The decision to keep the President in the dark about the Treasury Department report underscores the White House's cautious legal approach to controversies, as well as an apparent desire by top advisers to distance him from troubles threatening his Administration.
Opposition Republicans have seized on the audit by a Treasury Department inspector-general, which found that Internal Revenue Service employees singled out groups with names like "tea party" and "patriots" for special scrutiny that delayed their applications for tax-exempt status, including during last year's presidential election.
Also yesterday, it was reported that the US Government is prosecuting a State Department expert on North Korea in a probe that appears to step into uncharted territory - by declaring that a journalist is committing a crime in disclosing leaked information.
It is the latest case of the Obama Administration investigating classified information improperly disclosed to reporters.
During the investigation of State Department adviser Stephen Kim, law enforcement officials obtained a search warrant for some private emails of James Rosen, the chief Washington correspondent for Fox News.
Kim, who is awaiting trial, is accused of revealing secrets to the news organisation. No charges have been filed against Rosen.
An FBI agent seeking the search warrant spelled out the Government's view of the journalist's role, saying the reporter was a co-conspirator and that there was probable cause to believe that the reporter committed a violation of criminal law.
"We are outraged to learn today that James Rosen was named a criminal co-conspirator for simply doing his job as a reporter," said Michael Clemente, Fox's vice-president for news.
"In fact, it is downright chilling. We will unequivocally defend his right to operate as a member of what, up until now, has always been a free press."
- AP
