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The IRS acted in an "intolerable and inexcusable" manner in singling out conservative advocacy groups for extra scrutiny, President Barack Obama said Tuesday evening in a statement about the emerging controversy. 

Amid an uproar in Washington over revelations that IRS agents targeted conservative and Tea Party groups as part of their oversight of a new crop of political groups established as tax-exempt groups in recent years, the president roundly criticized IRS employees to subjected those groups to additional scrutiny. 

"[T]he report’s findings are intolerable and inexcusable," Obama said in a statement. "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 president had criticized the report during a press conference on Monday, before the publication this evening of an inspector general's report detailing the additional scrutiny of conservative groups. The report pointed to incompetence and poor management for the persistent scrutiny of conservative groups. The IRS also argued that the behavior was relatively isolated, and did not come at the direction of any outside official.

Nonetheless, the IRS controversy has prompted a major uproar among conservatives in Washington, who have openly suggested the Obama administration had deliberately targeted political enemies. Some Republicans have likened Obama to President Richard Nixon and the Watergate scandal. 

The controversy comes at an inopportune time, too, for the White House, which has struggled at times to address other imbroglios regarding its response to the terrorist attack last year in Benghazi, Libya, as well as new reports that the Department of Justice surreptitiously monitored the phone records of Associated Press journalists. 

Of the IRS uproar, Obama said he had directed Treasury Secretary Jack Lew to "hold those responsible for these failures accountable," and implement the recommendations of the inspector general report.

"[R]egardless of how this conduct was allowed to take place, the bottom line is, it was wrong," Obama said. "I expect everyone who serves in the federal government to hold themselves to the highest ethical and moral standards. So do the American people. And as president, I intend to make sure our public servants live up to those standards every day."

Attorney General Eric Holder told reporters Tuesday that he recused himself last year from any involvement in an investigation of national security leaks.

Holder also announced Tuesday that he has ordered an investigation to see if there were criminal violations in the Internal Revenue Service scrutiny of conservative political groups that had sought non-profit status.

On the leaks case, Holder – who is slated to testify before the House Judiciary Committee Wednesday afternoon -- reminded reporters that he testified to a congressional committee last year that he had recused himself to avoid the appearance of a conflict of interest.

The Associated Press reported Monday that phone records of its reporters and editors had been subpoenaed and seized in that probe.

Holder said decisions in that investigation were being made by Deputy Attorney General James Cole and “the deputy attorney general would have been the one who ultimately had to authorize the subpoena that went to the AP.”

He added that since he was recused from the investigation, “I’m not familiar with all that went into the formulation of the subpoena.”

He also said he could not explain why voluntary cooperation wasn’t sought from the Associated Press before the subpoena was executed.

 “I am confident that the people who are involved in this investigation, who I know for a great many years and who I’ve worked with for a great many years, followed all of the appropriate Justice Department regulations and did things according to DOJ rules,” Holder said.

He added that it “certainly not the policy of this administration” to target reporters. What has been done in the leaks investigation was, he said, “not as a result of a policy to get the press.”

Referring to the leaks of national security information, Holder said, “This was a very, very serious leak. I’ve been a prosecutor since 1976 – and I have to say that this is among, if not the most serious, in the top two or three most serious leaks that I’ve ever seen. It put the American people at risk – and that is not hyperbole.”

Trying to find out who leaked the information “required very aggressive action,” Holder said.

Senate Majority Leader Sen. Harry Reid, D- Nev., on Tuesday joined other congressional critics of the Justice Department’s search of SAP’ phone records telling reporters  “I have trouble defending what the DOJ did. It’s inexcusable. There is no way to justify this.”

In a letter to Holder on Monday, Associated Press President and Chief Executive Officer Gary Pruitt said, "There can be no possible justification for such an overbroad collection of the telephone communications of The Associated Press and its reporters.” Pruitt complained that the records could “disclose information about AP's activities and operations that the government has no conceivable right to know."

