❓WHAT HAPPENED: Holly Paz, a former deputy to Lois Lerner during the Obama-era IRS targeting scandal, was placed on leave following concerns raised by lawmakers over the politicization of a new IRS sub-department she was leading.
👤WHO WAS INVOLVED: Holly Paz, former IRS Commissioner Danny Werfel, Sen. Marsha Blackburn, Sen. Joni Ernst, Rep. Lloyd Smucker, and current IRS Commissioner Billy Long.
📍WHEN & WHERE: Paz was placed on leave last week, following months of scrutiny and letters to the Treasury Department from lawmakers. The events span multiple years, including the former Obama and Biden governments.
🎯IMPACT: Lawmakers have raised concerns about the IRS’s impartiality, the potential misuse of taxpayer funds, and the targeting of conservative businesses, echoing previous IRS scandals.
Holly Paz, a former deputy to Lois Lerner during the Obama-era IRS targeting scandal, has been placed on leave after lawmakers raised concerns about a new IRS sub-department she was leading. Paz had been assigned to oversee a unit aimed at auditing pass-through businesses, a move announced by Biden-era IRS Commissioner Danny Werfel. At the time, Werfel described the unit as a step toward holding the nation’s wealthiest filers accountable.
Lawmakers, however, have criticized the new unit as being ideologically driven. Sen. Marsha Blackburn (R-TN) and Senate Majority Whip John Barrasso (R-WY) warned in May that the unit was targeting Main Street businesses, including family-owned ventures and professional services firms. Sen. Joni Ernst (R-IA) also raised concerns about the unit’s impartiality, citing political comments made by Paz’s team and their use of templates with names referencing political rhetoric.
Rep. Lloyd Smucker (R-PA) expressed alarm over a Biden-era rule extending the scope of enforcement, which he argued burdens small businesses. “American taxpayers and businesses deserve clear and consistent tax rules that allow them to confidently comply with the law,” Smucker wrote in a letter to the newly appointed IRS Commissioner Billy Long, calling for a reconsideration of the rule.
Blackburn and Ernst have both noted that the new unit duplicates existing IRS processes, potentially wasting taxpayer money. Blackburn further highlighted that the unit’s focus on increasing audits rather than improving compliance suggests an agenda-driven approach to enforcement.
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