Case 1:19-cv-01974-TNM Document 44 Filed 09/06/19 Page 1 of 74

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
_______________________________________
)
COMMITTEE ON WAYS AND
)
MEANS, UNITED STATES HOUSE
)
OF REPRESENTATIVES,
)
)
Plaintiff,
)
)
v.
)
) No. 1:19-cv-1974 (TNM)
UNITED STATES DEPARTMENT
)
OF THE TREASURY, et al.
)
)
Defendants,
)
)
DONALD J. TRUMP, et al.,
)
)
Defendant-Intervenors.
)
)
DEFENDANTS’ AND DEFENDANT-INTERVENORS’ MOTION TO DISMISS
Pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6), Defendants and
Defendant-Intervenors, through their undersigned counsel, respectfully move the Court to dismiss
the above-captioned action. The grounds for this motion are set forth in the accompanying
memorandum of points and authorities in support of the motion, as well as the declarations of
Frederick W. Vaughan and Sunita Lough (and the exhibits thereto). A proposed order is submitted
herewith.
Dated: September 6, 2019

Respectfully submitted,
JOSEPH H. HUNT
Assistant Attorney General
JAMES M. BURNHAM
Deputy Assistant Attorney General
ELIZABETH J. SHAPIRO
Deputy Director

 Case 1:19-cv-01974-TNM Document 44 Filed 09/06/19 Page 2 of 74

JAMES J. GILLIGAN
Special Litigation Counsel
/s/
Steven A. Myers
STEVEN A. MYERS (NY Bar No. 4823043)
SERENA M. ORLOFF (CA Bar No. 260888)
ANDREW BERNIE (DC Bar No. 995376)
Trial Attorneys
United States Department of Justice
Civil Division, Federal Programs Branch
P.O. Box 883
Washington, D.C. 20044
Tel: (202) 305-0648
Fax: (202) 305-8470
Email: Steven.A.Myers@usdoj.gov
Attorneys for Defendants
/s/
William S. Consovoy
William S. Consovoy (D.C. Bar #493423)
Cameron T. Norris
Steven C. Begakis
CONSOVOY MCCARTHY PLLC
1600 Wilson Boulevard, Suite 700
Arlington, VA 22209
(703) 243-9423
will@consovoymccarthy.com
Patrick Strawbridge
CONSOVOY MCCARTHY PLLC
Ten Post Office Square, 8th Floor
South PMB #706
Boston, Massachusetts 02109
(617) 227-0548
Attorneys for Defendant-Intervenors

 Case 1:19-cv-01974-TNM Document 44 Filed 09/06/19 Page 3 of 74

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
_______________________________________
)
COMMITTEE ON WAYS AND
)
MEANS, UNITED STATES HOUSE
)
OF REPRESENTATIVES,
)
)
Plaintiff,
)
)
v.
)
) No. 1:19-cv-1974 (TNM)
UNITED STATES DEPARTMENT
)
OF THE TREASURY, et al.
)
)
Defendants,
)
)
DONALD J. TRUMP, et al.,
)
)
Defendant-Intervenors.
)
)
MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF
DEFENDANTS’ AND DEFENDANT-INTERVENORS’ MOTION TO DISMISS

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TABLE OF CONTENTS
TABLE OF AUTHORITIES ...................................................................................................... iii
INTRODUCTION......................................................................................................................... 1
BACKGROUND ........................................................................................................................... 4
I.

II.

Statutory and Regulatory Background........................................................................... 4
A.

History of Section 6103 of the Tax Code. .............................................................. 4

B.

The Current Framework. ......................................................................................... 6

This Lawsuit ...................................................................................................................... 7
A.

Prior Efforts to Compel Release of the President’s Tax Returns............................ 7

B.

Chairman Neal Invokes Section 6103(f) to Demand the President’s Tax Returns. 9

C.

The June 10 Briefing and Aftermath. ................................................................... 12

LEGAL STANDARD ................................................................................................................. 13
ARGUMENT ............................................................................................................................... 13
I.

The Court Should Dismiss This Case for Lack of Subject Matter Jurisdiction. ...... 13
A.

The Court Lacks Jurisdiction under Article III. .................................................... 14
1.

This Dispute Is Not of the Type Traditionally Thought Capable of
Resolution Through the Judicial Process. .................................................... 15

2.

The Committee Fails to State a Cognizable Injury. ..................................... 18

3.

Lawsuits of This Kind Imperil the Constitution’s Allocation of Power
Among the Branches of the Federal Government. ...................................... 23

4.

The House of Representatives Cannot Authorize a Lawsuit Without
Specifically Voting to Do So. ...................................................................... 26

B.

The Court Lacks Statutory Subject Matter Jurisdiction. ....................................... 29

C.

Decisions Suggesting that Subpoena Enforcement Suits Are Justiciable Either
Have Been Abrogated By Raines v. Byrd or Were Wrongly Decided. ................ 32
1.

Cases Pre-Dating Raines v. Byrd Are No Longer Good Law. ..................... 32

2.

The Two Cases Post-Dating Raines Were Wrongly Decided. .................... 34

II.

In Light of Separation of Powers Concerns, This Court Should Refuse to Grant the
Committee’s Request for Relief in Order to Allow the Constitutionally Mandated
Accommodation Process to Proceed.............................................................................. 38

III.

This Case Must Be Dismissed for Failure to State a Claim on Which Relief Can Be
Granted. ........................................................................................................................... 44
A.

The Committee Lacks a Cause of Action to Enforce Its Subpoenas (Count I) and
Section 6103(f) Requests (Count VII). ................................................................. 44

B.

The APA Claims (Counts II-V) Fail as a Matter of Law. ..................................... 47
i

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1.

APA Review Is Precluded by Statute. ......................................................... 48

2.

Declining to Provide Information to Congress Is Not “Agency Action”
Under the APA............................................................................................. 52

3.

The Committee Is Not a “Person” Within the Meaning of the APA. .......... 54

C.

The Committee’s Mandamus Claim (Count VI) Fails as a Matter of Law. ......... 56

D.

The Non-Statutory Review Claim (Count VIII) Fails as a Matter of Law. .......... 58

ii

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TABLE OF AUTHORITIES
CASES
*Alexander v. Sandoval,
532 U.S. 275 (2001) ............................................................................................................ 44, 46
*Ali v. Rumsfeld,
649 F.3d 762 (D.C. Cir. 2011) .................................................................................................. 47
Allen v. Wright,
468 U.S. 737 (1984) .................................................................................................................... 2
Am. Hosp. Ass’n v. Burwell,
812 F.3d 183 (D.C. Cir. 2016) ............................................................................................ 56, 57
Am. Hosp. Ass’n v. Price,
867 F.3d 160 (D.C. Cir. 2017) .................................................................................................. 56
Am. Trucking Ass’n v. United States,
755 F.2d 1292 (7th Cir. 1985) .................................................................................................. 53
*Ariz. State Legislature v. Ariz. Indep. Redistricting Comm’n,
135 S. Ct. 2652 (2015) .............................................................................................................. 14
Armstrong v. Bush,
924 F.2d 282 (D.C. Cir. 1991) ............................................................................................ 49, 56
Armstrong v. Exceptional Child Ctr., Inc.,
135 S. Ct. 1378 (2015) .............................................................................................................. 46
Ashcroft v. Iqbal,
556 U.S. 662 (2009) .................................................................................................................. 13
Barenblatt v. United States,
360 U.S. 109 (1959) .................................................................................................................. 25
*Barnes v. Kline,
759 F.2d 21 (D.C. Cir. 1984) ............................................................................................. passim
Bell Atl. Corp. v. Twombly,
550 U.S. 544 (2007) .................................................................................................................. 13
Bilski v. Kappos,
561 U.S. 593 (2010) .................................................................................................................. 32
*Block v. Cmty. Nutrition Inst.,
467 U.S. 340 (1984) ........................................................................................................... passim

iii

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Bowsher v. Synar,
478 U.S. 714 (1986) ............................................................................................................ 24, 55
Buckley v. Valeo,
424 U.S. 1 (1976) ................................................................................................................ 24, 54
C & E Servs., Inc. of Wash. v. D.C. Water & Sewer Auth.,
310 F.3d 197, 201 (D.C. Cir. 2002) .......................................................................................... 47
Campbell v. Clinton, 52 F. Supp. 2d 34 (D.D.C. 1999),
aff’d, 203 F.3d 19 (D.C. Cir. 2000) .......................................................................................... 24
*Campbell v. Clinton,
203 F.3d 19 (D.C. Cir. 2000) .............................................................................................. 24, 25
Cause of Action Inst. v. Eggleston,
224 F. Supp. 3d 63 (D.D.C. 2016) ............................................................................................ 58
*Chenoweth v. Clinton,
181 F.3d 112 (D.C. Cir. 1999) ...................................................................................... 15, 33, 38
Clapper v. Amnesty Int’l USA,
568 U.S. 398 (2013) .................................................................................................................. 14
Clinton v. City of New York,
524 U.S. 417 (1998) .................................................................................................................. 36
Coleman v. Miller,
307 U.S. 433 (1939) .................................................................................................................. 21
Comm. on Oversight & Gov’t Reform v. Holder,
979 F. Supp. 2d 1 (D.D.C. 2013) ............................................................................ 28, 34, 36, 37
Comm. on the Judiciary v. Miers,
558 F. Supp. 2d 53 (D.D.C. 2008) ..................................................................................... passim
Consumer Energy Council of Am. v. Fed. Energy Regulatory Comm’n,
673 F.2d 425 (D.C. Cir. 1982) .................................................................................................. 55
*Cummings v. Murphy,
321 F. Supp. 3d 92 (D.D.C. 2018) ..................................................................................... passim
Dart v. United States,
848 F.2d 217 (D.C. Cir. 1988) .................................................................................................. 59
Dellmuth v. Muth,
491 U.S. 223 (1989) .................................................................................................................. 56
Dep’t of State v. Treasure Salvors, Inc.,
458 U.S. 670 (1982) .................................................................................................................. 59
iv

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Director, Office of Workers’ Compensation Programs v. Newport News Shipbuilding,
514 U.S. 122 (1995) .................................................................................................................. 54
Elec. Privacy Info. Ctr. v. IRS,
910 F.3d 1232 (D.C. Cir. 2018) .................................................................................................. 6
Farrington v. Nielsen,
297 F. Supp. 3d 52 (D.D.C. 2018) ............................................................................................ 46
Fed. Election Comm’n v. Akins,
524 U.S. 11, (1998) ............................................................................................................. 19, 20
Franklin v. Massachusetts,
505 U.S. 788 (1992) .................................................................................................................. 56
Gonzaga Univ. v. Doe,
536 U.S. 273 (2002) .................................................................................................................. 44
Griffith v. FLRA,
842 F.2d 487 (D.C. Cir. 1988) .................................................................................................. 59
Grupo Mexicano de Desarrollo, S.A. v. All. Bond Fund, Inc.,
527 U.S. 308 (1999) .................................................................................................................. 46
*Guerrero v. Clinton,
157 F.3d 1190 (9th Cir. 1988) .................................................................................................. 53
Harrington v. Bush,
553 F.2d 190 (D.C. Cir. 1977) .................................................................................................. 21
Havens Realty Corp. v. Coleman,
455 U.S. 363 (1982) ............................................................................................................ 19, 20
Heckler v. Chaney,
470 U.S. 821 (1985) .................................................................................................................. 51
Heikkila v. Barber,
345 U.S. 229 (1953) .................................................................................................................. 49
Howard v. Pritzker,
775 F.3d 430 (D.C. Cir. 2015) .................................................................................................. 30
In re Application of the U.S. Senate Permanent Subcomm. on Investigations,
655 F.2d 1232 (D.C. Cir. 1981) .......................................................................................... 31, 32
In re Cheney,
406 F.3d 723 (D.C. Cir. 2005) .................................................................................................. 57
INS v. Chadha,
462 U.S. 919 (1983) ............................................................................................................ 25, 27
v

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Int’l Union, Sec., Police & Fire Prof’ls of Am. v. Faye,
828 F.3d 969 (D.C. Cir. 2016) .................................................................................................. 45
Jesner v. Arab Bank PLC,
138 S. Ct. 1386 (2018) .............................................................................................................. 46
Jones v. United States,
526 U.S. 227 (1999) .................................................................................................................. 51
Keene Corp. v. United States,
508 U.S. 200 (1993) .................................................................................................................. 31
Lovitky v. Trump,
No. CV 19-1454 (CKK), 2019 WL 3068344 (D.D.C. July 12, 2019) ...................................... 57
McGrain v. Daugherty,
273 U.S. 135 (1927) ................................................................................................ 20, 25, 47, 57
Moore v. U.S. House of Representatives,
733 F.2d 946 (D.C. Cir. 1984) .................................................................................................. 24
Myers v. United States,
272 U.S. 52 (1926) .................................................................................................................... 24
Nat. Res. Def. Council v. Lujan,
768 F. Supp. 870, 882 (D.D.C. 1991) ....................................................................................... 53
*Nat. Res. Def. Council, Inc. v. Hodel,
865 F.2d 288 (D.C. Cir. 1988) ...................................................................................... 52, 53, 55
Nixon v. Sirica,
487 F.2d 700 (D.C. Cir. 1973) .................................................................................................. 16
Nyunt v. Chairman, Broad. Bd. of Governors,
589 F.3d 445 (D.C. Cir. 2009) ............................................................................................ 58, 59
Pennhurst State Sch. & Hosp. v. Halderman,
465 U.S. 89 (1984) ............................................................................................................... 58-59
Perez v. Mortg. Bankers Ass’n,
135 S. Ct. 1199 (2015) .............................................................................................................. 24
Physicians Nat’l House Staff Ass’n v. Fanning,
642 F.2d 492 (D.C. Cir. 1980) .................................................................................................. 59
Pittston Coal Grp. v. Sebben,
488 U.S. 105 (1988) .................................................................................................................. 58
Power v. Barnhart,
292 F.3d 781 (D.C. Cir. 2002) .................................................................................................. 56
vi

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Printz v. United States,
521 U.S. 898 (1997) .................................................................................................................. 18
Pub. Citizen v. U.S. Dep’t of Justice,
491 U.S. 440 (1989) ............................................................................................................ 19, 20
*Raines v. Byrd,
521 U.S. 811 (1997) ........................................................................................................... passim
*Reed v. Cty. Comm’r of Del. Cty, Pa.,
277 U.S. 376 (1928) ...................................................................................................... 44, 47, 50
Schroer v. Billington,
525 F. Supp. 2d 58 (D.D.C. 2007) ............................................................................................ 58
Senate Select Comm. on Presidential Campaign Activities v. Nixon,
498 F.2d 725 (D.C. Cir. 1974) .................................................................................................. 33
Skelly Oil Co. v. Phillips Petroleum Co.,
339 U.S. 667 (1950) .................................................................................................................. 47
Springer v. Gov’t of Philippine Islands,
277 U.S. 189 (1928) .................................................................................................................. 24
Steel Co. v. Citizens for a Better Env’t,
523 U.S. 83 (1998) .................................................................................................................... 33
Stockton E. Water Dist. v. United States,
583 F.3d 1344 (Fed. Cir. 2009)................................................................................................. 33
Switchmen’s Union of N. Am. v. Nat’l Mediation Bd.,
320 U.S. 297 (1943) .................................................................................................................. 52
Tax Analysts v. IRS,
117 F.3d 607 (D.C. Cir. 1997) ........................................................................................ 6, 58, 59
Taylor Bay Prot. Ass’n v. EPA,
884 F.2d 1073 (8th Cir. 1989) .................................................................................................. 53
Trudeau v. Fed. Trade Comm’n,
456 F.3d 178 (D.C. Cir. 2006) .................................................................................................. 58
U.S. Dep’t of Commerce v. U.S. House of Representatives,
525 U.S. 316 (1998) .................................................................................................................. 56
U.S. Ecology, Inc. v. U.S. Dep’t of Interior,
231 F.3d 20 (D.C. Cir. 2000) .................................................................................................... 13
*U.S. House of Representatives v. Mnuchin,
379 F. Supp. 3d 8 (D.D.C. 2019) ....................................................................................... passim
vii

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*United States v. AT&T,
551 F.2d 384 (D.C. Cir. 1976) ........................................................................................... passim
*United States v. AT&T,
567 F.2d 121 (D.C. Cir. 1977) ...................................................................................... 25, 39, 43
United States v. Mine Workers,
330 U.S. 258 (1947) .................................................................................................................. 54
United States v. Monzel,
641 F.3d 528 (D.C. Cir. 2011) .................................................................................................. 57
United States v. Nixon,
418 U.S 683 (1974) ................................................................................................................... 36
Vander Jagt v. O’Neill, Jr.,
699 F.2d 1166 (D.C. Cir. 1982) ................................................................................................ 38
*Virginia House of Delegates v. Bethune-Hill,
139 S. Ct. 1945 (2019) .................................................................................................. 18, 20, 26
Vt. Agency of Natural Res. v. United States ex rel. Stevens,
529 U.S. 765 (2000) ............................................................................................................ 18, 54
*Walker v. Cheney,
230 F. Supp. 2d 51 (D.D.C. 2002) ..................................................................................... passim
*Watkins v. United States,
354 U.S. 178 (1957) ................................................................................................ 20, 22, 57, 58
Whitman v. Am. Trucking Ass’ns,
531 U.S. 457 (2001) .................................................................................................................. 51
Whitmore v. Arkansas,
495 U.S. 149 (1990) .................................................................................................................. 23
Wilson v. United States,
369 F.2d 198 (1966) ............................................................................................................ 28, 50
Young v. U.S. ex rel. Vuitton et Fils S.A.,
481 U.S. 787 (1987) .................................................................................................................. 24
Ziglar v. Abbasi,
137 S. Ct. 1843 (2017) .............................................................................................................. 46
CONSTITUTIONAL PROVISIONS
U.S. Const. art. I, § 1..................................................................................................................... 20
U.S. Const. art. II, § 3 ................................................................................................................... 58
viii

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STATUTES
*2 U.S.C. § 192 ............................................................................................................. 2, 31, 49, 50
*2 U.S.C. § 194 ....................................................................................................................... 49, 50
2 U.S.C. § 288b ............................................................................................................................. 56
2 U.S.C. § 166(d) .......................................................................................................................... 51
2 U.S.C. § 601(d) .......................................................................................................................... 51
5 U.S.C. § 551(2) .............................................................................................................. 52, 54, 55
5 U.S.C. § 701(a)(1)...................................................................................................................... 48
5 U.S.C. § 702 ......................................................................................................................... 48, 54
5 U.S.C. § 704 ............................................................................................................................... 52
5 U.S.C. § 706(1) .......................................................................................................................... 48
26 U.S.C. § 6103 .................................................................................................................... passim
26 U.S.C. § 7426(a) ...................................................................................................................... 45
26 U.S.C. § 7431 ........................................................................................................................... 45
28 U.S.C. § 1331 .................................................................................................................... passim
28 U.S.C. § 1361 ..................................................................................................................... 29, 57
*28 U.S.C. § 1365 .................................................................................................................. passim
28 U.S.C. § 2201 ........................................................................................................................... 47
31 U.S.C. § 716(a) .................................................................................................................... 3, 51
Revenue Act of 1924,
Pub. L. No. 68-176, 43 Stat. 253 ................................................................................................ 5
Act of Dec. 18, 1973
Pub. L. No. 93-190, 87 Stat. 736 .......................................................................................... 3, 30
Act of Oct. 21, 1976,
Pub. L. No. 94-574, 90 Stat. 2721 ............................................................................................ 30
Tax Reform Act of 1976,
Pub. L. No. 94-455, 90 Stat. 1520 .............................................................................................. 5

ix

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Federal Question Jurisdictional Amendments Act of 1980,
Pub. L. No. 96-486, 94 Stat. 2369 ............................................................................................ 30
False Statements Accountability Act of 1996,
Pub. L. No. 104-292, 110 Stat. 3459 ........................................................................................ 30
Dep'ts of Commerce, Justice, & State, the Judiciary,
& Related Agencies Appropriations Act, 1998
Pub. L. No. 105–119, 111 Stat. 2440 (1997) ............................................................................ 45
LEGISLATIVE MATERIALS
*H.R. Rep. No. 95-1756 (1978) (Conf. Rep.)............................................................................... 37
H.R. Rep. No. 115-73 (2017) .......................................................................................................... 8
H.R. Rep. No. 115-309 (2017) ........................................................................................................ 8
H.R. Res. 980, 110th Cong. (2008)............................................................................................... 28
H.R. Res. 706, 112th Cong. (2012)............................................................................................... 28
H.R. Res. 430, 116th Cong. (2019)............................................................................................... 27
H.R. Res. 507, 116th Cong. (2019)............................................................................................... 27
H.R. Res. 509, 116th Cong. (2019)............................................................................................... 27
106 Cong. Record 16089 (daily ed. August 23, 1960) ................................................................. 27
Cong. Research Serv.,
Cong.’s Contempt Power and the Enforcement of Cong. Subpoenas 22-23 (2012) ............... 32
Congressional Committee’s Request for the President’s Tax Returns
Under 26 U.S.C. § 6103(f), 43 O.L.C. Op.__ .................................................................. 7, 8, 57
Joint Committee on Taxation, Background Regarding the Confidentiality and Disclosure
of Federal Tax Returns (Feb. 4, 2019) ................................................................................ 5, 7, 9
Legislative Proposals and Tax Law Related to Presidential and Vice-Presidential
Tax Returns: Hearing Before the Subcomm. on Oversight of the H. Comm.
on Ways & Means, 116th Cong., Serial No. 116-3 (Feb. 7, 2019) ........................................... 9
OTHER AUTHORITIES
Assertion of Exec. Privilege in Response to Congressional Subpoena,
5 Op. O.L.C. 27 (1981) ............................................................................................................ 17
Assertion of Exec. Privilege Regarding White House Counsel’s Office Docs.,
20 Op. O.L.C. 2 (1996) .............................................................................................................. 1
x

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Assertion of Exec. Privilege Over Comms. Regarding EPA’s Ozone Air Quality Standards
and Cal.’s Greenhouse Gas Waiver, 32 Op. O.L.C. 1 (2008) ................................................... 17
3 Hinds, Precedents of the House of Representatives.............................................................. 16-17
The Federalist No. 51 (James Madison) ......................................................................................... 1
The Federalist No. 78 (Alexander Hamilton) .............................................................................. 15
David Carpenter et al., Cong. Research Serv.,
Congressional Access to the President’s Federal Tax Returns (Mar. 15, 2019)......................... 9
George K. Yin, Preventing Congressional Violations of Taxpayer Privacy,
69 Tax Lawyer 103 (2015) ................................................................................................. 4, 5, 6
History of Refusals by Executive Branch Officials to Provide Info. Demanded by Congress:
Part I – Presidential Invocations of Exec. Privilege Vis-À-Vis Congress,
6 Op. O.L.C. 751, 753 (1982) .................................................................................................. 16
Mark J. Rozell, Executive Privilege: The Dilemma of Secrecy and Democratic
Accountability 34-35 (1994) ..................................................................................................... 16
Mark Sullivan, Powerful Ways and Means Chairman Neal to Pursue Trump’s Tax Returns,
Telegram & Gazette, Jan. 23, 2019............................................................................................ 9
The House v. Trump: Stymied Lawmakers Increasingly Battle in the Courts,
The New York Times (Aug. 13, 2019) ................................................................................... 18
Tom Wicker, Dwight D. Eisenhower (2002) ............................................................................... 17

*The authorities upon which we chiefly rely are marked with asterisks.

xi

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INTRODUCTION
This case presents the basic question of whether the Committee on Ways and Means of the
House of Representatives may conscript the Judiciary on its side of a dispute with the Executive
Branch over a congressional demand for information. The Constitution’s structure, fundamental
principles of Article III jurisdiction, and basic statutory construction all make clear it cannot. And
the Judiciary’s resolution of that question will have profound implications for our system of
government that will transcend the political identities of the parties as well as the merits of this
dispute between the Committee and the Executive Branch—merits which would, if reached,
present additional novel and difficult issues of constitutional law concerning inter-branch
relationships, and the autonomy and independence of the Executive Branch at its highest levels,
requiring an “especially rigorous” examination. Raines v. Byrd, 521 U.S. 811, 819-20 (1997).
Most critically, the Committee’s attempt to enlist the Judiciary on its side of this inter-branch
dispute goes beyond well-established limits on Article III jurisdiction, presenting “fundamental
separation of powers concerns relating to the restricted role of the Article III courts in our
constitutional system of government.” Walker v. Cheney, 230 F. Supp. 2d 51, 53 (D.D.C. 2002).
Judicial resolution of disputes directly between the Executive Branch and Congress has
been virtually unknown in American history and is inconsistent with the Constitution’s most
fundamental mechanism for securing liberty—dividing authority among co-equal branches
separately equipped with “the necessary constitutional means and personal motives to resist
encroachments of the other.” The Federalist No. 51 (James Madison). It is thus no surprise that
the Founders rejected judicial supervision of political disputes between the political branches. See
Raines, 521 U.S. at 828; Barnes v. Kline, 759 F.2d 21, 54-57 (D.C. Cir. 1984) (Bork, J., dissenting).
And the Supreme Court has explained that using judicial power to “plunge[ ]” the courts “into . . .
bitter political battle[s] being waged” between the political branches, Raines, 521 U.S. at 827,

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could “damage . . . public confidence that is vital to the functioning of the judicial branch,” id. at
833, and ultimately diminish “[t]he irreplaceable value of the [judicial] power . . . [to protect] the
constitutional rights and liberties of individual citizens.” Raines, 521 U.S. at 829. In light of these
“overriding and time-honored concern[s] about keeping the Judiciary’s power within its proper
constitutional sphere,” id. at 820, this Court should reject the Committee’s attempt to invoke
judicial authority as fundamentally “[in]consistent with [our] system of separated powers.” Allen
v. Wright, 468 U.S. 737, 752 (1984).
First, this dispute does not present a “Case[]” or “Controvers[y]” under Article III, because
the Committee’s asserted impairment of its ability to make judgments about the need for legislation
is too abstract and amorphous to constitute a legally cognizable injury, and the dispute at issue is
not one traditionally thought to be capable of resolution through civil litigation. Instead, for more
than a century, with only a few, modern exceptions, the time-honored mechanism for Congress to
enforce its subpoenas has been the one Congress itself created: certification of non-compliance by
Congress and referral to the United States Attorney for institution of contempt-of-Congress
criminal proceedings. 2 U.S.C. §§ 192, 194. There is no constitutional or statutory basis for a
Committee of the House of Representatives to take on the role of enforcing its subpoenas in the
Federal courts where the Executive Branch has decided not to do so. If Congress is dissatisfied
with the Executive Branch’s response to its subpoena, its recourse is the constitutionally mandated
accommodation process and legislative tools assigned by the Constitution, not the deployment of
lawyers wielding the Federal Rules of Civil Procedure.
Second, the Court lacks statutory jurisdiction. Congress has enacted a statute conferring
subject matter jurisdiction over some, but not all, subpoena enforcement actions brought by the
Senate and its committees, but Congress has not enacted a comparable source of subject matter
jurisdiction for subpoena enforcement suits brought by committees of the House of

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Representatives. The Committee cannot end-run these carefully crafted limitations by invoking
the general grant of federal question jurisdiction under 28 U.S.C. § 1331.
Third, the Court should refrain from adjudicating this dispute so the parties can undertake
the process of negotiation and mutual accommodation through which the elected branches for more
than 200 years have resolved their recurrent disputes over access to information. The Committee
has yet to genuinely explore the potential for accommodation of its professed interest in
information regarding mandatory Internal Revenue Service (“IRS”) audits of Presidential tax
returns, and Defendants stand ready to engage in the accommodation process. If the Committee
is, as it claims, truly interested in understanding how the IRS administers the Presidential audit
process, then it has only scratched the surface of information available to inform that inquiry.
Finally, even if this dispute were justiciable, the Committee fails to state a claim on which
relief can be granted.

The principal claims asserted in the Complaint—for “subpoena

enforcement” and enforcement of section 6103(f)—are deficient because Congress has not enacted
a cause of action that would authorize the Committee to enforce those requests through a civil
lawsuit.

Indeed, where Congress has intended to create a cause of action in comparable

circumstances, it has done so expressly and with carefully delineated limitations, as it did for
subpoenas issued by the Senate Select Committee during the investigation of the Nixon
administration, Pub. L. No. 93-190, 87 Stat. 736 (1973), and for certain informational requests
issued by the Comptroller General, 31 U.S.C. § 716(a). But no such cause of action exists under
section 6103(f), and although Congress has repeatedly considered whether to enact a cause of
action for the House of Representatives to enforce its subpoenas in court, it has declined to do so.
The Administrative Procedure Act (“APA”) claims also fail because Congress has precluded
judicial review of congressional informational requests under the APA through the enactment of
these and other statutes specifying when and how such informational requests (purportedly) may

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be enforced. Moreover, failing to provide information to a legislative body is not reviewable
“agency action” under the APA, nor is a Congressional committee a “person” entitled to sue under
its provisions. Finally, given the weighty constitutional questions implicated by the Committee’s
unprecedented request for the tax information of a sitting President, Plaintiff’s mandamus and
“ultra vires” claims are untenable as well.
For these and the reasons set forth below, this case should be dismissed.
BACKGROUND
I.

Statutory and Regulatory Background
A.

History of Section 6103 of the Tax Code.

Since the late 1800s, Congress has endeavored to protect the privacy interests of federal
taxpayers. See generally George K. Yin, Preventing Congressional Violations of Taxpayer
Privacy, 69 Tax Lawyer 103, 105, 119-136 (2015) [hereinafter “Preventing Congressional
Violations”].1 During the period following the enactment of the first personal income tax in 1862,
the tax laws permitted unrestricted public access to individual taxpayer return information—a
system that drew criticism for invading privacy rights and discouraging voluntary tax reporting.
Id. at 154. Accordingly, in 1894, upon reenactment of the federal income tax, Congress made it a
misdemeanor to disclose certain tax return information outside of the tax agency. Id. at 119. By
1921, Congress had tightened that protection to permit inspection of tax information “only by order
of the President under rules prescribed by the Treasury Secretary.” Id. (noting that “complete
secrecy of returns was the order of the day unless the President ordered otherwise”).
A few years later, Congress adjusted this framework to provide a direct right of access to
tax return information for certain congressional committees. The 1924 act provided, in relevant
part, that “the Committee on Ways and Means of the House of Representatives, the Committee on

1

Available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2628193.
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Finance of the Senate, or a special committee of the Senate or House, shall have the right to call
on the Secretary of the Treasury for, and it shall be his duty to furnish, any data of any character
contained in or shown by the [tax] returns . . . that may be required by the committee[.]” Revenue
Act of 1924, Pub. L. No. 68-176, § 257(a), 43 Stat. 253, 293 (1924).
Two years after this, however, in response to criticism that the 1924 amendment permitted
Congressional committees to indulge “their malice or curiosity by pawing over the tax returns of
every person and corporation, and making such use of the information as they see fit,” Congress
amended the law again. Preventing Congressional Violations, 69 Tax Lawyer at 125-26 (citation
omitted). The 1926 amendment narrowed the provision in two ways: first, it limited access by
nontax committees to “select” committees “specially authorized to investigate returns by a
resolution of the Senate or House, or a joint committee so authorized by concurrent resolution.”
Id. at 126. Second, it required any committee to sit in executive session to receive the information.
Id.
In 1976, Congress tightened the disclosure rules yet again in response to “publicity
regarding possible misuse of return information” by the Nixon Administration and continued
concerns that weak confidentiality protocols could discourage voluntary compliance with the tax
system. Joint Committee on Taxation, Background Regarding the Confidentiality and Disclosure
of Federal Tax Returns (“JCT Report”) at 6 (Feb. 4, 2019);2 see also S. Rep. No. 94-938, pt. 1, at
19, 317-18 (1976). Whereas tax returns had previously been deemed “public records,” the 1976
act removed that designation and provided expressly that tax returns (and return information)
“shall be confidential.” Pub. L. No. 94-455 § 1202, 90 Stat. 1520, 1667 (1976), codified at 26
U.S.C. § 6103(a). Congress also codified the exceptions to nondisclosure—which previously had
existed by virtue of regulation—and removed the ability of the Secretary or the President to

2

Available at https://www.jct.gov/publications.html?func=startdown&id=5159.
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promulgate new exceptions. See Preventing Congressional Violations, 69 Tax Lawyer at 131.
That change eliminated Congress’s oft-used practice of seeking access to tax returns by special
order of the President. Id. at 130. The Senate Report explained that, “[w]hile the Congress,
particularly its tax-writing committees, requires access in certain instances to returns and return
information in order to carry out its legislative responsibilities, it was decided that the Congress
could continue to meet these responsibilities under more restrictive disclosure rules than those
provided under prior law.” S. Rep. No. 94-938, pt. 1, at 320. The 1976 amendments also increased
the civil and criminal penalties for certain unauthorized disclosures. 26 U.S.C. § 6103(p)(4).
B.

The Current Framework.

The general framework established in 1976 persists today. Section 6103 provides that “tax
returns” and “return information” “shall be confidential and, except as authorized by [the Internal
Revenue Code] . . . no officer or employee of the United States . . . shall disclose any return or
return information obtained by him in any manner[.]” 26 U.S.C. § 6103(a). “Return” and “return
information” (collectively, “tax information”) are defined broadly to encompass personal
information collected by the IRS relating to tax reporting and tax administration. 26 U.S.C.
§ 6103(b)(1)-(2).

A willful unauthorized disclosure of tax information is a felony, id.

§ 7213(a)(1)-(2), and a taxpayer whose information has been mishandled may, under certain
circumstances, seek damages, id. § 7431.
The Secretary and the IRS Commissioner are the “gatekeepers of federal tax information.”
Tax Analysts v. IRS, 117 F.3d 607, 613 (D.C. Cir. 1997). Section 6103 sets forth “thirteen tightly
drawn categories of exceptions” to the confidentiality of return information. Elec. Privacy Info.
Ctr. v. IRS, 910 F.3d 1232, 1237 (D.C. Cir. 2018); see 26 U.S.C. § 6103(c)–(o). The exception
for disclosure to congressional committees set forth in section 6103(f) is the exception at issue in
this lawsuit. As relevant here, subsection (f) provides that, upon written request from the

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Committee on Ways and Means of the House of Representatives, the Committee on Finance of the
Senate, or the Joint Committee on Taxation (collectively, the “tax committees”), the Secretary
“shall furnish” such committee with any specified tax information, except that, absent consent of
the taxpayer, any such information “which can be associated with . . . a particular taxpayer shall
be furnished to such committee only when sitting in closed executive session.” 26 U.S.C.
§ 6103(f)(1). Tax information provided pursuant to this provision is generally in the form of
statistical information or bulk master files. See, e.g., JCT Report, app. C, at 3.
II.

This Lawsuit
A.

Prior Efforts to Compel Release of the President’s Tax Returns.