In a response, Cole wrote to Pruitt Tuesday that seeking phone records from media organizations “is undertaken only after all other reasonable alternative investigative steps have been taken.” He said that the Justice Department sought the AP phone records only after a comprehensive investigation which included conducting over 550 interviews and reviewing of tens of thousands of documents.

This story was originally published on Tue May 14, 2013 7:57 PM EDT

NBC News, via a government source, has obtained an email Obama administration officials believe contradicts last week's reporting that Deputy National Security Adviser Ben Rhodes said that the State Department's "concerns needed to be addressed" in the drafting of the talking points about the Sept. 2012 attack in Benghazi.

In the actual email -- dated Sept. 14, 2012 and with the subject "Re: Revised HPSCI Talking Points for Review" -- Rhodes writes: 

"All--

"Sorry to be late to this discussion. We need to resolve this in a way that respects equities, particularly the investigation.

"There is a ton of wrong information getting out into the public domain from Congress and people who are not particularly informed. Insofar as we have firmed up assessments that don't compromise intel or the investigation, we need to have the capability to correct the record, as there are significant policy and messaging ramifications that would flow from a hardened mis-impression.

"We can take this up tomorrow morning at deputies."

CNN was first to report on the actual language from Rhodes' email.

And the email contradicts this reporting on Friday from ABC News, which wrote: 

"In an email dated 9/14/12 at 9:34 p.m. - three days after the attack and two days before Ambassador Rice appeared on the Sunday shows - Deputy National Security Advisor Ben Rhodes wrote an email saying the State Department's concerns needed to be addressed.

"We must make sure that the talking points reflect all agency equities, including those of the State Department, and we don't want to undermine the FBI investigation. "We thus will work through the talking points tomorrow morning at the Deputies Committee meeting."

Then there were three controversies for the Obama administration… The latest: AP says Justice Department secretly obtained two months of phone records in possible leak case… Latest developments with the IRS story… Why did the IRS focus on the small fish -- but not the big ones?... Obama outraged by IRS story, as well as Benghazi “sideshow”… Some perspective, per Charlie Cook: Much of the outrage right now is selective outrage… Dems put changing the filibuster back on the table?... Rubio PAC airs TV ad defending Ayotte … And Christie goes negative.

Saul Loeb / AFP - Getty Images

President Barack Obama speaks at a Democratic fundraiser in New York City, May 13, 2013.

*** Then there were three: Finding itself already under siege on two different fronts -- the Benghazi and IRS stories -- the Obama administration now encounters a third controversy, and this one features one of the most influential news organizations in the world. The Associated Press revealed yesterday afternoon that the Justice Department “secretly obtained two months of telephone records” of AP reporters and editors “in what the news cooperative's top executive called a ‘massive and unprecedented intrusion’ into how news organizations gather the news.” Per NBC’s Michael Isikoff, DOJ confirmed that it obtained these phone records without notifying the news organization, saying the step was needed to avoid "a substantial threat to the integrity" of an ongoing leak investigation. When it rains, it pours, as the conservative Drudge Report gleefully notes. While this Justice Department move is sweeping, chilling for journalists (why didn’t DOJ attempt to negotiate?), and an apparent attempt to intimidate future leakers, let’s don’t forget that Congress asked the Obama administration to investigate all the national-security leaks. “Republicans accused the administration of deliberately leaking classified information, jeopardizing national security in an effort to make Mr. Obama look tough in an election year — a charge the White House rejected. But some Democrats, too, said the leaking of sensitive information had gotten out of control,” the New York Times says.

*** Three makes it harder: While the president’s defiant tone on Benghazi probably would have been enough to quell things under normal circumstances, the times aren’t normal right now. The rule of three (toss in IRS and AP) means the president’s credibility is truly on the line right now with the public. No amount of denial or outrage will be as persuasive to the public right now and the president’s political foes know it. And that’s why you saw some senators yesterday going even further, hitting the White House on the implementation of health care or Mitch McConnell who attempted to use the IRS news to connect the dots and claim a concerted effort was taking place all over the government to target conservatives or limit freedoms. Many of these charges are baseless but the environment right now for the White House is a mess and they are in a position where it’ll be a lot easier for issues to stick to them. The Teflon is wearing off. 

