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Morgan: IRS Scandal 'A Right Old Mess for the President, Isn't It?'

Bash: 'This is a pretty damning report'

CNN host Piers Morgan commented on the developing IRS scandal Tuesday night, telling Congressional reporter Dana Bash "this is a right old mess for the president, isn't it?'

"This is a pretty damning report, Piers," Bash said. "We knew some of what was going on from Congressional sources throughout the week, but the bottom line is that it says that IRS agents simply targeted these groups because of words like Tea Party, like patriot, because of their political affiliation, and did so with excess scrutiny in a way that there's no way they should have done, asking them questions that they shouldn't have asked about their donors, about their contributors, about their membership. And what made this so much worse is that the management of the IRS simply let it happen for 18 months."

Obama called the findings "intolerant and inexcusable" in a statement released Tuesday night:

 The federal government must conduct itself in a way that’s worthy of the public’s trust, and that’s especially true for the IRS.  The IRS must apply the law in a fair and impartial way, and its employees must act with utmost integrity.  This report shows that some of its employees failed that test.

The Treasury Department's Inspector General report confirmed Tuesday that IRS agents targeted Tea Party groups because of their political beliefs, the Washington Free Beacon reported:

The report said ineffective management allowed IRS agents to single out Tea Party groups applying for tax-exempt status with inappropriate questions and requests.

While some conservative groups have come forward to corroborate stories of politically motivated targeting by the IRS, many are also keeping quiet for fear of further retaliation.

"Talk about a chilling effect on speech," said one person who requested anonymity. "I’m afraid to go on the record because of what the IRS might do to my group."