That problem was related to the lack of budget though. Congress demanded they perform a complex evaluation of who should be eligible for tax exemption, with lit

That problem was related to the lack of budget though. Congress demanded they perform a complex evaluation of who should be eligible for tax exemption, with little staff. Unsurprisingly they resorted to shortcut methods like searching for groups with political terms in their names. As that article notes, they did also target liberal groups in the same way. The hearings they held basically found they were doing a poor job generally. There's this pattern of cutting funding, and then using the disasters caused by the funding cuts as "proof" the government can't do anything right.