*** Latest developments with the IRS story: The IRS controversy is only growing as more organizations come forward about exactly how the IRS went about investigating conservative groups. The Washington Post: “Internal Revenue Service officials in Washington and at least two other offices were involved with investigating conservative groups seeking tax-exempt status… IRS officials at the agency’s Washington headquarters sent queries to conservative groups asking about their donors and other aspects of their operations.” (However, it’s unclear in the story if these Washington employees were only targeting conservative groups or if they were scrutinizing a wider scope of groups applying for tax-exempt status.) What’s more, Politico notes That the IRS’s acting commissioner “first learned about the agency’s targeting of conservative political groups more than a year ago, the agency revealed Monday.” As for the White House, the president claimed he only heard about the IRS story when it went public on Friday. Jay Carney later said, the White House Counsel’s office was made aware of the IG investigation in late April but that the president was NOT informed at the time and that the Counsel’s office wasn’t told many specifics about the report.   

*** Focusing on the small fish -- but not the big ones: Also regarding the IRS story, the New York Times’ Confessore makes a great point: While the IRS scrutinized relatively small conservative-sounding groups in their application for tax-exempt 501c4 status, the agency has hardly lifted a finger when it comes to the bigger political players. “The I.R.S. has done little to regulate a flood of political spending by larger groups — like Crossroads Grassroots Policy Strategies, co-founded by Mr. Rove, and Priorities USA, with close ties to President Obama… ‘We’ve complained about a few big fish and we’ve heard nothing from the I.R.S.,’ said Paul S. Ryan, senior counsel at the Campaign Legal Center, which filed many of the complaints with the agency. ‘We would far rather see scrutiny of these big fish — the groups that spent hundreds of millions of dollars to influence elections — than to see the resources spent on hundreds of small groups that appeared to spend very little on elections.’” One of the unintended consequences of this IRS story: It probably will set back any effort to close the loopholes that allow overtly political organizations to obtain tax-exempt status and to shield their donors.

*** Obama outraged by IRS actions and Benghazi “sideshow”: In his news conference with British Prime Minister Cameron yesterday, President Obama called the IRS story “outrageous,” saying: “If, in fact, IRS personnel engaged in the kind of practices that had been reported on and were intentionally targeting conservative groups, then that's outrageous and there's no place for it. And they have to be held fully accountable.” But in the outrage department, the president got a lot more animated when the topic turned to Benghazi, making it clear he believes it’s nothing more than a partisan sideshow. “The whole issue of talking points, frankly, throughout this process has been a sideshow. What we have been very clear about throughout was that immediately after this event happened we were not clear who exactly had carried it out, how it had occurred, what the motivations were. It happened at the same time as we had seen attacks on U.S. embassies in Cairo as a consequence of this film. And nobody understood exactly what was taking place during the course of those first few days.”

*** Dems put changing the filibuster back on the table? Largely lost by all the Benghazi/IRS/AP coverage has been this fact: Senate Republicans have used procedural tactics to so far block many of Obama’s nominees, including his picks to head the Labor Department and EPA. That has spurred Democrats and their allies to reconsider ways to change the Senate’s 60-vote threshold, which has been used for even the most routine of measures. The Hill: “Senate Democrats frustrated with the GOP’s blocking of a string of President Obama’s nominees are seriously weighing a controversial tactic known as the ‘nuclear option.’ The option — which would involve Democrats changing Senate rules through a majority vote to prevent the GOP from using the 60-vote filibuster to block nominations — was raised during a private meeting Wednesday involving about 25 Democratic senators and a group of labor leaders.” Remember, it was that same “nuclear” option threat that spurred Senate Democrats and Republicans to reach the “Gang of 14” compromise to approve some of George W. Bush’s judicial nominees.

