Dispute Over Presidential Authority Prompts Resignation of IRS Chief Counsel
A key legal figure at the Internal Revenue Service (IRS) is resigning, sparking questions about the Trump administration’s influence over the nation’s tax collection agency. Ken Kies, who served as the acting chief counsel to the IRS, is reportedly stepping down following disagreements concerning a controversial legal settlement and the handling of tax audits.
Reports indicate Mr. Kies strongly advised against any White House attempts to direct IRS tax audits. Federal law clearly states that presidents and their staff cannot request that the IRS start or stop an audit of any specific taxpayer. This rule exists to prevent leaders from using tax investigations as political tools against opponents, a concern raised in the past, including during Richard Nixon’s presidency.
The disagreements reportedly include a proposed settlement that would have granted former President Donald Trump and his family immunity from future IRS audits. This deal was part of a lawsuit Mr. Trump filed against the IRS, seeking $10 billion, following a leak of his tax returns in 2017.
A U.S. District Judge last week rejected the settlement, calling it “government self-dealing” and noting it went against the Internal Revenue Code’s prohibition on executive interference in audits. The judge stated that allowing such a demand would contradict the duties of Justice Department attorneys and the IRS to uphold the law and protect public interest.
Mr. Kies reportedly refused to work on this controversial settlement. Sources also suggest he differed from the administration on other tax policies, such as specific tax breaks for landowners. Another high-ranking Treasury official, Brian Morrissey, previously resigned in May over the same settlement deal.
The former president has faced scrutiny over accusations of attempting to use the IRS for personal or political gain, including threats to revoke Harvard University’s tax-exempt status. The resignation of a senior legal official highlights ongoing tensions surrounding the independence of federal agencies.
