FBI Probing Lost IRS Emails as DOJ Sets to Defend Its Investigation

PHOTO: This April 8, 2014 file photo Attorney General Eric Holder testifies on Capitol Hill in Washington.

Amid a flurry of Republican calls for a special prosecutor to investigate the Internal Revenue Service’s alleged targeting of conservative groups, the Justice Department is set to defend its own probe of the matter as exhaustive and sufficient during a House hearing Thursday on the department’s response to the scandal.

A top Justice Department official will tell the hearing that the department is now looking at how some of former senior IRS official Lois Lerner’s emails disappeared -- a new area of inquiry, Attorney General Eric Holder told ABC News in an exclusive interview Friday.

“We've expanded the scope of the IRS investigation to deal with these lost emails,” Holder told ABC News’ Pierre Thomas.

Specifically, the Justice Department and FBI are looking into “the circumstances of the lost emails,” Deputy Attorney General Jim Cole will tell a House Oversight and Government Reform subcommittee Thursday, according to excerpts of his prepared remarks provided to ABC News.

IRS’ Lois Lerner Takes Fifth, Shuns Congress

Last month, the IRS revealed it lost two years’ worth of Lerner’s emails when her hard drive crashed in 2011. The vanished emails spanned January 2009 to April 2011, when the alleged IRS targeting of conservative groups “was occurring regularly,” as two Republican lawmakers recently put it.

Lerner’s attorney, William W. Taylor III, has dismissed the whole IRS controversy as “baseless" and not a "conspiracy.” But, in discussing the Justice Department probe, FBI Director James Comey has said there is “a reasonable basis to believe that crimes may have been committed.”

In his interview with ABC News on Friday, Holder said prosecutors and FBI agents -- not political appointees -- are “doing a good, professional job” investigating whether conservative groups seeking tax-exempt status from the IRS received undue scrutiny.

“I've been briefed on the progress that they are making,” Holder said. “And I'm satisfied.”

The Republican-led House passed a resolution in May calling on Holder to appoint a special prosecutor to investigate the matter, and many Republicans in the Senate have echoed that call.

In January, the House Republicans leading the congressional probe into the IRS scandal sent a letter to Holder, questioning the “integrity of the DOJ/FBI investigation.”

Specifically, the letter from Rep. Darrell Issa, R-California, and Rep. Jim Jordan, R-Ohio, noted that a federal prosecutor who has donated nearly $7,000 to President Obama’s political campaigns and other Democratic causes was coordinating the Justice Department’s investigation.

That “has created a startling conflict of interest ... and has compromised the administration’s investigation of the IRS,” said the letter, which also cited “indications that the [FBI] was not taking the investigation seriously.”

Three weeks later, during a Senate Judiciary Committee hearing, Sen. Lindsey Graham, R-South Carolina, told Holder that appointing a special prosecutor “is a no-brainer” because it would avoid even the appearance of bias.

But Holder noted that even “career people” -- government workers not politically-appointed -- have the constitutional right to donate to political causes, and he has rebuffed efforts to appoint a special prosecutor.

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