*** It’s the eye of the beholder: That said, political analyst Charlie Cook provides an important historical perspective: Right now, much of the controversy the White House is facing is selective outrage. “Whether the White House is in Democratic or Republican hands, we have to put up with a degree of selective outrage from one side and the turning of a blind eye from the other,” Cook writes. “Democrats who were quick to pounce on any possible transgression during George W. Bush’s presidency are noticeably quiet these days. At the same time, one wonders whether the same Republicans who are frothing over Benghazi would have been quite as vigilant had they been in Congress after the bombing of the Marine barracks in Beirut in October 1983, which killed 220 U.S. Marines, 18 sailors, and three Army soldiers.” And that selective outrage makes many of the “Nixon” comparisons seem VERY premature right now. Regarding Nixon, Watergate, and that administration’s cover-ups, the condemnation -- of activity that went straight to the top -- was bipartisan.

*** Rubio PAC airs TV ad defending Ayotte: We’ve been covering politics for a while, but we don’t think we’ve ever seen this -- a possible presidential candidate’s PAC airing a TV ad to help a COLLEAGUE who represents an early-nominating state. “Sen. Marco Rubio's political action committee is going up with a TV ad defending New Hampshire Sen. Kelly Ayotte's votes on gun control. ‘Safety, security, family - no one understands these things like a mom, and no one works harder for them than this one,’ the ad says, showing a photo of Ayotte. ‘A former prosecutor, Kelly Ayotte knows how to reduce gun violence.’”

*** Christie goes negative: And it’s rare you see this, too: A political candidate who’s leading his opponent by 30-plus points is going negative. But that’s exactly what New Jersey Chris Christie is doing with this new TV ad. As Politico writes, “Sky-high approval ratings be damned — New Jersey Gov. Chris Christie is going on air next week with an ad that paints his Democratic rival Barbara Buono as a tax-hiker who is yoked to unpopular former governor Jon Corzine, POLITICO has learned.The spot, which begins running Monday, is part of an $800,000 ad buy over the course of roughly a week.” Per last week’s NBC/Marist poll, Christie was leading Barbara Buono 60%-28% among registered voters.

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*** Tuesday’s “The Daily Rundown” line-up: Congressional Black Caucus Chair Marcia Fudge (D-OH) on class concerns and the kidnapping that happened in her Cleveland district... NBC's Pete Williams with more on the DOJ and AP... NBC's Ali Arouzi with a Deep Dive on Iran's upcoming election... Plus former Gov. Bob Ehrlich (R-MD), former Sen. Blanche Lincoln (D-AR) and the Grio's Perry Bacon Jr. join the Gaggle.

*** Tuesday’s “Jansing & Co.” line-up: Guests include Rep. Todd Young/(R) Indiana – House Ways and Means Committee on IRS Scandal, Ron Fournier/National Journal and Lynn Sweet/Chicago Sun-Times on IRS, DOJ wiretaps of AP Reporters and Benghazi,  Kerry Kennedy on Immigration Bill and Workers Rights and Rep. Frank Pallone/(D) New Jersey and Asbury Park business owner Marilyn Schlossbach on Prince Harry’s visit to the Jersey Shore and how the rebuilding effort is going.

*** Tuesday’s “MSNBC Live with Thomas Roberts” line-up: MSNBC’s Thomas Roberts interviews Rep. Sander Levin (D-MI), Ranking Member of the House Ways and Means Committee & NAACP Chairman Emeritus Julian Bond on the IRS under siege.  Rep. Mike Pompeo (R-KS), joins to discuss the AP phone records scandal and the politics of Benghazi.  Today’s panel includes:  NBC Latino Contributor Victoria De Francesco Soto, ThinkProgress Managing Editor Igor Volsky and The Nation’s Lee Fang.  MSNBC host Martin Bashir joins to discuss Prince Harry’s trip to the Jersey Shore and why Britain matters so much to the U.S.

*** Tuesday’s “NOW with Alex Wagner” line-up: Alex Wagner’s guests include Huffington Post’s Howard Fineman, MSNBC’s Karen Finney, the New Republic’s Franklin Foer, and New York magazine’s Jonathan Chait.

