A former deputy to Lois Lerner, who was in charge of the IRS division accused of targeting conservative groups during the Obama administration, has been placed on leave. This action was taken after concerns were raised by lawmakers that a new sub-department she was leading was becoming overly politicized.
In 2013, Lerner faced Congress and it was revealed that the IRS had unfairly scrutinized tax-exempt applications with keywords like “Tea Party,” “9/12,” and “Constitution.” The Treasury’s inspector general later confirmed that inappropriate criteria were used to target conservative groups and criticized the lack of oversight regarding systemic bias.
Holly Paz, the former deputy to Lerner, was placed on leave last week as lawmakers brought attention to a new work-unit aimed at auditing pass-through businesses, created by Biden-era Commissioner Danny Werfel and led by Paz. This move was intended to hold the nation’s wealthiest filers accountable.
Lawmakers expressed concerns that the pass-thru-business compliance unit had shifted its focus from sound tax administration principles to ideology. They warned that the unit was unfairly targeting Main Street businesses, including family-owned businesses, professional services firms, and real estate ventures that are vital to local economies.
Paz’s team was accused of making political comments and jokes that undermined their impartiality. Lawmakers raised concerns about the enforcement of a Biden-era “basis-shifting transaction rule” that extended the scope of IRS enforcement.
Chuck Flint, a former aide to a senator, criticized Paz’s targeting of conservative groups, calling her unfit for government service. He stated that the Biden-era pass-through unit was imposing fines on conservative businesses and should be disbanded.
Lawmakers also criticized IRS changes that seemed to focus on increasing audits rather than improving compliance. They raised concerns about the lack of clear definitions and the potential unfair targeting of legitimate business structures based on legal technicalities.
In conclusion, lawmakers are taking action to address concerns about the politicization and unfair targeting of businesses by the IRS. The focus is on ensuring clear and consistent tax rules that support businesses and comply with the law. Republican lawmaker Kevin Brady from Texas criticized Democrats, saying they should be just as upset as Republicans about a certain issue. Fox News Digital attempted to contact the Treasury, the IRS, and an email associated with Paz for a response.
Charles Creitz, a reporter for Fox News Digital, has been with Fox News since 2013 in various roles. Charles focuses on covering media, politics, and culture for the digital platform. He is originally from Pennsylvania and holds a B.A. in Broadcast Journalism from Temple University. For story tips, reach out to charles.creitz@fox.com.
