WASHINGTON — The Trump administration has agreed to what a lawyer described as a ‘‘very substantial’’ payout to hundreds of Tea Party groups to settle a class-action lawsuit over the extra, often burdensome IRS scrutiny they received when applying for tax-exempt status during the 2012 election.
The settlement would end a chapter in a political scandal that dogged the Obama administration and continues to irk Republicans.
Announced Thursday, the settlement still needs a judge’s approval.
Eddie Greim, a lawyer representing more than 400 groups in a class-action suit, described the financial settlement as generous but would not elaborate because details remained sealed Thursday. The Justice Department made no reference to a payout in its announcement.
The department said it is settling a second lawsuit with an apology from the IRS for the intensive scrutiny of the groups, which argued their constitutional rights were violated when they were singled out based on their political views.
Republicans were outraged in 2013 when the IRS admitted the targeting, in part by zeroing in on groups with words such as ‘‘tea party’’ or ‘‘patriot’’ in their names.
Associated Press