*** Tuesday’s “Andrea Mitchell Reports” line-up: NBC’s Andrea Mitchell interviews NBC’s Pete Williams, Kelly O’Donnell, the Washington Post’s Chris Cillizza, Robert Gibbs, and the New York Times’ Peter Baker.

*** Tuesday’s “News Nation with Tamron Hall” line-up: MSNBC’s Tamron Hall interviews the Washington Post’s Anne Kornblut and Bloomberg View Columnist Jonathan Alter, New York Times correspondent Frances Robles (on the Brooklyn District Attorney reviewing dozens of  murder convictions after a veteran officer’s tactics were called into question), Las Vegas lawyer Michael Cristalli (about the O.J. Simpson hearing for a new trial), and  XM Radio’s Michael Smerconish (about the conviction for the Philadelphia abortion doctor). 

AP: “The Justice Department secretly obtained two months of telephone records of reporters and editors for The Associated Press in what the news cooperative's top executive called a ‘massive and unprecedented intrusion’ into how news organizations gather the news. The records obtained by the Justice Department listed outgoing calls for the work and personal phone numbers of individual reporters, for general AP office numbers in New York, Washington and Hartford, Conn., and for the main number for the AP in the House of Representatives press gallery, according to attorneys for the AP. It was not clear if the records also included incoming calls or the duration of the calls.”

USA Today: “They say these things come in threes. Already facing criticism over the Benghazi attack and Internal Revenue Service problems, President Obama and aides must now deal with news that the Justice Department secretly obtained two months of telephone records of journalists who work for the Associated Press.”

“Journalists on Monday called the news the Justice Department seized records from phone lines assigned to Associated Press offices and its reporters over a two month period ‘chilling’ and a ‘dragnet to intimidate the media,’ Politico writes.

By the way, Attorney General Eric Holder is expected to testify before the House Judiciary Committee Wednesday.

“President Barack Obama tried to swat down a pair of brewing controversies Monday, denouncing as ‘outrageous’ the targeting of conservative political groups by the federal IRS but angrily denying any administration cover-up after last year’s deadly attacks in Benghazi, Libya,” AP writes. “Simultaneous investigations — and demands by Republicans for more — have put the White House on the defensive, emboldened GOP lawmakers and threatened to overtake a second-term Obama agenda already off to a rocky start.”

“Huddling with A-list celebrities and top re-election donors, President Barack Obama bemoaned the partisan forces that have stymied compromise in Washington as he raised campaign cash for Democrats in New York,” AP writes. Of the GOP “fever,” Obama said at film producer Harvey Weinstein’s house, “It’s not quite broken yet. I am persistent, and I am staying at it.

And Obama said this: "I want to get some stuff done -- I don't have a lot of time. I've got three and a half years left -- and it goes by like that."

Jill Lawrence: “The bombshell disclosure that the Justice Department secretly obtained two months of telephone records of Associated Press reporters and editors could be dramatic enough to move even the phlegmatic Obama administration to action. Three concurrent scandals or controversies are just too many. Could that mean we will be bidding farewell soon to Attorney General Eric Holder?”

George Condon notes that Obama appears more outraged with Republicans than the IRS.

On Benghazi, so why wasn’t it Hillary Clinton on the Sunday shows instead of Susan Rice. Glenn Thrush reports: “Three sources” say “it was less a matter of fatigue, and more a matter of Clinton not wanting to go on the shows. The aides said Clinton had a ‘default’ policy of rejecting all Sunday requests. None of the officials was willing to speculate on why the secretary wouldn’t make an exception after such an extraordinary event — or whether Clinton had wanted to avoid a controversy that could have compromised her political future.”

Vice President Joe Biden wrote a 7-year-old Wisconsin child a hand-written note praising his idea for guns that shoot chocolate. Biden writes, “Dear Myles, I am sorry it took so very long to respond to your letter. I really like your idea. If we had guns that shot chocolate, not only would our country be safer, it would be happier. People love chocolate. You are a good boy, Joe Biden.”

