The group, which many Democrats complained wasn't entitled to 501(c)(4) status because it engaged in too much campaign activity, has said it applied for the tax-exempt qualification in 2010.

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Groups granted tax-exempt status under section 501(c)(4) of the tax code are allowed to engage in some political activity, but their primary focus is supposed to be promoting social welfare.

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Tax-exempt social-welfare groups organized under section 501(c)(4) of the Internal Revenue Code are allowed to engage in some political activity, but the primary focus of their efforts must remain promoting social welfare.

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She said the activity took place at the IRS office in Cincinnati, which handles applications for 501(c)(4) status.

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