During the 2016 presidential election campaign, then-candidate Donald J. Trump chose not
to publicly release his tax returns. That choice quickly became a campaign issue, with his principal
opponent charging that “[h]e refuses to do what every other presidential candidate in decades has
done.” ECF No. 1 (“Compl.”) Ex. G (“April 23 Letter”), app. B, at 1; Congressional Committee’s
Request for the President’s Tax Returns Under 26 U.S.C. § 6103(f) (“OLC Op.”), 43 O.L.C. Op.
__, at *7.3 After the election, his political opponents continued to seek his tax returns. Days after
the President took office, Representative Bill Pascrell, Jr., then a minority-party Member of the
Ways and Means Committee, suggested that the Committee use its authority under section
6103(f)(1) to obtain the President’s tax returns and “submit [them] to the House of
Representatives—thereby, if successful, making them available to the public.” April 23 Letter,
app. A, at 1 (citing Letter for Kevin Brady, Committee Chairman, from Bill Pascrell, Jr. (Feb. 1,
2017), at 2). The House minority leadership took up the refrain, calling for the Committee “to
demand [President] Trump’s tax returns from the Secretary of the Treasury” and “hold a committee

3

Available at https://www.justice.gov/olc/opinion/congressional-committee-s-requestpresident-s-tax-returns-under-26-usc-6103f.
7

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vote to make those tax returns public.” April 23 Letter, app. B, at 4; OLC Op. at 8 (citing Tr. of
House Democratic Leadership Press Conference at 2017 Issues Conference Feb. 8, 2017).
In March 2017, Rep. Pascrell and then-Ranking Member Richard Neal introduced a
resolution to direct the Secretary to provide the Committee with a decade of President Trump’s
tax returns. The resolution was voted down as an “abuse of authority” and “an invasion of
privacy.” H.R. Rep. No. 115-73, at 3 (2017). The Committee concluded that “the purpose of this
resolution is to single out one individual,” and explained that, if adopted, it “would be the first
time the Committee exercised its authority to wade into the confidential tax information of an
individual with no tie to any investigation within our jurisdiction.” Id. Ranking Member Neal and
Rep. Pascrell filed dissenting views condemning the President for “rebuk[ing] over 40 years of
tradition [in] refus[ing] to release his individual tax returns to the public,” and reiterating their
“steadfast . . . pursuit to have [the President’s] individual tax returns disclosed to the public.” Id.
at 8. In July 2017, Rep. Pascrell and Ranking Member Neal again introduced a similar resolution,
which was voted down after the Committee concluded that the resolution would effectively direct
the Secretary to “break current law by violating the confidentiality of tax return information.” H.R.
Rep. No. 115-309, at 4 (2017).
Political efforts to force disclosure of the President’s tax returns continued throughout the
115th Congress.4 Shortly before the mid-term elections, then-Minority Leader Nancy Pelosi
announced that if her party won a majority in the House, demanding the President’s tax returns
would be “one of the first things we’d do.” April 23 Letter, app. A, at 3.

4

See OLC Op. at 9-10 (describing various resolutions, public statements, letters, and proposed
amendments to pending bills); see also April 23 Letter, app. B. Various justifications were given
for these efforts, including that they would require the President to “honor tradition,” show “what
the Russians have on Donald Trump,” reveal a potential “Chinese connection,” inform tax reform
legislation, provide the “clearest picture of [the President’s] financial health,” and expose any
alleged emoluments received from foreign governments. See April 23 Letter app. A, at 3-4.
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B.

Chairman Neal Invokes Section 6103(f) to Demand the President’s Tax
Returns.

After the 2018 elections, now-Chairman Neal confirmed that he would use his new
authority to seek disclosure of the President’s tax returns because “the public has reasonably come
to expect that presidential candidates and aspirants release those documents.” April 23 Letter, app.
B, at 39 (citing Mark Sullivan, Powerful Ways and Means Chairman Neal to Pursue Trump’s Tax
Returns, Telegram & Gazette, Jan. 23, 20195). The Chairman explained that “[w]e are now in the
midst of putting together a case” to obtain the President’s tax returns, but cautioned that “[w]e
need to approach this gingerly and make sure the rhetoric that is used does not become a footnote
to the court case.” Id.
The Ways and Means Subcommittee on Oversight then held a hearing on February 7, 2019,
to consider “whether a President, vice president, or any candidate for these office[s] should be
required by law to make their tax return[s]” public. Legislative Proposals and Tax Law Related to
Presidential and Vice-Presidential Tax Returns: Hearing Before the Subcomm. on Oversight of the
H. Comm. on Ways & Means, 116th Cong., Serial No. 116-3, at 8 (Feb. 7, 2019) (statement of
Chairman Lewis). In preparation for that hearing, the Joint Committee on Taxation prepared a
report analyzing, inter alia, disclosure of tax returns by past Presidents, “instances in which
Congress reviewed Federal tax information as part of its duties,” and “the extent to which [such]
information was provided to the public.” JCT Report at 2. The Congressional Research Service
also prepared a report analyzing the Committee’s authority not only to obtain the President’s tax
records, but to release them to the public. See generally David Carpenter et al., Cong. Research
Serv., Congressional Access to the President’s Federal Tax Returns (Mar. 15, 2019).6

5

Available at https://www.telegram.com/news/20190123/powerful-ways-and-meanschairman-neal-to-pursue-trumps-tax-returns.
6

Available at https://fas.org/sgp/crs/secrecy/LSB10275.pdf.
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On April 3, 2019, Chairman Neal announced that the Committee had “completed the
necessary groundwork for a request of this magnitude” and sent a letter to IRS Commissioner
Charles Rettig invoking section 6103(f) to request that, within one week, the IRS produce tax
returns and audit information for the President and eight related business entities for tax years
2013-2018. Compl. Ex. A (“April 3 Neal Letter”) at 1-2. The Chairman stated that the information
was necessary for the Committee to determine the “scope” of examinations of Presidential tax
returns under the IRS policy mandating audits of Presidential income-tax returns, as set forth in
the Internal Revenue Manual (the “Presidential audit program”). Id. at 1.
On April 10, 2019, the Secretary sent a letter to Chairman Neal remarking upon the
unprecedented nature of the Chairman’s request, and observing that the Committee had previously
determined that the request was an “abuse of authority” that would “‘set a dangerous precedent by
targeting a single individual’s confidential tax returns’ . . . for political reasons,” a view also shared
by the Senate Finance Committee. Compl. Ex. D. The Secretary explained that the request “raises
serious issues concerning the constitutional scope of Congressional investigative authority” with
implications that “could affect protections for all Americans against politically motivated
disclosures” having “no connection to ordinary tax administration.” Id. In light of these concerns,
the Secretary stated that he intended to consult with the Department of Justice “to ensure that our
response is fully consistent with the law and the Constitution.” Id. at 3.
On April 13, 2019, the Chairman responded that the Department could not “second guess
the motivations of the Committee” and set a new deadline of April 23 to provide the requested
information. Compl. Ex. E. On April 23, the Secretary informed the Committee that he was
continuing to consult with the Department of Justice. April 23 Letter at 1. He reiterated that the
Chairman’s request for “the returns of a single individual taxpayer” was unlike the “overwhelming
majority of [congressional] requests for tax return information,” which “seek statistical data to

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inform the drafting of tax legislation,” and further noted that the asserted purpose was at odds with
what the Chairman had “repeatedly said is the request’s intent: to publicly release the President’s
tax returns.” Id. at 4-5. In support, the Secretary attached 47 pages of appendices chronicling “a
long-running, well-documented effort to expose the President’s tax returns for the sake of
exposure.” Id. at 3; see also id. apps. A & B. He also noted the lack of fit between the requested
tax information (most of which predates the President’s time in office) and the Chairman’s newlyacquired interest in the presidential audit process. Id. at 4-5. The Secretary emphasized, however,
that “[t]o the extent the Committee wishes to understand, for genuine oversight purposes, how the
IRS audits and enforces the Federal tax laws against a President,” the Department was ready to
“provid[e] additional information on the mandatory audit process.” Id. at 5.
On May 6, after consulting with the Department of Justice’s Office of Legal Counsel, the
Department denied the Committee’s requests. See Compl. Exs. I, J.7 In a letter to Chairman Neal,
Secretary Mnuchin explained that because (i) the Committee’s constitutional authority to request
tax information under section 6103(f) is bounded by the requirement that such a request serve a
legitimate legislative purpose, and (ii) the Secretary, on advice of OLC, had determined that the
Committee’s request lacked such a legitimate purpose, he was not authorized to disclose the
requested tax information. Id. at 1. But the Secretary renewed his offer to “provide information
concerning the Committee’s stated interest in how the IRS conducts mandatory examinations of
Presidents[.]” Id.
Four days later, Chairman Neal served subpoenas on the Secretary and Commissioner
Rettig for largely the same information contained in his prior section 6103(f) request. In a letter
accompanying the subpoenas, the Chairman offered a new reason for seeking the information:
“the Committee wants to be sure that IRS employees who determine the scope of the President’s

7

OLC subsequently memorialized its advice in a published opinion. See supra note 3.
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audit, or who determine whether to continue previously-initiated audits, are protected in the course
of their work.” Compl. Ex. K at 1-2. But the Chairman continued to reject the Department’s “offer
for a briefing” on the operation of the Presidential audit program, stating that “[a] briefing . . . is
not a substitute for the requested tax returns[.]” Id. at 3. On May 17, 2019, the Department
declined to produce the records sought by the Committee. Compl. Ex. N. The Secretary once
again offered, however, to provide “information that directly bears upon what the Committee has
stated to be its legislative interest in this subject,” namely, the scope and operation of the
Presidential audit program. Id.
C.

The June 10 Briefing and Aftermath.

On May 22, 2019, Committee staff sent an email to the Department inquiring about its
earlier proposals to brief the Committee on the Presidential audit process. Decl. of Fritz Vaughan
(“Vaughan Decl.”) ¶ 30 & Ex. J. The Department responded on May 24, 2019, that it was willing
to provide a detailed briefing. Id. ¶ 33 & Ex. J. The Committee declined the Department’s
invitation to specify in advance particular aspects of the program in which it was purportedly most
interested; the briefing, nearly four hours long, took place on June 10, 2019. Id. ¶¶ 34, 42, 48.
Various questions posed by Committee staff sought information concerning President Trump’s tax
returns. No member of the Committee attended the briefing.
Thereafter, on June 13, 2019, Committee staff sent the Department a list of nearly 300
questions, all of which had been prepared before the briefing, and many of which the Department
had answered at the briefing. The Department asked the Committee to specify which answers it
wanted prioritized (and in particular, which questions it believed the Department had not already
answered), but Committee staff did not do so. Numerous questions provided by the Committee
sought information specifically concerning President Trump’s returns.

On June 28, 2019,

Chairman Neal sent a letter to Secretary Mnuchin and Commissioner Rettig that was critical of the

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supposedly “limited” information provided during the June 10 briefing, but did not seek further
information, and instead reiterated the Committee’s demand for the President’s tax returns and
return information. Two business days later (and without awaiting a response), the Committee
filed this action. Id. ¶¶ 56-57.
The Complaint asserts eight causes of action: one count for subpoena enforcement (count
I); four counts under the APA (counts II-V); one count seeking a writ of mandamus (count VI);
one count directly under 26 U.S.C. § 6103(f) (count VII); and one count seeking nonstatutory
review of alleged ultra vires action (count VIII). As relief, the Committee seeks a declaration and
injunction compelling the Department to produce the requested tax returns and return information.
LEGAL STANDARD
Under Federal Rule of Civil Procedure 12(b)(1), a plaintiff seeking to invoke the
jurisdiction of a Federal court bears the burden of establishing that the court has jurisdiction to
hear its claims. See U.S. Ecology, Inc. v. U.S. Dep’t of Interior, 231 F.3d 20, 24 (D.C. Cir. 2000).8
Under Rule 12(b)(6), a plaintiff must allege “sufficient factual matter, accepted as true, to ‘state a
claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting
Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)).
ARGUMENT
I.

The Court Should Dismiss This Case for Lack of Subject Matter Jurisdiction.
The exertion of Federal judicial power to declare victors in inter-branch disputes of this

nature would be inconsistent with the limits of Article III and the separation-of-powers principles
that inform them. In addition, even if Article III permitted judicial resolution of this action,

8

In deciding whether a plaintiff has met that burden, a court may consider materials outside
the pleadings. See, e.g., Manning v. Fanning, 211 F. Supp. 3d 129, 133-34 (D.D.C. 2016) (on
Rule 12(b)(1) motion, court “has broad discretion to consider materials outside the pleadings if
they are competent and relevant” (citation omitted)).
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Congress has not enacted a statute granting district courts statutory jurisdiction over such suits.
The Court should therefore dismiss this case for lack of subject-matter jurisdiction.
A.

The Court Lacks Jurisdiction under Article III.

At the outset, Article III requires that the Committee “establish that [it] ha[s] standing to
sue.” Raines, 521 U.S. at 818. “Article III’s standing requirements are ‘built on separation-ofpowers principles’ and serve ‘to prevent the judicial process from being used to usurp the power
of the political branches.’” U.S. House of Representatives v. Mnuchin, 379 F. Supp. 3d 8, 12
(D.D.C. 2019) (McFadden, J.) (quoting Clapper v. Amnesty Int’l USA, 568 U.S. 398, 408 (2013)),
appeal pending, No. 19-05176 (D.C. Cir.). To have standing, a plaintiff must allege a “personal
injury” that is “legally and judicially cognizable,” and the dispute must be one “traditionally
thought to be capable of resolution through the judicial process.” Raines, 521 U.S. at 818-19.
In this case, as in Raines, “the italicized words” are “key ones.” 521 U.S. at 819. Like the
plaintiffs in Raines, the Committee has not brought this suit to vindicate some “private right” (like
lost wages) “to which [it] personally [is] entitled,” id. at 812, 821; it has come to court to vindicate
solely an asserted “institutional injury” at the hands of the Executive Branch, id.; accord id. at 829.
In assessing whether that sort of “institutional injury” suffices to supply standing in the
circumstances of this case, the Court must consider historical practice as well as the implications
of adjudicating the suit for the separation of powers established by the Constitution. See id. at
819-20, 826-29. The balance among the branches is imperiled when one political branch asks the
Judiciary to take its side in a dispute with the other. See, e.g., U.S. House of Representatives, 379
F. Supp. 3d at 22 (“Raines and Arizona State Legislature [v. Arizona Independent Redistricting
Commission, 135 S. Ct. 2652 (2015)] caution federal courts to consider the underlying separationof-powers implications of finding standing when one political branch of the Federal Government

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sues another.”); Chenoweth v. Clinton, 181 F.3d 112, 116 (D.C. Cir. 1999) (Raines “require[s] us
to merge our separation of powers and standing analyses”).
1.

This Dispute Is Not of the Type Traditionally Thought Capable of
Resolution Through the Judicial Process.

The Committee lacks standing first and foremost because centuries of historical practice
demonstrate that the injury the Committee claims is not one traditionally deemed capable of
redress through the judicial process. See Raines, 521 U.S. at 819. Since the Founding, the
Executive Branch and Congress have clashed over Congress’s access to Executive Branch
information. For nearly that entire period, the courts refused to elevate themselves into the referees
of that “political turf war,” see U.S. House of Representatives, 379 F. Supp. 3d at 10, recognizing
that in a government of three co-equal branches, the two political branches must do battle in the
political arena, not appeal to a superior branch of government for a definitive resolution. See id.
(“The ‘complete independence’ of the Judiciary is ‘peculiarly essential’ under our Constitutional
structure, and this independence requires that the courts ‘take no active resolution whatever’ in
political fights between the other branches.”

(quoting The Federalist No. 78 (Alexander

Hamilton))).
Raines underscores the importance of historical practice in determining whether a dispute
is capable of judicial resolution. In Raines, six Members of Congress brought suit seeking to
declare the Line Item Veto Act unconstitutional. 521 U.S. at 814-16. The plaintiffs contended
that the Act had injured them by “alter[ing] the legal and practical effect of [their] votes” and
“divest[ing] [them] of their constitutional role in the repeal of legislation.” Id. at 816. The Court
held that the legislators lacked a judicially cognizable injury. Id. at 818, 829-30. As a critical part
of that analysis, the Court emphasized the absence of any “historical practice” supporting the suit.
Id. at 826. “It is evident from several episodes in our history,” the Court observed, “that in
analogous confrontations between one or both Houses of Congress and the Executive Branch, no
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suit was brought on the basis of claimed injury to official authority or power.” Id. The fact that
past Congresses never resorted to the courts to resolve these and other inter-branch disputes
underscored that the suit was not one “traditionally thought to be capable of resolution through the
judicial process.” Id. at 819. Raines thus teaches that in evaluating whether a suit between the
political branches is justiciable, a federal court must evaluate whether such a suit is consistent with
historical practice. See, e.g., U.S. House of Representatives, 379 F. Supp. 3d at 15 (“Consider first
historical practice and precedent.”).
With respect to disputes concerning Congress’s access to information held by the
Executive Branch, the history is clear: for two hundred years after the founding, such suits simply
did not exist, even though disputes between the Legislative and Executive Branches over
congressional requests for information have arisen since the beginning of the Republic. In 1792,
the House and President Washington clashed over records relating to a military expedition led by
Major General St. Clair, see Nixon v. Sirica, 487 F.2d 700, 733-34 (D.C. Cir. 1973) (MacKinnon,
J., concurring in part and dissenting in part); in a separate matter two years later, President
Washington responded to a Senate request for documents by withholding “those particulars which,
in [his] judgment, for public considerations, ought not to be communicated,” History of Refusals
by Executive Branch Officials to Provide Info. Demanded by Congress: Part I – Presidential
Invocations of Exec. Privilege Vis-À-Vis Congress, 6 Op. O.L.C. 751, 753 (1982). In 1796,
President Washington refused to provide the House certain documents relating to the negotiation
of a treaty with Great Britain. Mark J. Rozell, Executive Privilege: The Dilemma of Secrecy and
Democratic Accountability 34-35 (1994). President Jackson similarly withheld information in
certain contexts, id. at 38, as did President Tyler, at which point “the House vigorously asserted
and President Tyler as vigorously denied the right of the House to all papers in possession of the
Executive relating to subjects over which the jurisdiction of the House extended.” 3 Hinds,

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Precedents of the House of Representatives § 1884. In 1886, during the administration of President
Cleveland, the Attorney General refused a demand for all papers relating to the removal of a U.S.
Attorney. Id. § 1894. Similar disputes arose throughout the Twentieth Century, including during
the administrations of Presidents Eisenhower, see, e.g., Tom Wicker, Dwight D. Eisenhower 70
(2002), Reagan, see Assertion of Exec. Privilege in Response to Congressional Subpoena, 5 Op.
O.L.C. 27 (1981), Clinton, see Assertion of Exec. Privilege Regarding White House Counsel’s
Office Docs., 20 Op. O.L.C. 2 (1996), and George W. Bush, see Assertion of Exec. Privilege Over
Comms. Regarding EPA’s Ozone Air Quality Standards and Cal.’s Greenhouse Gas Waiver, 32
Op. O.L.C. 1 (2008).
While these disputes are commonplace in our constitutional history, for nearly two hundred
years, the Legislative Branch never invoked the power of the Judiciary to decide which side should
win in a political battle with the Executive. Indeed, even outside the context of disputes between
the two political branches, the House itself has questioned whether its demands for information
are ever justiciable: the House Judiciary Committee observed, in the midst of a 1960 dispute with
the New York Port Authority over access to information, that “[w]hether a congressional grant to
a committee of power to seek a declaratory judgment concerning [the validity of a subpoena]
would be valid . . . is open to serious question” because it would position the court as “an ‘advisor’
on constitutional matters” regarding the committee’s authority. 106 Cong. Record 16089-16094
(daily ed. August 23, 1960)) (“1960 House Memo”).9 Thus, prior to recent decades, the House
shared the understanding that it would resolve its disputes over access to information using the
tools assigned by the Constitution. “In the end, given that the Article I and Article II Branches
have been involved in disputes over documents for more than two hundred years, what is most

9

A copy of this excerpt of the Congressional Record is attached as Exhibit A.
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striking about the historical record is the paucity of evidence that the instant lawsuit is ‘of the sort
traditionally amenable to, and resolved by, the judicial process.’” Walker, 230 F. Supp. 2d at 7374 (quoting Vt. Agency of Natural Res. v. United States ex rel. Stevens, 529 U.S. 765, 774 (2000));
cf. Printz v. United States, 521 U.S. 898, 905 (1997) (if “earlier Congresses avoided use of this
highly attractive power, we would have reason to believe that the power was thought not to exist”).
This Court should not permit the Committee to supplant the centuries-old process of political
negotiation and accommodation with zero-sum litigation in federal court.10
2.

The Committee Fails to State a Cognizable Injury.

The conclusion that this dispute lies beyond the judicial power is supported not only by the
absence of any historical practice of suits of this kind, but also by analysis of the nature of the
Committee’s claims. The Committee lacks standing because it has not asserted an injury that is
“legally and judicially cognizable,” as Article III requires. Raines, 521 U.S. at 819; see also
Virginia House of Delegates v. Bethune-Hill, 139 S. Ct. 1945, 1953 (2019). In Raines, the Court
stressed that, under Article III, the plaintiff’s injury must be “personal,” to ensure “that he has a
‘personal stake’ in the alleged dispute.” 521 U.S. at 819 (citations omitted). Yet in Raines, the
injuries asserted—alteration of the legal and practical effect of the plaintiffs’ votes in Congress—
constituted a form of institutional injury, “a loss of political power, not loss of any private right,”
which stemmed exclusively from their status as members of Congress. Id. at 821. Thus, their
injury was “not claimed in any private capacity but solely because they [were] Members of
Congress.” Id.

That concern is not hypothetical. As the New York Times recently reported, “the House [of
Representatives] is going to court at a tempo never seen before,” a trend that “could change [the
constitutional order] in a way that . . . legal scholars view as dangerous” and “heighten
politicization of the judiciary.” Charlie Savage and Nicholas Fandos, The House v. Trump:
Stymied Lawmakers Increasingly Battle in the Courts, The New York Times (Aug. 13, 2019).
10

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Here, the Committee maintains that it has been injured in two respects. See generally
Compl. ¶¶ 87-98. First, it asserts that Defendants’ failure to disclose the President’s tax returns
“interferes with [its] statutorily mandated right of access to [that] information” under § 6103(f).
Id. ¶ 94. Second, it alleges that without the President’s tax returns, it “cannot evaluate the fairness
and effectiveness of the Presidential audit program or engage in fully informed consideration of
related legislative proposals,” id. ¶ 91; see also id. ¶ 92. Neither of these purported harms is
sufficiently “concrete and particularized” to satisfy Article III. Raines, 521 U.S. at 819.
The Committee cannot rely on a theory of “informational standing” because it has no
institutional interest in confidential tax information for its own sake. To be sure, the Supreme
Court has held that an individual “suffers an ‘injury in fact’ when [that person] fails to obtain
information which must be publicly disclosed pursuant to a statute.” Fed. Election Comm’n v.
Akins, 524 U.S. 11, 21 (1998) (citations omitted). But the “informational standing” cases involve
statutes enacted by Congress to provide private persons with unqualified legal rights to
information. See Akins, 524 U.S. at 21; Pub. Citizen v. U.S. Dep’t of Justice, 491 U.S. 440, 449
(1989); Havens Realty Corp. v. Coleman, 455 U.S. 363, 373-374 (1982). The cases thus hew
closely to the traditional common-law model of suits by individuals vindicating concrete personal
interests. See Raines, 521 U.S. at 832-34 (Souter, J., concurring). Courts in this district, however,
have rejected efforts to seize on those cases to transform a Congressional interest in information
into the kind of particularized and concrete injury that Article III contemplates, see Walker, 230
F. Supp. 2d at 66 & n.10 (no informational injury to Comptroller General, an agent of Congress,
when he is denied information despite an alleged statutory right); Cummings v. Murphy, 321 F.
Supp. 3d 92, 106-07 (D.D.C. 2018) (same, as to individual members of Congress), appeal pending,
No. 18-5305 (D.C. Cir.), and the Court should do likewise here.

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The “legislative Powers” that the Constitution grants to Congress, U.S. Const. art. I, § 1,
do not include a “‘general’ power to inquire into private affairs and compel disclosures.” McGrain
v. Daugherty, 273 U.S. 135, 173 (1927).

Though an “implied” power “to secure needed

information” is an “attribute of [Congress’s] power to legislate,” id. at 161, 175, the power is an
“auxiliary” one that exists only as “necessary and appropriate to make [Congress’s] express powers
effective,” id. at 173. “[T]here is no congressional power to expose for the sake of exposure,”
Watkins v. United States, 354 U.S. 178, 200 (1957), and “no [Congressional] inquiry is an end in
itself,” id. at 187.
Because the Constitution confers on Congress no freestanding right to information,
Congress cannot grant the Committee the sort of unconditioned statutory “right” to information at
issue in Akins, 524 U.S. at 21, Public Citizen, 491 U.S. at 449, or Havens Realty, 455 U.S. at 37374—let alone make such a “right” enforceable in federal court. Moreover, Congress did not even
attempt to create such unconditioned rights for itself in section 6103. On the contrary, section
6103(f) restricts disclosure of tax-return information to the committees that “require[] access in
certain instances . . . to carry out [their] legislative responsibilities[.]” S. Rep. No. 94-938 pt. 1,
at 320. The Committee, therefore, has no lawful interest in tax-return information for its own sake.
Lacking a freestanding right to tax-return information, the Committee must rely on an
injury to its express legislative function. See Bethune-Hill, 139 S. Ct. at 1954 (legislative body
lacked standing because the challenged action “does not alter [its] . . . role” in the legislative
process).

The only injury arguably stated by Plaintiff’s allegation that Defendants have

“interfere[d]” with its “statutorily mandated right of access to tax return information,” Compl.
¶ 94, is thus a theoretical impairment of the House’s ability to evaluate the need for and to
formulate legislation. See Walker, 230 F. Supp. 2d at 67. That essentially is the second of the two
theories of injury articulated by the Committee, Compl. ¶¶ 90-92; see supra at 19. The Committee

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alleges that it has been “imped[ed]” from “evaluat[ing] . . . the Presidential audit program,” and
“engag[ing] in fully informed consideration of the need for related legislative proposals.” Compl.
¶¶ 91-92.
But these alleged harms to the Committee’s legislative function are similarly deficient. As
the Supreme Court held in Raines, “abstract dilution of institutional legislative power” is
insufficiently “concrete and particularized” to sustain standing. 521 U.S. at 819, 821, 825-26. The
legislator plaintiffs in Raines alleged that the Line Item Veto Act had injured them by “alter[ing]
the legal and practical effect of [their] votes” and “divest[ing] [them] of their constitutional role in
the repeal of legislation.” Id. at 816. The Court rejected that argument and further rejected the
plaintiffs’ reliance on Coleman v. Miller, 307 U.S. 433 (1939), reading it as standing at most for
the proposition that state “legislators whose votes would have been sufficient to defeat (or enact)
a specific legislative Act have standing to sue if that legislative action goes into effect (or does not
go into effect), on the ground that their votes have been completely nullified.” Raines, 521 U.S.
at 823 (emphasis added).11

The Raines Court instead held that such “abstract dilution of

institutional legislative power” fell well short of the absolute “vote nullification” necessary to
satisfy Article III’s injury-in-fact requirement. Id. at 825-26, 830. Here, the Committee alleges
that Defendants’ failure to provide it with the President’s tax returns has “impede[d]” its ability to
assess whether legislation of one kind or another is needed. Compl. ¶ 92. The Committee’s claim,
then, is not even that the effectiveness of its members’ votes has been impaired, but that the ability

11

The Raines plaintiffs were differently situated from the plaintiffs in Coleman because they
were federal legislators, meaning that their suit would present “separation-of-powers concerns . . .
not present in Coleman.” Raines, 521 U.S. at 824 n.8. For that reason, the Court expressly
reserved the question whether Coleman would “ha[ve] [any] applicability to a similar suit brought
by federal legislators.” Id.; see also Harrington v. Bush, 553 F.2d 190, 204 n.67 (D.C. Cir. 1977)
(“A separation of powers issue arises as soon as the Coleman holding is extended to United States
legislators.”).
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of its members to formulate sound legislative judgments has to some unspecified degree been
impaired. Thus, Plaintiff’s assertion of injury is at least one step removed from the claimed
dilution of legislative power that Raines rejected as insufficiently concrete to establish legislative
standing.
In that regard, Walker v. Cheney, supra, bears significant resemblance to this case. In
Walker, the Comptroller General, exercising his “broad authority to carry out investigations and
evaluations for the benefit of Congress,” brought suit to compel the release of documents
concerning the composition and conduct of the Vice President’s National Energy Policy
Development Group. 230 F. Supp. 2d at 53-55. Applying the analysis required by Raines, Walker
concluded that “the institutional injury [the Comptroller] suffer[ed] . . . [was] insufficient to confer
standing.” Id. at 66. Because the Comptroller sought the records at issue to “assist Congress in
determining whether and to what extent future legislation, relating . . . to national energy policy or
openness in government, may be appropriate,” and in “conducting oversight of the executive
branch’s administration of existing laws,” the alleged harm was “too vague and amorphous”—at
most an impairment of Congress’s general interests in lawmaking and oversight—and represented
no more than an “abstract dilution of institutional legislative power,” as in Raines. Id. at 67-68;
accord Cummings, 321 F. Supp. 3d at 107-113.
The same analysis applies here. The Committee claims to seek the President’s tax-return
information in order to “assess[ ] the need for and merits of future legislative changes.” Walker,
230 F. Supp. 2d at 67; accord Cummings, 321 F. Supp. 3d at 108 (noting that “Plaintiffs tie their
injury directly to their constitutional duties as legislators”); see Compl. ¶¶ 90-92. In so doing, it
invokes authority delegated to it so it might gather information, for Congress’s benefit, to “assist
Congress in the discharge of its legislating and oversight functions.” Walker, 230 F. Supp. 2d
at 67; see Watkins, 354 U.S. at 200. Yet if the Committee wants to “entangle the Court ‘in a power

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contest’” over access to the President’s tax-return information, House of Representatives, 379 F.
Supp. 3d at 22 (quoting Raines, 521 U.S. at 833), it must demonstrate, at a minimum, that concrete
harm to the House’s Article I powers is at stake. And just as in Walker and Cummings, the abstract
injury the Committee asserts is insufficiently “‘distinct and palpable’” to confer standing. Walker,
230 F. Supp. 2d at 67-68 (quoting Whitmore v. Arkansas, 495 U.S. 149, 155 (1990)).12
3.

Lawsuits of This Kind Imperil the Constitution’s Allocation of Power
Among the Branches of the Federal Government.

The historical absence of congressional lawsuits seeking executive branch information is
no coincidence. Such suits threaten the separation of powers and its system of checks and balances
that has served the Nation well for 230 years, and “the law of Art. III standing is built on a single
basic idea—the idea of separation of powers.” Raines, 521 U.S. at 820 (internal quotation
omitted); see also U.S. House of Representatives, 379 F. Supp. 3d at 22.
The Supreme Court made clear in Raines that our constitutional system contemplates a
“restricted role for Article III courts,” which is to protect “‘the constitutional rights and liberties
of individual citizens and minority groups against oppressive or discriminatory government
action.’” 521 U.S. at 828-29 (citation omitted). “‘It is this role, not some amorphous general
supervision of the operations of government, that has maintained public esteem for the federal
courts and has permitted the peaceful coexistence of the countermajoritarian implications of
judicial review and the democratic principles upon which our Federal Government in the final
analysis rests.’” Id. at 829. If it were otherwise, the federal courts would be “not the last but the
first resort,” Barnes, 759 F.2d at 53 (Bork, J., dissenting), vacated sub nom., Burke v. Barnes, 479

This Court’s recent decision in House of Representatives reserved the question whether a
congressional committee might, under certain circumstances, possess an injury that suffices to
enforce its informational inquiries through a civil lawsuit. 379 F. Supp. 3d at 16-18 & 17 n.4. For
the reasons just stated, Defendants submit that no such injury exists here.
12

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U.S. 361 (1987), such that “the system of checks and balances [would be] replaced by a system of
judicial refereeship,” Moore v. U.S. House of Representatives, 733 F.2d 946, 959 (D.C. Cir. 1984)
(Scalia, J., concurring in result), abrogated by Raines, 521 U.S. 811.13
It is, therefore, doubtful Congress could constitutionally endow itself or its committees
with a general right of action against the Executive Branch even if it wanted to. As the Supreme
Court has observed, the “power to seek judicial relief . . . cannot possibly be regarded as . . . in aid
of the legislative function.” Buckley, 424 U.S. at 138; see also Springer v. Gov’t of Philippine
Islands, 277 U.S. 189, 202 (1928) (“Legislative power, as distinguished from executive power, is
the authority to make laws, but not to enforce them[.]” (citing Myers v. United States, 272 U.S. 52
(1926))); Young v. U.S. ex rel. Vuitton et Fils S.A., 481 U.S. 787, 817 (1987) (Scalia, J., concurring)
(Congress’s “dependen[ce] on the Executive . . . for enforcement of the laws it enacts” is “a
carefully designed and critical element of our system of Government”). Congress “cannot grant
to an officer under its control”—or to a subcomponent of itself like a committee—“[power] it does
not possess.” Bowsher v. Synar, 478 U.S. 714, 726 (1986); Perez v. Mortg. Bankers Ass’n, 135 S.
Ct. 1199, 1224 (2015) (similar). Any other conclusion would invite Congress to use the courts,
rather than its Article I tools, to resolve disagreements with the Executive Branch at the expense
of the Constitution’s carefully wrought framework. See, e.g., House of Representatives, 379 F.
Supp. 3d at 22.
Judicial resolution of political disputes might sometimes be more expedient than “political
struggle and compromise,” Barnes, 759 F.2d at 55 (Bork, J., dissenting), but the separation-of-

13

The opinions of Judge Bork in Barnes and Judge Scalia in Moore have been cited as early
expressions, prior to Raines, of the “view[] that the role of the judiciary is properly limited to the
adjudication of individual rights.” Walker, 230 F. Supp. 2d at 72 n.18 (D.D.C. 2002). Indeed, one
court in this district has explained that, “[f]or all intents and purposes, the strict legislative standing
analysis suggested by Justice Scalia in [Moore], now more closely reflects the state of the law.”
Campbell v. Clinton, 52 F. Supp. 2d 34, 40 (D.D.C. 1999), aff’d, 203 F.3d 19 (D.C. Cir. 2000).
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powers stands against expediency, not for it. Indeed, political struggle and compromise are its
defining feature, not some defect to be removed or avoided. See INS v. Chadha, 462 U.S. 919,
959 (1983) (“[T]he Framers ranked other values higher than efficiency.”); Cummings, 321 F. Supp.
3d at 117 (“[T]he fact that a political remedy is hard to achieve does not automatically swing open
the door to the federal courts.”).

The process of negotiation and accommodation, even if

contentious or difficult, protects the political branches from excessive judicial interference and the
Judiciary from the undue politicization that would result from “repeated use of [its] power to
negate the actions of the representative branches[.]” Walker, 230 F. Supp. 2d at 65.
The framers designed the Constitution to empower the political branches to resolve their
differences themselves. See Campbell v. Clinton, 203 F.3d 19, 23 (D.C. Cir. 2000); United States
v. AT&T, 567 F.2d 121, 127 (D.C. Cir. 1977) (“AT&T II”). That is why the Constitution provides
Congress with numerous, powerful political tools. Congress can legislate change within the
Treasury Department, see McGrain, 273 U.S. at 173-74, or slash the budget in an area of concern,
see Barenblatt v. United States, 360 U.S. 109, 111 (1959), or bring its case to the people through
the electoral process, see id. at 132-33. The availability of these remedies to redress any perceived
institutional injury underscores why courts should not intervene in ways that would unsettle the
allocation of powers. See U.S. House of Representatives, 379 F. Supp. 3d at 22 (“Congress has
several political arrows in its quiver to counter perceived threats to its sphere of power.”).
Moreover, if a committee of Congress can sue the Executive Branch on the basis of a
claimed loss of power in a political dispute, then there is little question that the Executive Branch
is equally entitled to sue Congress. See Raines, 521 U.S. at 828. Yet the House has vociferously
contended that allowing lawsuits against it “at the behest of the President” would “rais[e] glaring
separation of powers concerns,” and is “precisely what the Framers of the Constitution wished to
guard against.” Trump v. Committee on Ways & Means, No. 19-2173, ECF No. 22, at 3 (D.D.C.