Donald Rumsfeld’s back on the scene appearing mellower as he promotes his new book. He was on Today Tuesday morning. 

“Legal immigration is the focus as the Senate Judiciary Committee resumes the work of amending legislation overhauling the U.S. immigration system,” AP writes. “Amendments expected to be offered Tuesday could reshape a painstakingly negotiated deal between business and labor on a visa program for lower-skilled workers.”

Rep. Michael Capuano (D-MA) says the IRS scandal is like Nixon.

Nancy Pelosi on John Boehner: "If he were a woman, they'd be calling him the weakest speaker in history."

National Journal: “The nation’s leading health insurance industry group gave $850,000 to a top small-business trade association as part of a campaign to repeal a key provision of President Obama’s health care law, National Journal Daily has learned.”

The Washington Post’s Greg Sargent seizes on the news that the Obama White House had already briefed House Speaker John Boehner’s staff -- back in March -- on the Benghazi talking points. But now, almost two months later, Boehner and other Republicans are demanding that the White House release all the emails. “If they were shown all of the dozen talking point revisions reported on by ABC News last week, as well as the controversial emails about them — which seems like it may be the case — and didn’t see them as problematic at the time, then the plot thickens.”

Charlie Cook: The political “significance” of the IRS and Benghazi scandals “is more in the eye of the beholder. Liberals and Democrats tend to de-emphasize both affairs, while many conservatives and Republicans think that each rises to the level of impeachment. It will take time to know which end of this ridiculously broad spectrum of assessments proves to be more accurate.”

How to measure, per Cook: “The most objective way to ascertain whether either or both of these stories have “legs” and are beginning to get traction with the public is to watch every Monday afternoon for the release of the Gallup approval rating for the previous week, ending the night before. Although you can look at the Gallup three-day moving average, those have a smaller sample size than the full week of interviewing and tend to be somewhat volatile. As long as Obama’s job approval remains in that 47-to-51-percent range, particularly between 48 and 50 percent, it’s safe to say that neither story is hurting him significantly, at least with the public. If you are going to look at other polls, take a gander at that poll’s “trading range” for Obama over March and April, and see whether it drops below that range.”

Crossroads has been going after Hillary Clinton and the Obama administration on Benghazi. Now, Bridge Project, the 501(c)4 of American Bridge,  is going after Karl Rove with this video called, "Karl Rove's Decade of Deception.” It hits on the selling the war in Iraq, Valerie Plame, and more.

The Minneapolis Star Tribune: “Amid roaring chants from supporters and tears from opponents, the state Senate took a historic, final step Monday to legalize same-sex marriage in Minnesota. The 37-30 vote came after a failed, last-ditch attempt by opponents to scuttle the measure.”

More: “Minnesota becomes the first Midwestern state to legalize same-sex marriage by legislative vote [and the 12^th state overall], and the latest victory for those working to extend marriage rights to gay and lesbian couples across the nation. Monday’s action technically repeals a state statute that had prohibited such unions. Gov. Mark Dayton will sign the bill at 5 p.m. Tuesday, on the Capitol steps, kicking off a parade that will take supporters to a massive downtown St. Paul celebration. The law will take effect Aug. 1.”

Roger Simon said John McCain’s use of “emotional” to describe Hillary Clinton’s congressional testimony was “sexist.”

Political Wire: “Pablo Pantoja, who was most recently the State Director of Florida Hispanic Outreach for the Republican National Committee, changed his voter registration to become a Democrat, according to Florida Nation.” Pantoja wrote: "It doesn't take much to see the culture of intolerance surrounding the Republican Party today. I have wondered before about the seemingly harsh undertones about immigrants and others. Look no further; a well-known organization recently confirms the intolerance of that which seems different or strange to them.”

FLORIDA: Could Rick Scott actually pick ex-Rep. Allen West as his lieutenant governor?

MASSACHUSETTS: John McCain’s raising money in Boston for Gabriel Gomez (R) May 20.

The Boston Globe: “First deadline passes with 24 in Boston mayoral field.”

