deco { border: medium none; margin: 0pt; padding: 0pt; }Advertisement Sen. Orrin Hatch of Utah, the top Republican on the Senate Finance Committee, said the decision to drop the investigation "ensures that the IRS remains free from even the hint of undue political influence. It cannot be turned into an arm of political retribution or payback. It must remain independent."

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