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July 30, 2019); see also Trump v. Committee on Ways & Means, No. 19-2173, Hr’g Tr. at 47
(D.D.C. July 29, 2019) (counsel for the Committee: “I cannot emphasize enough that the framers
did not intend [the] judiciary to be able to haul Congress into court and issue a decision against
it.”).14 Thus, as the House sees things, it may enlist the Judiciary in its attacks on the Executive
Branch, but “glaring separation of powers concerns” that the House “cannot emphasize enough”
forbid the President or Executive Branch from doing the same in return. That is plainly not the
law: permitting judicial resolution of these disputes only when Congress is the plaintiff would
distort the balance of powers by furnishing Congress (and apparently only Congress) with a new
weapon for inter-branch combat that the Constitution did not contemplate.
4.

The House of Representatives Cannot Authorize a Lawsuit Without
Specifically Voting to Do So.

Even if the dispute here could result in some form of injury sufficient to establish a
justiciable case or controversy, the Committee has no standing to sue because it lacks the
constitutionally required authority to seek redress for any such injury. Among the other reasons
why the Raines plaintiffs lacked standing, the Supreme Court “attach[ed] some importance to the
fact that appellees have not been authorized to represent their respective Houses of Congress in
this action,” 521 U.S. at 829; cf. Bethune-Hill, 139 S. Ct. at 1956 (“One House of [Virginia’s]
bicameral legislature cannot alone continue the litigation against the will of its partners in the
legislative process.”). In an attempt to demonstrate that they are suing with the authorization of
the entire House, the Committee alleges that the Bipartisan Legal Advisory Group (“BLAG”)
voted to authorize this litigation. See Compl. ¶ 98. The BLAG consists of five members of
Congress, of whom only three—Speaker Pelosi and Reps. Hoyer and Clyburn—voted to authorize
this suit. See also id. ¶ 98 n.128. The vote of this small group is sufficient, the Committee says,

14

An excerpt of this transcript is attached as Exhibit B.
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because of a House resolution declaring that “a vote of the Bipartisan Legal Advisory Group to
authorize litigation . . . is the equivalent of a vote of the full House of Representatives.” See H.
Res. 430 (emphasis added).15 That is not adequate for constitutional purposes. The full House has
not specifically authorized the filing of this lawsuit, and, in any event, authorization by the House
does not create an Article III injury.
Most simply, the full House has not authorized this lawsuit. Nor has the full House
determined that lack of access to the particular information at issue here would impair its
legislative functions—a judgment that is, by its nature, case-specific. Just as the House could not
by resolution delegate to a subset of its members the authority to pass legislation, cf. Chadha, 462
U.S. at 959 (Constitution reflects “unmistakable expression of a determination that legislation by
the national Congress be a step-by-step, deliberate and deliberative process”), it cannot provide
the BLAG blanket, pre-emptive authority to file whatever litigation it might devise. If lawsuits
seeking to enforce congressional demands for information are ever justiciable, the Constitution
requires at a minimum that the entire House authorize the suit. As Judge Mehta explained,
“[i]nsisting on approval from the institution as a whole ensures that only fully considered interbranch conflicts enter the judicial realm.” Cummings, 321 F. Supp. 3d at 115 (emphasis added).
Indeed, under the House’s rules, compliance “with a subpoena issued by a committee or
subcommittee . . . may be enforced only as authorized or directed by the House.” House Rules,
R. XI, cl. 2(m)(3)(C) (emphasis added), https://rules.house.gov/sites/democrats.rules.house.gov/
files/116-1/116-House-Rules-Clerk.pdf.

The D.C. Circuit has explained that such rules are

15

On July 24, 2019, the House adopted House Resolution 509, which in turn adopted House
Resolution 507. See H.R. Res. 509, 116th Cong. (2019). House Resolution 507 provided that the
House “ratifies and affirms” certain investigations and subpoenas concerning the President, his
family, and the White House, and related entities. See H.R. Res. 507, 116th Cong. (2019). It did
not address the Ways and Means Committee’s request for the President’s tax returns or purport to
approve the filing of this lawsuit.
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necessary to prevent a “wayward committee [from] acting contrary to the will of the House” and
to safeguard against “aberrant subcommittee or committee demands.” United States v. AT&T, 551
F.2d 384, 393 & n.16 (D.C. Cir. 1976) (“AT&T I”) (citing Wilson v. United States, 369 F.2d 198
(1966)). Relying on those principles, this Court has held that a prospective authorization to sue is
inadequate even when that authorization is set forth in a statute. See Walker, 230 F. Supp. 2d at
69-70 (“[T]he highly generalized allocation of enforcement power to the Comptroller General
twenty-two years ago hardly gives this Court confidence that the current Congress has authorized
this Comptroller General to pursue a judicial resolution of the specific issues affecting the balance
of power between the Article I and Article II Branches that have crystalized during the course of
this dispute and lawsuit.”); see also Cummings, 321 F. Supp. 3d at 116 (similar).
While a few post-Raines cases have (erroneously) permitted House committees to
judicially enforce subpoenas against the Executive Branch, in every one of them the House voted
to authorize the specific lawsuit.16 Thus, in each case, it was apparent that a majority of the House
had “fully considered” the issue, Cummings, 321 F. Supp. 3d at 115, and decided that the House
should bring it before the judiciary. Here, by contrast, the House has not authorized this lawsuit
in the same manner. The question was put not to all its members but only to five, and so the Court
has no way of knowing whether the initiation of this suit actually reflects the will of the House as

16

Before initiating suit in Miers, the House passed a resolution authorizing the Judiciary
Committee to initiate lawsuits seeking to compel compliance “with any subpoena that is a subject
of House Resolution 979 issued to such individual by the Committee as part of its investigation
into the firing of certain United States Attorneys and related matters.” H.R. Res. 980, 110th Cong.
(2008); see Comm. on the Judiciary v. Miers, 558 F. Supp. 2d 53, 71 (D.D.C. 2008) (House
“explicitly authorized this suit”). Similarly, before filing suit in Holder, the House passed a
resolution authorizing the Oversight Committee to initiate lawsuits seeking to compel compliance
“with any subpoena that is a subject of the resolution accompanying House Report 112-546 issued
to him by the Committee as part of its investigation into the United States Department of Justice
operation known as ‘Fast and Furious’ and related matters.” H.R. Res. 706, 112th Cong. (2012);
see Comm. on Oversight & Gov’t Reform v. Holder, 979 F. Supp. 2d 1, 21 (D.D.C. 2013) (“[T]he
House of Representatives has specifically authorized the initiation of this action to enforce the
subpoena. Twice.”).
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a whole. As in Cummings, “Plaintiffs did not secure approval from the full House before bringing
suit—indeed, they did not even try to.” Id. at 116. And as in Cummings, this Court should not
reach out to resolve an inter-branch conflict when one of the branches has not clearly voiced its
desire to join the field.
To be clear, for all the reasons explained in Parts I.A.1-3, supra, even if the full House had
voted to authorize this suit, the Committee would still lack standing. See Cummings, 321 F. Supp.
3d at 115 (“None of this is meant to suggest that authorization to sue, by itself, is enough to confer
standing.”). Nonetheless, as Cummings recognized, “there are good reasons for courts to look to
the presence of authorization as a necessary, even if not sufficient, factor in evaluating standing in
cases that pit the Executive and Legislative Branches against one another.” 321 F. Supp. 3d at
115. The lack of House authorization for this suit is alone enough to defeat jurisdiction.
B.

The Court Lacks Statutory Subject Matter Jurisdiction.

Even if the Committee’s suit were a justiciable case or controversy under Article III—and
it is not—that would not end the Court’s jurisdictional analysis. While Article III limits the outer
bounds of potential jurisdiction, Congress must also pass a statute conferring jurisdiction. See
Senate Select Comm. on Presidential Campaign Activities v. Nixon, 366 F. Supp. 51, 55 & n.5
(D.D.C. 1973) (it is “settled that federal courts may assume only that portion of the Article III
judicial power which Congress, by statute, entrusts to them” (citing cases)). It has not done so.
The Committee points to two statutory bases for subject-matter jurisdiction: the federalquestion statute, 28 U.S.C. § 1331, and the mandamus act, 28 U.S.C. § 1361. Compl. ¶ 10. But
these general provisions do not apply to this sort of extraordinary inter-branch litigation. Rather,
Congress has enacted only certain limited provisions purporting to provide subject matter
jurisdiction over informational disputes between Congress and the Executive Branch, and those
statutes do not apply here. For example, 28 U.S.C. § 1365 purports to create jurisdiction over

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certain Senate subpoena enforcement actions, but excludes cases concerning “any subp[o]ena or
order issued to an officer or employee of the executive branch of the Federal Government acting
within his or her official capacity, . . . if the refusal to comply is based on . . . a governmental
privilege or objection the assertion of which has been authorized by the executive branch of the
Federal Government.” See also Pub. L. No. 93-190, 87 Stat. 736 (Dec. 18, 1973) (jurisdiction for
the Senate Select Committee investigating the Watergate scandal to judicially enforce its
subpoenas). Notably, in 1996, Congress amended 28 U.S.C. § 1365 to add language providing
that the statute would confer jurisdiction in cases in which an executive official’s refusal to comply
was based upon a personal privilege. See Pub. L. No. 104-292, § 4, 110 Stat. 3459 (Oct. 11, 1996).
Congress enacted that amendment some twenty years after it amended 28 U.S.C. § 1331 to
eliminate the amount-in-controversy requirement for suits against the government and government
officials, see Pub. L. No. 94-574, 90 Stat. 2721 (Oct. 21, 1976), and some sixteen years after it
amended § 1331 to remove the amount-in-controversy requirement for all federal question cases,
see Pub. L. No. 96-486, § 2(a), 94 Stat. 2369 (Dec. 1, 1980). If § 1331 already applied to all suits
by Congress seeking to enforce its demands for information—as the Committee claims here—then
the 1996 amendments to § 1365 would have been entirely superfluous.
But these amendments were not superfluous, of course, because the specific provisions
addressing federal subject matter jurisdiction over congressional information access suits control
over the general federal question statute. See, e.g., Howard v. Pritzker, 775 F.3d 430, 441 (D.C.
Cir. 2015) (“Specific terms prevail over the general in the same or another statute which otherwise
might be controlling.” (citation omitted)). Indeed, in 1977, after Congress removed the amountin-controversy requirement from § 1331 for actions brought against the United States and its
officials, it openly acknowledged that it still lacked general authority to enforce subpoenas via
civil actions filed in district court. See S. Rep. 95-170, at 16 (1977) (“Presently, Congress can

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seek to enforce a subp[o]ena only by use of criminal [contempt] proceedings [under 2 U.S.C.
§ 192] or by the impractical procedure of conducting its own trial before the bar of the House of
Representatives or the Senate.”). Nor is that surprising: the 1976 amendment was not intended to
vest the courts with plenary authority to hear disputes between Congress and the Executive Branch;
rather, it was meant to remove a “technical barrier[] to the consideration on the merits of citizens’
complaints against the Federal Government,” H.R. Rep. No. 94-1656, at 3 (1976); see S. Rep. No.
94-996, at 2 (1976), which had precluded “aggrieved private persons” from bringing their claims.
H.R. Rep. No. 94-1656, at 15 (emphasis added); see S. Rep. No. 94-996, at 15. Neither of the
reports accompanying the legislation discussed congressional subpoena enforcement actions like
this one. See H.R. Rep. No. 94-1656; S. Rep. No. 94-996. That Senate report also recognized that
“a future statute” might be needed to “specifically give the courts jurisdiction to hear a civil legal
action brought by Congress to enforce a subp[o]ena against an executive branch official.” Id. at
89; see also In re Application of the U.S. Senate Permanent Subcomm. on Investigations, 655 F.2d
1232, 1238 (D.C. Cir. 1981) (“Prior to 1978 Congress had only two means of enforcing compliance
with its subpoenas: a statutory criminal contempt mechanism and the inherent congressional
contempt power.” (footnotes omitted)).
In providing jurisdiction over some congressional subpoena-enforcement actions but not
others, Congress has confirmed that a specific grant of jurisdiction is necessary before a body of
Congress can bring this sort of suit. See Keene Corp. v. United States, 508 U.S. 200, 207 (1993)
(“Congress has the constitutional authority to define the jurisdiction of the lower federal courts, . . .
and, once the lines are drawn, limits upon federal jurisdiction . . . must be neither disregarded nor
evaded.” (citations omitted)). Reading either the general federal question statute or the mandamus
statute to authorize this suit would render pointless both 28 U.S.C. § 1365 and the precise
limitations therein, a result that cannot be squared with “the canon against interpreting any

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statutory provision in a manner that would render another provision superfluous.” Bilski v.
Kappos, 561 U.S. 593, 607-08 (2010). Because this case falls outside the bounds of the carefully
drawn jurisdictional regime Congress has created, the Court lacks statutory subject matter
jurisdiction. See In re Application of the U.S. Senate Permanent Subcomm., 655 F.2d at 1238 &
n.28 (explaining that the Act creating § 1365 is “relatively simple” and “does not . . . include civil
enforcement of subpoenas by the House of Representatives”); Cong. Research Serv., Cong.’s
Contempt Power and the Enforcement of Cong. Subpoenas 22-23 (2012) (“Although the Senate
has existing statutory authority to pursue such an action, there is no corresponding provision
applicable to the House.”).17
C.

Decisions Suggesting that Subpoena Enforcement Suits Are Justiciable Either
Have Been Abrogated By Raines v. Byrd or Were Wrongly Decided.

Notwithstanding the numerous reasons why suits of this kind lie far afield of the courts’
jurisdiction, certain decisions have suggested that they may be justiciable. To the extent those
decisions predate Raines, they are no longer good law. And those decisions post-dating Raines
were, with respect, wrongly decided.
1.

Cases Pre-Dating Raines v. Byrd Are No Longer Good Law.

Prior to the Supreme Court’s decision in Raines, the D.C. Circuit occasionally suggested
in passing that Congress might have standing to seek judicial enforcement of subpoenas against
the Executive Branch. See U.S. House of Representatives, 379 F. Supp. 3d at 17 (noting this case
law). In particular, in AT&T I, the Executive Branch brought suit against a private telephone
company to prevent the release of national security information subpoenaed by a House
subcommittee, and the House, by resolution, designated the subcommittee chairman to intervene
on behalf of the House and appeal the judgment. 551 F.2d at 391. The Court of Appeals observed

17

Available at https://crsreports.congress.gov/product/pdf/RL/RL34097.
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in a single sentence, without citation, that “the House as a whole has standing to assert its
investigatory power, and can designate a member to act on its behalf.” Id. And in Senate Select
Committee on Presidential Campaign Activities v. Nixon, 498 F.2d 725 (D.C. Cir. 1974) (en banc),
the Court of Appeals reached the merits of a Senate committee suit against the President to compel
the production of tape recordings, without addressing, much less deciding, whether the Senate
committee had standing. Id. at 725. Neither case discusses the jurisdictional limits imposed by
Article III, and the Supreme Court has been clear that “drive-by jurisdictional rulings of this sort
. . . have no precedential effect.” Steel Co. v. Citizens for a Better Env’t, 523 U.S. 83, 91 (1998).
Moreover, to the extent AT&T I and Senate Select Committee suggest that Congress has
standing to sue the Executive Branch, these decisions do not survive Raines. As the D.C. Circuit
has recognized, the permissive doctrine of legislative standing that prevailed at the time of AT&T
I and Senate Select Committee has been eclipsed by Raines and its progeny, which have “place[d]
greater emphasis upon the separation of powers concerns underlying the Article III standing
requirement.” Chenoweth, 181 F.3d at 114. Like the broader doctrine of legislative standing that
Raines explicitly repudiated, cases such as AT&T I and Senate Select Committee are now
“untenable” as authority for Congress’s standing to sue the Executive Branch. Id. at 115.
But even if it survives Raines, AT&T I is distinguishable. Although the court characterized
the case as a “clash of the powers of the legislative and executive branches,” the suit was brought
by the Executive Branch against a private entity concerning the latter’s “legal duty” as the recipient
of a congressional subpoena. 551 F.2d at 389. The court thus did not hold in AT&T that courts
have jurisdiction over congressional subpoena enforcement actions brought against Executive
Branch officials. Because the case required a determination of the legal obligations of a private
party to the case to disclose information pursuant to a congressional subpoena, the case hinged on
an “adjudication of individual rights” that is absent here. Cf. Barnes, 759 F.2d at 67 (Bork, J.,

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dissenting) (“There was, in Chadha as in the cases the Court cited, an aggrieved individual who
sought relief that ran only against the Executive Branch: that satisfied the injury-in-fact, causation,
and redressability requirements of article III.”). Moreover, in AT&T I, by the time the D.C. Circuit
commented on the House’s standing, the district court had quashed the subpoena. See 551 F.2d at
385. Although quashing a subpoena likely does not constitute “nullification” of a legislative
interest within the meaning of Coleman as construed by Raines and Bethune-Hill (many years after
AT&T I), there is no question that the House’s ability to issue subpoenas or request information is
not nullified where, as here, the subpoena or other legislative request remains in force and simply
has not been satisfied. In short, AT&T I involved “at most” whether the House could appeal from
a district court order invalidating its request for information in a case that was properly in court,
and that decision should not be extended to this much different factual context, especially in light
of Raines and Bethune-Hill. Cf. Raines, 521 U.S. at 823-26 (narrowly construing Coleman).18
2.

The Two Cases Post-Dating Raines Were Wrongly Decided.

Following Raines, neither the D.C. Circuit nor the Supreme Court has suggested that
Congress has standing to sue the Executive Branch, to enforce information demands or otherwise.
Yet twice in the past eleven years, courts in this district have held such disputes justiciable, over
the objections of administrations of both parties. See Comm. on the Judiciary v. Miers, 558 F.
Supp. 2d 53 (D.D.C. 2008); Comm. on Oversight & Gov’t Reform v. Holder, 979 F. Supp. 2d 1
(D.D.C. 2013). Those cases were wrongly decided, and this Court should not repeat their errors.

18

The D.C. Circuit also noted in AT&T I that jurisdiction existed under § 1331. For the reasons
stated above, the procedural posture of AT&T I makes it inapposite: it was a suit brought by the
Executive against a private party, not a suit brought by Congress against the Executive Branch that
can be heard, if at all, only under the specific jurisdictional provisions that Congress has enacted
to govern such disputes. The decision also long predated the 1996 amendments to 28 U.S.C.
§ 1365, which further confirmed that that 28 U.S.C. § 1331 would not apply to lawsuits brought
by Congress against the Executive Branch.
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1.

In Miers, the House Committee on the Judiciary asked the “Court to declare that

[a] former White House Counsel . . . must comply with a subpoena and appear before the
Committee to testify regarding an [oversight] investigation . . . , and that [the White House] must
produce a privilege log in response to a congressional subpoena.” Miers, 558 F. Supp. 2d at 55.
Denying the Executive Branch’s motion to dismiss, the Court held that “this lawsuit involves a
basic judicial task—subpoena enforcement—with which federal courts are very familiar.” Id. at
56. The Court read AT&T I as “establish[ing] that the committee has standing to enforce its duly
issued subpoena through a civil suit,” id. at 68, and declined to read Raines as abrogating AT&T I,
interpreting Raines as a decision solely about the standing of “individual” Members, such that a
suit by the institution as a whole, or by an individual authorized by the institution, would be
justiciable. See id. at 69-70. The Miers court also held that because the dispute concerned
enforcement of a subpoena, the “asserted interest[s] [were] more concrete than the situation in
Raines, where the purported injury was wholly hypothetical.” Id. at 70.
The Miers court erred in key respects. First, while the House had formally authorized the
lawsuit in Miers, such authorization is neither sufficient to overcome the constitutional infirmities
inherent in suits of this kind nor present here in any event. Second, the Miers court suggested that
the service of a subpoena made the dispute more concrete than the dispute in Raines, see 558 F.
Supp. 2d at 70, but formalities of process cannot dictate the boundaries of Article III. The “deeply
rooted” authority for courts to “enforce subpoenas,” such as grand jury subpoenas, subpoenas “to
compel testimony or produce documents pursuant to Fed. R. Civ. P. 45, or subpoenas issued by
administrative agencies of the United States pursuant to Fed. R. Civ. P. 81(a)(5),” Miers, 558 F.
Supp. 2d at 71, does not mean that Congress can invoke the Judiciary’s aid against the Executive
simply by issuing something called a “subpoena.” There was no suggestion in Raines that the
Supreme Court was unfamiliar with the task of adjudicating the constitutionality of an act of

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Congress—indeed, the following term it held the Line Item Veto Act unconstitutional in Clinton
v. City of New York, a suit by private parties who had suffered concrete and particularized injuries
to their personal interests. 524 U.S. 417, 429-36 (1998). But the Court refused to reach that issue
in Raines because the dispute was not one “traditionally thought to be capable of resolution through
the judicial process.” 521 U.S. at 819. The Miers court should have done the same.
2.

In Holder, the House sought judicial enforcement of a subpoena calling for the

Attorney General to produce certain records relating to the Fast and Furious gunwalking operation.
Holding that “Article III of the U.S. Constitution does not bar the federal courts from exercising
their jurisdiction under the circumstances presented in this case,” the Court explained that the case
before it “involves the application of a specific privilege to a specific set of records responsive to
a specific request, and the lawsuit does not invite the Court to engage in the broad oversight of
either of the other two branches.” Id. at 14. The Court further held that statutory subject matter
jurisdiction was available under 28 U.S.C. § 1331, reasoning that “the chronology of events
surrounding the enactment of section 1365 reveals that the jurisdictional gap it was meant to cure
was not a lack of jurisdiction over actions like this one.” Id. at 18.
The Holder court largely followed “the reasons set forth in Miers,” 979 F. Supp. 2d at 4,
and so Holder can be no more reconciled with Raines than can Miers itself. In addition, Holder
relied heavily on United States v. Nixon, 418 U.S 683 (1974), but that case involved the
enforcement of a trial subpoena arising “in the regular course of a federal criminal prosecution,”
which is a matter “within the traditional scope of Article III power.” Id. at 697. Although Nixon
implicated separation-of-powers concerns, at bottom it involved information necessary to the
Executive Branch’s criminal prosecution of a citizen—a matter that implicated “the constitutional
rights and liberties of individual citizens,” Raines, 521 U.S. at 829, and was thus “within the
traditional scope of Art. III power,” Nixon, 418 U.S. at 697. Nixon does not suggest that federal

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courts may also entertain civil suits by one co-equal branch against another concerning the scope
of their respective powers.
The Holder court also erred in finding jurisdiction under § 1331. The Court acknowledged
that when Congress enacted 28 U.S.C. § 1365 in 1978, it had already removed the amount-incontroversy requirement from § 1331 for suits against the United States, 979 F. Supp. 2d at 18-19,
but it failed to grapple with the consequences of that chronology, i.e., that § 1331 must not have
already provided jurisdiction for the very subpoena enforcement suits it enacted 28 U.S.C. § 1365
to create. And, the opinion ignores the 1996 amendment to § 1365, a revision that would be
inexplicable if Congress thought § 1331 already granted federal courts plenary jurisdiction to
entertain congressional subpoena enforcement actions against the Executive Branch.
The Holder court also pointed to a Senate report that it characterized as standing for the
proposition that the enactment of § 1365 “‘is not intended to be a Congressional finding that the
Federal courts do not now have the authority to hear a civil action to enforce a subp[o]ena against
an officer or employee of the Federal government.’” Holder, 979 F. Supp. 2d at 19 (quoting S.
Rep. 95-170 at 91-92)). The Senate Report, however, described a Senate bill that would have
conferred jurisdiction to enforce subpoenas issued by either the Senate or the House. See S. Rep.
95-170 at 91 (Senate bill creates jurisdiction “over any civil action brought on behalf of Congress,
a House of Congress or a committee of Congress to enforce a subp[o]ena or order issued by that
entity.”). But although the Senate would have created jurisdiction to enforce subpoenas issued by
both houses of Congress, the House would not have included such a jurisdictional grant for either
House of Congress. At a conference committee, the two houses compromised by agreeing that
only the Senate would be given jurisdiction to enforce its subpoenas. See H.R. Rep. 95-1756 at
80 (1978) (Conf. Rep.) (“The appropriate committees in the House also have not considered the
Senate’s proposal to confer jurisdiction on the courts to enforce subp[o]enas of House and Senate

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committees. The Senate has twice voted to confer such jurisdiction on the courts and desires at
this time to confer jurisdiction on the courts to enforce Senate subp[o]enas.”). The Holder court’s
reading of § 1331 renders this careful and well-documented compromise entirely superfluous.
***
Article III’s time-honored concerns about preserving the vigor of the judicial power within
its proper constitutional sphere preclude the exercise of federal judicial power to intervene in
political conflicts between the elected branches. And even if that constitutional bar did not exist,
Congress itself has yet to enact legislation permitting a federal court to hear this case.
II.

In Light of Separation of Powers Concerns, This Court Should Refuse to Grant the
Committee’s Request for Relief in Order to Allow the Constitutionally Mandated
Accommodation Process to Proceed.
Even if this inter-branch dispute met the constitutional minima of a justiciable case or

controversy, and even if Congress had conferred jurisdiction on the courts over disputes of this
kind, the Court should not now proceed with an attempt to resolve this dispute by adjudication,
given the acute separation-of-powers concerns presented by judicial intervention in political
disputes between the elected branches and the structure of checks and balances central to the
Constitution’s design. At a minimum, the Court should refuse to referee this dispute until the
parties have earnestly pursued and exhausted the constitutionally contemplated processes of
negotiation and mutual accommodation.
Courts have declined to decide suits filed by legislators attempting “to bring . . . essentially
political dispute[s] into a judicial forum.” Chenoweth, 181 F.3d at 114; see also Vander Jagt v.
O’Neill, Jr., 699 F.2d 1166, 1174-75 (D.C. Cir. 1982) (dismissing case out of “proper respect for
the political branches and a disinclination to intervene unnecessarily in their disputes”) (internal
quotation omitted). This principle includes inter-branch informational disputes. See AT&T I, 551
F.2d at 394 (choosing “a judicial suggestion of compromise rather than historic confrontation” as

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the option most “suitab[le]” to resolution of an inter-branch dispute over access to national security
information); AT&T II, 567 F.2d at 130.
The accommodation process represents more “than the mere degree to which ordinary
parties are willing to compromise.” AT&T II, 567 F.2d at 130. Although sometimes described in
terms of equitable discretion, the D.C. Circuit has made clear that the respect for the
accommodation process extends much further than typical notions of equitable restraint. Because
“[t]he Constitution contemplates such accommodation,” “[n]egotiation between the two branches
should thus be viewed as a dynamic process affirmatively furthering the constitutional scheme.”
Id. “Under this view . . . each branch should take cognizance of an implicit constitutional mandate
to seek optimal accommodation through a realistic evaluation of the needs of the conflicting
branches in the particular fact situation.” Id. at 127. This approach, therefore, has dominated
conflicts between the political branches over requests by Congress for information from the
Executive Branch. See AT&T I, 551 F.2d at 394.
Even accepting the Committee’s purported interest in the Presidential audit process, the
accompanying declaration of Frederick W. Vaughan (“Vaughan Declaration”) makes clear that
the Committee brought suit before genuinely exploring the possibilities both for accommodation
and for gathering additional information about the Presidential audit program.
a.

Efforts prior to April 3, 2019: Between January 3 (when the 116th Congress

convened) and April 3, 2019, no one associated with the Committee requested from the
Department information about the process by which the IRS audits and enforces the Federal tax
laws against a sitting President. Vaughan Decl. ¶ 9. Indeed, during testimony at a March 14, 2019,
Committee hearing, Secretary Mnuchin received numerous questions about the Department’s
potential response to a request for President Trump’s tax returns; none of the Committee’s 42

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Members, however, asked even a single question regarding the process by which the IRS audits
and enforces the Federal tax laws against a President. Id. ¶¶ 4-6 & Ex. A.
b.

Chairman Neal’s section 6103(f) request and the Department’s accommodation

efforts: Although the Department had received no prior indication of the Committee’s purported
interest in the mandatory Presidential audit process prior to Chairman Neal’s April 3 letter, the
Department promptly expressed its willingness to work with the Committee to accommodate any
genuine interest the Committee might have in that process. In his April 23, 2019, letter to
Chairman Neal, the Secretary made clear that “[t]o the extent the Committee wishes to understand,
for genuine oversight purposes, how the IRS audits and enforces the Federal tax laws against a
President, we would be happy to accommodate that interest by providing additional information
on the mandatory audit process.” Vaughan Decl. ¶¶ 15-18 & Ex. E. Receiving no response to this
offer, the Secretary reiterated in his May 6, 2019, letter to Chairman Neal (in which Commissioner
Rettig separately concurred) the Department’s willingness to “provide information concerning . .
. how the IRS conducts mandatory examinations of Presidents . . . [i]f the Committee is
interested[.]” Id. ¶ 21 & Ex. F.
c.

The Committee’s response to the Department’s multiple offers of accommodation:

As noted above, the Committee did not respond to the Department’s initial offer to provide
information concerning the mandatory audit process (other than to demand the requested tax
returns and return information, see Vaughan Decl. ¶¶ 18-25 & Ex. G). Likewise, following the
Secretary’s and the Commissioner’s May 6 letters, the Committee did not immediately take up the
Department on its second offer to provide such information.

Instead, four days later, the

Committee served Secretary Mnuchin and Commissioner Rettig with subpoenas. Id. ¶ 24 & Ex.
G. In a letter accompanying the subpoena, Chairman Neal did not address the Department’s offer
of information about the Presidential audit program until the final paragraph, where he dismissed

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it as “no substitute for the requested tax returns and return information.” Id. On May 17, 2019,
Secretary Mnuchin responded by letter to Chairman Neal’s May 10 letter and subpoenas,
explaining again that the Department was not authorized to disclose the requested returns and
return information, but offering again to accommodate the Committee’s purported interest by
providing information about the audit program. Id. ¶¶ 26-28 & Ex. H. IRS Commissioner Rettig
responded to Chairman Neal in a similar letter the same day. Id. ¶ 29 & Ex. I
d.

The Department provides an initial briefing on the Presidential audit program to

the Committee: On May 22, 2019, the Department received an email from Committee staff
regarding the Department’s earlier proposals to brief the Committee on the mandatory audit
process. Vaughan Decl. ¶ 30 & Ex. J. The Department responded on May 24, 2019, expressing
the agency’s willingness “to provide a detailed briefing to the Committee on the mandatory audit
process” but asking Committee staff to “let us know what particular aspects of the audit process
you would like the briefing to focus on” so that the Department could ensure that it had “the right
experts available to provide the information you’re interested in.” Id. ¶ 33 & Ex. J. The
Committee’s response did not specify particular features of the program in which it was
supposedly interested. See id. ¶ 34 & Ex. J. Nonetheless, on June 10, 2019, IRS and Treasury
officials briefed Committee staff for approximately three hours, during which time they addressed
more than 150 questions from Committee staff. Id. ¶ 46. That afternoon, the Department sent to
Chairman Neal a letter that summarized the briefing and noted that, although “IRS officials
answered most of your staff’s questions about the mandatory examination process,” staff had
“committed to send us a list of follow-up questions, which we look forward to receiving.” Id. Ex.
M.
e.

The Committee abruptly abandons the accommodation process and files suit: On

June 13, 2019, in apparent response to the Department’s June 10 letter, Committee staff sent the

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Department a list of 291 questions concerning the audit program; the questions, however, had been
prepared prior to the June 10 briefing. Vaughan Decl. ¶¶ 51-52. The Department responded by
noting that many of the questions had been asked and answered at that briefing and requested that
the Committee “[p]lease let us know which of the questions you would like us to prioritize.” Id.
Ex. O. Committee staff, however, neither specified which of the 291 questions they believed were
not answered at the briefing nor identified which questions were a priority for the Committee. Id.
¶ 53.
Instead, Chairman Neal sent another letter to Secretary Mnuchin on June 28, 2019, in which
he disparaged the briefing the Committee staff had received as “limited,” and contended that the
Department had failed to answer most of the questions posed during the briefing. Id. Ex. Q. Like
the response from Committee staff, Chairman Neal’s letter did not actually identify which
questions were a priority for the Committee, or even ask the Department to provide answers to any
of them. Instead, Chairman Neal again demanded production of the requested tax returns and
return information. Id. Two business days later, the Committee filed this action. Id. ¶ 56.
Whatever the Committee’s belated, half-hearted, and quickly abandoned response to the
Department’s multiple offers to supply it with additional information about the Presidential audit
process may suggest about the Committee’s actual purpose, for now it suffices to note that the
Committee plainly did not exhaust the possibilities for accommodation before filing suit. This
case stands in stark contrast to Miers, where the Court noted that “no rush to the courthouse by
either political branch [was] evident.” 558 F. Supp. 2d at 96. As the record summarized above
makes clear, the Committee asked for just a single introductory briefing about the audit program
before it filed this lawsuit, without so much as inquiring about the status of the Department’s
responses to the questions it submitted afterward.

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This Court, facing the Committee’s appeals for a judicial resolution of this dispute “that
might disturb the balance of power between the two branches and inaccurately reflect their true
needs,” AT&T II, 567 F.2d at 123, should not accept the idea that, after so limited an opportunity
for negotiation and exchange of information, the Department and the Committee have already
reached the point of impasse. Indeed, AT&T presented a situation where litigation ensued after
negotiations between the Executive and Legislative Branches had actually “broke[n] down,”
AT&T I, 551 F.2d at 387, yet the Court refused to “select a victor,” or “tilt the scales,” when the
political branches’ “long history of settlement of disputes that seemed irreconcilable” gave reason
to believe that “[a] compromise worked out between them [was] most likely to meet their essential
needs and the country’s constitutional balance.” Id. at 394. Instead, the Court dispatched the
parties “to attempt to negotiate a settlement” of their differences, id. at 395, negotiations which
did not succeed in resolving their dispute, but which “did narrow the gap between the parties and
provide a more informed basis for further judicial consideration.” AT&T II, 567 F.2d at 130.
Assuming for this discussion that the Committee’s purported legislative interest in the
Presidential audit process is the purpose behind its request, the Department remains willing to
provide the Committee additional information with which it might pursue a legislative agenda
related to that process—as it was in the midst of doing when the Committee prematurely filed suit.
As the accompanying Declaration of Sunita Lough makes clear, the Presidential audit process is
multi-faceted and the Department is prepared to assist the Committee in better understanding how
the process works, to the extent the Committee decides to engage earnestly in the accommodations
process. Accordingly, even if this Court concludes that it has jurisdiction to entertain this suit and
that the Committee has stated a claim on which relief can be granted, the Court should dismiss—
or at the very least, stay19—this action to allow the accommodation process to go forward.

19

Defendants acknowledge that any dismissal on this ground would be without prejudice.
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III.