NEW YORK: Maggie Haberman reports that Anthony Weiner is hiring staff for a mayoral run.

Amid outcry over revelations that Internal Revenue Service specialists specifically targeted conservative groups for scrutiny before the 2012 elections, President Barack Obama said Monday that the tax agency employees' reported conduct was "outrageous" and "contrary to our traditions."

Alex Wong / Getty Images

President Barack Obama and British Prime Minister David Cameron hold a joint news conference in the East Room of the White House May 13, 2013.

Appearing at a White House press conference with British Prime Minister David Cameron, the president said he does not want to judge the findings of an Inspector General investigation "prematurely" but said that if the reports of political targeting are found to be correct, those responsible must be held "fully accountable."

"If in fact IRS personnel engaged in the kind of practices that have been reported on and were intentionally targeting conservative groups, then that’s outrageous and there’s no place for it," he said.

"I've got no patience with it," he added. "I will not tolerate it and we will make sure that we find out exactly what happened on this."

Reports surfaced Friday that an IRS official had apologized for the targeting by staffers in a Cincinnati field office, which singled out groups for additional review if they included the words "tea party" or "patriot" in their applications for tax-exempt status.

A partial draft report from the Treasury Inspector General for Tax Administration -- obtained by NBC News -- shows that top officials knew about the targeting nearly a year before then-IRS Commissioner Douglas H. Shulman, who was appointed by President George W. Bush, testified to Congress in March 2012 that no singling out of conservative groups ever occurred.

The House Ways and Means Committee announced after the president's remarks that it will hold a hearing on the alleged targeting on Friday, May 17. Acting IRS Commissioner Steve Miller and J. Russell George, the Inspector General who headed up the IRS report, are expected to testify.

And the IRS confirmed Monday night that Miller was informed in May of last year that "some specific applications were improperly identified by name and sent to the [IRS] Exempt Organizations centralized processing unit for further review."

In a statement earlier Monday, White House spokesman Jay Carney said the president is “concerned” about the reported conduct of “a small number of Internal Revenue Service employees.”

“If the Inspector General finds that there were any rules broken or that conduct of government officials did not meet the standards required of them, the President expects that swift and appropriate steps will be taken to address any misconduct," Carney said.

Lawmakers on both sides of the aisle have called for extensive investigation into the IRS practices.

In a letter to Treasury Secretary Jack Lew, Republican Sen. Marco Rubio of Florida called for the resignation of Acting Commissioner Miller, who previously served as Shulman’s deputy.

"[I]t is clear the IRS cannot operate with even a shred of the American people's confidence under the current leadership," Rubio wrote. "I strongly urge that you and President Obama demand the IRS Commissioner's resignation, effectively immediately. No government agency that has behaved in such a manner can possibly instill any faith and respect from the American public."

Top Senate Republican Mitch McConnell went further, calling the burgeoning IRS scandal "just one example of an administration-wide effort to silence critics."

"The Obama effort to shut up opponents isn't limited to the IRS," he told conservative outlet Breitbart News. "It applies to the FCC [Federal Communications Commission], SEC [Securities and Exchange Commission], FEC [Federal Elections Commission], HHS [Department of Health and Human Services]." 

A McConnell spokesman told NBC News that the senator was specifically referring to those agencies’ attempts to implement rules requiring that third-party groups and businesses disclose donors or political activities. 

Senate Finance Committee Chairman Max Baucus, a Democrat, also called the targeting "intolerable" and an "outrageous abuse of power."

And Senate Majority Leader Harry Reid also weighed in, saying the allegations would represent a "terrible breach of the public trust" and pledging that the chamber will "quickly take appropriate action" based on the inspector general's findings. 

NBC's Kelly O'Donnell, Luke Russert and Mark Murray contributed to this report. 

This story was originally published on Mon May 13, 2013 7:40 PM EDT

President Barack Obama repeatedly said during last year's presidential campaign that a partisan "fever" in Washington would break after the 2012 election, but on Monday, he acknowledge it hadn't broken yet.

