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Former deputy of Lois Lerner, who oversaw the IRS division, accused of targeting conservative groups during the Obama era, was placed on leave after raising warnings that the new sub-department she is heading was being politicized.
In 2013, Lerner was taken to the front of Congress and it was revealed that her agency had mistakenly scrutinized tax exemptions related to the phrases “tea party,” “9/12,” and “Constitution.” Treasury inspectors later confirmed that “inappropriate standards” were used to target conservative groups and criticised the inefficient surveillance of systematic bias.
Last week, IRS commissioner for Lerner’s then deputy, Holly Paz, took the leave last week as lawmakers focused on the lower working units intended for the pass-through business that had been created by MP Danny Wafer and assigned her to lead.
welfel has announced a new work unit, “Ensured”[ing] The IRS is accountable to the wealthiest filers in the country,” Pas called it a “significant change” in the IRS structure.
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Exterior of the Internal Revenue Service building in Washington, DC (AP Photo)
But by 2025, R-Tenn. Senators, including Senator Marsha Blackburn, warned that the Pass-Through Business Compliance Unit has transformed it as “motivated by ideology rather than sound tax management principles.”
“Pass-through entities form a large portion of the main street business across the country, including countless family businesses, professional services companies and real estate ventures that serve as the backbone of the local economy.”
Around that time, Sen. Joni Ernst of R-Iowa warned Treasury Secretary Scott Bescent that the Pass team would include “their hopes “again, great”” including the phrase “loss tax/President Donald Trump’s Magger slogan.”
In that respect, Rep. Lloyd Smucker, R-Pa. wrote to IRS Commissioner Billy Long in July that the “Basic Shift Trading Rules” during the Biden era “extended the scope of enforcement.”
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Lois Lerner testifies. (AP file)
“American taxpayers and businesses deserve clear and consistent tax rules that allow them to confidently adhere to the law,” Smacker wrote, and he, and Congressman Mike Kelly (R-Pa.) are trying to “rethink” the rules to secure the “Main Street” business.
Chuck Flint, former top aide for Blackburn and president of the IRS Alliance for Accountability, told Fox News Digital on Tuesday that targeting Paz’s past conservative groups “isn’t suited to government services.”
Flint said her statement to Congress and her role as LB&I chief “puts the cloud above the IRS.”
“The Biden-era pass-through unit of Puzz now needs to hit conservative businesses with fines and break up. Long committee members are signaling fraudulent bureaucrats by bending their muscles in the IRS deep state and putting Puzz on vacation.”
Blackburn warned in a letter to Bessent that there was no clear definition in IRS news releases targeting “complex arrangements,” creating the impression that legitimate business structures could be unfairly targeted based on legal structures and actual tax compliance risks.
“The announcement, which is even more concerned, explicitly states that bureaucratic changes were primarily designed to “achieve increased audit rates in this complex region.” ”
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Former Congressman Billy Long, R-Mo. , President Donald Trump’s candidate has become a member of the Internal Revenue Service. (Andrew Harnik/Getty Images)
“Focusing on increasing audits rather than improving compliance suggests an agenda-driven approach to enforcement,” Blackburn said.
In her letter, Ernst warned Bescent that Pass’s team members “harm the emergence of fairness by comparing legally acceptable transactions with obscene material,” and said, “that’s what you know when you see it” – joking. [Supreme Court Justice Potter Stewart’s] You try to define porn.
“The team is reportedly acting independently, replicating existing IRS processes, wasting taxpayer money and not coordinating with existing offices,” Ernst said.
“In most cases, new pass-through auditors use new templates to request taxpayer information they deemed “the art of IDR” (‘art of contracts’).
“Unfortunately, the Biden administration picked up where Lerner and her team left off. On September 20, 2023, then-chairman Daniel Warfel announced the creation of a new overlapping work unit, a language similar to the Democrats’ topic. [led by Paz] Concretely audit pass-through businesses and partnerships. The new office potentially levies these businesses into two separate IRS exams in the same year.
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“I think Commissioner Werfel will be quite a long way to avoid going back to his previous scandal. Instead, he hit the taxpayers with Holly Pass, the agent of Lois Lerner, in Helm,” Ernst wrote.
Lerner was at the fore and back center during the Obama-era scandal, flooding with reports of testifying before Congress as head of tax-free organisational divisions, targeting nonprofits in the bottom right.
During a 2013 investigation by the House Oversight Committee, R-Ohio Rep. Jim Jordan and R-Caliph Darrell Issa requested PAZ’s answer to the “contradiction” from transcribed interviews with committee staff, including a statement about “intervention” in Tea Party Group.
A 2015 report by then-Religious Finance Committee leaders, Orrin Hatch and Ronald Wyden (D-ARE) of R-UTAH, found that in other cases, several liberal terms have also been flagged, including “Acorn,” “Progressive,” and “Medical Marijuana.”
“Though inadequately processed, groups on both sides of the political spectrum were treated the same way in their efforts to ensure tax-free status,” Wyden said during the time. R-Texas Kevin Brady said Democrats should be as outraged as Republicans.
Fox News Digital has contacted the IRS connected to Paz for comments and email.
Charles Kraitz is a reporter for Fox News Digital.
He joined Fox News in 2013 as a writer and production assistant.
Charles covers the media, politics and culture of Fox News Digital.
Charles is a Pennsylvania native and graduated from Temple University with a Bachelor of Arts in Broadcast Journalism. Story tips can be sent to charles.creitz@fox.com.
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