WaPo:

Some groups, including several interviewed by The Washington Post, were asked to provide names of donors or membership lists, which experts say the IRS cannot legally do. The agency also demanded names of board members, copies of meeting minutes and résumés, details of community organizing efforts and numerous other details, according to questionnaires obtained by The Post.

“It was pretty much a proctology exam through your earlobe,” said Karen L. Kenney, the coordinator for the San Fernando Valley Patriots, a tea party group in Southern California that was sent an IRS questionnaire with more than 100 questions on it.

The San Fernando group first submitted its application for nonprofit status in the fall of 2010, which was after the IRS’s Cincinnati-based “determination unit” had implemented its politically charged screening criteria. The group wrote the agency a $400 check to fast-track the process, but 19 months went by before the group heard anything, Kenney said.

Sounds like a real scandal to me, and not just a distraction from the disclosure problems which also exist as to c4s.