• With: Rep. Darrell Issa, R-Calif.

    This is a rush transcript from "Your World," June 10, 2014. This copy may not be in its final form and may be updated.

    NEIL CAVUTO, HOST: Well, it does get worse, because the IRS is in another major mess.

    It turns out the agency sent a massive 1.1 million-page database of information on tax-exempt groups right to the FBI, all of this weeks before the November 2010 elections, and all of this, by the way, is illegal.

    We have got now Republican congressman, head of the committee that is looking into this, Darrell Issa, the chairman of the Oversight Committee.

    Chairman, tell me what went on here. Was this at the Justice Department's behest, or was this the IRS volunteering it?

    REP. DARRELL ISSA, R-CALIF., OVERSIGHT AND GOVERNMENT REFORM COMMITTEE CHAIRMAN: Well, Neil, from the e-mail train, it looks like Lois Lerner orchestrated this, dealt with the question of format, even asked, what's the most searchable format, how would you like this data to be received, and then proceeded to facilitate what it turns out, just for your viewers, 21 DVDs worth of information, 1.1 million records, including donor information, exactly the kind...

    CAVUTO: When you say 1.1 million records, sir, does that -- that doesn't necessarily mean 1.1 million additional targets. What are we talking about here?

    ISSA: No.

    Well, a typical one would be the tax filing reports of a nonprofit. There is a supplement B in some cases which gives the donors to that organization. And this is what is protected under what is called 6103.

    It is not supposed to be put out of the IRS. It is very limited as to who can get, and it's exactly the kind of information that seems to be accidentally coming out about conservative donors to conservative causes far too often.

    The important thing here is, Lois Lerner, who testified under oath before our committee sort of before and after taking the Fifth, clearly said, I broke no laws. I broke no regulations.

    Well, this is a violation of the law. This was orchestrated by Lois Lerner all the way back in 2010 as part of her campaign against the Supreme Court decision in Citizens United.

    CAVUTO: Now, there are others who argue it is not against the law to advise. Now, I'm no lawyer, but when the Justice allegedly asked the IRS to be -- quote, unquote -- "vigilant" about the political speech of some organizations, obviously these conservatives organizations, was that, in and of itself, illegal, or did they take it to the next step, where they really pushed for this and got what they requested that made it illegal?

    ISSA: Well the Justice -- Justice itself, in requesting back these documents, made it very clear that it included 6103 information, information that's unlawful to be released in this format.

    But I think it is important to understand not since 1958, when the NAACP vs. Alabama decision came down, has there been any question about freedom of association, any question about the right of people to privately organize and produce. And that's really what is at the heart of this is overturning the -- literally the 1958 decision...

    (CROSSTALK)

    CAVUTO: But did they did they cast a wide enough net? Did they give them cover, sir? By that, I mean, did the IRS say, all right, just for the hell of it then, swing a wide net over anyone using these type of filings or trying to get this type of request, so that at least -- they're not going to say this in a memo or an e-mail -- we have the cover of looking just like we are not just targeting conservatives?

    Because they have always argued that they went after liberal groups as well. We know the numbers are night and day, but that they did. Was there any hint of this in this request for information?

    ISSA: Yes, this -- these -- document dump appears to be broad and not necessarily -- it has all the conservatives, but, of course, it also has others.

    So, this is not about targeting, but this is about providing the Department of Justice and the FBI a vast treasure trove of data that's not ordinarily public that they can use in criminal investigations that Lois Lerner was trying to get them to do against groups like Crossroads GPS and others.

    The important thing here is, you look at the actions of this person who for now is our kingpin, Lois Lerner. You look at her actions, where she is going to group after group, she is making speeches, and it is always the same thing. She says things like, they need us to fix this problem with Citizens United, and then these actions follow.

    So was she doing things on behalf of what was occurring every day? And we put out formal documents on this, which was the president's constantly railing against the Supreme Court decision and she is trying to fix it.

    And, oh, by the way, her fix seems to be going after conservative groups who are part of this vast amount of money that's flowing in, in a shadowy economy, according to the president.

    CAVUTO: OK.

    Congressman, Chairman, thank you very much. We look forward to see what next we discover here.

    ISSA: Thanks, Neil.

    CAVUTO: Appreciate it, as always.

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