It is way worse, because the IRS is just the tip of the iceberg. Other enforcement agencies are involved. Thousands of Republican's have been illegally and improperly attacked by the enforcement arms of many government agencies. And much more aggressively attacked than the IRS examples. The perception is that IRS delayed a few 503 applications, but the other enforcement agencies have fined and jailed conservatives, merely for their political lean.
This is how I believe it worked and continues to work. A central Democrat-liberal clearing-house collects huge amounts of data on all citizens and refers Republican-donors to a special sub-section dedicated to prosecuting. This clearing-house office refers the Republican-conservative name to an enforcement agency where they have an operative like Lois Lerner in place. The "Lois Lerner" of that agency inserts the Republican-conservative name into the agency's investigation procedure as a "person they would like to prosecute" for some or any offense. These agencies perform a cursory check of the Republican-conservative and refer whatever best set of false charges they can find. Sometimes the charges might even be true, but they needn't be. After all, the government can and does win improper prosecutions routinely. The media push to brand all Republican's (with help from people like Reid and Pelosi) as evil criminals and enemies of the state, contributes to the "jury tampering" that enables prosecutors to get unfair convictions. Regardless whether the Republican-conservative is technically guilty or not, he is forced to defend himself, for years, in many cases and while defending himself, he isn't as effective in politics.
Look at a couple cases one not guilty and one technically guilty. First, Tom Delay. Delay was the third highest ranking congressman in the House. He was falsely-accused of money laundering and had to step-down. One false accusation and the Republican leadership was severely harmed, some argue, it never recovered from the loss of Tom Delay. House leadership replaced with big-government statists like Boehner and Cantor. Prosecutors did "indict a ham-sandwich" and Delay fought his legal battle for nine-long years before the system cleared him completely. Clearing completely is extremely difficult, because once the system gets hold, everyone involved likes to get a piece of the victim and at least leave the victim with some minor charge-conviction, so it can't be said pursuit was entirely misplaced. That nine-years of rabid attacks were somehow justified? But, that wasn't the case with Delay. He was completely exonerated.
The second case wasn't. Dinesh D'Souza is a conservative thinker and intellectual. His name was put into the shadowy clearing-house and referred for election law prosecution. A cursory look by investigators friendly to the Democrat cause showed Dinesh bundled some donations that were technical violations of an obscure law (that shouldn't be law in the first place, but that's another story). Dinesh was technically guilty, but he wasn't treated equitably, because not everyone is scrutinized equally. So, what we end up with is Republican-conservatives cowering and running scared to do anything at all. Scared to do anything political, but also afraid to do anything in their personal or business lives either. Meanwhile Democrats run wild, fearing nothing.
The clearing-house has friends in the EPA, IRS (of course), DOJ, DOE, DCAA, Fish & Game and many others. These agencies and many more are processing thousands of Republican-conservative names every year. Falsely-accusing them and forcing their heads-down. Republicans, especially donors are rightly afraid to participate in the democratic process. This chilling-effect is unlawful and unhealthy for democracy. It's led to an unnatural and improper liberal bias in government. Democrats are more liberal than they'd otherwise be and Republican's are more statist, central controllers than they'd otherwise be. It taints the entire political process in America.
The clearing-house needs to be exposed and every single tentacle, in every single government agency excised.