-- Whether "Tea Party," "Patriots" or "9/12 Project" was referenced in the case file.
-- Whether the issues outlined in the application included government spending, government debt or taxes.
-- Whether there was advocating or lobbying to "make America a better place to live."
-- Whether a statement in the case file criticized how the country is being run.
-- Whether it advocated education about the Constitution and the Bill of Rights.
The investigation by the Treasury inspector general for tax administration was initiated after congressional complaints began to surface in the media in 2012 that the IRS was targeting conservative groups and holding up applications.
"Whether the inappropriate criterion was shorthand for all potential political cases or not, developing and using criteria that focuses on organization names and policy positions instead of the activities permitted under the Treasury regulations does not promote public confidence that tax-exempt laws are being adhered to impartially," the report said.
The IRS welcomed the report, saying that it agreed that aspects of its original approach in handling the influx of tax-exempt applications was inappropriate.
"The IRS is required by law to determine if organizations are engaging in a legally permissible level of political activity. Centralizing these cases was necessary to achieve consistent treatment," it said in a statement.
In a written response included in the report, the IRS commissioner of the Tax Exempt and Government Entities Division said there was no criminal behavior behind the actions of the agents, but rather inefficient management.
"We believe the front-line career employees that made the decisions acted out of a desire for efficiency and not out of any political and partisan viewpoint," the commissioner wrote.
The report's findings indicate that of the 298 cases reviewed by the IRS inspector general as potential political cases not eligible for tax exempt status: 72 contained the name "tea party," 11 contained "9/12" and 13 contained the word "patriots," according to the report. There were 202 cases that did not contain any such reference.
Of those applications still open for review, 160 cases were open from 206 days to more than three years -- through two election cycles.
Among the recommendations made by the Treasury inspector general: The IRS must better document reasons why applications are chosen for review, develop a process to track requests for assistance, develop and provide training to employees before each election cycle and immediately resolve outstanding cases.
The report also called on Treasury to develop guidelines to explain social welfare activity -- the primary factor in obtaining tax-exempt status.