Almost four months into his second term, the president told Democratic donors at a fundraiser in New York City that the nation's capital is still ensconsed by "hyper-partisanship."

"My thinking was when we beat them in 2012 that might break the fever, and it’s not quite broken yet," Obama said, according to pool reports of his remarks. "But I am persistent. And I am staying at it."

Obama had outlined an agenda heading into his second term headlined by immigration reform, gun control and reaching a wide-reaching fiscal deal with Republicans. So far, immigration reform only seems realistically attainable; a scaled-back version of Obama's gun control proposals was blocked in the Senate. A "grand bargain" on taxes and spending appears out of reach, as well.

Obama told his supporters that he still intended to seek a broad agenda, rather than succumb to the ennui of a lame-duck presidency. That included an allusion to forcing Republicans to pay a price at the polls in 2014 should they continue to block his agenda.

"My intentions over the next 3 ½ years are to govern," he said. "If there are folks who are more interested in winning elections than they are thinking about the next generation then I want to make sure there are consequences to that."

President Barack Obama on Monday derided the controversy over inter-agency talking points drafted in the wake of last year’s Benghazi attack, saying that charges of a politically motivated cover-up are a “sideshow” and  little more than a “political circus.” 

Jim Bourg / REUTERS

President Barack Obama talks about the attack on the U.S. embassy in Benghazi, Libya as Britain's Prime Minister David Cameron listens during a joint news conference in the East Room of the White House, May 13, 2013.

“The whole thing defies logic,” Obama said at a White House event with British Prime Minister David Cameron. “And the fact that this whole thing keeps getting churned out, frankly, has a lot to do with political motivations.” 

The president  defended his administration against persistent allegations that it tried to disguise the Benghazi attack as a spontaneous riot instead of an act of terror – charges Obama dismisses as little more than a “political circus.” 

Those accusations again dominated headlines last week, when leaked emails showed that State Department officials suggested changes to the official talking points crafted after the Sept. 11, 2012 incident. That attack on the diplomatic compound left four Americans dead, including Ambassador Chris Stevens. Those changes included the deletion of mentions to specific terrorist groups. 

On Monday, Obama said those edits reflected the intelligence agency’s lack of immediate clarity about exactly what prompted the attack, which occurred at the same time that a video offensive to Muslims had prompted spontaneous riots elsewhere in the Middle East. 

“The whole issue of talking points, frankly, throughout this process has been a sideshow,” he said. “What we have been very clear about throughout was that immediately after this event happened, we were not clear who exactly had carried it out, how it had occurred, what the motivations were.” 

“There’s no there, there,” he said of the leaked emails, which congressional investigators reviewed earlier this year but which were not reported on until last week. 

Noting that National Counterterrorism Center chief Matt Olsen specifically labeled the assault “an act of terrorism” just days after attack, Obama said Republicans who characterize the administration’s response to the attack as anything other than due diligence on the part of intelligence officials are merely trying to exact political damage on their Democratic opponents. 

“Who executes some sort of cover up or effort to tamp things down for three days?” he asked. 

Despite the president’s evident frustration with the GOP’s line of questioning on Benghazi, the administration will get little respite from congressional skeptics, who have pledged to keep probing its response to the Libya attack. 

House Oversight and Government Reform Committee Chairman Darrell Issa, R-Calif., has asked that Ambassador Thomas Pickering and former Admiral Mike Mullen – the two officials who conducted an independent review of the incident on behalf of the State Department – be interviewed by investigators. 

Issa has said that the independent review failed to adequately question top State Department officials, including Secretary of State Hillary Clinton. 

Senators John McCain of Arizona, Lindsey Graham of South Carolina and Kelly Ayotte of New Hampshire have called for a Joint Select Committee to investigate the matter. 

The three Republicans said that the president's statements Monday run counter to his public descriptions of Benghazi in the weeks after the deaths. 

Obama "repeatedly and specifically refused, in the heat of his re-election campaign, to label Benghazi a terrorist attack," they wrote in a statement Monday afternoon. 

This story was originally published on Mon May 13, 2013 3:42 PM EDT