(Susan Walsh/AP) (Susan Walsh/AP)

The Internal Revenue Service has replaced one of the officials who oversaw the agency’s tax-exemption division in Cincinnati during a targeting campaign that singled out conservative groups for extra scrutiny.

An internal memo to employees on Monday said that Karen Schiller would serve as acting director of the IRS rulings and agreements for exempt organizations, replacing Holly Paz, who headed the same division during the targeting.

Paz has come under fire from Republicans, particularly from House oversight committee chairman Darrell Issa (Calif.), for attending interviews between her IRS subordinates and investigators from the inspector general’s office.

Issa has also said that Paz was involved in an internal IRS investigation a year before an IG report concluded the agency had targeted conservative groups.

The memo from the agency’s new deputy commissioner for services and enforcement, Heather C. Malloy, did not mention Paz or explain whether she had been placed on leave.

Last month, the IRS placed Lois Lerner, another official who oversaw the agency’s Cincinnati operation, on administrative leave. Additionally, a third official with responsibilities over that division, Joseph Grant, retired in May.

Former acting IRS commissioner Steven Miller also stepped down last month amid pressure from the White House to resign. The agency replaced Miller with Daniel Werfel, who previously served as controller of the White House budget office.

Below is the internal memo relating to Paz’s replacement:

“Effective Monday, I have asked Karen Schiller to serve as acting Director of Rulings and Agreements for Exempt Organizations.

Karen is currently the Director, Exam Planning & Delivery for the Small Business/Self-Employed Division. A veteran IRS employee for 25 years, she carries a strong track record along with extensive knowledge of exam and management issues. While she is new to TE/GE, I believe Karen’s leadership record and attention to detail make her a strong addition to help the TE/GE organization during this difficult period.

Karen began her career as a Revenue Agent in San Diego, California, in 1987 and has held numerous leadership positions across the country since. In her current role in SB/SE based in New Carrollton, she oversees Examination Management Information Systems, Examination Return Selection and Workload Planning and Analysis. Prior to this position, she was the Director, Exam Operations Support and prior to that the acting Area Director for South Atlantic Area Examination.

Karen obtained her Bachelor of Business Administration degree in accounting from National University in San Diego, California.

Please join me in welcoming and support Karen in her new assignment.”

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