Let me if I can figure this out from the information currently available…
After the Citizen’s United decision, a huge amount of new political groups popped up and claimed tax exempt status. The large chunk of these were inspired by Karl Rove and carried names like “Tea Party Against Taxes” and other such things.
The head of the IRS is a non-political position that is appointed by the President for a 6 year term. It is fairly independent of the Presidency after that. George W. Bush, in one of his last actions before leaving, appointed Douglas Shulman to be Chair, and Obama was stuck with him for his entire first administration.
When Shulman saw the doubling of applications for tax exempt status, he opened an office in Cleveland with the responsibility of reviewing them. This office then decided “Hey, you know, groups that are anti-tax probably are the ones most likely to file false claims for tax exemption.” While that is probably true, what they did next was wrong: They targeted any group with the words “Tea Party” or similar right-wing key words, looking for applications that should be denied. (And, as an aside, they did find some.)
Still, targeting groups based on the position they hold clearly violates the 1st Amendment and was absolutely wrong.
Everyone agrees on that point, including Obama, who has called the action “outrageous.”
This has not appeased the right-wing conspiracy buffs who are sure that this was an edict from Obama in the first place — as if the President decided to order the head of the IRS — a Bush appointee — to stupidly target groups and the Bush appointee went along with it without a word. And people are buying it. They’re actually believing that happened.
As we all know from the Benghazi hearings, the lack of evidence has never stood in the way of a good witch hunt.