Posts tagged with "Tax returns"

House Democrats file suit in federal court for President Trump’s tax returns

July 3, 2019

It has been nearly two months since Treasury Secretary Steven Mnuchin, in a letter to House Ways and Means Committee Chairman Richard Neal (D-Massachusetts), evaded Democrats’ request for President Trump’s tax returns—facetiously saying that the financial information could not be released in light of “serious issues” about whether their demand was proper.

A May subpoena from the panel also was treated as inconsequential.

As of July 2, Neal said he had no choice but to file suit in federal court in order to compel the Internal Revenue Service to turn over the records.

“In refusing to comply with the statute, Defendants have mounted an extraordinary attack on the authority of Congress to obtain information needed to conduct oversight of Treasury, the IRS, and the tax laws on behalf of the American people,” the lawsuit (Case No. 1:19-cv-1974)—filed against the U.S. Department of the Treasury, the Internal Revenue Service, Steven T. Mnuchin, and IRS Commissioner Charles P. Rettig in the U.S. District Court for the District of Columbia— says.

Neal is seeking the President’s tax returns using an arcane IRS provision known as 6103, which allows the chairmen of the House Ways and Means Committee and the Senate Finance Committee to request and obtain an individual’s tax information for a legitimate legislative purpose.

According to a report by Politico, Trump lawyer Jay Sekulow had a terse response to the suit.

“We will respond to this latest effort at presidential harassment in court,” he said.

And that may be sooner than he thinks: While the fight over Trump’s taxes could be lengthy, with the administration likely to try to drag out the proceedings beyond next year’s elections, Politico said that “some see signs the courts are trying to move quickly on the oversight challenges.”

“They’re not unaware the administration is throwing up roadblocks at every conceivable opportunity and I think they understand that the system itself is under stress,” Kerry Kircher, who was the House’s general counsel from 2011 to 2016 and deputy counsel from 1996 to 2010, told the political news outlet, adding, “The judiciary is aware of the need for some expedition here, and that we can’t go through the usual processes where it takes a couple years for these cases to work themselves out.”

Neal asked the court for a speedy decision, reminding it that sessions of Congress only run two years.

“If this Court does not redress Defendants’ noncompliance quickly, the Committee will be unable to fulfill its essential role of overseeing the Executive Branch or to carry out its constitutional obligation to legislate,” the suit says.

Research contact: @politico

Tussle over taxes: Mnuchin says Treasury Department won’t release Trump’s returns

April 12, 2019

In a move that bowed to the president rather than American values, the Treasury Department refused to hand over the Donald Trump’s tax returns by the April 10 deadline that had been specified by the House Ways and Means Committee, NBC News reports.

On the one hand, the House committee asserted that § 6103 of the Internal Revenue Code clearly states that it is entitled to receive the tax returns.

Indeed, the law dictates: “Upon written request from the chairman of the Committee on Ways and Means of the House of Representatives, the chairman of the Committee on Finance of the Senate, or the chairman of the Joint Committee on Taxation, the Secretary [of the Treasury]shall furnish such committee with any return or return information specified in such request….”

On the other hand, Treasury Secretary Steven Mnuchin, in a letter to Ways and Means Committee Chairman Richard Neal (D-Massachusetts), said that the Treasury was continuing to review Democrats’ request in light of “serious issues” about whether the request is proper.

Neal said in a brief statement only that he had received Mnuchin’s letter and that he was consulting with legal counsel, promising a response “in the coming days.”

In filing a formal request with the Treasury Department last week, Neal had said, “I am certain we are within our legitimate legislative, legal and oversight rights.”

Mnuchin said at a Ways and Means hearing last month that he would protect Trump’s privacy.

 His letter went further, according to NBC News, claiming, “”The legal implications of this request could affect protections for all Americans against politically motivated disclosures of personal tax information, regardless of which party is in power.” Mnuchin said he was consulting with the Justice Department about the legality and constitutionality of Neal’s request.

Mnuchin said that “for the same reasons,” he intended to supervise the department’s review personally.

The president, himself, has insisted that his tax returns are under audit and cannot be released for that reasons. However, according to the network news outlet, tax experts have said that, even if he is under audit, there’s nothing to stop Trump from releasing his returns.

Representative Kevin Brady of Texas, the ranking Republican on Neal’s committee, welcomed Mnuchin’s letter, warning that the request “sets a dangerous precedent.”

“The tax code must not to be used for political fishing expeditions,” Brady said. “The Treasury Department is right to carefully review the privacy impact this request would have on every taxpayer.”

If the request continues to be denied, NBC News said, Democrats could consider legal action.

Separately, Democrats in New York, the president’s home state, introduced a bill in the legislature on Monday that would allow the state to release any state tax return requested by the three congressional committees. The bill would apply only to Trump’s state returns—not to the federal returns that Neal is seeking—but because the president’s businesses are based there, his New York returns are thought to be likely to include much of the same information.

Research contact: @NBCNews