This Case Must Be Dismissed for Failure to State a Claim on Which Relief Can Be
Granted.
Even if the federal courts could entertain suits of this nature without upending the

constitutional order; even if this Court had statutory subject-matter jurisdiction over the
Committee’s claims; and even if the Committee had exhausted the potential for negotiation and
mutual accommodation with the Department, the Committee would still not have a cause of action
to enforce demands for individual tax-return information in federal court. “[R]ights of action to
enforce federal law must be created by Congress.” Alexander v. Sandoval, 532 U.S. 275, 286
(2001). Indeed, as the Supreme Court has recognized, the “[a]uthority to exert the powers of
[Congress] to compel production of evidence differs widely from authority to invoke judicial power
for that purpose.” Reed v. Cty. Comm’r of Del. Cty., Pa., 277 U.S. 376, 389 (1928) (emphasis
added). It is thus insufficient for the Committee to point to statutory or subpoena language
“phrased in . . . explicit rights-creating terms”; the Committee must also show that Congress has
created for its benefit “not just a private right” to information, “but also a private remedy.”
Gonzaga Univ. v. Doe, 536 U.S. 273, 284 (2002) (citation and emphasis omitted). As explained
below, the Committee fails to identify a cause of action to litigate a claimed right to access the
President’s tax-return information.
A.

The Committee Lacks a Cause of Action to Enforce Its Subpoenas (Count I)
and Section 6103(f) Requests (Count VII).

Counts I and VII of the Committee’s Complaint, styled “Subpoena Enforcement” and
“Violation of 26 U.S.C. § 6103(f),” respectively, assert simply that Defendants are legally required
to produce the President’s tax returns to the Committee, without reference to any statute purporting
to provide the Committee with a cause of action to vindicate those purported rights in court. See
Compl. ¶¶ 99-104, 131-135. No such cause of action exists.

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Congress knows how to enact a cause of action for legislators, and it has done so on certain
occasions, such as the cause of action for “either House of Congress” to challenge census
methodologies, see Pub. L. No. 105–119, § 209, 111 Stat. 2440, 2482 (1997), or the cause of
action it enacted attempting to authorize Members of Congress to challenge the Line Item Veto
Act, see Raines, 521 U.S. at 815-16. Indeed, as noted above, Congress has enacted legislation
purporting to authorize the Judiciary to entertain certain subpoena enforcement actions brought by
the Senate, 28 U.S.C. § 1365, but Congress has not taken that step with respect to subpoenas issued
by the House of Representatives. See supra at 29-32, 37-38.
Congress has likewise declined to enact a cause of action for the enforcement of requests
for tax information under section 6103(f). Congress’s silence on that topic is particularly notable
because the Internal Revenue Code sets forth a comprehensive scheme governing judicial
proceedings, under which the only “[a]ctions permitted” by “Persons Other than Taxpayers” are
those for wrongful levy of property, claims for surplus or substituted proceeds, and actions for
substitution of value. See 26 U.S.C. § 7426(a). Moreover, the Code expressly provides a cause of
action for taxpayers seeking redress for unauthorized disclosure and inspection of confidential tax
information. 26 U.S.C. § 7431. The fact that Congress enacted a cause of action to vindicate
rights against unauthorized disclosure and inspection under section 6103, while declining to enact
a reciprocal cause of action to force a purportedly required disclosure, demonstrates that Congress
knew how to create such a cause of action and chose not to create one for the latter situation.20
This conclusion is reinforced by the central concern of section 6103, which is to provide strict
limits on the circumstances in which tax return information can be disclosed. Neither the text,
structure, nor history of the provision supports any authorization for private suits to force

20

Indeed, in the limited instance where Congress sought to permit a lawsuit to force disclosure
under Title 26, it did so clearly and with carefully delineated protocols designed to account for the
interests of affected taxpayers. See 26 U.S.C. § 6110(f)(4).
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disclosure of taxpayer information. See, e.g., Int’l Union, Sec., Police & Fire Prof’ls of Am. v.
Faye, 828 F.3d 969, 972 (D.C. Cir. 2016) (“Absent statutory intent to create a cause of action, . . .
‘courts may not create one, no matter how desirable that might be as a policy matter, or how
compatible with the statute.’”).
To the extent the Committee claims that a judicially enforceable right to sue the Executive
Branch to enforce a congressional subpoena or section 6103(f) can be implied under Article I of
the Constitution, see Compl. ¶¶ 88, 93, that is plainly wrong. As courts have long recognized, “it
is up to Congress to create federal causes of action,” Farrington v. Nielsen, 297 F. Supp. 3d 52,
63 (D.D.C. 2018) (citing Sandoval, 532 U.S. at 286), and creation of the “judge-made remedy” of
an implied cause of action in equity pursuant to Congress’s statutory grant of federal question
jurisdiction is available only in “some circumstances” that present a “proper case.” Armstrong v.
Exceptional Child Ctr., Inc., 135 S. Ct. 1378, 1384 (2015). Such a remedy is only proper where
the “relief . . . requested . . . was traditionally accorded by courts of equity,” Grupo Mexicano de
Desarrolo, S.A. v. All. Bond Fund, Inc., 527 U.S. 308, 319 (1999), and it is “subject to express and
implied statutory limitations,” Armstrong, 13 S. Ct. at 1385. “Indeed, the Supreme Court has
recently emphasized that judicially inferring a cause of action that goes beyond “traditional
equitable powers” is a “significant step under separation-of-powers principles.” Ziglar v. Abbasi,
137 S. Ct. 1843, 1856 (2017); see also Jesner v. Arab Bank PLC, 138 S. Ct. 1386, 1398 (2018)
(where “litigation implicates serious separation-of-powers . . . concerns,” the existence of a right
to bring such litigation must be “subject to vigilant doorkeeping”). Again, the Committee’s
attempt to use a civil lawsuit to force the disclosure of information held by the Executive Branch
has no historical foundation, much less a strong tradition in equity, and the express cause of action
for certain subpoena enforcement actions by the Senate precludes a more general implied cause of

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action for the House. See Abbasi, 137 S. Ct. at 1862 (courts should not imply a cause of action
where Congress’s failure to create one is “more than mere oversight”).21
Nor can the Committee rely on the Declaratory Judgment Act, 28 U.S.C. § 2201, to enforce
its demands for the President’s tax returns in the absence of a cause of action. See Compl. ¶ 10
(citing 28 U.S.C. §§ 2201, 2202), Prayer for Relief ¶ A. The Declaratory Judgment Act does not
itself “provide a cause of action.” Ali v. Rumsfeld, 649 F.3d 762, 778 (D.C. Cir. 2011). It simply
“enlarge[s] the range of remedies available in the federal courts” for cases that already can be
litigated there. Skelly Oil Co. v. Phillips Petroleum Co., 339 U.S. 667, 671 (1950). A “cause of
action,” by contrast, refers to the legal authority that allows a plaintiff to “‘enforce in court the . . .
rights and obligations’ identified in his complaint” and is “‘analytically distinct and prior to the
question of what relief, if any, [he] may be entitled to receive.” John Doe v. U.S. Parole Comm’n,
602 F. App’x 530, 532 (D.C. Cir. 2015) (citations omitted). As this Circuit has long held, “the
availability of relief” under the Declaratory Judgment Act “presupposes the existence of a
judicially remediable right.’” C & E Servs., Inc. of Wash. v. D.C. Water & Sewer Auth., 310 F.3d
197, 201 (D.C. Cir. 2002).
B.

The APA Claims (Counts II-V) Fail as a Matter of Law.

Counts II-V of the Complaint purport to assert claims for violation of the Administrative
Procedure Act, seeking to “compel agency action unlawfully withheld,” Compl. ¶ 106, and to
“hold unlawful and set aside” agency action as arbitrary and capricious and contrary to law, id.

The contrary holdings in Miers and Holder predated the Supreme Court’s decisions in
Armstrong and Abbasi and cannot be reconciled with the Supreme Court’s teachings in those cases.
Moreover, while Miers and Holder emphasized the recognition in McGrain, 273 U.S. at 175, that
Congress possesses an auxiliary power of inquiry under the Constitution, Holder, 979 F. Supp. 2d
at 22, that reliance was in error. The mere existence of Congress’s limited power of inquiry is not
to be confused with the power to enforce that authority through a civil lawsuit. See Reed, 277 U.S.
at 389.
21

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¶ 112, “contrary to constitutional right, power, privilege, or immunity,” id. ¶ 117, and “in excess
of statutory jurisdiction [or] authority,” id. ¶ 122. See 5 U.S.C. § 706(1), (2)(A)-(C). The
Committee’s theory that it may proceed under the APA to vindicate a “right” under § 6103(f),
Compl. ¶¶ 30, 35, or the Constitution, id. ¶ 119, is mistaken. Indeed, Defendants are not aware
of any instance since the APA was enacted in 1946, in which either house of Congress, or any of
their committees, have successfully invoked the APA to seek relief against the Executive Branch.
The APA authorizes judicial review of “agency action” at the behest of “person[s]” who
have “suffer[ed] legal wrong because of agency action, or [are] adversely affected or aggrieved
by agency action.” 5 U.S.C. § 702. As explained below, the Committee cannot proceed under
the APA, for at least three reasons. First, an array of statutes specifying the circumstances and
manner in which Congress, its committees, and agents may secure access to information
precludes APA review of the Secretary’s response to the Committee’s demands for the
President’s tax-return information.

See 5 U.S.C. § 701(a)(1) (providing that the APA’s

provisions on judicial review apply “except to the extent that … statutes preclude [such] review”).
Second, even if APA review were not precluded, failing to turn over information to Congress
does not fall within the APA’s definition of “agency action” as interpreted by the D.C. Circuit.
See Nat. Res. Def. Council, Inc. v. Hodel, 865 F.2d 288, 318 (D.C. Cir. 1988). Third, the
Committee likewise is not a “person” entitled to review as that term is defined by the APA. See
id. §§ 551(2), 701(b)(2).
1.

APA Review Is Precluded by Statute.

At the outset, APA review is precluded by the panoply of statutes governing enforcement
of Congress’s requests for information. “Whether and to what extent a particular statute
precludes judicial review is determined not only from its express language, but also from the
structure of the statutory scheme, its objectives, its legislative history, and the nature of the

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administrative action involved.” Block v. Cmty. Nutrition Inst., 467 U.S. 340, 345 (1984). An
intent to preclude review “may also be inferred from . . . the collective import of legislative and
judicial history behind a particular statute.” Id. at 349 (citing Heikkila v. Barber, 345 U.S. 229
(1953)).22 In short, APA review is unavailable “whenever the congressional intent to preclude
judicial review is fairly discernible . . . in the detail of the statutory scheme.” Id. at 350-51.
An intent to preclude APA review in matters involving Legislative Branch demands for
information can be “fairly discern[ed]” from the “collective import of legislative and judicial
history” of the intricate statutory scheme governing enforcement of Congressional requests for
information. Block, 467 U.S. at 349, 351. As discussed above, Congress has adopted elaborate
procedures and specific statutes to enforce requests for information through the subpoena process.
Congress has purported to authorize the Senate and its committees to bring civil lawsuits to
enforce certain subpoenas in federal court, but it has stopped short of authorizing such lawsuits
by the House of Representatives or with respect to subpoenas “issued to an officer or employee
of the executive branch.” 28 U.S.C. § 1365(a). Thus, the House’s only means to enforce a
subpoena using the judicial process is pursuant to the criminal contempt statute that Congress
created for that purpose. 2 U.S.C. § 192. To invoke that statute under House Rules, once a
subpoena has issued, it “may be enforced only as authorized or directed by the House.” House
Rules, R. XI, cl. 2(m)(3)(C) (emphasis added). And once the House has authorized enforcement
of a particular subpoena, it must certify the matter for prosecution by the appropriate United

22

For example, Heikkila concluded that APA review of Attorney General deportation orders
was precluded by the Immigration Act of 1917, because it spoke in terms similar to earlier
immigration statutes that had been construed to foreclose judicial review. 345 U.S. at 232-35. A
similar comparative analysis was employed in Armstrong v. Bush, 924 F.2d 282, 289-91 (D.C. Cir.
1991), concluding that review of the President’s compliance with the Presidential Records Act was
impliedly precluded given the absence of detailed recordkeeping requirements of the kind imposed
on agencies by the Federal Records Act.
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States Attorney as a contempt of Congress, 2 U.S.C. § 194; see id. § 192; Wilson v. United States,
369 F.2d 198, 199-203 (D.C. Cir. 1966), rather than initiate a civil action in its own behalf.
This careful scheme governing the enforcement of House subpoenas via contempt
prosecution supplies no basis to believe that “it was nevertheless the legislative judgment” that a
committee’s demand for information, whether by subpoena, or request made under § 6103(f),
could be laid directly before the courts for enforcement in a civil action under the APA. Block,
467 U.S. at 347. To the contrary, given the express provision within this scheme for judicial
enforcement of congressional subpoenas via criminal prosecution under 2 U.S.C. § 192, “the
omission of [similar] provision[s]” for civil suits initiated by House committees themselves is
“sufficient reason to believe that Congress intended to foreclose” such actions. Id. at 346-47; see
id. at 349 (“[W]hen a statute provides a detailed mechanism for judicial consideration of
particular issues at the behest of particular persons, judicial review of those issues at the behest
of other persons may be found to be impliedly precluded.”). Indeed, the Supreme Court observed
in Reed that since the enactment of 2 U.S.C. § 192 in 1857, it had become the “customary” and
“established practice” of Congress to rely on these prosecutorial means of enforcement to
vindicate its rights of access to evidence and information, in light of which the Court presumed
that a special Senate investigatory committee did not have power to sue to enforce one of its
subpoenas in the absence of a “specific[] grant[]” of such authority. 277 U.S. at 388-89. That
same presumption against review should apply in the circumstances here.
Permitting individual committees to sue directly under the APA to enforce compliance
with subpoenas or § 6103(f) requests “would severely disrupt [Congress’s] complex and delicate
. . . scheme” for subpoena enforcement by providing “a convenient device for evading . . . [the
institutional and] statutory requirement[s]” that House Rules and 2 U.S.C. § 194 would otherwise
require them to observe before drawing the courts into these disputes, see Block, 467 U.S. at 348,

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and render the longstanding procedures by which committees of the House of Representatives
may seek to compel production of information from the Executive Branch completely
superfluous. “Congress is unlikely to intend [such] radical departures from past practice without
making a point of saying so.” Jones v. United States, 526 U.S. 227, 234 (1999); accord, e.g.,
Whitman v. Am. Trucking Ass’ns, 531 U.S. 457, 468 (2001) (“Congress . . . does not alter the
fundamental details of a regulatory scheme in vague terms or ancillary provisions—it does not,
one might say, hide elephants in mouseholes.”). Nor is it possible to find such a departure here
given the Supreme Court’s recognition that the “APA did not significantly alter the ‘common
law’ of judicial review of agency action.” Heckler v. Chaney, 470 U.S. 821, 832 (1985). As
discussed above, Congressional committees unquestionably could not enforce their demands for
information through civil litigation prior to the enactment of the APA. See supra at 29-31. Thus,
the import of Congress’s silence on the question must be to preclude APA litigation that “would
effectively nullify” the scheme for subpoena enforcement on which Congress has relied for more
than 160 years, see Block, 467 U.S. at 348.
The conclusion that Congress did not intend judicial superintendence of Congressional
demands for information is buttressed by additional statutes addressing access by the Legislative
Branch to information held by Federal agencies, some of which provide for judicial review and
others of which do not. For example, Congress has directed Federal agencies to furnish such
information as the Congressional Research Service and the Congressional Budget Office might
request; in neither case, however, do the authorizing statutes refer to judicial action to enforce
those requests. See 2 U.S.C. §§ 166(d), 601(d). And as discussed above, although Congress has
permitted the tax committees to request tax information under section 6103(f), it has not enacted
a cause of action to enforce those requests. In contrast, Congress not only authorized the
Comptroller General to request information of Federal agencies, 31 U.S.C. § 716(a), but also

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expressly purported to authorize the Comptroller General to bring civil actions to enforce that
authority subject to a number of criteria and exceptions. Id. §§ 716(b)(1)-(2) & (2)(A), (d)(1).
The upshot is that when Congress wants to authorize judicial enforcement of Legislative
Branch requests for information in the possession of the Executive Branch, it does so expressly
and with significant qualification and procedural safeguards. The omission of any statutory
provision for enforcement of House committee subpoenas, or requests presented under § 6103(f),
compels the conclusion that Congress never intended for disputes over these requests to be settled
in court. Cf. Switchmen’s Union of N. Am. v. Nat’l Mediation Bd., 320 U.S. 297, 306 (1943)
(where Congress provides for judicial review in a “highly selective manner . . . it dr[aws] a plain
line of distinction”); see also Block, 467 U.S. at 347. APA review of the Secretary’s refusal to
produce individual tax-return information is therefore unavailable.
2.

Declining to Provide Information to Congress Is Not “Agency Action”
Under the APA.

Even if judicial review were not precluded, the Committee would still be unable to proceed
under the APA. The APA permits judicial review over “[a]gency action made reviewable by
statute and final agency action for which there is no other adequate remedy in a court.” 5 U.S.C.
§ 704. Agency action is defined to include “the whole or a part of an agency rule, order, license,
sanction, relief, or the equivalent or denial thereof, or failure to act.” 5 U.S.C. § 551(13). But, as
numerous courts have recognized, this definition does not extend to interactions arising solely
between Congress and the Executive Branch.
As the D.C. Circuit has explained, the nature of an agency’s response to a Congressional
request for information “is quite distinct from the prototypical exercise of agency power” where
“the agency whose action is challenged . . . is exercising legislative functions (via formal or
informal rulemaking) or adjudicatory functions that have been specifically ordained by Congress.”
Hodel, 865 F.2d at 318. In those circumstances, “Congress has seen fit to provide broadly for
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judicial review of those actions, affecting as they do the lives and liberties of the American people.”
Id. Where an agency responds to congressional requests for information, however, “the designated
Executive Branch officer is simply reporting back to the source of its delegated power in
accordance with the Article I branch’s instructions,” which is not a circumstance that amounts to
“agency action” under the APA. Id.; see also, e.g., Guerrero v. Clinton, 157 F.3d 1190, 1195 (9th
Cir. 1988) (reporting to Congress “not agency action of the sort . . . typically subject to judicial
review” because report had no “determinative or coercive effect upon the action of” any third party
and no “legal consequences flow[ed]” therefrom (citations omitted)); Am. Trucking Ass’n v. United
States, 755 F.2d 1292, 1296 (7th Cir. 1985) (reports to Congress not “agency action” under APA
because they do not “impose an obligation, determine a right or liability or fix a legal
relationship”); Nat. Res. Def. Council v. Lujan, 768 F. Supp. 870, 882 (D.D.C. 1991); see also
Taylor Bay Prot. Ass’n v. EPA, 884 F.2d 1073, 1081 (8th Cir. 1989).23 As these cases recognize,
construing the term “agency action” in the APA to extend to interactions between an agency and
Congress makes little sense because Congress “is not powerless to vindicate its interests or ensure
Executive fidelity to Legislative directives” as “part of [its] ongoing relationship[]” with the
Executive Branch. Hodel, 865 F.2d at 319. As explained above and below, that “ongoing
relationship” presumes that each branch acts pursuant to powers assigned under the Constitution,
rather than by recourse to rights of action intended for private parties.

Although these cases involved Congressional reporting requirements rather than specific
requests for information, their logic applies equally to a request for taxpayer information under
section 6103(f). A request under section 6103(f) “involve[s] basic interrelationships between the
Article I and Article II branches,” rather than an agency’s exercise of delegated authority affecting
regulated parties among the general public. Hodel, 865 F.2d at 317. Indeed, the Court in Hodel
took a broad view of Congressional reporting and expressly noted that its analysis would extend,
inter alia, to statutory directives that an agency “provide ‘specific information’ to Congress.” Id.
at 317 n.30. That description squarely encompasses a request under section 6103(f).
23

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3.

The Committee Is Not a “Person” Within the Meaning of the APA.

The text and structure of the APA, and basic separation of powers principles, also foreclose
any assertion that the Committee is entitled to invoke the APA’s provisions for judicial review.
The APA creates a cause of action for any “person suffering legal wrong because of agency action,
or adversely affected or aggrieved by agency action within the meaning of a relevant statute[.]” 5
U.S.C. § 702. It thus incorporates “the universal assumption” that laws authorizing suits by
“‘person[s] adversely affected or aggrieved’” are generally intended to redress injuries of “private
parties.” Director, Office of Workers’ Compensation Programs v. Newport News Shipbuilding,
514 U.S. 122, 132 (1995). That assumption reflects the general rule that the word “person” in a
statute is generally presumed not to include an instrumentality of a sovereign, absent affirmative
indication otherwise. See, e.g., United States v. Mine Workers, 330 U.S. 258, 275 (1947); Vt.
Agency of Nat. Res. v. United States ex rel. Stevens, 529 U.S. 765, 780 (2000). Although the APA
defines the word “person” to include “public . . . organizations,” it contains no indication that
Congress intended to include itself or its committees as such “person[s].” See 5 U.S.C. § 551(2);
see id. § 701(b)(2). Indeed, construing the word “person” to include Congress or its committees
would produce absurd results.
First, Congress made clear that the defendant-in-interest in a lawsuit brought under the
APA is the United States Government itself, which includes Congress. See 5 U.S.C. § 702;
Stockton E. Water Dist. v. United States, 583 F.3d 1344, 1362 (Fed. Cir. 2009), on reh’g in part,
638 F.3d 781 (Fed. Cir. 2011) (“‘United States[]’ [is] a term that of course includes Congress”).
The Committee’s claim that it is a “person” entitled to sue the United States Government under
the APA is in significant tension with the principle that Congress is part of the same Government
that the Executive Branch is defending in the suit. See Buckley, 424 U.S. at 139.

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Second, the APA’s definition of “person” is not limited to judicial review, but extends to a
wide variety of administrative processes. See 5 U.S.C. §§ 551(2), 701(b)(2). As a result, if a
congressional committee were a “person” that could seek judicial review under section 702, it
would also be a “person” entitled as a “party” (see id. § 551(3)) to participate in formal agency
rulemaking proceedings, id. §§ 553(b), 556, 557, or a “person” entitled to “petition for the
issuance, amendment, or repeal of a rule,” id. § 553(e). Under our Constitution’s separated powers,
however, Congress has no authority to involve itself in the processes by which agencies administer
regulatory schemes.

Rather, “once Congress makes its choice in enacting legislation, its

participation ends.” Bowsher, 478 U.S. at 733; Consumer Energy Council of Am. v. Fed. Energy
Regulatory Comm’n, 673 F.2d 425, 474 (D.C. Cir. 1982) (Congress may not “‘participate
prospectively in the approval or disapproval of . . . [regulations] ‘enacted’ by the executive
branch’” (citation omitted)); House of Representatives, 379 F. Supp. 3d at 23 (“legal standing to
superintend execution of laws is not among” Congress’s prerogatives.).24

Thus, when

consideration is given to the roles that “person[s]” may play in the APA’s statutory scheme as a
whole, it becomes clear that Congress intended the term “person” to encompass only individuals
or entities whose “lives and liberties” can be affected by agencies’ exercise of the functions that
Congress has assigned them to perform. Cf. Hodel, 865 F.2d at 318. A congressional committee
is not such an entity.
Congress’s past statements about its ability to bring civil lawsuits reinforce this conclusion.
The House has expressly disclaimed any power to bring “suit under the myriad of general laws
authorizing aggrieved persons to challenge agency action” and dismissed as “speculative” the
possibility that it would attempt “to afford itself broad standing to challenge the lawfulness of

24

Of course, individual legislators may participate in the rulemaking process along with the
general public, but they would do so as individuals, not on behalf of “Congress” or one of its subinstitutions (like the Committee).
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Executive conduct.” Brief for U.S. House of Representatives at 17, 22 & n.25, U.S. Dep’t of
Commerce v. U.S. House of Representatives, 525 U.S. 316 (1998), 1998 WL 767637 (citation
omitted). The Senate too has narrowly delineated the circumstances in which the Senate Legal
Counsel is authorized to represent its interests in civil litigation, and they do not include an action
under the APA. See 2 U.S.C. § 288b.
If Congress intends to test the scope of the judicial power to resolve disputes between the
political branches by including itself among the types of “person[s]” authorized to sue under the
APA, it needs to say so clearly. Cf. Dellmuth v. Muth, 491 U.S. 223, 231 (1989) (where Congress
intends a result with serious separation of powers implications, it should speak with “unmistakable
clarity”); Armstrong v. Bush, 924 F.2d 282, 289 (D.C. Cir. 1991) (similar); see also Franklin v.
Massachusetts, 505 U.S. 788, 800-01 (1992) (requiring an “express statement by Congress” before
subjecting President to APA review in light of separation-of-powers concerns). The APA lacks
such an express statement—whether in its definition of “person” or otherwise—and doctrines of
constitutional avoidance thus compel the conclusion that Congress did not intend the APA to
confer a right of action on itself. Armstrong, 924 F.2d at 289.
C.

The Committee’s Mandamus Claim (Count VI) Fails as a Matter of Law.

Count VI of the Complaint asserts that section 6103(f) imposes a non-discretionary duty
on Defendants to provide the requested tax-return information to the Committee that is enforceable
by mandamus. Compl. ¶ 107; see also id. ¶ 10 (citing 28 U.S.C. § 1361). This claim also should
be rejected as a matter of law. A writ of mandamus sought by a plaintiff in federal district court
is “‘a drastic [remedy], to be invoked only in extraordinary circumstances.’” Am. Hosp. Ass’n v.
Burwell, 812 F.3d 183, 189 (D.C. Cir. 2016) (“Am. Hosp. Ass’n I”) (quoting Power v. Barnhart,
292 F.3d 781, 784 (D.C. Cir. 2002)); see also Am. Hosp. Ass’n v. Price, 867 F.3d 160, 165 (D.C.
Cir. 2017) (“Am. Hosp. Ass’n II”) (consideration of mandamus “starts from the premise that

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issuance of the writ is an extraordinary remedy, reserved only for the most transparent violations
of a clear duty to act” (citation and quotation marks omitted)). To show entitlement to mandamus,
a plaintiff must, at a minimum, demonstrate: “(1) a clear and indisputable right to relief, (2) that
the government agency or official is violating a clear duty to act, and (3) that no adequate
alternative remedy exists.” Am. Hosp. Ass’n I, 812 F.3d at 189 (citing United States v. Monzel,
641 F.3d 528, 534 (D.C. Cir. 2011)).25 The Committee’s request for the President’s tax returns
meets none of these requirements.
First, the Committee lacks a “clear and indisputable” right in all cases to individual taxreturn information. Rather, as discussed above, Congress has no freestanding right to information
under the Constitution, and Congress’s “auxiliary power” to compel access to otherwise private
information may be wielded only as “necessary and appropriate to make [its] express powers more
effective.” McGrain, 273 U.S. at 173. Thus, any request for tax records under section 6103(f)(1)
can be sustained only in aid of a legitimate investigation and only where Congress’s interest in the
information overcomes any constitutional interests of the individual resisting the inquiry. See,
e.g., Watkins, 354 U.S. at 187-88. In light of these weighty threshold questions, see OLC Op. at
16-22, whatever right the Committee may possess to access individual tax-return information is,
at the very least, not “clear and indisputable.”
For similar reasons, any response by the Department to a Committee request to produce
tax-return information necessarily requires that the Department make threshold determinations
about the propriety of the request, and is not, therefore, “nondiscretionary.” As the D.C. Circuit

25

Courts have sometimes treated these three requirements as elements of a mandamus claim and
other times as elements of the court’s jurisdiction under 28 U.S.C. § 1361. See Lovitky v. Trump,
No. CV 19-1454 (CKK), 2019 WL 3068344, at *11 (D.D.C. July 12, 2019); In re Cheney, 406
F.3d 723, 729 (D.C. Cir. 2005) (en banc). Even where the three threshold requirements are
satisfied, “a court may grant relief only when it finds compelling equitable grounds.” Am. Hosp.
Ass’n I, 812 F.3d at 189 (citation omitted).
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has recognized, the Secretary and the IRS Commissioner are the “gatekeepers of federal tax
information” under section 6103. Tax Analysts, 117 F.3d at 613. That responsibility flows from
the fact that the Constitution requires the Executive Branch to “take care that the Laws be faithfully
executed,” U.S. Const. art. II, § 3, including the taxpayer confidentiality requirements of section
6103(a). Thus, Congress cannot constitutionally impose a non-discretionary duty on Defendants
“to expose the private affairs of individuals,” Watkins, 354 U.S. at 187, that supersedes the
Executive Branch’s duty (and authority) to ensure that all requests are in furtherance of a proper
legislative purpose.
Mandamus also is unavailable because the Committee has not exhausted alternate avenues
of relief. Pittston Coal Grp. v. Sebben, 488 U.S. 105, 121 (1988). Among other things, the
Committee could pursue an accommodation (indeed, is constitutionally obligated to do so). See
supra Part II. Absent exhaustion of that process, and the other mechanisms that the Committee,
and the House as a whole, have at their disposal to enforce their informational demands, see supra
at 49-50, the extraordinary remedy of mandamus is not available.
D.

The Non-Statutory Review Claim (Count VIII) Fails as a Matter of Law.

Finally, in Count VIII, Plaintiff invokes the non-statutory ultra vires doctrine, Compl. ¶
137 —“essentially a Hail Mary pass” that “in court as in football . . . rarely succeeds.” Nyunt v.
Chairman, Broad. Bd. of Governors, 589 F.3d 445, 449 (D.C. Cir. 2009) (Kavanaugh, J.). It is
well-settled that this doctrine “is intended to be of extremely limited scope.’” Cause of Action
Inst. v. Eggleston, 224 F. Supp. 3d 63, 76 (D.D.C. 2016) (quoting Trudeau v. Fed. Trade Comm’n,
456 F.3d 178, 190 (D.C. Cir. 2006)); see also Schroer v. Billington, 525 F. Supp. 2d 58, 65 (D.D.C.
2007) (“Non-statutory review is a doctrine of last resort.”). It applies, if at all, only when a
government official “acts ‘without any authority whatever.’” Pennhurst State Sch. & Hosp. v.
Halderman, 465 U.S. 89, 101 n.11 (1984) (quoting Fla. Dep’t of State v. Treasure Salvors, Inc.,

58

 Case 1:19-cv-01974-TNM Document 44 Filed 09/06/19 Page 73 of 74

458 U.S. 670, 697 (1982)). Accordingly, the “agency error [must] be ‘so extreme that one may
view it as jurisdictional or nearly so.’” Nyunt, 589 F.3d at 449 (quoting Griffith v. FLRA, 842 F.2d
487, 493 (D.C. Cir. 1988)).
Here, the Committee does not allege that the Department has taken action outside of its
jurisdiction, without any authority whatsoever, Pennhurst, 465 U.S. at 101 n.11, but contends
merely that it erred in the manner it exercised its authority over the Committee’s section 6103(f)
request. As noted above, the Secretary and the IRS Commissioner are the “gatekeepers” of
confidential taxpayer information, Tax Analysts, 117 F.3d at 613, and responding to congressional
requests for such information (whether by providing or withholding certain documents) is squarely
within their jurisdiction under section 6103(f). The parties simply disagree about whether the
Committee’s request was valid and whether the Department could look to the overwhelming record
to conclude that it was not. Such a dispute about constitutional and statutory authority is
inadequate to support a claim of ultra vires agency action. As the Griffith court stressed, “[g]ardenvariety errors of law or fact are not enough.” 842 F.2d at 493; see also Dart v. United States, 848
F.2d 217, 231 (D.C. Cir. 1988) (“[A]n agency action allegedly ‘in excess of authority’ must not
simply involve a dispute over statutory interpretation or challenged findings of fact.”); Physicians
Nat’l House Staff Ass’n v. Fanning, 642 F.2d 492, 496 (D.C. Cir. 1980) (en banc) (“That the Board
may have made an error of fact or law is insufficient; the Board must have acted without statutory
authority.”). Count VIII, like all of the Committee’s claims, fails to state a claim on which relief
can be granted.
CONCLUSION
For all the foregoing reasons, this case should be dismissed.
Dated: September 6, 2019

Respectfully submitted,
JOSEPH H. HUNT
Assistant Attorney General
59

 Case 1:19-cv-01974-TNM Document 44 Filed 09/06/19 Page 74 of 74

JAMES M. BURNHAM
Deputy Assistant Attorney General
ELIZABETH J. SHAPIRO
Deputy Director
JAMES J. GILLIGAN
Special Litigation Counsel
/s/
Steven A. Myers
STEVEN A. MYERS (NY Bar No. 4823043)
SERENA M. ORLOFF (CA Bar No. 260888)
ANDREW BERNIE (DC Bar No. 995376)
Trial Attorneys
United States Department of Justice
Civil Division, Federal Programs Branch
P.O. Box 883
Washington, D.C. 20044
Tel: (202) 305-0648
Fax: (202) 305-8470
Email: Steven.A.Myers@usdoj.gov
Attorneys for Defendants

/s/ William S. Consovoy
William S. Consovoy (D.C. Bar #493423)
Cameron T. Norris
Steven C. Begakis
CONSOVOY MCCARTHY PLLC
1600 Wilson Boulevard, Suite 700
Arlington, VA 22209
(703) 243-9423
will@consovoymccarthy.com
Patrick Strawbridge
CONSOVOY MCCARTHY PLLC
Ten Post Office Square, 8th Floor
South PMB #706
Boston, Massachusetts 02109
(617) 227-0548
Attorneys for Defendant-Intervenors

60

 Case Document 44-1 Filed 09/06/19 Page 1 of 7

EXHIBIT A

Case 1:19-cv-01974-TNM Document 44-1 Filed 09/06/19 Page 2 of 7
17308

CONGRESSIONAL RECORD

Mr. ROGERS. Mr. Speaker, I ask
unanimous consent to extend my remarks at this point in the RECORD.
The SPEAKER Is there objection
to the request of the gentleman from
Colorado?
There was no objection.
Mr. ROGERS of Colorado.
Mr.
Speaker, in pursuance of my colloquy
with the gentleman from New Jersey
[Mr. RODINO], I submit the following
brief for the RECORD:
Subject: Unavailability of declaratory judgment in New York Port Authority matter.

-

HOUSE

I. ACTION INITIATED BY COMMITTEE

A. Does the committee, or do itsmembers,
collectively or separately, have authority to
sue under the Declaratory Judgment Act?
The earnest suggestion that the committee
might obtain a declaration of rights from a
competent tribunal hardly gets off the
ground, for under the doctrine of Reed v.
Board of County Commissioners of Delaware
County, Pennsylvania (277 U.S. 376 (1927)),
neither the committee nor its members nor
representatives are empowered to seek judicial relief without an explicit authorization
from Congress. Such authorization has not
been granted to the committee, to its chairman, nor to any of its members. In Reed, the
Senate of the 69th Congress had by resoluINTRODUCTION
tion created a special committee to investiIn connection with an inquiry into the gate methods employed in influencing nomiactivities of the Port of New York Authority nations for the office of U.S. Senator.
by Subcommittee No. 5 of the House Com- In 1927, the Senate, by further resolumittee on the Judiciary (hereinafter "Com- tion, authorized the special committee to
mittee" and "Subcommittee"), certain offi- take and preserve certain ballot boxes, balcers and directors of the port authority re- lots, and other records used in connection
fused to comply with subpenas issued and with a senatorial election then subject to
served 1upon them by order of the subcom- contest.7 On behalf of the committee, its
mittee. It has been suggested by certain counsel, Mr. South, demanded possession of
officials of New York and New Jersey and by the boxes, ballots, and records, then in the
the General Counsel of the port authority, custody of the commissioners and certain
and may yet be further suggested by others, other officers of the county. The demand
that the serious constitutional issues in- was refused, and the Senators constituting
volved in this inquiry should be resolved by the special committee, together with South,
a competent judicial tribunal prior to the brought suit in a U.S. district court to obtain
institution of contempt proceedings.2 The possession of the material under section 24
attorney general of New Jersey specifically of the Judicial Code.' The district court disrecommended a suit for a declaratory judg- missed the suit for lack of jurisdiction
and
ment:
the court of appeals affirmed per curiam."0
"I recommend that * * * the procedure
The Supreme Court, in affirming the defollowed should be an action by way of cree dismissing the suit, held that neither
declaratory judgment brought by this com- the special committee, nor "its members,
mittee or some other agency of the Federal collectively or separately," possessed the auGovernment to determine what are the thority to invoke the power of the Judicial
boundary lines between the matters properly Department and hence, were not persons
exclusively within the domain of the States "authorized by law to sue" under section 24
and what are the matters which Congress of the Judicial Code. The plaintiffs had
can ferret out and investigate."3
pointed to no act of Congress authorizing
This memorandum is directed to the ques- them to sue. R.S. 101-104,11 it was noted,
4
Act
Judgment
Declaratory
the
tion whether
had been passed to facilitate congressional
might have been invoked in the manner and investigation, but these provisions embodied
for the purpose suggested by the attorney no license conferring upon the Federal courts
general of New Jersey. Since that sugges- jurisdiction over a suit by the committee.
tion implies that the committee should have Hence, the Court decided, the suit could be
initiated the proceeding, the principal query maintained only if authority therefor could
is whether the committee or its members be gleaned from the enabling resolutions,'2
might maintain such an action under the a process which proved fruitless:
Declaratory Judgment Act. It may in addi"The power is not specifically granted by
tion be instructive to determine whether the either resolution * * *. The Resolutions are

port authority might have sought such relief.'

