By Kim Barker and Justin Elliott, ProPublica

The same IRS office that deliberately targeted conservative groups applying for tax-exempt status in the run-up to the 2012 election released nine pending confidential applications of conservative groups to ProPublica late last year.

The IRS did not respond to requests Monday following up about that release, and whether it had determined how the applications were sent to ProPublica.

In response to a request for the applications for 67 different nonprofits last November, the Cincinnati office of the IRS sent ProPublica applications or documentation for 31 groups. Nine of those applications had not yet been approved—meaning they were not supposed to be made public. (We made six of those public, after redacting their financial information, deeming that they were newsworthy.)

On Friday, Lois Lerner, the head of the division on tax-exempt organizations, apologized to Tea Party and other conservative groups because the IRS' Cincinnati office had unfairly targeted them. Tea Party groups had complained in early 2012 that they were being sent overly intrusive questionnaires in response to their applications.

That scrutiny appears to have gone beyond Tea Party groups to applicants saying they wanted to educate the public to "make America a better place to live" or that criticized how the country was being run, according to a draft audit cited by many outlets. The full audit, by the Treasury Department's inspector general for tax administration, will reportedly be released this week. (ProPublica was not contacted by the inspector general's office.) (UPDATE May 14: The audit has been released.)  

Before the 2012 election, ProPublica devoted months to showing how dozens of social-welfare nonprofits had misled the IRS about their political activity on their applications and tax returns. Social-welfare nonprofits are allowed to spend money to influence elections, as long as their primary purpose is improving social welfare. Unlike super PACs and regular political action committees, they do not have to identify their donors.

In 2012, nonprofits that didn't have to report their donors poured an unprecedented $322 million into the election. Much of that money — 84 percent — came from conservative groups. 

As part of its reporting, ProPublica regularly requested applications from the IRS's Cincinnati office, which is responsible for reviewing applications from nonprofits.

Social welfare nonprofits are not required to apply to the IRS to operate. Many politically active new conservative groups apply anyway. Getting IRS approval can help with donations and help insulate groups from further scrutiny. Many politically active new liberal nonprofits have not applied.  

Applications become public only after the IRS approves a group's tax-exempt status.

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Good morning, today is Wednesday, May 15, 2013. What's the outrage of the day?

Has John Boehner created any jobs yet?

Your morning open thread begins below...

Via Markos, Republican Congressman Darrell Issa, chairman of the GOP's Benghazi Oversight Committee, gives an articulate explanation [at 0:59] on why this is the worst scandal ever in American history:

"An act of terror is different than a terrorist attack."

[Blink*Blink]

Oh yeah, it all makes sense now.

But, Lord love a duck, there's more.

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Sen. Al Franken made a rare national media appearance on Lawrence O'Donnell's show on MSNBC this Monday evening to discuss his participation in the SEC's roundtable on credit rating industry reform this Tuesday.

Back in 2010, with bipartisan support, Franken managed to get his Restore Integrity to Credit Rating Amendment passed, which cleans up the credit rating system by making sure a bank or financial institution can't shop around for a credit rating agency that will game the system for them.

From Sen. Franken's press release when the amendment first passed back in 2010: Credit Rating Agency Reform:

The inherent conflicts of interest in Wall Street's current pay-to-play credit rating system were one of the greatest contributing factors to the economy's collapse. Right now, banks choose which credit rating agencies will rate the quality of their stocks, bonds, and other financial products, resulting in the agencies giving away undeserved top ratings to countless sub-par financial products in order to attract business.

The Senate Permanent Subcommittee on Investigations recently revealed examples of Wall Street financial institutions negotiating higher ratings from credit rating agencies for its sub-par products. Of the AAA-rated subprime-mortgage-backed securities issued in 2006 alone, 93% have been downgraded to junk status.

Sen. Franken's Restore Integrity to Credit Rating Amendment cleans up the credit rating system by making sure a bank or financial institution can't shop around among credit rating agencies to get a product's initial rating. The bipartisan proposal creates a board, overseen by the Securities and Exchange Commission, which will assign credit rating agencies to provide initial ratings in order to eliminate inherent conflicts of interest. Senator Franken's proposal passed the Senate by a 64 to 35 vote, and the final bill passed into law requires that the SEC study the problem. If the SEC does not develop an alternative mechanism to address the conflicts of interest problem, Senator Franken's proposal will go into effect.

Here's more on the SEC meeting this week: Sen. Franken to Speak at SEC’s Roundtable on Credit Rating Industry Reform:

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iEvade: Apple just released another groundbreaking new product that is already changing the world. See what their gigantic bond offering is really all about.

Your morning open thread begins below...

By Paul Kiel, ProPublica

This story was co-produced with Marketplace. Listen to their coverage.

One day late last year, Katrina Sutton stood at a gas pump outside Atlanta and swiped her debit card. Insufficient funds. But that couldn't be. She'd been careful to wait until her $270 paycheck from Walmart had hit her account. The money wasn't there? It was all she had. And without gas, she couldn't get to work.

She tried not to panic, but after she called her card company, she couldn't help it. Her funds had been frozen, she was told, by World Finance.

Sutton lives in Georgia, a state that has banned payday loans. But World Finance, a billion-dollar company, peddles installment loans, a product that often drives borrowers into a similar quagmire of debt.

World is one of America's largest providers of installment loans, an industry that thrives in at least 19 states, mostly in the South and Midwest; claims more than 10 million customers; and has survived recent efforts by lawmakers to curtail lending that carries exorbitant interest rates and fees. Installment lenders were not included in a 2006 federal law that banned selling some classes of loans with an annual percentage rate above 36 percent to service members — so the companies often set up shop near the gates of military bases, offering loans with annual rates that can soar into the triple digits.

