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Criteria that identified for review tea party and other organizations applying for tax-exempt status, based upon their names than intervention. after reading the report tuesday night, president obama called the practice intolerable and inexcusable after promising action monday. >> the american people have to be held accountable. it's got to be fixed. >> reporter: irs officials said they acted on their own. the report says pangers were ineffective -- managers were ineffective in governing the tax-exempt organizations. it's not the only controversy the obama administration is facing. expect fire...

The king and queen will be named during prom on june 1st. cnn newsroom with carol costello begins right now. good morning to you. thank you so much for joining me. i'm carol costello. what did they know and when did they know it? 40 years later that simple, iconic question from the watergate era once again hangs over the white house. some republicans are accusing the embattled obama administration of abusing its power and your trust. unlike anything we've seen in generations. >> never seen anything quite like this except in the past during the nixon years. >> i can tell you people who make...

That looks out, that supposedly looks out for the little people, all they do is throw the little people under the bus. and, i mean, we're getting tired of it. it is going on here with the irs. it's going on with benghaziment i mean, when are they going to accept responsibility? when is somebody going to act like the adult and say, you know what? the buck stops with me. that's what it comes down to. this administration, they don't give us answers. you guys have been covering benghazi. talking points change. just give us the truth. that's all we want. watergate, it was the coverup that was a pro...

Politically motivated? >> reporter: what it determined is that from the people they interviewed that this was done as a time saving measure not as a way to politically target these groups. but in the same report, very clearly, it says that it was not appropriate because they didn't take into account the fact that the public would perceive it and specifically these tea party groups and others would perceive it as exactly that, politically motivated. >> yeah. dana bash reporting live from washington. as you might imagine, several conservative groups, many conservative groups are very upset over ...

Dramatic to turn the tide, that he needs to fire someone. >> reporter: i think you're already seeing perhaps the way paved on that because last night the white house put out a statement from president obama saying at least when it comes to this controversy involving the irs that he is having his treasury secretary hold accountable the people in the irs who are responsible for this. i think when you see the report, that's going to mean not necessarily just the folks at the irs who executed this but also those who are overseeing this because the report cites ineffective management. but the quest...