1 See inquiry before Subcommittee No. 5 of
the House Committee on the Judiciary, "Return of Subpenas-Port of New York Authority Inquiry," 86th Cong., 2d sess. (1960)
(hereinafter cited as "Inquiry").
" Statement of Louis J. Lefkowitz, attorney
general of New York, Inquiry, 56, 58 ("I am

reasonably satisfied that * * * there must
and should be a way where * * * this im-

portant question can be tested before a
tribunal which can have decision to do it");
statement of D. C. Furman, attorney general
of New Jersey, Inquiry, 59, 60; statement of
Sidney Goldstein, General Counsel of Port
of New York Authority, Inquiry, 61, 68.
3 Inquiry, 60.
428 U.S.C. 2201 (1958). The act provides:
In a case of actual controversy within its
jurisdiction, except with respect to Federal
taxes, any court of the United States, upon
the filing of an appropriate pleading, may
declare the rights and other legal relations
of any interested party seeking such declaration, whether or not further relief is or could
be sought. Any such declaration shall have
the force and effect of final judgment or
decree and shall be reviewable as such.
5The record does not reveal that the port
authority has instituted any action for a
declaratory judgment although committee
counsel invited their general counsel to file
action to test the validity of the subpenas.

'S. Res. 195, 69th Cong., 1st sess. (1926).
IS. Res. 324, 69th Cong., 2d seas. (1927).
836 Stat. 1091 (1911), vested original jurisdiction in Federal district courts of all suits
of a civil nature "brought by the United
States, or by any officer authorized by law
to sue." The present provision, 62 Stat. 933
(1948),
28 U.S.C. 1345 (1958),
confers
on the district courts jurisdiction "of all
civil actions, suits or proceedings commenced
by the United States, or by any agency or
officer thereof expressly authorized to sue
by act of Congress."
S21F. 2d 144 (E.D. Pa., 1927).
'21 F. 2d 1018 (3d Cir., 1927).
"2
U.S.C. 191-194 (1958)
deal with
the admission of oaths to witnesses (sec.
191), the refusal of witnesses to testify
or produce documents (sec. 192), privileges
of witnesses (sec. 193), and certification of
failure to testify (sec. 194). Section 194 now
provides that where a witness fails to produce
required documents and such failure is reported to either House, the case must be
certified to the appropriate U.S. Attorney,
who must bring the matter to the attention
of a grand jury. Thus, the statute establishes a well-defined procedural route for
raising questions involved in a committee's
assertion of its powers.
"Resolution 195 empowered the special
committee to "require by subpena or otherwise the attendance of witnesses, the pro-

August 23

to be construed having regard to the power
possessed and cutomarily exerted by the Senate. * * * It has been customary for the
Senate * * * and the House as well * * *
to rely on its own power to compel * *
production of evidence, in investigations
made by it or through its committees. * * *
Petitioners have not called attention to any
action of the Senate and we know of none
that supports the construction for which
they contend. In the absence of some definite indication of that purpose, the Senate
may not reasonably be held to have intended
to depart from its established usage. Authority to exert the powers of the Senate to
compel production of evidence differs widely
from
authority to invoke judicial power
for that purpose." ".1
With respect to its authority to invoke the
power of the Judiciary, the present Committee is in much the same position as the special committee in Reed. There is no new
act of Congress which would provide s'cth
authority,1 and the resolutions under which
the Committee operates are couched In language even more restricted, for these purposes, than that of the resolutions involved
in Reed."G Hence, it is clear that the doctrine of Reed v. Board, supra, applies to the
Committee and that it or its members are
not "authorized by act of Congress to sue"
under 28 U.S.C. 1345."0
It follows that the committee and subcommittee lack capacity and authority to
seek a declaration of rights under the Declaratory Judgment Act. Judicial authorities
are in agreement that that act did not expand the scope of Federal jurisdiction and
did not provide a new peg upon which litigants, otherwise lacking a basis for Federal
jurisdiction, might hang their hats. As
Judge Fee of the ninth circuit observed:
"The Declaratory Judgment Act merely enlarges the range of remedies available in
Federal courts. It does not afford an independent basis for Federal jurisdiction.""1
Thus, in Mashunkashey v. U.S., an action
for a declaratory judgment by the United
States as guardian of certain Indians, the
court pointed out that the act created
no new rights and that the right of the
Government to maintain the action must
be found "in the general law.""8 In the
case of this committee, the "general law,"
(in other words, the law outside the Declaratory Judgment Act), is as declared by the
highest court of the land in Reed v. Board,
supra. Neither the committee nor any of
its members therefore have capacity to sue
duction of books, papers, and documents, and
to do such other acts as may be necessary in
the matter of said investigation."
13277 U.S. at 388, 389.
" Since 1927, the Legislative Reorganization Act of 1946, 60 Stat. 812, has been enacted.
Sees. 133 and 134 of that act,
60 Stat. 831-2, set forth committee procedures and powers. No power to sue or be
sued in any court is granted.
"H.
Res. 27, 86th Cong., 1st sess., as
amended by H. Res. 530, 86th Cong., 2d sess.
(set forth in inquiry 13, 14), which directs
the Committee on the Judiciary, acting as a
whole or by subcommittee, to conduct investigations relating to, inter alia, activities
and operations of interstate compacts, provides: "For the purposes of carrying out this
resolution the committee or subcommittee is
authorized to * * * require by subpena * * *
the production of such books * * * as it
deems necessary." Note that this resolution
omits the broad clause of the resolution involved in Reed permitting the special committee there "to do such other acts as may
be necessary." See also House rule XI(1).
16See note 8, supra.
17 Fletes-Mora v.
Brownell, 231 F. 2d 579
(9th Cir., 1955). See also Atlantic Meat Co.
v. R.F.C., 166 F. 2d 51 (1st Cir., 1948).
" 131 F. 2d 288 (10th Cir., 1942), cert. den.,
318 U.S. 764.

 Case 1:19-cv-01974-TNM Document 44-1 Filed 09/06/19 Page 3 of 7
1960

CONGRESSIONAL RECORD -

HOUSE

Quite likely, congressional authorization to
the committee to follow the procedures suggested by the attorney general of New Jersey would appear to the court a bold
attempt to place it in just such a role vis-aIt. HAS CONGRESS POWER TO CONFER UPON THE
vis the grave constitutional issue raised in
COURTS JURISDICTION TO RENDER DECLARAthe
port authority investigation."
TORY JUDGMENTS CONCERNING THE AUTHORMoreover, one is compelled to wonder just
ITY OF CONGRESSIONAL INVESTIGATING COMwhen a "case" or "controversy" comes into
MITTEES?
play in connection with the movements
Since it becomes clear that under Reed v. leading up to a conviction for contempt of
Board, supra, the committee presently lacks Congress for refusal to comply with a subauthority to sue for a declaratory judgment,
pena
Surely not before the subpena has
further discussion of the suggestion of the been issued and the recipient has voiced his
attorney general of New Jersey would seem
disinclination to honor it. But even then
superfluous. But in the interests of prethe controversy is still "inchoate," for the
paring a thorough response to proponents person subpenaed may decide to comply
of the declaratory judgment suggestion, it
without benefit of sanction. Once there is
may be appropriate to speculate as to
a formal refusal to comply, the subcommitwhether Congress might validly grant such
tee, committee, or Congress may refrain
authority to the committee should it choose
from instructing the Attorney General to
to do soY' This question was left open by institute contempt proceedings. At any rate.
the Supreme Court in Reed, although it inat this stage there seems little to be gained
timated that one House of Congress alone by raising the legal questions in a declaraits commit- tory judgment rather than the
would not have power to invest
21
contempt
The district
tees with the power of suit.
proceeding.25
court in the Reed case, however, touched
it
is
thus
difficult
to
conjure
up
a fixed
upon the question when it held that Connotion of the "timing" of such a suit. Its
gress lacked power to confer upon the district courts jurisdiction to determine the status as a "case" or "controversy" would
authority of the special committee, when rest on shaky foundation. Hence, in view
of Muskrat, the power of Congress to prothe limits of that authority could be subsequently adjusted by the Senate alone.H vide the necessary authorization for a declarThe district court cited the
ancient prece- atory judgment proceeding at the behest of
8
dent of Hayburn's Case, which had held the committee, Reed v. Board, supra, is subthat Congress could not assign to the courts ject to serious doubt.
any but judicial duties, and the landmark
II. EVEN IF CONGRESS COULD AUTHORIZE THE
2
case, Muskrat v. U.S. ' which had followed
COMMITTEE TO SUE FOR A DECLARATORY JUDGit. In Muskrat, the court had denied ConMENT, WOULD THE COURTS BR LIXELY TO
gress power to confer jurisdiction upon the
ENTERTAIN SUCH A SUIT ON ITS MERITS?
Court of Claims over suits to determine the
Even granting, for the sake of argument,
constitutional validity of certain prior acts
that Congress possessed the bare power to
of Congress, such suits not involving a authorize the committees to sue for a de"case" or "controversy"
within the meaning claratory judgment in connection with the
1
of the Constitution.
port authority inquiry, it does not follow
Whether a congressional grant to a comthat a Federal court would entertain such
mittee of power to seek a declaratory judga suit on its merits. For such a suit would
ment concerning its authority would be be far from an ordinary "garden variety"
valid under Muskrat is open to serious question. The Muskrat court saw in the statute
"See the text of the attorney general's
before it an attempt to cast it in a role
suggestion and the unprecedently broad
which it has stoutly resolved to avoid, that
of an "adviser" on constitutional matters. scope of the judicial determination which
he envisages, supra, p. 1.
17See
RZ. 192-194, discussed supra, note
11The suggestion that "some other" agency
11.
1
of the United States might seek a declara2 n addition, while purgation of contory judgment in the port authority inquiry tempt by compliance with the request of
fails for the same reason. No agency now
the congressional committee is no defense
possesses such authority and the committee to a prosecution for contempt of Congress,
is no more authorized to direct "some other
U.S. v. Brewster, 154 F. Supp. 128 (D.C.
agency" to invoke the Declaratory Judgment
1957), reversed on other grounds, 225 F. 2d
Act on its behalf than it is to sue itself. 899 (C.A.D.C., 1958), certiorari denied,
358
Compare 2 U.S.C. sec. 194 which expressly
U.S. 842; Cf.. Clark v. U.S., 289 U.S. 1, 19
authorizes the committee to take steps lead(1932); Sawyer v. Dollar, 190 F. 2d 623
ing to the institution of proceedings by
(C.A.D.C. 1951), vacated as moot, 344 U.S.
the attorney general. Nor, for the same 806 (1952) (Government officials and others
reason, is any member of the Committee auadjudged guilty of civil contempt of court,
thorized to importune State officials to bring under 18 U.S.C. 401, could purge themsuit in the State courts in order to raise the
selves of such contempt by withdrawing
constitutional issues involved in the inquiry. contumacious advice and instructions),
" As a matter of policy, such a grant
there is always the possibility that complimight be unwise. The present contempt
ance with the subpena will result in suspen.
provisions in title 2 of the United States Code
sion of sentence. This possibility must cerwere designed to expedite congressional intainly be borne in mind in connection with
vestigations by deterring contumacy. Once the peculiar circumstances of the port authe mechanics for a declaratory judgment
thority inquiry where officers who refused
were provided, reluctant witnesses would
to comply with the subpena claimed to be
apply pressure for such action. If a comacting pursuant to orders of Governors of
mittee chose not to seek such a judgment,
New Jersey and New York. Cf. Sawyer v.
an unsympathetic press might chastise it
Dollar, supra (Government officials were actfor being "unreasonable" in failing to "amiing on advice of Department of Justice in
cably" settle differences. Even if such suits
refusing to comply with Court order).
were entertained by the courts, delays in
Hence, questions of the scope of the comobtaining a judgment might be interminable. In brief, serious disruption of the mittee's jurisdiction over the port authority
process by which Congress informs itself may, after all, be resolved against the noncomplying port authority officers without
would take place.
imposition of sanctions. In effect, the con21277 U.S. 388.
21 F. 2d, 144, 151, 152.
tempt procedure, followed by the committee,
would fulfill the role of the declaratory
'a2 U.S. (2 Dall.) 409 (1792).
1219 U.S.348 (1910).
judgment proceeding suggested by the at25 Art. IV, sec. 2.
torney general of New Jersey.
under the Declaratory Judgment Act, and
the suggestion by the attorney general of
New Jersey that it might have done so lacks
1
merit as a matter of law.

17309

action for a declaratory judgment; 2 it would
seek resolution of "grave questions of constitutional propriety." 80
The Supreme
Court, which is loathe to decide constitutional issues unless absolutely necessary 11
and, as has been seen, scorns attempts to
foist upon It
constitutional
litigation
through
nonadversary, "friendly" proceed12
ings, cannot be expected to warmly embrace this proposed suit for declaratory
judgment requesting determination of novel
and fundamental questions of Federal jurisdiction. It is well known that the court
has developed a complicated system of judicial machinery by which it limits constitutional decision whenever possible.
The
tenets of this code of judicial self-restraint
were painstakingly summarized by Mr. Justice Brandeis concurring in Ashwander v.
T.V.A.3' The suggestion of the attorney
general of New Jersey appears to violate a
good number of them.
In the first place, for reasons already
stated, plaintiff in such a suit would seek
adjudication of constitutional issues before
8
decision thereon is absolutely necessary.
Even after the refusal of those subpenaed
persons to produce the requested documents,
the necessity for a judicial decision does not
arise until the House finally decides to certify the matter to a U.S. attorney and trial is
begun.H Only then does resolution of the
constitutional issues become a matter of
"last resort," rendering such decision "legitimate." H
Second, the proceeding Is implicitly a request for "advice" in a "friendly" suit, a kind
of request which the court has steadfastly
7
denied.
Indeed, the Attorney General of
New Jersey could hardly have chosen an
epithet less likely to inspire the court with
confidence in the "adversary" nature of such
a suit than his description of it as "a reason'8
able approach by reasonable men."
It
would be surprising if the court did not view
this as a challenge to find some grounds of
"nonjusticiability."
Third, it does not require extensive citation to discover that the type of suit sug-8American Machine & Metal, Inc. v. DeBothezat Impeller Co., 168 Fed. 2, 535 (2d
Cir.)
(1948).
(Action
for declaratory
judgment nor involving constitutional issues "Justiciable" for purposes of Declaratory Judgment Act when plaintiff must make
an irrevocable decision which may place him
at the peril of legal damages.)
30See letter of June 25, 1980, from Nelson
Rockefeller, Governor of New York, to S.
Sloan Colt, Inquiry 39.
38See e.g., Burton v. United States, 196 U.S.
283, 295 (1905) ("It is not the habit of the
court to decide questions of constitutional
nature unless absolutely necessary to a decision of a case."); cf. Blair v. United States,
250
82 U.S. 273, 279. (1919).
Muskrat v. United States, 219 U.S. 346
(1910).
8 297 U.S. 288, 341 (1936).
3ACf. Brandeis rule 1, Ashvander, supra
note 33, at 347.
=Even If a court did decide the issues In
declaratory judgment proceeding, adverse to
the port authority, the House for independent
reasons might decide not to certify the matter to the Attorney General. Cf. Reed v.
Board,21 F. 2d 144 (1927); supra, pp. 5 and 8.
Moreover, in Federal courts, a declaration of
the validity of penal legislation may not be
obtained without a threat of official prosecution. See Halco Products v. McNutt, 137
F. 2d 881 (D.C. Cir. 1943); cf. San Francisco
Lodge v. Forrestal,58 F. Supp. 466 (N.D. Cal.
1944).
IeChicago & Grand Trunk By. v. Wellman,
143 U.S. 339, 345 (1892).
87See Brandeis rule
1, Ashvander, supra,
note 33, ait 46; Muskrat v. United States,
supra, note 32.
3 Inquiry 60.

 Case 1:19-cv-01974-TNM Document 44-1 Filed 09/06/19 Page 4 of 7

17310

CONGRESSIONAL RECORD - HOUSE

gested here simply does not ring true. In
constitutional litigation the plaintiff is attacking the constitutional validity of some
statute or action, the operation of which will
cause injury to him. Indeed, one of the
Court's basic "Justiciability" rules has it that
standing to raise constitutional issues necessarily Involves an element of prejudice to
Thus, in Massathe challenger-plantiff.
chusetts v. Mallonw. the Supreme Court refused to consider the merits of a suit
brought by Massachusetts on Its own behalf
and that of Its citizens attacking the validity of a Federal enactment, because that
State was not prejudiced by the statute in
its own right and could not claim standing
as a benevolent parent of its citizens. The
instant situation is an a fortiori case. Here,
it is suggested that the committee, as plaintiff, institute a declaratory judgment proceeding, to defend, not attack, the constitutional validity of its own authority, in order
to protect, not itself, but officers of an association which it is investigating, from the
peril of a contempt action which it would set
in motion. The committee thus would not
only be unable to show that it might be
injured from the operation of what it was
attacking, it could not even show that it was
attacking anything. Hence, the committee
or "some other agency" of the Federal Government would lack standing to sue for a
declaration of its authority to proceed with
the port authority investigation.
Fourth, it is suggested that a judicial determination of "what are the boundary lines
between the matters properly exclusively
within the domain of the States and what
are the matters which Congress can ferrent
out and investigate" be requested. The very
terms of this "recommendation" are so broad
as to convince the Court that it was being
asked to decide an "abstract," vague and illdefined question of constitutional law, a request which the Court has consistently
4
turned down. '
Finally, the declaratory judgment action
has not engendered the enthusiasm of the
Court as a vehicle for constitutional litigation. Even prior to 1934, the year the Declaratory Judgment Act was passed, the
Court was resisting attempts to obtain its
advice on broad, abstract questions of constitutional interpretation through suits for
declaration 2 of rights. Thus, in New Jersey
v. Sargent , a bill by a State for a judicial
declaration against Federal officers that certain parts of the Federal Power Act were unconstitutional was rejected as not justiciable.
After reviewing a long line of
"Justiciability" cases, including Muskrat,
supra, the Court declared: "On reading the
present bill we are brought to the conclusion * * * that its real purpose is to obtain
a judicial declaration * * * that Congress
exceeded its own authority."4
With the advent of the Declaratory Judgment Act, the Court was alert to warn that
the new 1 'nedy had not opened the door
for advisory opinions or altered the
"Justiciability" rules. Significantly, one of
the early cases was brought by the United
States against West Virginia, in which the
Federal Government sought, inter ala, a
declaration of its right to control and use
44
a certain stream.
The United States did
not even attempt to sustain its bill under

the Declaratory Judgment Act, so that the
Court had merely to note that the Act "does
not purport to alter the character of controversies which are the subject of the judicial power under the Constitution.""
In
dismissing the bill, the Court further characterized the suit not as one seeking protection against the Invasion of any property
right but merely an attempt to gain an authoritative resolution of a "difference of
opinion between the officials of the two
governments * * * whether there is power
and authority in the Federal Government
s
to control Ithe navigation of the rivers].""i
In this context, it should be borne in mind
that neither Congress nor the United States
can claim any "invasion" of its rights from
the action of the port authority. The port
authority is not threatening to take any
affirmative action. On the contrary, it is
merely threatening to refrain from doing
something which the committee wants it to
do in order that the committee may execute
its legitimate functions. The logical legal
procedure for the committee to follow, in
this case, is not to seek a declaration of
rights but to seek a judicial remedy which
will vindicate
the
authority of the
committee."
Finally, the Court put the matter to rest
in the Ashwander case, supra, declaring:
"The act of June 14, 1934, providing for
declaratory judgments, does not attempt to
change the essential requisites for the exercise of judicial power. By its terms, it applies to 'cases of actual controversy,' a phrase
which must be taken to connote a controversy of a justiciable nature, thus excluding an advisory decree upon a hypothetical state of facts."8

August 23

and/or its members as defendants might be
rejected under the doctrine that legislators
are to be free from civil process for what
they do or say in legislative proceedings.
U.S. Constitution, article I, section 6: 61
Tenney v. Brandhove, 341 U.S. 367 (1951);
see Kilbourn v. Thompson, 103 U.S. 168

(1880).

In Tenney v. Brandhove, supra, the plaintiff brought a civil action against Tenney and
other members of a committee of the California legislature investigating un-American
activities. The action was based on 8 U.S.C.
43,
47(3)
Imposing civil liability
on
persons who, under color of law, deprive another of his constitutional rights of freedom
of speech and petition. Brandhove alleged
that the committee had denied him due
process, and he sought damages in the
amount of $10,000. The Supreme Court held
that no cause of action against the committee and its members could be based on the
statute by virtue of the doctrine of legisla-,
tive immunity.
However. the Court pointed out that it was
not holding that Congress could act outside
its legislative role and defined the judicial
function vis-a-vis congressional activity as
follows: "The courts should not go beyond
the narrow confines of determining that a
committee's inquiry may fairly be deemed
within its province."12 Mr. Justice Black,
concurring, thought that "today's decision
indicates that there is a point at which a
legislator's conduct so far exceeds the
bounds of legislative power that he may be
held personally liable under the Civil Rights
Act." " At the same time, Black pointed out
that Court, in denying the committee's
amenability to suit, had not held its conduct
legal. He suggested that the plaintiff
IV. SUIT BY PORT AUTHORITY FOR DECLARATORY
Brandhove might still have plenty of room
JUDGMENT
to contest the constitutionality of the comIt may be suggested that another mode of
mittee's action in a proceeding instituted by
securing a declaratory judgment in the port
the committee to fine or imprison him.
authority matter would be for the port auAn older case, Kilbourn v. Thompson, 103
thority to bring suit for such relief. Although the attorney general of New Jersey U.S. 168 (1880) strongly indicates that, notdid not recommend such a course of action withstanding any doubts about Tenney v.
at the outset, one wonders why the author- Brandhove, supra, neither the committee nor
ity or the officers served with the subpenas itsmembers could be subjected to a suit by
the port authority, even assuming arguendo,
did not even attempt to institute proceedthat the Court felt that the committee was
ings, if the declaratory judgment seemed to
exceeding its legislative jurisdiction in inthem such a marvelous panacea. The port
40
vestigating the port authority. In Kilbourn,
authority has capacity to sue, and, morethe
plaintiff, who has been imprisoned by
over, it would seem to have some standing
order of the House for contempt in refusing
to raise constitutional issues since it could
claim that It would be prejudiced by the ac- to supply one of its committees with certain
material, brought suit to recover damages
tion of the committee which it would challenge as invalid." However, a suit by the against the Sergeant at Arms, who had exeport authority would meet several effective cuted the imprisonment, and certain Members of the House, who had caused him to be
roadblocks,
brought before that body. The Supreme
1. Legislative immunity
Court was convinced that the House resoluA suit.by the port authority may fail for tion authorizing the investigation in which
want of a proper defendant. A suit by the Kilbourn was asked to testify was in excess
port authority which named the committee of the power conferred upon the House by
the Constitution, and that the House and
its committee were acting beyond their au45295 U.S. at 475.
thority in requiring Kilbourn
to testify and
41Id. at 475.
54
It held that the
41Although civil, rather than criminal, ordering him to prison.
Sergeant
at
Arms
was
liable,
his
having acted
contempt is normally the procedural route
pursuant to the orders of the House being no
followed by the Courts when enforcement of
a request rather than vindication of au- defense. However, the Court refused to hold
the defendant Members of the House liable.
thority is the objective, there is no "civil"
contempt of the House under the statute, As to them, the protections of article I, sec2 U.S.C. 192, 194. However, the same effect tion 6 of5 the Constitution, the immunity
is achieved where, after conviction is up- provision, applied. The Court noted that
held by all appellate courts, defendants these defendant Members had initiated the
.9Brandeis rule 5, Ashvander, supra note purge their contempt by complying with
"Art. I, sec. 6, of the Constitution,
33, 347; See Columbus & Greenville, By. v. the subcommittee's order and the Court
Miller, 283 U.S. 96, 101 (1931)
(constitu- then suspends sentence. This was the pro- provides: "The * * * representatives * * *
shall in all cases * * * be privileged from
tional guaranty does not extend to the mere cedure followed in U.S. v. Goldfine, D.C.,
arrest during their attendance of the sesinterest of an official, as such, who has not Dist. of Colum., Crlm. No. 1158-58 (1959).
"8297 U.S. at 325; Accord Coffman v. sions of their respective Houses
* * and
been injured).
Breeze,
Corp.
323
U.S.
316
(1945);
Electric
40262 US.447 (1923).
for any speech or debate in either House,
Bond
&
Share
Co.
v.
SEC.,
303
U.S.
419,
443
they
shall
not
be
questioned
in
any
other
41 See United States v. West Virginia, 295
(1938).
See also Public Service Commission place."
U.S. 463, 474, 475 (1934).
42269 U.S. 328 (1926).
v. Wycoff Co., 344 U.S. 237 (1952).
' 341 U.S. at 378.
4
'9 Port authority compact.
53Id. at 379.
Id. at 334.
54 103 U.S. at 192-196.
50 Compare
discussion
of committee's
4&United States v. West Virginia, supra,
'5See supra, note 51.
note 41.
standing to sue, above.

 Case 1:19-cv-01974-TNM Document 44-1 Filed 09/06/19 Page 5 of 7
1960

CONGRESSIONAL RECORD -

proceedings under which the plaintiff was
arrested and had reported his refusal to testify to the House. In deciding that congressional immunity protected the Members, the
Court in effect suggested that article I, section 6 might extend to all the official legislative acts in connection with the matter.
Moreover, the protection was afforded even
though, as the Court had observed, the acts
were done in pursuance of legislative investigation which the House was not constitutionally authorized to conduct.5 Thus, Kilbourn v. Thompson, supra, seems weighty
precedent against a suit by the port authority. Certainly Tenney v. Brandhove, supra,
did not purport to overrule Kilbourn.
The case most nearly in point, Fishler v.
McCarthy, 117 F. Supp. 643 (S.D.N.Y.), 1954,
affirmed, 218 F. 2d 164 (2d Cir., 1954), fully
supports the position that a declaratory
judgment action by the port authority
would be dismissed as contrary to fundamental principles of constitutional government. In Fishler, plaintiffs were or had been
employees of the Department of the Army.
They were subpenaed to appear before the
Permanent Subcommittee on Investigations
of the Senate Committee on Government
Operations in connection with an inquiry it
was conducting. At the hearings before the
Subcommittee the plaintiffs, then still under
subpena, were asked to produce certain
documents. They refused and were directed
to comply by December 7, 1953. On December 8, 1953, they brought suit to enjoin
Senator McCarthy as chairman of the subcommittee from forcing them to produce the
documents. The complaint also sought a
declaratory judgment declaring "the rights,
powers, and duties of the plaintiffs herein,
and with respect to the defendant herein,
and with respect to plaintiff's obligations to
the Department of the Army." In addition,
the complaint sought to quash or modify
the demand and subpena previously served
on plaintiffs. The district court per Judge
Irving Kaufman refused a motion for an
Injunction pendente lite and granted a cross
motion to dismiss the action.
After noting that there were defects In
venue and jurisdiction, Judge Kaufman concluded that the nature of the relief sought
compelled dismissal of the complaint. "It is
entirely clear," he wrote, "that neither this
nor any other court may prescribe the subjects of congressional investigation. Were a
court empowered to limit in advance the
subjects of congressional investigations,
violence would be done to the principle of
separation of powers upon which our entire
political system is based."
(648) He then
quoted from Justice Brandeis to emphasize
the dangers to free government arising from
judicial disregard of the doctrine of separation of powers by encroachment upon the
powers of the legislature.
The court then suggested how the question of congressional authority might properly be presented:
"Of course the courts may require the performance of a purely ministerial act by a
member of another branch of the Government. Noble v. Union River Logging R. Co.,
1892, 147 U.S. 165, 13 S. Ct. 271, 37 L. Ed. 123.
And if the plaintiffs in fact refuse to comply
with the subpena (which is not the case
presented here) and are cited for contempt,
" The Court could not resist the temptation to offer a gratuitous remark: "It is not
necessary to decide here that there may not
be things done In the one House or in the
other, of an extraordinary character, for
which the Members who take part in the act
may be held legally responsible." However,
Mr. Justice Miller, who wrote the opinion,
indicated that he was thinking in terms of
such extremes as the House setting itself
up to mete out capital punishment, as the
French Assembly had done during the French
Revolution (103 U.S. at 204, 205).

HOUSE

or comply and are faced with prosecution
for violating military regulations, a justiciable controversy would then exist for determination. But, as I have indicated, it is
quite clear that the question presented here
has not 'ripened' for litigation, and restraints upon the defendant, if any, are at
this time within the province of the Congress which established the subcommittee"
(at 649).
Finally, as to the effect of the Declaratory
Judgment Act, the Court declared:
"(T)he very first clause of the Declaratory Judgment Act limits its application to
'case(s) of actual controvers(ies) within its
(the Court's) jurisdiction,' 28 U.S.C. 2201,
and this controversy is beyond the jurisdiction of this Court because it seeks to enjoin
the operation of a committee of another
branch of the Government. There is no
taking of property or infliction of punishment now before this Court. There is at best
an allegation that the ramifications of the
legislative act, once completed, may injure
the plaintiffs. It would, as we have observed,
be entirely proper for a court to consider
the validity of the legislative act when and
if its effect was in fact to injure the plaintiffs, as, for example, by prosecution for contempt. But the legislature cannot be compelled to submit to the prior approval and
censorship of the judiciary before it may
ask questions or inspect documents through
its investigating subcommittees, or even before it enacts legislation, New Orleans WaterWorks Co. v. City of New Orleans, 1896, 164
U.S. 471, 17 S. Ct. 161, 41 L. Ed. 518; Hearst
v. Black, 1936, 66 App. D.C. 313, 87 F. 2d 68;
Alpers v. City and County of San Francisco,
C.C.N.D. Cal. 1887, 32 F. 503 any more than
the judiciary can be compelled by the legislature to submit its rulings or decisions for
legislative approval" (at 649, 650).
It is obvious that this case is clearly in
point and that it disposes of any suggestion
that the port authority might sue Mr. CELLER
for a declaratory judgment in connection
with the port authority inquiry.
2. Doctrine of separation of powers
Lower Federal courts have stoutly resisted
attempts by litigants to seek their aid in
curbing the actions of congressional committees through suits for Injunctions on yet
another ground, the doctrine that courts
should not prematurely enjoin legislative
action,
even
though
unconstitutional.
Thus, in Hearst v. Black, 87 F. 2d 68 (D.C.
Cir., 1936), a publisher brought suit to enjoin a special Senate committee and the
FCC from copying and using certain telegraphic messages in the possession of telegraph companies sent to him by his employees in the conduct of his business. The
committee had subpenaed the messages from
the companies and had asked the assistance
of the FCC In securing compliance with the
subpenas. The district court refused to
grant the injunction, and the Court of Appeals affirmed. While deeming the action of
the FCC illegal in making the contents of
the messages available to the committee, the
court held that it could not restrain the
committee from using them. The court
said:
"We are, therefore, of the opinion that the
court below was right in assuming jurisdiction as to the commission, and if the bill
had been filed while the trespass was in
process it would have been the duty of the
lower court by order on the commission or
the telegraph companies or the agents of the
committee to enjoin the acts complained
of." ,
In delivering itself of this dictum, the
court in no way inferred that the members
of the committee could be enjoined. The
"agents" of the committee are not its members. Cf. Kilbourn v. Thompson, supra.
1 87 F. 2d at 71.

17311

On the contrary, the court held that it
had no power to enjoin action of the congressional committee and inferred that this
would be so even if the committee were acting ultra vires the Constitution:
"The prayer of the bill is that the committee be restrained from keeping the messages or making any use of them or disclosing their contents. In other words, that if
we find that the method adopted to obtain
the telegrams was an invasion of appellant's
legal rights, we should say to the committee
and to the Senate that the contents could
not be disclosed or used In the exercise by
the Senate of its legitimate functions. We
know of no case in which it has been held
that a court of equity has authority to do
any of these things. On the contrary, the
universal rule, so far as we know it, is that
the legislative discretion in discharge of its
constitutional functions, whether rightfully
or wrongfully exercised, is not a subject for
judicial interference." 6
The court relied upon the doctrine of separation of powers, and quoted several Federal
court decisions for the proposition that the
Judiciary lacks power to enjoin the enact9
ment of even unconstitutional measures.
In Mins v. McCarthy, 209 F. 2d 307 (D.C.
Cir., 1953) the Court of Appeals held per
curiam that where a committee of the Congress has issued a subpena ad testificandum
to a witness to appear at a hearing, without
defining the questions to be asked, "the judicial branch of Government should not enjoin in advance the holding of the hearing
or suspend the subpena."
More recently in Methodist Federation for
Social Action v. Eastland, 141 F. Supp. 729
(D.C. 1956), a three-judge court, including
Judges Eigerton and Prettyman, dismissed a
complaint in an action by a religious social
action organization against members of the
Senate Internal Security Subcommittee and
others seeking a declaration that a certain
congressional resolution directing publication of a certain Senate Document was unconstitutional, and an order enjoining defendants from printing and distributing the
document. The court held that it lacked
power to prevent the publication, since the
document was ordered printed pursuant to
resolution of both House and Senate, even
if the document falsely declared that the
organization was a communist front. It
deemed article I, section 6, of the Constitution applicable. It also cited and relied upon
the Hearst case, supra, in deciding that a
judgment for the plaintiff would invade the
constitutional doctrine of separation of
powers. As to the members of the Senate
subcommittee, the complaint was dismissed
for lack of jurisdiction; as to the other defendants, the Public Printer and Superintendent of Documents, was dismissed for failure
to state a claim on which relief could be
granted.
Thus, it seems reasonably clear that the
doctrine of legislative immunity or the doctrine of separation of powers; contained in
the. Constitution and the precedents discussed above would lead a court to dismiss
a suit brought by the port authority against
the committee, subcommittee, or members
thereof on the grounds of congressional
immunity.
Waiver of Immunity
It may be, although it has not yet been,
suggested by adherents of the port authority
that members of the committee might facilitate a declaratory judgment action by the
Id. at 71.
9 McChord v. Louisville Ry., 183 U.S. 483
(1902); New Orleans Waterworks Co. v. New
Orleans, 164 U.S. 471 (1896); Alpars v. San
Francisco, 32 F. 503 (C.C. -)
(not within
competence of court to enjoin exercise of
legislative power by legislative body, even
though legislative action threatened may be
unconstitutional).

