Kenneth Kies has been forced out as the acting chief counsel for the Internal Revenue Service (IRS) and assistant secretary for tax policy at the Treasury Department after clashes with Trump administration officials over potential violations of laws prohibiting White House interference in tax audits. According to The Wall Street Journal and Reuters, Kies warned that requests from the White House could violate Section 7217 of the Internal Revenue Code, which forbids executive branch officials from influencing IRS investigations.
Key Takeaways
Kenneth Kies has been forced out as IRS acting chief counsel after clashes with Trump administration officials over potential violations of laws prohibiting White House interference in tax audits. The dispute centers on a law forbidding executive branch officials from influencing IRS investigations, with Kies reportedly refusing to comply with requests he deemed unlawful.
- Kenneth Kies ousted as IRS acting chief counsel amid disputes with the Trump administration
- Kies warned that White House demands could violate laws against political interference in tax audits
- The conflict involved Section 7217 of the Internal Revenue Code, which prohibits executive branch officials from influencing IRS investigations
- Kies is expected to leave his position in mid-August, with James Gadwood nominated as his replacement
Source Claims Check
High Consensus| Claim | Status | Reason | |
|---|---|---|---|
| Kies Departure Reason | Broad Agreement | clashes with white house over audit requests | |
| Law Violated By White House Demands | Broad Agreement | section 7217 of the internal revenue code | |
| Kies Expected Departure Date | Broad Agreement | mid-august |
Kies reportedly clashed with administration officials over their demands to participate in tax audits, telling them that such requests would violate the law. The conflict involved a law designed to insulate the tax system from political interference, and Kies' team frequently refused work related to a controversial settlement struck by the Justice Department to grant Trump, his family, and businesses broad immunity from tax scrutiny.
Kies is expected to leave his position in mid-August. According to The Wall Street Journal, he will likely depart the administration around that time. President Donald Trump has nominated James Gadwood, a tax attorney at law firm Miller & Chevalier, to replace Kies as the IRS's top lawyer and an assistant general counsel at the Treasury.
Kies had previously worked as Trump's personal tax lawyer before joining his administration. He recused himself from matters surrounding Trump’s taxes but played a crucial role in implementing Trump’s agenda, including drafting guidance for regulations eliminating certain taxes on tips and overtime wages, and corporate incentives around energy production.
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