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By Suzanne Blake
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Senate Democrats are calling for an investigation into whether Trump administration officials improperly interfered with Internal Revenue Service audits.
A new letter published Tuesday from Senate Finance Committee Democrats and Senate Democratic Leader Chuck Schumer to the Treasury Inspector General for Tax Administration (TIGTA) warned that recent reports raise concerns about the independence of the nation's tax agency.
The lawmakers asked investigators to examine allegations that senior Treasury Department and IRS official Kenneth Kies was forced out after raising concerns about potential political influence over tax audits.
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“As the IRS’ Acting Chief Counsel, Mr. Kies was the chief adviser to the IRS on all legal matters, including matters pertaining to § 7217, and was better suited than anyone else in the administration to advise as to whether a particular request or set of requests risked violating the law,” the lawmakers wrote.
“If recent reporting is accurate and Mr. Kies did in fact advise White House officials of such risks, it is gravely concerning that this administration chose not only to ignore the IRS’ top legal adviser, but to fire him for attempting to follow the law and protect taxpayers,” they added.
Why It Matters
The letter was sent after reports that Kies, who served as assistant secretary for tax policy at the Treasury Department and acting chief counsel at the IRS, left his position after clashes involving concerns about White House involvement in IRS audit matters.
Federal law generally prohibits senior executive branch officials from directing the IRS to open, close or influence specific tax audits or investigations.
Any violation of those protections could undermine public trust in the IRS and raise questions about whether the tax system is being administered fairly.
“The question isn't whether this letter gets investigated,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek. “It's whether the law protecting taxpayers from a weaponized IRS still means anything.”
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What To Know
According to the Senate Finance Committee, the lawmakers requested an investigation into "alarming reports about White House officials potentially violating a federal law prohibiting senior officials from influencing federal tax audits."
The letter raises a concern that Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, said “should matter regardless of politics, which is that Americans should expect the IRS to enforce the tax code impartially and free from any outside pressure.”
“These particular allegations involve potential violations of longstanding legal safeguards designed to insulate tax audits from any type of political interference, although whether one is ultimately opened will depend on actual evidence that is available to investigators,” Beene told Newsweek.
What the Democrats Are Alleging
In the letter, Democrats asked TIGTA to investigate whether White House officials attempted to influence IRS audits or investigations and whether Kies was removed after objecting to such efforts.
"We write to request an investigation into alarming reports about White House officials potentially violating a federal law prohibiting senior officials from influencing federal tax audits, including reports that a top official serving the Treasury Department and Internal Revenue Service (IRS) was forced out of the administration after raising concerns about those potential violations," the lawmakers wrote.
The request was prompted by reports that Kies raised concerns during discussions with White House officials about legal restrictions on political involvement in IRS audits.
“It is important that any allegations of wrongdoing within the government are investigated,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. “That is exactly why we have checks and balances in place, to ensure no agency or official is above the law. If these reports are accurate, they deserve a full and independent review.”
Newsweek reached out to the IRS and White House for comment.
What Has the Trump Administration Said?
A White House official confirmed that Kies left his position but disputed suggestions that the move was related to concerns about IRS independence.
An unidentified White House official previously told Minnesota Lawyer that the reason for Kies’ departure was because “Ken was not a team player and was extremely difficult to work with.”
Kies previously released a statement expressing gratitude for the opportunity to serve and said he would continue supporting President Donald Trump's economic agenda from the private sector.
Because the executive branch is ultimately under the Trump administration, Thompson said an actual open investigation into the matter is unlikely.
“Given that reality, I don't foresee a meaningful investigation taking place,” Thompson said. “If one does occur, I believe it will be limited in scope and short-lived. Whether justified or not, I simply don't think this administration is likely to aggressively investigate itself.”
Full List of Senators Who Signed the Letter
The letter was led by Ranking Member Ron Wyden and Senate Democratic Leader Chuck Schumer and signed by 11 additional senators:
- Ron Wyden (D-Ore.)
- Chuck Schumer (D-N.Y.)
- Michael Bennet (D-Colo.)
- Mark Warner (D-Va.)
- Sheldon Whitehouse (D-R.I.)
- Maggie Hassan (D-N.H.)
- Catherine Cortez Masto (D-Nev.)
- Elizabeth Warren (D-Mass.)
- Bernie Sanders (I-Vt.)
- Tina Smith (D-Minn.)
- Ben Ray Luján (D-N.M.)
- Raphael Warnock (D-Ga.)
- Peter Welch (D-Vt.)
What Happens Next
The immediate question is whether TIGTA, the independent watchdog responsible for overseeing tax administration, will open a formal investigation.
If investigators proceed, they could examine whether any communications between White House officials and IRS personnel violated federal rules designed to shield tax enforcement decisions from political influence.
“In recent decades, we've seen accusations from both political sides of the IRS being used as a weapon against individuals,” Beene said. “Public confidence in the tax system depends on taxpayers believing that audits are driven by the law rather than politics, and if that confidence decreases, voluntary compliance becomes much harder to maintain.”
Contact Newsweek editors on this story: Jason Lemon and Cristina Diciu.
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