 Case 1:19-cv-01974-TNM Document 44-1 Filed 09/06/19 Page 6 of 7
17312

CONGRESSIONAL RECORD -

port authority by waiving their immunity
provided by article I, section 6. of the Constitution. It is submitted that this suggestion lacks merit.
In the first place, the congressional immunity doctrine is not the sole legal bar
to a suit by the port authority, if it is a bar
at all. In Hurst v. Black, supra, the Court
in dismissing the action relied primarily on
the doctrine that Judiciary lacks power to
enjoin congressional activity under the doctrine of constitutional separation of powers.
Application of this doctrine by a court is,
of course, beyond the power of any member
of the committee to control.
Second, it is very doubtful whether a
Congressman could independently waive his
immunity in order to open the way for a
suit of this nature. It is well known that
Representatives must secure the authorization of the House to even appear in a Judicial proceeding when served with process.
It would seem then that a resolution of the
House, if not an act of Congress, would be
required to authorize a Member of Congress
to waive his immunity
Carrying the matter even one step further, it is not even
clear that Congress could constitutionally
authorize a waiver of immunity. The Constitution provides that Senators and Representatives "shall not be questioned in any
other place" for "any speech or debate in
either House." Notwithstanding this provision, can one House of Congress provide
that a Representative shall be so questioned?
Third, even if a waiver could be successfully executed, a court might feel that such
a waiver of immunity had been motivated
by a desire to obtain from the court an "advisory" opinion on the constitutional issues
involved. It therefore might exercise its discretion to dismiss the suit on grounds of
"justiciability."
3. Other objections
Assuming, for the sake of argument, that
the port authority managed to get its foot
in the door of a court in a declaratory Judgment suit against the members of the committee, its troubles would not be over. It
would still have to secure a decision from
the lower court and it would ultimately have
to convince the Supreme Court to take the
case up on its merits. The same principles
of "Justiciability," which have been discussed
in this memorandum in outlining the problems of a suit by the committeee, would
obtain in a suit by the port authority. It is
true that the port authority might have
"standing" to raise the constitutional Issues involved, where the committee did not
possess such standing, because the port authority could show that it would be prejudiced by operation of the committee's action. However, the port authority would
still have to show that constitutional adjudication was necessary as a last resort,
that the suit was not one for "advice," that
"abstract questions" were not being pressed,
and that the suit was truly "adverse." As
has been suggested earlier, any attempt by
the committee to "cooperate" in such a suit
(might not only be deemed collusive) it
might also convince the Supreme Court that
premature "advice" on broad constitutional
questions was being asked.
CONCLUSIONS
When all is said and done, one is still left
with the question: if the port authority
thought there was any possibility for a successful action for a declaratory judgment,
why did it not bring such a suit itself? It
at least could have established the applicability of the doctrine of congressional immu6*See 7
(1936).

Cannon's Precedents,

sec.

2162

HOUSE

nity to its case; perhaps it might have somehow succeeded In gaining a decision of a
lower Federal court. While, as has been
stressed in this memorandum, the rules of
"Justiciability" of the Supreme Court may
well have blocked such a suit, those rules,
after all, are informal rules of practice, and
one cannot predict with certainty their application. Instead, the port authority has
self-righteously proposed that the committee should initiate declaratory judgment proceedings and has insinuated that it was the
committee's fault that such proceedings
could not be implemented. It has been the
purpose of this memorandum to determine
whether this suggestion had any legal merit
and whether the committee might have, if
it so choose, instituted or implemented such
an action.
One is left with some doubt as to whether
this suggestion was preceded by grave and
considerable reflection.
1. The committee presently lacks authority
to sue for any judicial judgment, whether
declaratory or otherwise (Reed v. Board o1
Commissioners of Delaware County, supra).
2. This proposition alone should dispose
of the suggestion. But, in an effort to explore all possibilities, it has also been demonstrated that grave doubt exists even as to
whether Congress might constitutionally
authorize the committee to seek such a declaratory judgment at this state of the port
authority inquiry. It is not clear at what
stage a "case" or "controversy" exists, and
Congress cannot ask the courts to take jurisdiction over a matter which does not involve
a "case" or "controversy" (Muskrat v. United
States).
3. Putting that question aside, this memorandum further strongly suggests that even
if the committee was legally authorized to
seek a declaratory judgment, the Supreme
Court, whose decision of course would ultimately be sought, would reject such a suit
on its merits by applying one or a number
of the rules of justiciability, which the
Court keeps on hand to avoid unnecessary
constitutional decision. Concurring opinion
in Ashwander v. TVA, supra.
In this connection, it is noted that the
committee appears to lack standing to sue,
for it cannot claim that it was being injured by the assertion of Its own authority,
Massachusetts v. Mellon, supra. The suit
moreover seems to involve many elements of
a nonadversary, friendly, request for advice,
which the Court so firmly rejects. Finally,
constitutional decision on the issues is not
absolutely necessary until the House decides
to cite for contempt.
Therefore, it Is submitted that the suggestion the committee might institute and
maintain a declaratory judgment proceeding
lacks merit as a matter of law, as well as
being fundamentally deficient as a matter of
policy. For the Supreme Court's attempt
to limit decision on constitutional questions
is not a matter of caprice or indolence. It
is an integral, and a highly desirable tenet
of constitutional government. To interfere
with that policy of the Supreme Court or to
.take a position adverse to it should not be
the function of the Judiciary Committee of
the House of Representatives.
4. Furthermore, the port authority cannot maintain a suit against the members of
the committee because under the doctrine
of congressional immunity, and/or the doctrine of separation of powers, no court would
have jurisdiction over such a suit. Tenney v.
Brandhove, supra; Kilbourn v. Thompson,
supra; Hearst v. Black, supra; Mins v. McCarthy, supra; Methodist Federationv. Eastland, supra; Fishler v. McCarthy, supra.
In view of the foregoing considerations and
.authorities, it is concluded that there is no
legal merit in the suggestion that a suit for
declaratory judgment.might be brought in
connection with the port authority inquiry.

August 23

ADDENDUM
In suggesting the declaratory judgment
proceeding, the attorney general of New
Jersey may have been inspired by a New
Jersey case in which he, as deputy attorney
general of New Jersey, participated on brief
for plaintiff-appellant. Morse v. Forbes, 24
N.J. 341, 132 A. 2d 1 (1957).
There, a New
Jersey county prosecutor was served with a
subpena duces tecum issued by a committee
of the State legislature requiring him to
produce certain records. He refused to do so
and instituted an action in the State courts
against members of the committee for an
injunction and declaratory judgment. The
lower court (superior court, chancery division) assumed jurisdiction and decided
against plaintiff. On appeal by the plaintiff,
the Supreme Court of New Jersey declined
to pass on the jurisdictional aspects of the
case and determined to render a decision on
the merits since the defendant committee
members had withdrawn their objections to
the jurisdiction and joined in the petition
that the constitutionality of certain challenged State statutes be tested. However,
the court warned that it was by no means
opening its doors to such suits on a regular
basis:
"We shall therefore adjudicate the validity
of the last-cited statute, but this is by no
means to be considered a precedent establishing a procedure whereby anyone who
feels he might be 'put upon' by the subpena
or questions of a legislative committee can
turn to the courts for a declaratory judgment
vindicating his surmise." (132 A. 2d 6.)
In view of this language, it is highly
doubtful that even the New Jersey Supreme
Court, before which the attorney general of
New Jersey practices, would take jurisdiction
over a suit for a declaratory judgment
brought by the port authority against members of the committee, assuming that somehow venue and service in New Jersey could
be obtained. Such a suit, as distinguished
from the action in Morss v. Forbes, supra,
would involve a challenge to the validity of
the action of Congress, not the New JerseyLegislature, and would call for resolution of
Federal constitutional issues. Moreover, as
has been pointed out, the Federal courts and
in particular the Supreme Court of the
United States, have generally established far
stricter standards of justiciability than the
State courts. Hence, Morss v. Forbes, supra,
would hardly convince the Federal courts to
abandon their normal attitude as expressed,
for example, in Fishler v. McCarthy, toward
a suit seeking to nip congressional action in
the bud.
The SPEAKER. The time of the gentleman from New Jersey [Mr. RODINO]
has expired.
Mr. GROSS. Mr. Speaker, despite all
the charges that have been leveled
against the Port of New York Authority I have yet to hear an acceptable answer to my question as to why the Legislature of New York or the Legislature of
New Jersey, or both, have taken no action.
And If the legislatures have failed it
is difficult to believe that the Justice Departments of either or both of the two
States and their attorneys general have
been completely remiss in their duties
and responsibilities.
It is my contention that the Judiciary
Committee of the House of Representatives should have insisted that the legis-

lative bodies of the two States, together
with

their

justice

departments,

take

forthright action to correct any wrongdoing that exists in the administration
of the Port of New York Authority be-

 Case 1:19-cv-01974-TNM Document 44-1 Filed 09/06/19 Page 7 of 7
CONGRESSIONAL RECORD -

1960

fore calling upon all the Members of
the House of Representatives to support
such drastic action as the citing of certain officials for contempt.
It should be remembered that Congress granted the compact; it did not
create the authority.
It should also be kept clearly in mind
that Congress has granted many other
compacts throughout the Nation. Does
this action open the door to further invasions by Congress of other State administrations of authorities growing out
of federally sanctioned compacts?
Mr. Speaker, it is difficult for me to
believe that the States of New York and
New Jersey are so irresponsible that it
is necessary for the Federal Government
to move in and put their public affairs
in order.
It is difficult for me to believe that the
citizens of those two States are so lacking in their sense of public responsibility
that they would not insist that their officials resolve their difficulties in this respect.
To vote for these contempt citations
is, in my opinion, an indictment not only
of the public officials of the States of
New York and New Jersey, but also an
indictment of the millions of citizens.
I refuse to believe, without the benefit
of documented evidence, that the Port
of New York Authority is in the nature
of a supergovernment which cannot be
held accountable by the governments and
the people of two great States.
I cannot and will not support the contempt citations until convincing evidence
is provided that these States are incompetent through their governments to
manage their own affairs.
Mr. CELLER. Mr. Speaker, I move

the previous question.
The previous question was ordered.
The SPEAKER. The question is on

the resolution.
The question was taken; and upon a
division (demanded by Mr. LINDSAY)
there were-ayes 190, noes 60.
So the resolution was agreed to.
A motion to reconsider was laid on the
table.
MESSAGE FROM THE SENATE

A message from the Senate by Mr.
Carrell, one of its clerks, announced that
the Senate disagrees to the amendment
of the House to the bill (S. 2633) entitled
"An act to amend the Foreign Service
Act of 1946, as amended, and for other
purposes," requests a conference with the
House on the disagreeing votes of the
two Houses thereon, and appoints Mr.
FULBRIGHT, Mr. SPARKMAN,
FIELD, Mr. HICKENLOOPER,
HART to be the conferees

Mr. MANS-

and Mr. CAPEon the part of

the Senate.
AMENDMENT OF FOREIGN SERVICE
ACT OF 1946
Mr. HAYS. Mr. Speaker, I ask unanimous consent to take from the Speaker's
table the bill (S. 2633) to amend the
Foreign Service Act of 1946, as amended,
and for other purposes, with a House
amendment thereto, insist on the House
amendment, and agree to the conference
asked by the Senate.
CVI-1089

HOUSE

The Clerk read the title of the bill.
The SPEAKER. Is there objection
to the request of the gentleman from
Ohio? The Chair hears none, and appoints the following conferees: Mr. HAYS,
Mrs. KELLY, Mr. FARBSTEIN, Mr. BENTLEY, and Mrs. BOLTON.

AGAINST S. SLOAN
COLT
Mr. CELLER. Mr. Speaker, I send to
the desk a privileged report (Rept. No.
2120) from the Committee on the Judiciary in relation to the conduct of S. Sloan
Colt.
The SPEAKER. The Clerk will read
the report.
The Clerk read as follows:
PROCEEDINGS

PROCEEDINGS AGAINST S. SLOAN COLT

Subcommittee No. 5 of the Committee on
the Judiciary, as created and authorized by
the House of Representatives through the
enactment of Public Law 601, section 121,
of the 79th Congress, and under House
Resolution 27 and House Resolution 530,
both of the 86th Congress, caused to be issued a subpena duces tecum to S. Sloan Colt,
chairman, board of commissioners oi the
Port of New York Authority, 111 Eighth
Avenue, New York, N.Y. The subpena directed S. Sloan Colt to be and appear before
Subcommittee No. 5 of the Committee on the
Judiciary, at 10 a.m. on June 29, 1960, in
their chamber in the city of Washington,
and to bring with him from the files of the
Port of New York Authority certain specified
documents, and to testify touching matters
of inquiry committed to the subcommittee.
The subpena was duly served as appears
by the return made thereon by counsel for
the committee who was duly authorized to
serve the subpena.
S. Sloan Colt, pursuant to the subpena
duly served upon him, appeared before Subcommittee No. 5 of the Committee on the
Judiciary on June 29, 1960, to give testimony
as required by Public Law 601, section 121,
of the 79th Congress, and by House Resolutions 27 and 530 of the 86th Congress. However, S. Sloan Colt, having appeared as a witness and having complied in part with the
subpena duces tecum served upon him by
bringing with him part of the documents demanded therein, (1) failed and refused to
produce certain other documents in compliance with the subpena duces tecum, which
documents are pertinent to the subject matter under inquiry, and (2) failed and refused
to produce certain documents as ordered by
the subcommittee, which documents are
pertinent to the subject matter under
inquiry.
At those proceedings the subcommittee
chairman explained in detail the authority
for the subcommittee's inquiry, the purpose
of the inquiry, and its scope. The subcommittee also gave to the witness a lengthy and
detailed explanation of the pertinence to its
inquiry of each category of documents demanded in the subpena served upon the witness. Notwithstanding these explanations
and notwithstanding a direction by the subcommittee to produce the documents required by the subpena, S. Sloan Colt contumaciously refused to produce the following categories of documents under his control and custody:
(1) Internal financial reports, including
budgetary analyses, postclosing trial balances, and internal audits; and management
and financial reports prepared by outside
consultants;
(2) All agenda of meetings of the board of
commissioners and of its committees; all
reports to the commissioners by members of
the executive staff; and

17313

(3) All communications in the files of the
Port of New York Authority and in the files
of any of its officers and employees including correspondence, interoffice and other
memorandums, and reports relating to:
(a) The negotiation, execution, and performance of construction contracts; negotiation, execution, and performance of insurance contracts, policies, and arrangements; and negotiation, execution, and performance of the public relations contracts,
policies, and arrangements;
(b) The acquisition, transfer, and leasing
of real estate;
(c) The negotiation and issuance of revenue bonds;
(d) The policies of the authority with respect to the development of rail transportation.
The subcommittee was thereby deprived
by S. Sloan Colt of information and evidence pertinent to matters of inquiry committed to it under House Resolutions 27 and
530, 86th Congress. His persistent and illegal refusal to supply the documents as ordered deprived the subcommittee of necessary and pertinent evidence and places him
in contempt of the House of Representatives.
Incorporated herein as appendix I is the
record of the proceedings before Subcommittee No. 5 of the Committee on the Judiciary on the return of the subpenas duces
tecum served upon S. Sloan Colt and others.
The record of proceedings contains, with
respect to Mr. Colt:
(1) The full text of the subpena duces
tecum (appendix, pp. 21-22);
(2) The return of service of the subpena
by counsel for the committee, set forth in
words and figures (appendix, p. 26);
(3) The failure and refusal of the witness to produce documents required by the
subpena issued to and served upon him
(appendix, pp. 23-25);
(4) The explanation given to the witness
as to the authority for, purpose and scope
of, the subcommittee's inquiry (appendix,
pp. 1-20);
(5) The explanation given the witness of
the pertinence of each category of requested
documents (appendix, pp. 48-52);
(6) The subcommittee's direction to the
witness to produce the required documents
(appendix, pp. 52-53);
(7) The failure and refusal of the witness
to produce the documents pursuant to direction (appendix, pp. 53-54);
(8) The ruling of the chairman that the
witness is in default (appendix, p. 55).
OTHER PERTINENT COMMITTEE PROCEEDINGS

At the organizational meeting of the Committee on the Judiciary for the 86th Congress, held on the 27th day of January 1959,
Subcommittee No. 5 was appointed and authorized to act upon matters referred to it
by the chairman. On June 8, 1960, at an
executive session of Subcommittee No. 5 of
the Committee on the Judiciary, at which
Chairman Emanuel Celler, Peter W. Rodino,
Jr., Byron G. Rogers, Lester Holtzman,
Herman Toll, William M. McCulloch, and
George Meader were present, Subcommittee
No. 5 formally Instituted an inquiry into
the activities and operations of the Port
of New York Authority under the interstate
compacts approved by Congress in 1921 and
1922. At that meeting the subcommittee
also unanimously resolved to request the
following specified items from the files of
the Port of New York Authority by letter
and to subpena the same documents from
the appropriate officials in the event this
information was not voluntarily supplied:
(1) All bylaws, organization manuals,
rules, and regulations;
(2) Annual financial reports; internal financial reports, including budgetary analyses, postelosing trial balances, and internal

 Case Document 44-2 Filed 09/06/19 Page 1 of 5

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-2 Filed 09/06/19 Page 2 of 5
1

1

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA

2
3
4
5
6
7
8
9

Donald J. Trump,

) Civil Action
) No. 19-CV-2173
Plaintiff,
)
) MOTION HEARING
vs.
)
) Washington, DC
Committee on Ways and Means,
) July 29, 2019
et al.,
) Time: 4:00 p.m.
)
Defendants. )
___________________________________________________________

11

TRANSCRIPT OF MOTION HEARING
HELD BEFORE
THE HONORABLE JUDGE CARL J. NICHOLS
UNITED STATES DISTRICT JUDGE
____________________________________________________________

12

A P P E A R A N C E S

10

13

For the Plaintiff:

14
15
16
17
18
19
20
21
22
23
24
25

For Defendant
U.S. House of Rep.:

William S. Consovoy
CONSOVOY McCARTHY, PLLC
1600 Wilson Blvd.
Suite 700
Arlington, VA 22209
(703) 243-9423
Email: Will@consovoymccarthy.com
Douglas N. Letter
Brooks McKinly Hanner
Josephine T. Morse
Megan Barbero
Todd Barry Tatelman
Sally Clouse
U.S. HOUSE OF REPRESENTATIVES
Office of General Counsel
219 Cannon House Office Building
Washington, DC 20515
(202) 225-9700
Email: Douglas.letter@mail.house.gov
Email: Brooks.hanner@mail.house.gov
Email: Jodie.morse@mail.house.gov
Email: Megan.barbero@mail.house.gov
Email: Todd.tatelman@mail.house.gov
Email: Sarah.clouse@mail.house.gov

 Case 1:19-cv-01974-TNM Document 44-2 Filed 09/06/19 Page 3 of 5
1

For Defendants
James and Schmidt:

2
3
4

2

Andrew Stuart Amer (By Phone)
OFFICE OF NEW YORK ATTORNEY GENERAL
28 Liberty Street
New York, NY 10005
(212) 416-6127
Email: Andrew.amer@ag.ny.gov

5

____________________________________________________________

6

Court Reporter:

7
8

Janice E. Dickman, RMR, CRR, CRC
Official Court Reporter
United States Courthouse, Room 6523
333 Constitution Avenue, NW
Washington, DC 20001
202-354-3267

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*
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*

*

 Case 1:19-cv-01974-TNM Document 44-2 Filed 09/06/19 Page 4 of 5
1

THE COURTROOM DEPUTY:

3

Civil action 19-2173.

Donald

2

J. Trump versus Committee on Ways and Means, United States

3

House of Representatives, et al.

4
5
6
7

Counsel, please come forward and identify yourselves
for the record.
MR. CONSOVOY:

Good afternoon.

Your Honor.

Will

Consovoy appearing on behalf of the plaintiff.

8

THE COURT:

Mr. Consovoy, good afternoon.

9

MR. LETTER:

Good afternoon, Your Honor.

Douglas

10

Letter, general counsel of the House of Representatives.

11

have with me today Deputy General Counsel Todd Tatelman,

12

Associate General Counsel Megan Barbero, Associate General

13

Counsel Josephine Morse, Assistant General Counsel Brooks

14

Hanner and Assistant General Counsel Sally Clouse.

15

THE COURT:

16

MR. LETTER:

17

THE COURT:

18

And I

Good afternoon, Mr. Letter.
Thank you.
We're obviously here on Plaintiff Trump's

emergency application for relief under the All Writs Act.

19

MR. AMER:

20

THE COURT:

21

MR. AMER:

Your Honor -Oh, yes.
Yes.

Thank you.

Good afternoon, Your Honor.

Andrew

22

Amer for the New York Attorney General and the Commissioner for

23

New York State Department of Taxation and Finance.

24
25

THE COURT:

Thank you, Mr. Amer.

appearing by teleconference.

Appreciate you

We received your letter and I'll

 Case 1:19-cv-01974-TNM Document 44-2 Filed 09/06/19 Page 5 of 5
1

would be happy to do so.

2

THE COURT:

3

MR. CONSOVOY:

4

THE COURT:

5

47

Thank you.
Thank you for your time, Your Honor.

Mr. Letter, do you want to respond very

briefly?

6

MR. LETTER:

Thank you, Your Honor.

I just want to

7

redirect your attention.

I said it before, but just to make

8

sure, the most recent case in this circuit is Rangel, 2015,

9

Judge Henderson, Judge Tatel, and I think it was Judge Wilkins,

10

and they make quite clear that it's the type of act, it's not

11

looking into the purpose.

12

Eastland, but if you look at what Eastland did, the

13

Court there, seems to me, is much more -- the whole doctrine is

14

much more consistent with this.

15

otherwise what you would be doing is what Mr. Consovoy is

16

asking here, which is, I think, totally inconsistent with what

17

the framers intended.

18

And I know that language is in

And as I say, because

The House would be hauled into court against its will

19

and a decision, a legal decision would be made that the House

20

did not seek and does not want.

21

ruling on that, it will take steps and then it could be heard.

If the House wants a court

22

But I cannot emphasize enough the framers did not

23

intend judiciary to be able to haul Congress into court and

24

issue a decision against it that Congress does not seek or

25

want.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 1 of 413

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
_______________________________________
)
)
COMMITTEE ON WAYS AND MEANS,
)
UNITED STATES HOUSE OF
)
REPRESENTATIVES,
)
)
Plaintiff,
)
)
v.
)
No. 1:19-cv-1974-TNM
UNITED STATES DEPARTMENT OF THE )
)
TREASURY, et al.,
)
)
Defendants,
)
)
and
)
)
DONALD J. TRUMP, et al.,
)
Defendant-Intervenors. )
_______________________________________)
DECLARATION OF FREDERICK W. VAUGHAN
Pursuant to 28 U.S.C. § 1746, I hereby declare as follows:
1.

I serve as Deputy Assistant Secretary for Legislative Affairs at the U.S.

Department of the Treasury (the “Department” or “Treasury”), a position I have held since
February 4, 2019, when I first joined the Department. In this capacity, I am responsible for
managing the Department’s engagement with Congress on all congressional oversight requests.
My responsibilities since joining the Department include engaging with the Congress on this and
other issues to accommodate the Congress’s interest in obtaining information related to its
legislative objectives.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 2 of 413

2.

I submit this declaration in support of the Defendants’ motion to dismiss the

above-captioned case. The statements made herein are based on my personal knowledge and on
information made available to me in the course of carrying out my duties and responsibilities as
Deputy Assistant Secretary for Legislative Affairs.
3.

Before I joined the Department, it was widely reported that Members of the 116th

Congress would prioritize obtaining and making public copies of the tax returns of the President
of the United States, Donald J. Trump, and would seek to do so by means of a request to the
Secretary of the Treasury from the Chairman of the Committee on Ways and Means of the U.S.
House of Representatives, Richard E. Neal, invoking section 6103(f) of the Internal Revenue
Code, 26 U.S.C. § 6103(f).
4.

On March 14, 2019, before any request for the President’s tax returns invoking

26 U.S.C. § 6103(f) had been made, I accompanied Treasury Secretary Steven T. Mnuchin to a
Ways and Means Committee hearing at which the Secretary was to testify. (A copy of the
hearing transcript, which also is publicly available on the Committee’s website, is attached as
Exhibit A.) During the course of the hearing, multiple members of the Committee spoke of their
interest in Congress obtaining President Trump’s tax returns. (See Exhibit A at pp. 22-24, 40-41,
87-88.) They asked the Secretary how the Department would respond to the request for the
President’s tax returns that they expected would be forthcoming. (See, e.g., Exhibit A at pp. 2224.)
5.

Secretary Mnuchin repeatedly declined to speculate at the hearing about a

hypothetical request and instead testified that if Treasury were to receive a request for the
President’s tax returns, the Department would review the legality of the actual request and follow
the law. (See, e.g., Exhibit A at p. 22.) The Secretary also expressed his willingness to accept

2

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 3 of 413

any such request for review that day if one had already been prepared by the Committee. (See
Exhibit A at p. 24.)
6.

At the hearing, none of the 42 Members of the Ways and Means Committee asked

the Secretary any questions about the process by which the Internal Revenue Service (IRS)
audits and enforces the Federal tax laws against a President. The Secretary was, however, asked
during the hearing how Congress can know whether President Trump benefited from the Tax
Cuts and Jobs Act, Pub. L. 115-97, “without seeing [the President’s] tax returns.” (See Exhibit
A at pp. 40-41.)
7.

On the afternoon of April 3, 2019, three months after the 116th Congress had

convened, I was informed that a letter from Chairman Neal had been delivered to IRS
Commissioner Charles P. Rettig requesting copies of the confidential tax returns of President
Trump and eight related business entities, as well as “[a]ll administrative files (workpapers,
affidavits, etc.)” for each return. Chairman Neal’s April 3 letter requested the tax returns and
related return information of the President and his companies going back to tax year 2013 and
requested that all of this information be provided within one week of the request.
8.

A copy of Chairman Neal’s April 3, 2019, letter, which the Ways and Means

Committee made publicly available that same day, is attached as Exhibit B.
9.

So far as I am aware, prior to April 3, 2019, neither Treasury nor the IRS had

received, at any time since the 116th Congress had convened, a request from Chairman Neal,
from any other member of the Ways and Means Committee, or from anyone on the Committee’s
staff for information about the process by which the IRS audits and enforces the Federal tax laws
against a sitting President.

3

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 4 of 413

10.

Upon receiving a copy of Chairman Neal’s April 3 letter to Commissioner Rettig,

Treasury began a review to determine whether the Department could lawfully disclose the tax
returns and return information of the President and his companies that the Chairman had
requested.
11.

On April 10, 2019, I transmitted a letter from Secretary Mnuchin to Chairman

Neal via electronic mail to the Staff Director of the Ways and Means Committee. A copy of my
transmittal e-mail and the April 10 letter are attached as Exhibit C.
12.

The Secretary’s April 10 letter stated that the Department “[would] not be able to

complete its review of [Chairman Neal’s] request” within the one week period identified by
Chairman Neal. The Secretary explained that the Department could not meet this deadline for
several reasons, including that, because of the legal implications of the request, Treasury had
“begun consultations with the Department of Justice to ensure that [its] response is fully
consistent with the law and the Constitution.” Secretary Mnuchin also explained that although
Chairman Neal had directed his request to the IRS, a bureau of Treasury, the Secretary would
appropriately “supervise the Department’s review of the Committee’s request to ensure that
taxpayer protections and applicable laws are scrupulously observed, consistent with [the
Secretary’s] statutory responsibilities.”
13.

On April 13, 2019, Chairman Neal sent another letter to Commissioner Rettig, a

copy of which the IRS forwarded to Treasury. A copy of the Chairman’s April 13 letter is
attached as Exhibit D. In his April 13 letter, Chairman Neal requested that the IRS respond to his
April 3 request for the tax returns and return information of the President and his companies by
5:00 p.m. on April 23, 2019, and stated that any failure to do so “will be interpreted as a denial of
[his] request.”

4

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 5 of 413

14.

On the afternoon of April 23, 2019, Secretary Mnuchin spoke with Chairman

Neal to convey the status of the Department’s review of the Chairman’s April 3 request and to
advise him that, as stated in a letter Treasury would send that day, the Department expected to
provide a final decision on the Committee’s request by May 6, 2019. The Secretary made clear
that the projected time frame for the response was based on the time necessary to receive the
required legal advice.
15.

Shortly after this conversation on April 23, I sent an e-mail to the Staff Director of

the Ways and Means Committee attaching (i) a second letter from Secretary Mnuchin to
Chairman Neal concerning the Chairman’s request, and (ii) two appendices to the letter. Copies
of my April 23 transmittal e-mail, the April 23 letter, and the accompanying appendices are
attached as Exhibit E.
16.

The April 23 letter provided an update on the Department’s review of the

Committee’s request and explained some of the legal concerns and potential consequences for
taxpayer privacy that prompted the Department to consult with the Department of Justice about
the request. Specifically, the Secretary explained that in light of widespread public evidence that
the purpose of the request is the public release of the President’s tax returns, and that the request
lacked a legitimate legislative purpose as the Constitution requires, the Department was
concerned that the Chairman’s request may have exceeded the scope of Congress’s authority
and, therefore, that section 6103(f) would not authorize disclosure of the requested information.
17.

As also explained in the letter, the appendices provide (i) in Appendix A, a

summary of the public record demonstrating that the animating purpose of the Committee’s
request was and remains exposure of the President’s private tax information, and (ii) in

5

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 6 of 413

Appendix B, an additional catalogue of statements concerning efforts to obtain the President’s
tax returns that culminated in the April 3 request.
18.

In addition, in his April 23 letter Secretary Mnuchin offered that “[t]o the extent

the Committee wishes to understand, for genuine oversight purposes, how the IRS audits and
enforces the Federal tax laws against a President, we would be happy to accommodate that
interest by providing additional information on the mandatory audit process.”
19.

On May 6, 2019, in accordance with the Secretary’s commitment to Chairman

Neal, I sent a third letter on this issue from Secretary Mnuchin to Chairman Neal, as well as
updated copies of the two appendices provided on April 23, via an e-mail to the Staff Director of
the Ways and Means Committee. Copies of my May 6 transmittal e-mail, the May 6 letter, and
the accompanying updated appendices are attached as Exhibit F.
20.

The Secretary’s May 6 letter informed Chairman Neal that “[i]n reliance on the

advice of the Department of Justice,” Treasury had concluded that “the Department [was] not
authorized to disclose the requested returns and return information.”
21.

The Secretary’s May 6 letter also renewed Treasury’s “previous offer,” as stated

in the Secretary’s April 23 letter, “to provide information concerning . . . how the IRS conducts
mandatory examinations of Presidents . . . [i]f the Committee is interested[.]”
22.

The Department received its next communication from the Committee on May 10,

2019—in an e-mail sent to me by the Staff Director for the Subcommittee on Oversight of the
Ways and Means Committee, Karen McAfee, asking me to call her to discuss the delivery of
unspecified documents to the Secretary.

6

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 7 of 413

23.

Shortly after I received her e-mail, I telephoned Ms. McAfee, and she informed

me that the Committee intended to serve Secretary Mnuchin with a subpoena and asked if I
would waive in-person service and receive the subpoena on his behalf. I confirmed that I would.
24.

I then received an e-mail attaching a letter from Chairman Neal to Secretary

Mnuchin and Commissioner Rettig with a subpoena addressed to Secretary Mnuchin seeking the
same tax returns and related return information of the President and his companies that the
Chairman had requested on April 3. A copy of this e-mail and the enclosed letter and subpoena
are attached hereto as Exhibit G. An identical letter and subpoena were also sent to
Commissioner Rettig.
25.

In his May 10 letter accompanying the subpoena, the Chairman expressed

“appreciat[ion]” for “Treasury’s offer of a briefing” but remarked that “[a] briefing … is not a
substitute for the requested tax returns and return information.”
26.

Treasury responded to the Chairman’s May 10 letter and the Committee’s

subpoena on May 17, 2019. On that date, I transmitted the fourth letter on this issue from
Secretary Mnuchin to Chairman Neal via an e-mail to Committee staff. A copy of that e-mail and
the letter is attached as Exhibit H.
27.

The Secretary’s May 17 letter explained that the Department was unable to

provide the requested tax returns and return information in response to the Committee’s
subpoena for the same reasons that it could not provide that information in response to the
Chairman’s April 3 request. Specifically, the Secretary reiterated that “[i]n reliance on the advice
of the Department of Justice, we have determined that the Committee’s request lacks a legitimate
legislative purpose, and pursuant to section 6103, the Department is therefore not authorized to
disclose the requested returns and return information.”

7

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 8 of 413

28.

Secretary Mnuchin’s May 17 letter also again offered to accommodate the

Committee’s stated interest in the mandatory audit process by providing information regarding
that process.
29.

On May 17, Commissioner Rettig responded to Chairman Neal in a separate

letter, which provided certain information relevant to the Committee’s stated concerns pertaining
to the mandatory audit process and offered to provide additional information on that process. A
copy of this letter is attached as Exhibit I.
30.

On May 22, 2019, Treasury and IRS staff received an e-mail from Ms. McAfee

inquiring—for the first time since the Committee requested the President’s tax returns nearly two
months earlier—about the proposal made in the several earlier letters from Secretary Mnuchin
and Commissioner Rettig to provide the Committee additional information on the mandatory
audit process.
31.

The e-mail from Ms. McAfee did not include a request from Chairman Neal,

pursuant to 26 U.S.C. § 6103(f), that the briefing specifically include return information
protected from disclosure by section 6103(a).
32.

To my knowledge, the May 22 e-mail was the first time the Committee expressed

to Treasury or IRS any interest in any information regarding the mandatory audit process other
than the specific tax returns and return information requested by Chairman Neal on April 3 and
May 10 pertaining to the President and his companies.
33.

On May 24, 2019, I responded to the Committee staff’s request for additional

information on the mandatory audit process. I explained that the Department would be “happy to
provide a detailed briefing to the Committee on the mandatory audit process” but “want[ed] to
make sure that we have the right experts available to provide the information you’re interested

8

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 9 of 413

in.” To that end, I requested that staff “[p]lease let us know what particular aspects of the audit
process you would like the briefing to focus on.”
34.

Ms. McAfee responded that day: “We would like to speak to the experts that are

involved with the audits. We want to understand exactly what happens from the moment the
returns enter the mail to the IRS through the time that the audit is completed. Our questions go
beyond what is outlined in the [Internal Revenue Manual (IRM)].”
35.

The Committee did not explain in what respect its questions went beyond what is

provided in the IRM. Nor did the Committee explain in any way the aspects of the audit process
that the Committee hoped would be explained during the briefing. A copy of the e-mail chain
reflecting these communications, going back to Ms. McAfee’s May 22 e-mail, is attached at
Exhibit J.
36.

After further emails pertaining to scheduling, a briefing was scheduled for June

10, 2019, at 9:00 a.m. Treasury and IRS staffs committed to stay as long as necessary to
complete the briefing and provide answers to the Committee’s questions. A copy of an e-mail
exchange confirming the briefing is attached as Exhibit K.
37.

Because the Committee had provided no indication of any specific aspects of the

Presidential audit process it wanted the briefing to cover, IRS and Treasury staff worked
collaboratively to ensure that the briefing included experts on the mandatory audit process and
that it thoroughly covered the process from the moment a return is delivered to the IRS through
the time that the audit is completed, including details about the process that are not explicitly set
forth in the IRM.
38.

