The Functional Government Initiative (FGI) announced it has filed a lawsuit against the Department of Justice (DOJ) seeking records of billings and payments made to law firm Steptoe & Johnson LLP for representing Lois Lerner and Holly Paz, key officials at the center of the IRS political targeting scandal. The lawsuit aims to determine whether taxpayers have been, and possibly still are, footing the legal bills for these officials.

Lois Lerner, former acting IRS Director of Exempt Organizations, and Holly Paz, her top aide and former IRS Director of the Office of Rulings and Agreements, were implicated in the improper targeting of conservative groups for additional scrutiny. This scandal, which first came to light in 2013, led to a House Oversight and Government Reform Committee report, several lawsuit settlements, and an FBI investigation. Despite Lerner appearing to apologize for the misconduct at a meeting of the American Bar Association, she has continued fighting to keep records from the scandal sealed.

The FGI filed a Freedom of Information Act request in July 2022 seeking DOJ's billing and payment records related to Lerner and Paz's legal representation. After multiple delays and no response from the DOJ, FGI has now filed a lawsuit to obtain these records.

Peter McGinnis, spokesman for FGI, said in a statement: "Even after the IRS agreed to a multi-million dollar settlement related to the targeting scandal, it remains an open question if and for how long DOJ paid the bills. The American public has a right to know. FGI will continue its legal fight so that taxpayers can consider the appropriateness of such costs and the incentive it could provide to other federal officials at the center of misconduct."

This lawsuit comes amid concerns that the IRS's weaponization may still be ongoing, as evidenced by the agency's recent visit to journalist Matt Taibbi's home around the time he testified before Congress about government abuses.