Installment loans have been around for decades. While payday loans are usually due in a matter of weeks, installment loans get paid back in installments over time — a few months to a few years. Both types of loans are marketed to the same low-income consumers, and both can trap borrowers in a cycle of recurring, expensive loans.

Installment loans can be deceptively expensive. World and its competitors push customers to renew their loans over and over again, transforming what the industry touts as a safe, responsible way to pay down debt into a kind of credit card with sky-high annual rates, sometimes more than 200 percent.

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Hundreds of Bangladeshi textile factories near the capital, Dhaka, have shut because of unrest sparked by the collapse of a factory building last month, the country's textile association says.

Owners made the decision on safety grounds after many workers went on a rampage, the group's president said.

Although the organization had originally said all factories in Ashulia would be shut down indefinitely, leaders later said the closure applied only to factories where there was worker unrest.

But as the day came to an end, sweeping changes are finally on the horizon for millions of the underpaid garment factory workers of Bangladesh who have long toiled in far too often unsafe and deadly conditions.

The government says it will lift trade union restrictions amid pressure to improve workers' conditions, and Bangladesh has set up a panel to raise the minimum wage for more than three million garment workers, the minister for textiles has said.

The new initiatives are partly in response to outrage over conditions in the country’s garment sector after the April 24th collapse of a garment-factory building, Rana Plaza, in Savar, an industrial suburb of Dhaka, the nation’s capital. By Monday afternoon, at least 1,127 people were confirmed to have died in the Rana Plaza collapse, a number that could still rise, in what is now considered the deadliest disaster in the history of the garment industry.

The Rana Plaza in Savar, on the outskirts of Dhaka, housed a number of textile factories, some of which were supplying Western retailers.

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Twelve down, 38 to go. Minnesota’s Senate voted 37–30 to allow same-sex couples to wed on Monday. It will become the 12th state to do so once Gov. Mark Dayton signs the bill, which he’s expected to do on Tuesday. “God made gays. And God made gays capable of loving other people of the same gender. Who are we to quibble with God’s intentions?” Judiciary Committee Chair Ron Latz said to the opposition.

Buzzfeed:

"The state’s sole out gay senator, Sen. Scott Dibble, spoke in support of the bill he had backed.

Of the legislature’s prior decision to push forward the vote on a constitutional amendment banning gay couples from marriage, “I felt excluded,” he says of that decision. He added, though, “In an odd way, I’m kind of grateful, because we had an amazing conversations, Minnesotans,” that he said led to Monday’s vote for marriage equality.

“Today, we have the power, the awesome, humbling power, to make dreams come true, he said. “We will be removing barriers to the full joy life has to offer.” Of himself and his husband, Richard, whom he married in California in 2008, he says, “I’ve met the person I can’t live without.”

Referencing past leaders on the issue, including the late out gay Sen. Allan Spear, Dibble said, “We have an awesome responsibility, and it’s humbling to be in this chamber right now.”

The lead Republican supporter of the bill, Sen. Branden Petersen, spoke during the closing arguments about his reasons for working with Dibble on the bill.

“I stand here, quite honestly, more uncertain of my future in this place than I ever have, but when I walk out of this chamber today … I will be on the side of liberty,” Petersen said."

The bill was passed by the House last week and will go into effect on August 1.

Attribution: epa.gov

Farmers be warned: The Supreme Court ruled unanimously in favor of Monsanto in its suit against an Indiana farmer who planted its genetically modified seeds without paying the company. The case has been closely watched for its bearing on companies that hold patents on DNA molecules and other self-replicating products, but Justice Elena Kagan stressed that the court was ruling narrowly, addressing only the farmer’s violation of patent law. The farmer first bought seeds for a crop of soybeans that had been engineered to be resistant to the pesticide Roundup, which is also a Monsanto product. But for his second crop, he took a mix of seeds from a grain elevator, sprayed them with Roundup, and planted seeds from the plants that survived, exploiting what he believed to be a loophole in the contract.

Remember folks, loopholes are only for the fabulously wealthy.

Attribution:DailyKos/GoogleMaps: According to a new PPP survey, 39 percent of people who think Benghazi is the biggest scandal don't know that it is in Libya, including 6 percent who think it's in Cuba.

From Public Policy Polling's latest national survey:

"One interesting thing about the voters who think Benghazi is the biggest political scandal in American history is that 39% of them don't actually know where it is. 10% think it's in Egypt, 9% in Iran, 6% in Cuba, 5% in Syria, 4% in Iraq, and 1% each in North Korea and Liberia with 4% not willing to venture a guess."

True, these numbers aren't really that big a shock. If you're dumb enough to think that Benghazi is the biggest scandal ever, it's not surprising if you don't know where it is. And 74 percent of Republicans think Benghazi is worse than Watergate.

Just to be clear, the attack on the American diplomatic mission at Benghazi, and the fatalities that included U.S. Ambassador J. Christopher Stevens were horrific and are not at issue today. What the GOP is trying to make an "issue" of -- and with the willing help of the "Liberal" media -- is their claim that initial speculation that the attacks were a spontaneous response to a video were over-emphasized by the Obama administration, and they are taking issue with the investigation and the response by Secretary of State Hillary Clinton.

And as we've already seen, if there is one thing the Republican party of today is actually good at, it is dragging out absolutely nothing for an incredibly long time.

The poll also showed that most Americans trust Hillary Clinton over Republicans on Benghazi, by a 49-39 margin.