As noted above, Committee staff’s May 22 and May 24 messages concerning

information the Committee sought on the mandatory audit process did not indicate that it sought

9

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 10 of 413

return information protected by 26 U.S.C. § 6103(a). On the evening of Friday, June 7, 2019—
the last business day before the briefing was scheduled to occur at 9:00 a.m. on Monday, June
10—Ms. McAfee sent two letters (dated June 4 and 5) from Chairman Neal via e-mail to the IRS
for the stated purpose of providing blanket authorization for certain Committee staff members to
receive unspecified confidential returns and return information protected under 26 U.S.C. §
6103(a) related to IRS audits of a President and enforcement of the Federal tax laws against a
President. Copies of these e-mails and the attached letters, as forwarded to me on Saturday, June
8, 2019, are attached as Exhibit L.
39.

The staffs for Treasury, IRS, and the Ways and Means Committee had previously

exchanged at least 14 e-mails concerning the briefing between May 22 and the evening of
June 7. To my knowledge, none of this correspondence stated or suggested that the Committee
wanted the briefing to include confidential information protected by 26 U.S.C. § 6103(a).
40.

More broadly, and to my knowledge, prior to June 7 the Committee staff had not

communicated to anyone at Treasury or the IRS involved in coordinating or preparing for the
briefing that the Committee staff expected the briefing to include such information.
41.

On June 10, two other Treasury officials and I accompanied the following IRS

officials to the scheduled briefing:
a. Kirsten Wielobob, Deputy Commissioner for Services and Enforcement
b. Diane Grant, Senior Advisor to the Office of the Commissioner
c. Michael Desmond, IRS Chief Counsel
d. Thomas Cullinan, Counselor to the Commissioner and Chief Counsel
e. Robert Chapman, Analysis, Legislative Affairs, IRS

10

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 11 of 413

42.

The briefing began a few minutes after 9:00 a.m., conducted initially by Ms.

Wielobob and Ms. Grant. Ms. Wielobob oversees the divisions responsible for conducting any
mandatory audit of a covered officeholder. Ms. Grant has served in the IRS Office of the
Commissioner through multiple administrations and has extensive historical knowledge of the
mandatory audit process and IRS processes more generally. Committee staff for the majority and
minority were present for the briefing, but neither Chairman Neal nor any other Member of the
Ways and Means Committee attended.
43.

Consistent with the direction provided by Committee staff on May 24, the

presentation provided by Ms. Wielobob and Ms. Grant was comprehensive, focusing on how the
mandatory audit process operates from the moment a return is delivered to the IRS through the
time that the audit is completed.
44.

Although no information protected by 26 U.S.C. § 6103 was provided (or legally

could have been provided) during the briefing, Ms. Wielobob and Ms. Grant presented a set of
34 slides explaining in detail how the mandatory audit process works.
45.

The prepared presentation covered the following areas: (i) an overview of the

process; (ii) special processing procedures for the returns of covered officeholders; (iii) how the
returns of officeholders are assigned for mandatory examination; (iv) processes for ensuring the
impartiality of the mandatory examination; (v) the mandatory examination process itself,
including how the audit is planned, contact that occurs with an officeholder’s representative,
information gathering by the IRS, and exam determinations and potential responses; (vi)
potential consideration by the IRS Office of Appeals; and (vii) when judicial review may be
required. Also included as part of the presentation were examples of documentation that is
related to the mandatory audit process.

11

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46.

The presentation by Ms. Wielobob and Ms. Grant lasted approximately one hour,

after which the IRS officials present at the briefing spent a total of approximately two hours
addressing more than 150 questions asked by Committee staff. The IRS officials answered the
majority of questions from Committee staff that did not seek privileged information or implicate
information that, as the IRS officials explained at the time, is or may be protected by 26 U.S.C. §
6103(a).
47.

Numerous questions posed by Committee staff at the briefing or in pre-written

materials submitted afterward sought protected return information relating to President Trump.
This included items bearing on the content of President Trump’s returns, such as how the IRS
verified wages/salary, whether any income issues had been examined, and what deductions had
been examined for all tax returns filed by President Trump while in office. Similarly, Committee
staff asked what the sources of income were and whether any assessments had been issued for
presidential tax returns in the past two years. The Committee also sought details about the
physical location of copies of returns and related IRS work papers, as well as the identities of
individuals having access to return information.
48.

The briefing concluded at approximately 12:40 p.m., with Treasury and IRS

officials having made themselves available to the Committee staff for more than three and a half
hours.
49.

Following the briefing, I sent to Chairman Neal a June 10, 2019, letter confirming

that senior officials from the IRS had provided to Committee staff a briefing on the process by
which the IRS audits and enforces the Federal tax laws with respect to Presidents of the United
States. In my June 10 letter I also reaffirmed the Department’s commitment to continuing to
address the Committee’s stated interest in this process within the limits of the law.

12

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50.

Additionally, in my e-mail transmitting this letter, I provided a copy of the slides

that had been prepared by IRS officials and the exhibits referenced by those slides. I invited the
Committee staff to share any follow-up questions that they had. A copy of the e-mail
transmitting my June 10 letter and these materials (the slides and exhibits accompanying them) is
attached as Exhibit M.
51.

On June 13, 2019, Ms. McAfee responded to my e-mail and attached a list of 291

questions that the Committee staff had prepared prior to the briefing. A copy of this June 13 email and the list of prepared questions is attached as Exhibit N.
52.

Recognizing that many of the questions on the list provided after the briefing had

been asked and answered at the briefing, I sent an e-mail to Ms. McAfee on June 21, 2019,
thanking her for sharing the list of prepared questions, noting that many were answered at the
briefing, and asking which of the outstanding questions on the list the Committee staff would
like Treasury and the IRS to prioritize in preparing responses. I also informed her that some of
the requested information could take time to track down. A copy of my June 21 e-mail is
attached as Exhibit O.
53.

On June 25, 2019, Ms. McAfee responded to my June 21 e-mail in a message that

read in its entirety: “You are welcome. The authorization letters are sufficient. Please feel free to
provide the answers on a rolling basis.” A copy of this e-mail is attached as Exhibit P. No further
clarification or guidance was provided.
54.

Three days later, on June 28, 2019, I received an e-mail from Committee staff

transmitting a letter from Chairman Neal to Secretary Mnuchin and Commissioner Rettig. A
copy of this e-mail and accompanying letter are attached as Exhibit Q.

13

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55. The Chairman?s letter began by observing that the tax returns and return
information covered by the Committee?s May 10 subpoena had not been provided and then
asserted that ?the information conveyed at the [June 10] brie?ng,? which the Chairman described
as ?limited,? ?is not a replacement for the actual return and retum information that the
Committee requested under section 61036).?

56. Two business days later, on July 2, 2019, the Committee on Ways and Means
?led suit in federal district court, seeking to compel production of the Presidential tax rettuns and
return information requested by Chairman Neal on April 3 and to enforce the Committee?s May
10 subpoena.

57. To date, no one from the Committee has identi?ed which of the 291 questions on
the list that was transmitted to me following the June 10 brie?ng are a priority to the Committee,
identi?ed which of the questions the Committee believes remain unanswered, or inquired about

the status of Treasury?s responses to any of the questions.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on September 2019.

FREDERICK w. 

 

l4

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EXHIBIT A

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1

Hearing on The President’s 2020 Budget Proposal
________________________________________

HEARING
BEFORE THE

COMMITTEE ON WAYS AND MEANS
U.S. HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTEENTH CONGRESS
FIRST SESSION

________________________

March 14, 2019

__________________

Serial No. 116-14
__________________

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2

COMMITTEE ON WAYS AND MEANS
RICHARD E. NEAL, Massachusetts, Chairman
JOHN LEWIS, Georgia
KEVIN BRADY, Texas, Ranking Member
LLOYD DOGGETT, Texas
DEVIN NUNES, California
MIKE THOMPSON, California
VERN BUCHANAN, Florida
JOHN B. LARSON, Connecticut
ADRIAN SMITH, Nebraska
EARL BLUMENAUER, Oregon
KENNY MARCHANT, Texas
RON KIND, Wisconsin
TOM REED, New York
BILL PASCRELL, JR., New Jersey
MIKE KELLY, Pennsylvania
JOSEPH CROWLEY, New York
GEORGE HOLDING, North Carolina
DANNY K. DAVIS, Illinois
JASON SMITH, Missouri
LINDA SÁNCHEZ, California
TOM RICE, South Carolina
BRIAN HIGGINS, New York
DAVID SCHWEIKERT, Arizona
TERRI A. SEWELL, Alabama
JACKIE WALORSKI, Indiana
SUZAN DELBENE, Washington
DARIN LAHOOD, Illinois
JUDY CHU, California
BRAD R. WENSTRUP, Ohio
GWEN MOORE, Wisconsin
JODEY ARRINGTON, Texas
DAN KILDEE, Michigan
DREW FERGUSON, Georgia
BRENDAN BOYLE, Pennsylvania
RON ESTES, Kansas
DON BEYER, Virginia
DWIGHT EVANS, Pennsylvania
BRAD SCHNEIDER, Illinois
TOM SUOZZI, New York
JIMMY PANETTA, California
STEPHANIE MURPHY, Florida
JIMMY GOMEZ, California
STEVEN HORSFORD, Nevada
g

Hearing on The President’s 2020 Budget Proposal
U.S. House of Representatives,
Committee on Ways and Means,
Washington, D.C
_________________________

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3

WITNESS
The Honorable Steven T. Mnuchin, Secretary, United States Department of the Treasury

___________________

ADVISORY
FROM THE COMMITTEE ON WAYS AND MEANS
FOR IMMEDIATE RELEASE

CONTACT: (202) 225-3625

March 7, 2019
No. FC-7

Chairman Neal Announces a Hearing on The President's Fiscal Year 2020 Budget Proposal with
U.S. Secretary of the Treasury Steven Mnuchin

House Ways and Means Chairman Richard E. Neal announced today that the Committee will hold a
hearing, entitled “The President's Fiscal Year 2020 Budget Proposal with U.S. Secretary of the
Treasury Steven Mnuchin” on Thursday, March 14, 2019 at 9 a.m. in room 1100 Longworth House
Office Building.

In view of the limited time available to hear witnesses, oral testimony at this hearing will be from
invited witness only. However, any individual or organization not scheduled for an oral appearance
may submit a written statement for consideration by the Committee and for inclusion in the printed
record of the hearing.

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4

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Please Note: Any person(s) and/or organization(s) wishing to submit written comments for the
hearing record can do so here: WMdem.submission@mail.house.gov.
Please ATTACH your submission as a Word document, in compliance with the formatting
requirements listed below, by the close of business on Thursday, March 28, 2019.
For questions, or if you encounter technical problems, please call (202) 225-3625.
FORMATTING REQUIREMENTS:
The Committee relies on electronic submissions for printing the official hearing record. As
always, submissions will be included in the record according to the discretion of the
Committee. The Committee will not alter the content of your submission, but reserves the
right to format it according to guidelines. Any submission provided to the Committee by a
witness, any materials submitted for the printed record, and any written comments in response
to a request for written comments must conform to the guidelines listed below. Any
submission not in compliance with these guidelines will not be printed, but will be maintained
in the Committee files for review and use by the Committee.
All submissions and supplementary materials must be submitted in a single document via
email, provided in Word format and must not exceed a total of 10 pages. Witnesses and
submitters are advised that the Committee relies on electronic submissions for printing the
official hearing record.
All submissions must include a list of all clients, persons and/or organizations on whose
behalf the witness appears. The name, company, address, telephone, and fax numbers of each
witness must be included in the body of the email. Please exclude any personal identifiable
information in the attached submission.
Failure to follow the formatting requirements may result in the exclusion of a submission. All
submissions for the record are final.
The Committee seeks to make its facilities accessible to persons with disabilities. If you
require special accommodations, please call (202) 225-3625 in advance of the event (four
business days’ notice is requested). Questions regarding special accommodation needs in
general (including availability of Committee materials in alternative formats) may be directed
to the Committee as noted above.
Note: All Committee advisories are available [here].
###

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5

THE PRESIDENT'S 2020 BUDGET PROPOSAL
Thursday, March 14, 2019
House of Representatives,
Committee on Ways and Means,
Washington, D.C.

The committee met, pursuant to call, at 9:01 a.m., in Room 1100, Longworth
House Office Building, Hon. Richard E. Neal [chairman of the committee] presiding.
Chairman Neal. The meeting will come to order. Good morning, and we want to
welcome our witness, the U.S. Secretary of the Treasury, Mr. Steven Mnuchin. Today we
will discuss President Trump's proposal to cut more than $1.4 trillion from core programs
that help American families. The President's fiscal year 2020 budget cuts to healthcare,
Medicare, Medicaid, threatening Social Security, and undermining many critical programs
for parents and other caregivers will be in front of us this morning for discussion.
It is no coincidence that this administration, as they simultaneously look to cut
3 -- trillions of dollars from these important initiatives come barely a year after supporting
unpaid tax cuts for the wealthiest amongst us, totaling $2.3 trillion of the Nation's debt.
Now, in this budget, the President wants to pay for those cuts on the backs of working
families.
I want to be clear that these cuts have not had the miraculous-- these tax cuts have
not had the miraculous economic effect that we have been told to believe. Yes, by some
measures, the economy is doing well, and we continue to understand that the broad
economic recovery has now been underway for more than 100 months, which would

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6

include the efforts of President Obama.
But at best, the tax cuts were a short-term sugar high. Credible and independent
forecasters put long-term economic growth at about 1.8 percent, a far cry from the
promised indefinite growth above 3 percent and nowhere near the 6 percent that the
President suggested could happen.
Tellingly, I have heard from many of those in Massachusetts who haven't seen the
$4,000 pay raise that they were promised under the tax law. They can't afford
medications. They struggle to keep up with basic expenses. And they are being hit with
the surprise of owing taxes in this filing season. This has been confusing and surprising to
these filers. For taxpayers with a balance due question, such as those finding that they
owe taxes for the first time, the IRS answered only 15 percent of their calls, and the
average wait time was 1 hour.
As the IRS works to implement the new tax law and recover from the work backlog
caused by the government shutdown, we need to ensure that it has the resources to fully
assist with and resolve taxpayer issues. That means supporting the agency's taxpayer
services and reversing a decade of declining funds for the IRS.
Before I turn it over to my colleague, Ranking Member Brady, I want to
underscore, Mr. Secretary, that while we have some differences of opinion, I know that we
agree that no one can beat American workers and businesses when they compete on a level
playing field. I want to note your staff's good work at the OECD on digital taxation
issues. That work has the potential to affect a wide range of U.S. businesses and
taxpayers and the U.S. tax base. I intend to pay close attention to these developments,
especially in light of France's recent unilateral imposition of a digital services tax. I
encourage you to stay in close contact with us.
I also encourage you to continue to reach out on the basis of staff work through our

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7

shared priorities. At the top of this list is infrastructure. Your comments have been very
encouraging. The President's comments have been very encouraging on the issue of
infrastructure. Repairing our aging roads and bridges, investing in the 21st century
infrastructure system is a win for everyone: workers, consumers, businesses, and the
economy as a whole. I know and expect that we can count on you to partner with me and
my colleagues on this very important initiative as well as other ways to grow the economy
and increase opportunities for the middle class.
And, with that, I want to recognize Ranking Member Mr. Brady for his opening
statement and point out that Mr. Brady and I are in full agreement on St. Patrick's Day.
[The statement of Chairman Neal follows:]

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8

Mr. Brady. Absolutely. Thank you, Chairman Neal.
And thank you, Secretary Mnuchin, for being here with us to discuss the President's
recent budget proposal.
Mr. Secretary, 2 years ago, you sat in that very chair and discussed the President's
initial budget proposal. You told us your number one priority was growth, that tax reform
and balanced regulations could unleash the economic potential of America.
You had plenty of skeptics. Experts told us there was a new normal in America:
sluggish 2 percent growth for as far as the eye could see. They said we had to simply
accept that paychecks would remain flat, jobs would keep going overseas, and U.S.
manufacturing jobs were gone, unless, of course, you wield a magic wand.
Larry Summers scoffed that we believed in tooth fairies, and then Leader Nancy
Pelosi famously declared it would be Armageddon for America. Man, were they wrong.
Thanks to a new modern Tax Code and balanced regulation, we have launched a
new era of prosperity for America where workers have first claim over their earnings.
Small business and manufacturing is back, and American companies can compete and win
anywhere in the world, especially here at home. America's economy is growing
50 percent faster than predicted by the Obama White House. Local businesses are
investing four times faster than the last year of the prior administration. U.S.
manufacturing is no longer losing jobs but growing six times faster than President Obama's
last few years. Blue collar employment is surging. The unemployment rate is at
historically good rates for those who were left behind in the past: Hispanics, African
Americans, Asian Americans, women, teenagers, those without a high school degree, and
our neighbors with disabilities.
Paychecks, stagnant for far too long, are growing at their fastest rate in a decade

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9

and even faster among those with low incomes who need it most. Today, median
household income rose above $61,000 for the first time since 1999, and hardworking
Americans haven't felt this optimistic about their financial future in a long time.
New business starts are skyrocketing, and small business along Main Street are the
most optimistic on record with historically high job openings, plans to hire more workers,
higher paychecks, and growing profits.
Here is what makes me optimistic: Nearly 5 million Americans have been lifted
off food stamps since President Trump was elected. The poverty rate for Hispanics and
African Americans has improved dramatically and is now the lowest on record. Maybe
that is why American
consumer confidence reached an 18-year high recently.
With investment and jobs coming back from oversees, millions of workers with
higher paychecks, bonuses, and larger nest eggs, local businesses no longer saddled with
billions of dollars of Washington red tape, U.S. energy now the largest producer in the
world, and America once again the most competitive economy in the world, that optimism
makes sense.
But we must not go back to the bad old days by repealing the tax cuts and harming
the very Americans who need help the most. Rather than wasting time in Congress on a
rush to impeachment, Democrats and Republicans need to work together to grow the
economy. America needs more customers and more workers. This means improving the
new modernized U.S.-Mexico-Canada trade agreement this year so we can reach more
customers, create more jobs, and sell more Made in America products to our two best
trading partners.
It means working together on the number one economic challenge facing America
today: our workforce. Lack of qualified workers is holding down economic growth across

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10

the country and will slow growth even more in the future.
And it means working together to ensure America remains competitive
internationally by challenging France's recent proposal to tax cross-border digital services.
This is a naked revenue grab that targets U.S. companies, double taxes our businesses, and
violates longstanding norms. I am hopeful that together we can work on other shared
priorities, like increasing retirement security for our workers and families, reforming the
IRS, and growing America's infrastructure. Mr. Secretary, there are many good
pro-growth proposals in the President's budget for Congress to consider. We thank you
for being here.
And, with that, Mr. Chairman, I yield back.

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11

Chairman Neal. I thank the ranking member, Mr. Brady.
Without objection, all members' opening statements will be made part of the
record, and a reminder that we will adhere to the Gibbons rule, meaning when one was
seated as the gavel came down.
Welcome, Mr. Secretary. I appreciate your presence here this morning. We have
received your written testimony, and I ask that you summarize those remarks in 5 minutes,
and then we will begin the questioning. Please proceed.

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12

STATEMENT OF THE HONORABLE STEVEN T. MNUCHIN, SECRETARY,
U.S. DEPARTMENT OF THE TREASURY

Secretary Mnuchin. Thank you. Chairman Neal, Ranking Member Brady, and
members of the committee, it is good to be here with you today.
I am pleased to report that President Trump's economic program of tax cuts,
regulatory relief, and improved trade deals is working for the American people. During
2018, real GDP increased by 3.1 percent measured from the fourth quarter of 2017 to the
fourth quarter of 2018. This is the highest growth rate since 2005. The unemployment
rate remains historically low at 3.8 percent, and earnings rose by over 3 percent in 2018,
the highest nominal increase in a decade. More Americans are entering the workforce
because of a renewed sense of optimism.
The World Economic Forum's most recent competitiveness report announced that
the United States is the number one most competitive economy in the world, receiving the
top ranking for the first time in more than 10 years. Companies are investing hundreds of
billions of dollars in new and expanding business operations in the United States. This is
in large part because the Tax Cuts and Jobs Act made our tax rates competitive, moved us
from a worldwide system towards a territorial system of taxation, and allowed immediate
expensing of capital expenditures. For hardworking families, it also cut rates across the
board, doubled the standard deduction, and expanded the child tax credit.
I would also like to highlight opportunity zones, a key component of TCJA.
Opportunity zones will ensure that more Americans benefit from economic expansion and
a robust job market. They provide capital gains tax relief to encourage investments in
businesses located in distressed communities. This policy has generated a great deal of

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13

enthusiasm.
These measures are fueling growth. Along with our efforts to provide regulatory
relief, in our trade negotiations, we are aiming to break down barriers to markets around
the world.
As you know, China has gained many advantages through unfair trade practices.
This administration is committed to rebalancing our trading relationship in order to level
the playing field for hardworking Americans. We are negotiating with China on structural
reforms to open their economy to our companies and protect America's critical technology
and intellectual property.
The administration is also prioritizing the U.S.-Mexico-Canada agreement,
USMCA. It is the most comprehensive trade agreement ever negotiated and will
modernize our trading relationship across North America. The USMCA will create the
highest standards to protect intellectual property rights, support small and mid-size
businesses, open markets for agricultural products, spur manufacturing. I encourage all
Members of Congress to support its passage because it will have a positive impact for
American workers, business owners, farmers, and families.
In addition to enhancing overall growth prospects, I want to note the positive
impact that the administration's economic agenda will have on our country's debt and
deficits going forward. During the last administration, analysts predicted that 2 percent
growth was the highest America could achieve and that it was the new normal. We have
already shown that we can and will do better. An extra 1 percent of GDP growth per year
means trillions of dollars of additional economic activity and more revenue to the
government.
Turning to the budget, the policies and priorities in the President's fiscal year 2020
budget will continue to foster stronger economic growth, reduce spending, and create a

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14

more sustainable fiscal outlook for our country by reducing the deficit as a share of GDP.
Of special interest to this committee, the Treasury portion of the 2020 budget includes
$290 million for business system modernization account funding, which is foundational for
a new 6-year IRS IT modernization plan. Investment in modernization of IRS information
technology systems and infrastructure will protect the integrity of our tax system and
improve customer service for taxpayers.
I am pleased to continue working with you on policies and especially,
Mr. Chairman, as you noted, infrastructure that will help to create jobs and increase wages
for the American people. Thank you very much.
[The statement of Secretary Mnuchin follows:]

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15

Chairman Neal. Thank you, Mr. Secretary.
And, without objection, each member will be recognized for 3 minutes to question
our witness today so that we may ensure that all members have an opportunity to inquire
before the Secretary's schedule requires that he leave. And I will begin by recognizing
myself.
Mr. Secretary, as you know, the debt limit was reinstated at the beginning of this
month, and your department has started extraordinary measures. Thank you for your
response to my January letter and the shared commitment that we have to addressing the
debt ceiling to protect the full faith and credit of the United States.
We have seen what brinksmanship does on the debt ceiling question. Last year, it
led us to a shutdown. We got a shutdown. The American taxpayer suffered during the
longest shutdown in history. And similar brinksmanship on the debt ceiling is not only
dangerous, it is reckless and irresponsible.
Do you support, Mr. Secretary, raising a clean debt ceiling extension sooner rather
than later?
Secretary Mnuchin. I do, Mr. Chairman, and I encourage Congress to do that
sooner rather than later, as you said.
Chairman Neal. Thank you.
Mr. Secretary, we have had many encouraging conversations about infrastructure,
and the system that we recognize in America today is suffering from years of underfunding
and neglect. I believe we have an opportunity to make a meaningful, sustained investment
that will lay the foundation for economic growth for years to come and create thousands of
good-paying jobs. We must be ready to put real Federal dollars behind this commitment
and maintain the traditional 80/20 split between Federal and State spending.

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16

The President campaigned on a $1.5 trillion infrastructure package, and he
mentioned infrastructure again in this year's State of the Union. Are you and the President
still committed to the $1.5 trillion bold infrastructure package that you have previously
outlined?
Secretary Mnuchin. Mr. Chairman, the President and I are fully committed to that.
I have appreciated the opportunity that you and I have spoken on the phone and had the
opportunity to meet and talk about this, and we very much look forward to working with
Congress on a bipartisan basis to pass infrastructure quickly.
Chairman Neal. Another encouraging note where I think there is an opportunity
for cooperation here is on the multi-employer pension plan dilemma that the country is
about to face. Do you have any immediate plans to address that issue? Based on
conversations I have recently had with many of the stakeholders, they have said that the
words of the administration have been encouraging. This is a huge problem. It
conceivably could take down the Pension Benefit Guaranty Trust, and I think working on
this sooner rather than later also makes good sense. Is that still the administration's
position?
Secretary Mnuchin. It is, Mr. Chairman. As you know, both as my role as
Secretary of the Treasury and my role as a member of the board of the PBGC, this is very
important to us. I have had the opportunity to meet with workers who are impacted by
this. I know there is a bipartisan group that is working on this, and we look forward to
supplying you help and work with that.
Chairman Neal. The legislation that I have proposed on this issue has many
Republican cosponsors, and I would hope that other Republicans would sign up. I think
just about every member of the Democratic Party in the House in the past session signed
the legislation. I think it is a good starting point in the conversation for hopefully getting

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17

something done before the problem really gets out of hand.
And, with that, let me recognize Ranking Member Brady for 3 minutes.
Mr. Brady. Thank you, Mr. Chairman.
When I think of the work, Mr. Secretary, that you did with President Trump and the
Republican Congress on tax reform, I think of Russell Marine back home. They gave
their workers $1 million in bonuses, raised everyone's pay 10 percent. They bought
millions of dollars of new equipment they couldn't afford before, and they green-lighted a
new company office because the building I was in was plenty old.
I think of The Lone Pint Brewery in Magnolia, Texas. Christi and Trevor Brown
started this craft brewery a number of years ago. They told me, because of tax reform,
they now can give all 10 of their workers full healthcare, vision and dental, some of which
their kids have never had before. And the back porch we were standing on was going to
be their new cold room because of the savings they had from the tax cut.
And I think of the two new manufacturing plants I toured a couple of weeks ago in
the poorest part of my district in east Texas, built in part because now businesses can write
off that new equipment and machinery the very year they buy it.
But when I am back home, people tell me that I think the silliest thing they hear is
that tax refunds are down, so tax increases must be up. And while that claim has been
fact-checked as misleading and nonsensical, the media covered it like it was life discovered
on Mars. As we know, your refunds have zero to do with your tax bill. It merely reflects
what you overpaid the IRS last year. And we know that 95 percent of Americans either
got a tax cut or their tax bill stayed the same.
So we also know refunds vary from year to year and even within the tax season.
And the truth is the new Tax Cuts and Jobs Act was designed to help families who live
paycheck to paycheck to make sure they got their help each month when they needed it

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18

rather than to have that relief delayed for a year.
Can you give us the latest update on the tax filing season and where refunds stand
today?
Secretary Mnuchin. Mr. Brady, thank you very much, and I personally want to
thank you for your incredible work that you did on the tax act. I think, as you have
known, based upon the most recent data, tax refunds are flat on last year. Now, let me just
give you an example. For an average married couple with one job and two children under
the age of 17, their taxes would go down from approximately $3,800 to $1,700, or a
reduction of $2,000. If they had been properly withheld, their withholding -- their refund
would have gone down 55 percent as well as their taxes. So the fact that refunds are on
average the same means, in essence, people did not adjust their holding enough to take
advantage of the tax act. We have encouraged people to use the calculator, but I would
just emphasize, because taxes are down, refunds should be down.
Mr. Brady. All right. Thank you, sir.
Chairman Neal. Thank you, Mr. Brady.
With that, let me recognize the gentleman from Georgia, Mr. Lewis, to inquire.
Mr. Lewis. Thank you very much, Mr. Chairman.
Thank you, Mr. Secretary, for being here. Mr. Secretary, there were 11 billion
disclosures of tax records last year under section 6103 of the Tax Code. Mr. Secretary,
did you personally sign a form to release any of these 11 billion tax records?
Secretary Mnuchin. I am sorry. I don't understand the question, Mr. Lewis.
Could you just repeat it?
Mr. Lewis. Well, I will do my very best to make it plain and simple. There were
11 billion disclosures of tax records last year under section 6103 of the Tax Code. Did
you personally sign the form to release any of these 11 billion tax records?

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Secretary Mnuchin. I don't believe I did, but I could check with my team. I am
not aware of that, Mr. Lewis.
Mr. Lewis. Well, you don't have any idea who approved?
Secretary Mnuchin. I have been advised that that is not something I would
normally sign. It would be something that the IRS Commissioner would sign off on.
Mr. Lewis. Is there a representative of the IRS Commissioner present today?
Secretary Mnuchin. No, he is not, but I would be more than happy to follow up
with you in your office and get back to you on the specific facts on that.
Mr. Lewis. Well, let me just ask you, Mr. Secretary. Didn't you prohibit the IRS
director from meeting with us?
Secretary Mnuchin. I believe we made available the IRS' team of experts that are
available, and I believe at the appropriate time, the IRS Commissioner will come and
testify, as I am doing.
Mr. Lewis. And when is the time right? When will the time be right?
Secretary Mnuchin. I would be more than happy to follow up with the chairman
and schedule it at a mutually available time.
Mr. Lewis. Thank you.
Mr. Chairman, I ask unanimous consent to submit a statement from veterans groups
against this budget.
Chairman Neal. Without objection.
[The information follows:]

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Mr. Lewis. Thank you. I yield back, Mr. Chairman.
Chairman Neal. The chair will recognize the gentleman from Florida,
Mr. Buchanan, to inquire.
Mr. Buchanan. Thank you, Mr. Chairman.
And I want to thank the Secretary for his leadership in terms of the Tax Cuts and
Jobs Act that we put together, but one of the big issues is on growth. For 50 years, as you
know, or the last 10 years, it has been the slowest growth that we have had in the last
50 years, so the impact that this has had is very clear when you look at -- if you want to
look at it from a report card standpoint.
Optimism is at an all-time high. That makes a big difference for people that are in
business to invest going forward. Wages at 3.1 percent in terms of growth. Consumer
confidence at an 18-year all-time high. Unemployment is lower in terms of the last
50 years, and 7 million, they claim, job openings available today for folks across the
country. So, to me, when you look at the report card, there is no question the impact that
the jobs and tax act -- has made a huge difference.
Let me ask you. The Fed is looking at -- they have been raising rates. A lot of
people think this is kind of throwing a cold blanket somewhat on the economy going
forward. What are your thoughts? And I know, in this last go around, they backed off of
that a little bit, but it seems a lot of people feel, why don't we have the opportunity to
realize the full potential of this economy going forward? So I just wanted to get your
comments in terms of the Fed's actions on raising rates.
Secretary Mnuchin. Well, first, let me just comment on the growth, as you have
mentioned, and I do agree that the growth has led to tremendous opportunities for
hardworking Americans.

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I think, as you know, I meet with the Fed Chair on a regular basis. We do discuss
the economy and other issues on a weekly basis. It would be inappropriate for me as
Treasury Secretary to comment on specific Fed actions in the future.
Mr. Buchanan. Thanks.
And, with that, I yield back.
Chairman Neal. I thank the gentleman.
I thank the Secretary for that answer, incidentally. Thank you.
With that, let me recognize the gentleman from Texas, Mr. Doggett, to inquire.
Mr. Doggett. Thank you, Mr. Chairman.
And, Mr. Mnuchin, I must say I am a little surprised to see you here. During the
time that the massive tax breaks for those at the top and the multinationals were being
forced here, neither you nor any member of the administration had the courage to come
and be questioned about the contradictions in that move. You refused to be questioned in
public about the special deal that you cut on the enterprises for Putin's buddy Deripaska.
You ignored Chairman Neal's letter to permit a reasonable time for congressional review of
this shady deal, even after Congress voted to stop it here in the House. You continue to
deny every request for documents from multiple congressional committees about this
wrong.
You did show up one time here and insisted, like today, that questioning of you be
limited to a few minutes. And then, with Mr. Brady's very effective protection, you
managed to give no oral answer to the questions that I posed but instead agreed that you
would supply written questions -- answers to those questions in writing that I still don't
have more than a year later.
Let me just ask you directly: Since you are fully aware that section 6103(f)(1) of
the Internal Revenue Code reads, quote, upon written request from the chairman of the

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Committee on Ways and Means, the Secretary shall furnish such committee with any
return or return information specified, end quote, are you willing to provide and fulfill the
command of the statute and your mandatory duty to properly release any personal and
business tax returns of President Trump that you are requested to provide?
Secretary Mnuchin. Well, Mr. Congressman, let me first comment on the first part
of that.
Mr. Doggett. Well, I just want to be sure I get an oral answer to my question.
Secretary Mnuchin. I will make sure -- I will make sure I answer the end, but let
me just make sure I answer the first part, which I think is highly unfair, okay. First of all,
I did come and give a classified briefing.
Mr. Doggett. Yes, sir, which the Speaker called a waste of time.
Secretary Mnuchin. That is your -- that is your view. I came with -Mr. Doggett. That is her view shared by me.
Secretary Mnuchin. -- I came with experts from Treasury -Mr. Brady. Mr. Chairman, if the witness could be allowed to answer.
Mr. Doggett. Well, let me ask you, Mr. Secretary. You can give any explanation
in the time that the chairman and Mr. Brady will provide, but will you comply with the
command of the statute and provide the returns under 6103? Yes or no?
Secretary Mnuchin. I am going to answer that, but -Mr. Doggett. Would you just answer it now? You have got 30 seconds.
Secretary Mnuchin. The answer is I will -- if I receive a request, which I presume
from what I have read in the press I will receive, I will consult with the Legal Department
within Treasury, and I will follow the law. That is my answer, Mr. Congressman, but I
would like to answer the previous part, which I think -Mr. Doggett. You are welcome to do so. Have you received any instruction or

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guidance from anyone regarding how to handle these requests?
Secretary Mnuchin. I am more than happy to answer your question -Mr. Doggett. Thank you.
Secretary Mnuchin. -- but in due respect, I would like to just finish my previous
answer, which is, Mr. Chairman, I think I have worked with you on a mutual date. I was
not aware of that the committee didn't think they had enough time today. I would be more
than happy to stay an extra half an hour if that is necessary so that people feel like they
have the proper amount of time to answer -- ask me questions, and I believe that we have
accommodated all requests from the committee. And if there are open requests on
documents or anything else, Mr. Chairman, we would be more than happy to work with
you and Mr. Brady.
Now, I think -- was there a second part of the question I didn't answer -Mr. Doggett. Yes, sir.
Secretary Mnuchin. -- on the tax returns?
Mr. Doggett. There was -Chairman Neal. Well, let me just say something. By precedent here, the witness
is always allowed to finish their answer.
Mr. Doggett. Well, not last time. When I asked a question, there was no answer
given.
Chairman Neal. Would the -Mr. Doggett. -- provided.
Secretary Mnuchin. I want to make sure I have answered all your questions. Is
there anything else I didn't answer?
Mr. Doggett. Yes, sir. Have you received any instruction or guidance of any kind
about how to handle --

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Mr. Brady. He just answered that question, Mr. Doggett.
Secretary Mnuchin. I am sorry. From whom?
Chairman Neal. Let the witness finish the questioning.
Mr. Doggett. Have you received any instruction or guidance of any kind about
how to handle congressional requests for President Trump's tax returns, and if so, from
whom?
Secretary Mnuchin. I have -- because I have read this in the press, so, first of all, I
haven't received the request. If you have the request for me today, I am happy to accept it.
If not, when -- if you decide in the future to deliver this, we will receive it. I can't
speculate on the request until I see it. I have discussed with the Legal Department in the
Treasury that we will most likely receive this request. As I have said, based upon the
request, we will examine it, and we will follow the law.
Mr. Doggett. Thank you.
Secretary Mnuchin. I would expect that we would -- I am not aware that there has
ever been a request for an elected official's tax return, but we will follow the law, and we
will protect the President as we would protect any individual taxpayer under their rights.
Chairman Neal. Thank you.
Mr. Doggett. Are you seeking advice on the meaning of the word "shall"?
Chairman Neal. With that, let me recognize Mr. Smith to inquire.
Mr. Smith of Nebraska. Thank you, Mr. Chairman.
And certainly thank you, Mr. Secretary, for appearing before the committee today.
I know that time is short, so I will try to be brief.
I want to thank you for ensuring that the final regulation implementing section
199(A) appropriately recognizes businesses which physically hold, store, and transport
commodities, such as grain elevators and energy services firms, are eligible for the

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deduction and not lumped in with paper traders. Both of these industries are economically
important to my State of Nebraska, and this was an important issue that was addressed.
At the same time, I do continue to hear concerns regularly about implementation of
many other provisions of the TCJA, particularly the international provisions. As you
know, our goals for tax reform included simplifying compliance, modernizing international
taxation, and ensuring as many taxpayers as possible benefited from tax relief. I do
continue to hear concerns that regulations implementing provisions known or called GILTI
and BEAT are not easy to comply with and in many cases are capturing longstanding
legitimate transition actions which no reasonable person would consider tax-avoidance
strategies as newly taxable events, which is not and certainly was not our goal.
Could you provide us with some insight on why this seems to be happening
regularly as the regulations are produced, and can you assure us that TCJA is being
implemented as intended by those of us who were so involved in its passing and being
signed into law?
Secretary Mnuchin. I can assure you it is being implemented as intended. We
reach out to try to make sure we have the proper interpretations of these issues. I will tell
you: I want to thank the hardworking people at the IRS and at the tax group within
Treasury. We meet on a daily basis. There were very many regulations, as you know,
that were left to us to draft. We want to make sure that we do this carefully in a way to
protect companies and implement the law, and we have gone through an extensive period
of reaching out to affected people. I personally met with many companies, and we will go
through a comment period on these issues. So, as you said, the GILTI and BEAT issues
are things we are looking at very carefully.
Mr. Smith of Nebraska. Okay.
Secretary Mnuchin. Thank you for the comment on the commodities. We

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worked hard on that.
Mr. Smith of Nebraska. Very well. Thank you, Mr. Secretary.
I now yield time to Mr. Brady.
Mr. Brady. Mr. Secretary, you were asked about an $11 billion request for 6103
provisions. Seems like a lot. Turns out $9 billion of that is routine request from States as
they verify their State income. Other is to comply with the Affordable Care Act and those
requirements passed by our Democrat friends. GAO and Joint Tax also make routine
requests so that Congress can be provided information about the impact of policies, and of
course, the Census makes those requests. Here is the key number: Zero of those requests
are for purely partisan reasons that weaponize the Tax Code.
I yield back.
Chairman Neal. I thank the gentleman.
With that, let me recognize the gentleman from California, Mr. Thompson, to
inquire.
Mr. Thompson. Thank you, Mr. Chairman. I would like to ask unanimous
consent to submit this article into the record that reads -- the headline reads "Trump vowed
to eliminate the debt in 8 years. He's on track to leave it at least 50 percent higher."
Chairman Neal. Without objection.
[The information follows:]

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Mr. Thompson. Thank you, Mr. Secretary, for being here this morning.
When the President and the Republicans pushed through their tax cut last Congress,
the warning from Democrats and outside experts was very clear: If you pass an
irresponsible $2.3 trillion tax bill that explodes our national debt and deficit to benefit the
richest Americans and large corporations, it will inevitably be working families and our
Nation's most vulnerable who end up paying the bill. This President's budget,
unfortunately, could not be clearer in bringing that warning to reality as this budget reads
like a laundry list of cuts to our country's essential programs: $500 million in cuts to
Medicare, $1.5 trillion from Medicaid, cuts to CHIP, food stamps, affordable housing.
The list goes on. All while the very same budget would make permanent a reduced top
rate, an over $11 million estate tax exemption, and a host of other loopholes benefiting the
richest 1 percent of Americans.
And as disturbing as these cuts are, as harmful as they are to children and to
seniors, the President's budget will add $1.1 trillion to our deficit next year. And that, I
might add, is based on numbers that most experts don't see as real, the 3.2 percent
economic growth, far above the 2.3 growth that CBO says that we should be expecting
which, by the way, drops in the outyears in 2019 to 1.8 percent.
Secretary Mnuchin, could you please explain to us, to the children and the seniors
across the country who are going to be expected to pay for these tax cuts to the richest
Americans, why they should be paying for them?
Secretary Mnuchin. Thank you very much. So, first, let me just comment on the
tax cuts themselves. As I have said in the past, I do think with additional growth, the tax
cuts -Mr. Thompson. Excuse me, Mr. Secretary. We have very limited time. We

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know what the tax cuts did, but this budget makes children and seniors pay for the tax cuts
that the richest people are going to receive. Can you please justify that?
Secretary Mnuchin. I don't believe that it is paying for the tax cuts as you have
said. I believe that the tax cuts will pay for themselves through previous growth. What I
would say is that -Mr. Thompson. That has never happened. You know it, and I know it, and the
budget is very explicit. The cuts are right there in black and white. We have all read
them.
Secretary Mnuchin. Mr. Chairman, can I answer the question or -Chairman Neal. By precedent, the witness can answer the question.
Secretary Mnuchin. So, again, I just want to separate the two issues. The
previous tax cuts, okay, which were $1.5 trillion, okay, the difference between policy and
baseline is $250 billion. That takes it down to a billion 250. Based upon growth last year
alone, that will bring this down to 850, which this is simple math. If we do get the growth
we expect, they will pay for themselves.
Now, as it relates to the budget going forward, we have not cut those programs.
We have reduced the rate of growth on those programs.
Chairman Neal. Thank you.
With that, let me recognize the gentleman from Texas, Mr. Marchant, to inquire.
Mr. Marchant. Thank you, Mr. Secretary.
Thank you for being here today, and thanks to your team for working through all of
these difficulties in interpreting some technical aspects of the tax reform bill. Many
businesses in my district have called me, and I have assured them that the Treasury is
really working hard on trying to correct them.
One of the big issues that I am hearing from my constituents and small businesses

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in my district that have over the years paid their taxes on time, withheld the proper amount,
et cetera, but in this year of transition, many of them, whether they got bad advice from
their HR Department or whether they just guessed wrong or were too optimistic, some of
them did not have enough withheld, and they are now faced with a penalty for the first
time in their lives. They have never paid a penalty, and it is creating a hardship.
And my ask today is will the Treasury, will you consider -- I know that you have
said that you would lower the penalty from 90 percent to 85 percent, the penalty -- before
you fell into the penalty, but would you consider 80 percent because we believe that there
is some confusion, some genuine confusion out there? I think it would be a good-faith
effort on the part of us to our hardworking constituents, not the ones that are trying to con
the system or, you know, calculate how much they can get by with, but just normal people
that are trying to do the right thing.
Secretary Mnuchin. Well, as you have noted, we did reduce it from 90 to 85 to try
to take into account many hardworking people who were caught in that, and yes, we will
consider 80, and I will go back and review that with my team.
Mr. Marchant. Thank you, Mr. Secretary.
Mr. Secretary, the other thing that I would like with my remaining time to ask you
to consider, the 800,000 people in my district in Texas value the integrity of the IRS and
the Treasury Department. They do not want their tax returns -- they do not want to go to
bed at night thinking that there might be some possibility that the IRS or the Treasury
could view their tax return and make that tax return public to anybody, not somebody on
this committee, to anybody. So, as a Member of Congress to you, before you make that
kind of decision, please take that into consideration.
Secretary Mnuchin. Thank you.
Chairman Neal. I thank the gentleman.

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With that, let me recognize the gentleman from Oregon, Mr. Blumenauer, to
inquire.
Mr. Blumenauer. Thank you, Mr. Chairman.
Mr. Secretary, I appreciate you joining us again. I am encouraged by some of the
conversation we have talked about in terms of infrastructure. I would like to turn to that
for a moment, but I would like to submit a written request to you for the Department to
help clarify some of the activities going forward dealing with the financial status of the
cannabis industry and how it is going to be treated in terms of banking and Treasury. If I
could submit that to you for your consideration.
Secretary Mnuchin. I would be more than happy for you to submit it. I think you
know we are struggling with these issues of Federal law versus State law. You know,
putting on my IRS hat for the moment, it is not in our interest for people to bring in
hundreds of thousands of dollars of cash into IRS locations where we have to build safes.

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Mr. Blumenauer. Agreed. And I will submit that to you in writing and appreciate
further clarification.
[The information follows:] – LINK TO QFRS

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Mr. Blumenauer. I would like to turn, though, to the infrastructure question. We
had a very encouraging hearing with the leadership that has been invited by our chairman,
the head of that AFL-CIO, the head of the U.S. Chamber, the head of the trucking
association talking about the need to invest in our infrastructure. It is a priority for us.
The President in the course of his campaign talked about a trillion dollars. This has been
a -- a trillion and a half. And I appreciated the encouraging comments a little moment ago
between you and the chairman.
However, the budget that is submitted calls for only $200 billion in infrastructure.
And in the past, that was paired with cuts to infrastructure spending by the Federal
Government. Can you tell the committee how you propose to finance a trillion and a half
if that is the goal for infrastructure funding?
Secretary Mnuchin. Well, thank you very much for bringing up infrastructure, and
I would just emphasize that anything we do on infrastructure needs to be done on a
bipartisan basis. So, whether it is the issue of how we spend the money, how we work
with the States, how we pay for it, we very much look forward to working with you and
the committee on this to see if we can reach an understanding.
Mr. Blumenauer. And I agree with that. I am trying to get a sense of what the
administration will support. The President in the past has talked about a 25 cent gas tax
increase. Is that in the realm of possibility? Do you have specific proposals that we
could work with on a bipartisan basis to fund the trillion and a half dollars without further
adding to the deficit?
Secretary Mnuchin. I have heard the President talk about the gas tax. I don't
think any decision has been made. I have also heard the CEO of UPS and FedEx basically
tell me that they would be in favor of increasing it if the money were spent on roads.

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Again, I would just emphasize, because this needs to be done on a bipartisan basis, this is
something we want to sit down and listen to your ideas and work with you and the rest of
the committee on this.
Mr. Blumenauer. Thank you very much.
Chairman Neal. I thank the gentleman.
With that, let me recognize the gentleman from New York, Mr. Reed, to inquire.
Mr. Reed. Thank you, Mr. Chairman, and thank you, Mr. Secretary, for being here
and, as always, for making yourself accessible to our office and to work with you.
I want to narrow in on an issue that is directly related to my home State of New
York State, and there has been a lot of conversation and a lot of public statements by my
Governor, Governor Cuomo of New York, that says the State and local tax deduction cap
of $10,000 that many of us here worked very hard to get into the tax cut bill hurts,
quote/unquote, low- and middle-class income workers. I believe that statement is
blatantly false. Why do I say that? I look at the Tax Policy Center, often an
expertise -- experts in the field of taxation relied upon by many of my colleagues on the
other side of the aisle to support their criticisms or objection of tax policy here in D.C.
And as they concluded, the benefit, if you restore the full State and local tax deduction,
goes to -- 56 percent of that benefit goes to the top 1 percent income earners. The top
1 percent income earners are $755,000 per year taxpayers. Ninety-six percent of the
benefit goes to those in the top one-fifth of the income earners. Those people are making
approximately $153,000 per year.
Mr. Secretary, first of all, do people making $755,000 per year or $153,000 per
year, is that a definition of a low-and middle-income worker, from your perspective?
Secretary Mnuchin. I don't believe so.
Mr. Reed. So is Governor Cuomo's assertion, then, that the State and local tax

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deduction cap of $10,000 hurts low and middle-class workers true or false, in your
opinion?
Secretary Mnuchin. Mr. Reed, I think it is false. We worked very closely with
you and others and Mr. Brady on the $10,000 to make sure that most people -- now, I will
tell you there is no question that wealthy people in New York have been impacted by this.
I can tell you I personally pay taxes in New York and California, and my tax rate did go up
because I no longer have the SALT deduction.
Mr. Reed. And one area of agreement I will agree with our Governor on, and that
is because people are mobile, especially on the upper income level, those making $750,000
and higher, correct? So people respond to increased taxes by avoiding those taxes. That
seems to me to be human nature. Would you agree that higher taxes causes people to
react to that situation?
Secretary Mnuchin. I have read, I am sure as you have, that people are leaving
New York and going to Florida because of the differential of tax rates, although I am not
an expert on human nature in this area.
Mr. Reed. Well, I have 11 older brothers and sisters. I try to -- you know, it is a
commonsense type of thing. The issue I would have, then, is people are leaving because
of tax policy, high taxes on their income.
So, with that. I yield back.
Chairman Neal. The gentleman's time has expired.
With that, let me recognize the gentleman from Wisconsin to inquire, Mr. Kind.
Mr. Kind. Thank you, Mr. Chairman.
Mr. Chairman, I ask unanimous consent to have included in this record at this time
an article entitled "Trump's Budget hinges on economic growth numbers no one believes.
'It's a fake forecast.'"

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Chairman Neal. Without objection.
[The information follows:]

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Mr. Kind. Mr. Secretary, you give me or any member on this dais an opportunity
to write $2.3 trillion worth of hot checks, and we will give you the illusion of short-term
growth and prosperity in this country.
This administration, complicit with the other side, jammed through a major reform
to the Tax Code a little over a year ago in 51 days without one hearing, with no appropriate
feedback, riddled with mistakes and errors and unintended consequences and now,
according to most budget forecasts, when you include interest on the debt, will increase
our debt by $2.3 trillion over the next 10 years. Eighty-three percent of the benefit, by the
way, goes to large corporations and the wealthiest 1 percent, and now it appears as if the
sugar high is ending.
You know, in the last 2 years of the Obama administration, they had stronger job
growth and higher wage growth than the first 2 years of this administration. And yet my
friends on the other side are like the rooster that crows and takes credit for the sun rising.
But my fear now with the debt that this administration has embraced is when things do turn
sour, and they will again, there will be another economic downturn because we are not
going to have the monetary or even the fiscal tools with which to combat that because of
this huge debt that has been racked up. And I will tell you what won't fly with hundreds
of thousands of seniors and families in Wisconsin is this President's budget that calls for
$845 billion worth of cuts to Medicare and another $241 billion worth of cuts to Medicaid,
our BadgerCare program, which will affect the healthcare that those families receive in
Wisconsin. Clearly, this is an attempt to pay for those tax cuts on the backs of those
seniors and families that rely on those programs for the healthcare needs back home in
Wisconsin.
But let me pivot real quick on a subject that we do agree on. I was one of the

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authors of the opportunity zone legislation, along with my friend Pat Tiberi on this
committee along with Senators Scott and Booker on the Senate side. We still think that
holds great promise and opportunity in those overlooked areas of our country trying to get
that early stage capital in. But I want to make sure it works the way it was intended, and
we are going to need your help because, right now, there is no accountability or data
reporting requirements as far as where these investments are going, nor is there
government data at this time tracking the number and characteristics of the qualified
opportunity funds because it is all just self-certifying at the time of tax filing. Could you
tell me what Treasury is doing to try to bring more transparency and accountability to this
program? And can you let us know what you can do on your own or what you might need
legislatively to put this in place so we have a good accountability system?
Secretary Mnuchin. Mr. Kind, thank you very much. First of all, I appreciate
your words on the opportunity zones, which I share are going to be an important issue.
And let me just say, on data accountability, we agree with you. So, if there are specific
things that you think we should be collecting, please send us a letter, and we will take that
into consideration. Our view has been that we want to implement this quickly. So the
self-certification was to get this up and running. We do intend that there will be data
accountability, and whether it comes out immediately or it comes out in the next 6 months,
we do intend to collect data, and we appreciate your input on that. Thank you.
Mr. Kind. Yeah. We will follow up.
Thank you, Mr. Chairman.
Chairman Neal. I thank the gentleman.
With that, let me recognize the gentleman from Pennsylvania, Mr. Kelly, to inquire.
Mr. Kelly. Thank you, Mr. Chairman.
And, Mr. Secretary, thanks for being here.

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You know, this discussion today reminds me of something that I read a long time
ago. It's called "A Tale of Two Cities." Really, this is the tale of two parties. It was the
best of times. No, it was the worst of times. It was the age of wisdom. No, it was the
age of foolishness. It was the epic of belief. No, it was the epic of incredulity. It was
the season of light. No, it was the season of darkness. It was the spring of hope. No, it
is the winter of despair.
The sugar high is not a sugar high. And if it is a sugar high, I have got to tell you,
the people back in my district love it. They are doing so much better today than they have
done in so many decades, and nobody can deny the economic growth that came out of the
Tax Cuts and Jobs Act. It is undeniable. It may not be unacceptable, depending on
which side of the aisle you sit, but I have got to tell you. For people back home, it is an
incredible lift.
And one of the towns that I represent, the city of Erie has done exceptionally well
with opportunity zones. We have eight opportunity zones in Erie. Mr. Kind talked about
this. The Erie Downtown Development Corporation is led by a guy named John
Persinger, who is a good friend of mine, and another good friend named Matt Wachter.
These guys have put together a piece that is available to everybody in the country because
they are out on top of it right now. They are out and moving, and we are looking again at
growth, growth, growth, and more growth and investment in places that nobody would
have invested in before. But because of the Tax Cuts and Jobs Act, it is bringing vitality
and a dynamic economy back to these areas.
The one thing, though, that I would just ask you, if you could: It comes down to
trying to put together all the different ideas that we have to do and basically the second
tranche of regulations. It just comes down to -- so the Office of Information and
Regulatory Affairs. There is some confusion on the regulations, and do you know how

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soon we will be able to come out with other regulations? I have got to tell you. In the
understanding of it, listen. I have never seen anything like this in my life when it comes
to growth, economic growth. And when we talk about the acceleration in debt, I was here
also. I was actually alive in 2008 and 2009 and 2010, and I saw that debt go from $9
trillion up to over $20 trillion. At that time, there wasn't much of a murmur or even a
whisper about it. It was okay. I have got to tell you: I appreciate everything you have
done, but when it comes to the regulations, that second tranche coming out -- it is like the
Erie Downtown Corporation, the development corporation. When can people like that
see?
And, also, I would just like to ask you: If you ever have a chance, would you
please come to Erie, Pennsylvania, and walk with me through the opportunity zones and
see what it is like to put life back into a community because of tax policy that was done
right here in this room? This has been phenomenal.
Secretary Mnuchin. Mr. Kelly, I would be happy to find the time to go with you to
Erie. I would look forward to that. I think the opportunity zones are important, and I
want to visit the specific areas.
The additional regulations are going through an internal clearance process at the
moment, and we are very much trying to get them out on an expedited basis, so thank you.
Mr. Kelly. Well, thank you because the poorest ZIP Code in Pennsylvania is in
that town. Thank you.
Chairman Neal. I thank the gentleman.
With that, let me recognize the gentleman from New Jersey to inquire, Mr. Pascrell,
and from here on, we will proceed to 2 to 1 in terms of ratio. And members are advised
that there is likely to be a vote on the House floor at 10 o'clock, but it is the chair's
intention to proceed with the hearing. So that means members on the first row or those at

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the end of the dais might want to go and vote and come back immediately. There will
only be one vote.
Mr. Pascrell.
Mr. Pascrell. Thank you, Mr. Chairman.
Good morning, Mr. Secretary. The Federal tax laws should be administered in an
impartial and nonpartisan manner. What firewalls or safeguards have been put in place at
the IRS to guard against political interference in the decision to disclose tax records
pursuant to a congressional inquiry under section 6103(f)(1)? We made this famous in
February of 2017. No one -- most people never heard of 6103 of this Tax Code. What
have you done?
Secretary Mnuchin. Well, first, let me just say I agree with you completely. The
IRS' job is to protect taxpayers and -Mr. Pascrell. What have you done, Mr. Secretary? Time is awaiting us.
Secretary Mnuchin. Well, when you are referring to 6103, are you referring to
your potential request for the President's tax return or the normal operations?
Mr. Pascrell. I didn't mention one time in what my question was, so don't think
what I am thinking. I am asking you what you are thinking about my question.
Secretary Mnuchin. Well, as it relates to -Mr. Pascrell. You are wasting our time.
Secretary Mnuchin. As it relates to the normal operation of 6103, that is done by
the IRS. I believe they do it on an impartial basis. And as it relates to any potential
requests, I said we will review it at the time.
Mr. Pascrell. Let me ask you this question: Mr. Trump claimed that he
would -- President Trump, he would not personally benefit from the tax cuts in the tax bill
of December of 2017. How can we know without seeing his tax returns? Can you tell

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me that?
Secretary Mnuchin. Well, I am not aware of the President's financial situation
other than what I read in the paper -Mr. Pascrell. Apparently nobody is.
Secretary Mnuchin. -- but I would just -- I would just comment that I assume that
that comment is that he has properties in New York and other places that are impacted by
the SALT deduction.
Mr. Pascrell. Well, it is happening, and it is coming, so be prepared.
In September 2017, you promised: Not only will this tax plan pay for itself, it will
pay down debt.
You said that. I didn't say that.
You also claimed that, for the highest earners, their taxes won't go down, which
they obviously did in the final bill. So do you agree that those statements have been
proved false?
Secretary Mnuchin. No, I don't. So, on the first part, I would say -Mr. Pascrell. Then let me ask you this question.
Secretary Mnuchin. Well, can I answer or -Mr. Pascrell. Well, you answered yes or no, but go ahead. I will give you
2 minutes -- 2 seconds.
Secretary Mnuchin. So, as I have said before, on whether it will pay down debt,
that will depend upon the growth over the period of time. It has worked so far.
As it relates to -- the top wealthiest people used to pay 19.3 percent of taxes; they
now pay 19.8 percent of taxes. So it -Mr. Pascrell. Is it true that your tax -- is it true that your tax bill used the SALT
cap to pay for the tax cut for top earners? Yes or no.

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Secretary Mnuchin. No.
Mr. Pascrell. Do you know how much you gained from that in terms of revenue?
Chairman Neal. I thank the gentleman.
Secretary Mnuchin. I do.
Mr. Pascrell. How much?
Secretary Mnuchin. Again, it gained money, but it was offset by a majority of
those people who paid the AMT -Mr. Pascrell. I yield back.
Secretary Mnuchin. -- so it was in the number of a couple of hundred -Mr. Pascrell. -- not going to get a -Chairman Neal. I thank the gentleman.
With that, let me recognize the gentleman from Illinois to inquire, Mr. Davis.

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RPTR MOLNAR
EDTR SECKMAN
[10:01 a.m.]
Mr. Davis. Thank you very much, Mr. Chairman.
I am deeply troubled that the Trump administration is prioritizing or allowing
policies that allow 501(c)(3) tax-exempt organizations to discriminate against Jews,
Catholics, Muslims, multiple groups of Protestants, and the LGBTQ families, while
worsening the shortage of individual families who would be willing to serve as mentors to
foster children. And so do you support that policy?
Secretary Mnuchin. Mr. Davis, I don't support discrimination in any kind, any
place whatsoever. Let me be clear of that. If there are specific issues that relate to
501(c)(3)s, I would be more than happy to follow up with your office.
Mr. Davis. We would be delighted to do that.
I am also concerned that there are severe cuts to the most vulnerable members of
our population, cuts in the Department of Labor's training programs by 7 percent, cuts in
child welfare, $4 billion, cuts to the most vulnerable groups in our society, to enhance the
ability of the rich to continue to benefit from the tax cuts that we have seen. How do you
justify what I call those draconian cuts in terms of the vulnerable population groups, who
would benefit from these funds, and we have no money at all in the budget for paid family
leave, individuals to take care of sick relatives, parents, and even children? Could you -Secretary Mnuchin. Well, Mr. Davis, let me just say we look forward to working
with Congress on the allocation of and appropriations of specific programs, but let me just
comment in general that, in 2020, the President's nondefense budget is $567 billion. That
is up from 518 in 2016. So it is up substantially.
And as it relates to mandatory spending, we project that that goes from $2.8 billion

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in 2020, to $4.3 billion in 2029. So -- and that doesn't include, obviously, what was in the
last several years, over $100 billion of money that went to special issues domestically for
wildfires and hurricanes and other things. So we look forward to working with you and
Congress on specific programs.
Mr. Davis. Thank you very much, and I yield back.
Chairman Neal. I thank the gentleman.
And, with that, the chair would recognize the gentleman from North Carolina,
Mr. Holding, to inquire.
Mr. Holding. Thank you, Mr. Chair.
And, Mr. Secretary, thank you for your efforts on the proposed BEAT regulations.
I look forward to working with you as we work through the remaining issues that are being
brought up by the stakeholders in the comment period, and hopefully we can get those
implemented quickly in a good way.
I want to switch gears and talk about pension plans. As you know, hitting those
rates of return, you know, is very important, and, unfortunately, often pension plans don't
do so. In North Carolina, where I am from, the retirement system posted a negative 1.47
percent return, making it the 21st year in a row that it has failed to hit a 7-percent target.
But the biggest bright spot in many pension portfolios has been investing in private
equity. Even when North Carolina's retirement system lost money in the stock market last
year, investments in private equity earned a significant 18.3 percent return. So it seems
pension plans are understandably looking for more and more in the private equity markets
to generate these needed returns.
For instance, in California's public employment retirement system, it is looking to
double its investment in private equity and expects private equity to be the only asset
capable of meeting its 7 percent target rate of return over the next decade.

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So, in your capacity as a member of the board of the directors of the Pension
Benefit Guaranty Corporation, how important is it for pension plans to hit their target rates
of return, and what will happen if they continue to fail to do so?
Secretary Mnuchin. Well, Mr. Holding, let me just first comment that it is up to
individual pensions to determine what their appropriate return is and their investment
allocation on a prudent basis. I would just say, notwithstanding your pitch for private
equity, public equities are up over 35 percent since the President was elected. Over long
periods of time, they tend to be tremendous investment opportunity for pension funds and
have workers participate in that. But I share your view on the importance of pensions and
making sure that they protect the workers.
Mr. Holding. And if private equity and real estate investments are some of the
best rates of return, increasing additional tax burdens on those investments would
obviously result in a lessening opportunity for pension plans who invest in such things, to
hit their return rates. I assume you would agree with that.
Secretary Mnuchin. I think that is just factually correct.
Mr. Holding. Thank you.
I yield back.
Chairman Neal. I thank the gentleman.
With that, let me recognize the gentlelady from California, Ms. Sanchez, to inquire.
Ms. Sanchez. Thank you, Mr. Chairman.
Mr. Secretary, on September 26, 2017, I sat with the President, you, and several
members of this committee in a meeting at the White House where the President stated that
both you and he would not personally benefit from the Republican tax bill. Since we are
now in our first tax filing season after the Republican bill has become law, I have a few
questions for you regarding that meeting.

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Do you recall, first of all, the President making that statement?
Secretary Mnuchin. I do recall the comment although not all the specifics of it.
Ms. Sanchez. Okay. You were also quoted in the press during the fall of 2017
making similar statements. Do you recall making similar statements to that?
Secretary Mnuchin. I am sure you are correct. If it is in the press, I did say those
things at the time.
Ms. Sanchez. Okay. Mr. Secretary, did you personally benefit from the new tax
law?
Secretary Mnuchin. So I can tell you I did not personally benefit. As I say -Ms. Sanchez. Did your individual tax rate go down?
Secretary Mnuchin. My individual tax rate did not go down.
Ms. Sanchez. Did not go down?
Secretary Mnuchin. Oh, when it went -- just to be clear, my combined individual
tax rate of State and Federal did not go down.
Ms. Sanchez. No. Your individual tax rate at the Federal level, did that drop?
Secretary Mnuchin. Again, when I -Ms. Sanchez. Because the upper income earners received a tax -Secretary Mnuchin. Again, I think most -Ms. Sanchez. -- a reduction in their tax rate, did they not?
Secretary Mnuchin. Again, most taxpayers look at their overall tax burden, so I
was referring to the combination of what I pay in total taxes.
Ms. Sanchez. I asked if your individual tax rate went down at the Federal level.
Simple yes-or-no question.
Secretary Mnuchin. I would have to look at that because -Ms. Sanchez. Okay. To the best of your knowledge, did the President benefit --

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Secretary Mnuchin. -- because I believe -Ms. Sanchez. -- from the new tax law?
Secretary Mnuchin. -- I believe, because I have -Ms. Sanchez. I am moving on. I am moving on. You can get me -Secretary Mnuchin. You are not allowing me to answer.
Ms. Sanchez. -- the information later.
Did the President's individual tax rate go down?
Secretary Mnuchin. I am not aware of the President's tax situation as you -Ms. Sanchez. In that meeting, the President also stated that the Republican tax bill
would create up to 6 percent growth in our economy. Has the economy seen a 6-percent
growth since the tax bill passed?
Secretary Mnuchin. I don't recall that statement, but I have been consistent in
saying that our objective has been 3 percent or higher, which again, at 3.1, we have hit so
far.
Ms. Sanchez. I bet there are a lot of witnesses that are here on this committee that
were in that meeting that could say the President guaranteed a 6-percent growth in the
economy, and we have not seen that yet.
Mr. Secretary, I want to move on. The 1998 IRS Restructuring Act created 10
violations that result in the termination of an IRS employee. The seventh violation is
willful misuse of section 6103 for the purpose of concealing data from a congressional
inquiry. This is defined by the Treasury Inspector General of Tax Administration -- and I
am quoting here -- as, quote, actual knowledge that section 6103 did not preclude access to
information by Congress or reckless disregard of the statutory provisions for disclosing
information in response to a congressional inquiry, end quote. Thus, an IRS employee
that misuses 6103 to obstruct a congressional inquiry can be fired.

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Mr. Secretary, should this apply to Treasury employees as well?
Secretary Mnuchin. There is an awful lot of interest in 6103 here today. Again,
as I have said -Ms. Sanchez. If an IRS employee can be fired for not providing information under
congressional inquiry, don't you think a Treasury employee should as well?
Secretary Mnuchin. You are asking me a hypothetical question, which, again, we
will review with our lawyers.
Ms. Sanchez. I yield back.
Chairman Neal. I thank the gentlelady. And I was there. The gentlelady is
correct. The President did note 6 percent growth.
With that, let me recognize the gentleman from New York to inquire, Mr. Higgins.
Mr. Higgins. Mr. Secretary, I just want to, for the record, correct you that tax cuts
do not pay for themselves, and you should know that. The President just gave us four
consecutive trillion-dollar deficits, proving that these tax cuts do not pay for themselves.
The President's own budget projects that the debt will hit $22.8 trillion in 6 years. That is
more than 50 percent higher than when the President took office. So these tax cuts do not
pay for themselves.
Candidate Trump said that he will save Medicare, Medicaid, and Social Security
without cuts ever. He further said: I am not going to cut Medicaid or Medicare.
President Trump's budget, because these tax cuts don't pay for themselves, cuts
Medicare by $845 billion, cuts Medicaid by $241 billion, cuts Social Security by $25
billion.
The President gave us an infrastructure bill that nobody took seriously. He had a
Republican House and a Republican Senate, and there wasn't one bill to support the
President's bill -- plan toward implementing an infrastructure bill. In fact, the President

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billed this as a $1.5 trillion infrastructure plan with only $200 billion of Federal money.
That is equivalent to the amount of money that we spent rebuilding the roads and bridges
over the last 10 years in Iraq and Afghanistan. So this is not an infrastructure bill.
My hope is that, given the failed attempt by the President to initiate an
infrastructure bill, that the administration will work with this House, that has sound ideas,
as to how to fund properly an infrastructure bill because, Mr. Secretary, unlike tax cuts,
infrastructure does pay for itself.
For every dollar that you give away in a corporate tax cut, the best-case scenario is
that you can recapture 32 cents. You are an investment banker. That is a loss on
investment of 68 percent.
On infrastructure, conservatively, for every dollar you spend, you can recapture
about $2, and I have seen $3 and $4 as well. So my hope is that you will take seriously
our offer to work together on an infrastructure bill.
Secretary Mnuchin. Mr. Higgins, I can assure you, we will take seriously your
efforts to work with us on infrastructure, and we look forward to that. And, again, let me
just comment on whether the tax cuts pay for themselves or not will be simple math.
Thirty-five basis points of additional growth over the 10-year period is what it takes, and
we are way ahead of that, but we will see. So time will tell.
Mr. Higgins. I yield back. Thank you.
Chairman Neal. I thank the gentleman.
With that, let me recognize the gentleman from Missouri, Mr. Smith, to inquire.
Mr. Smith of Missouri. Thank you, Mr. Chairman.
Secretary, thank you for being here. Listening to the questions that I have heard, I
might should ask a couple that are just as ridiculous, like, do you breathe oxygen?
Secretary Mnuchin. What was that?

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Mr. Smith of Missouri. Do you breathe oxygen?
Secretary Mnuchin. Yes, I breathe oxygen.
Mr. Smith of Missouri. Are you a U.S. citizen?
Secretary Mnuchin. Yes, I am.
Mr. Smith of Missouri. That is how ridiculous these questions have been today. I
mean, everyone knows these questions, but it is just trying to make their political points.
But I do want to say to you, Secretary, is thank you, thank you and President
Trump and this Republican Congress for turning our economy around. For the first time
in 13 years, our GDP is at 3.1 percent last year. That is amazing.
And when I go to southeast Missouri, where the folks that I represent, their median
income is $40,000 a year, and they tell me about how they have benefited from the Tax
Cuts and Jobs Act, I don't listen to this political debate and jargon saying that it only
helped the wealthy because I can take you to countless individuals in southeast Missouri
where they came up to me and they were like: You tell President Trump thank you for my
thousand dollar bonus that I got at the AT&T Call Center in Cape Girardeau, Missouri,
because of his tax cut bill.
I am, like: No, I helped write it. The President didn't write it. I was one of the
23.
But he is like: Thank you.
Or the young lady who had two broken car seats at Lowe's in Rolla, Missouri, and
she said: Because of the benefits from the Tax Cuts and Jobs Act, I was able to buy new
car seats.
So I want you to not have a doubt how successful the economy is going, and how
well the Tax Cuts and Jobs Act are affecting real Americans who don't think a thousand
dollars are crumbs. They know it is a couple months' rent. They know it is a couple car

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payments, and they know it will put food on the table.
So, Mr. Secretary, I do want to make a point that is in the budget of something that
I really care about. One, the elimination of the electric tax credit, the President proposed
that in the budget. We know that 80 percent of the people that benefit from the electric
tax credit for electric cars, they get $7,500 on purchase of a new car. Eighty percent of
those people make more than $100,000 a year. How many electric cars do you think are
in southeast Missouri?
Secretary Mnuchin. I don't know how many are there, but I do know that I own a
Tesla, and I didn't need the $7,500 tax credit -Mr. Smith of Missouri. Well, I want to take it away, and I am glad the President
does as well. And I could say so much more, but thank you for being here, thank you for
the job you are doing, and thanks for putting up with all this.
Chairman Neal. We thank the gentleman.
With that, let me recognize the gentlelady from Washington State, Ms. DelBene, to
inquire.
Ms. DelBene. Thank you, Mr. Chairman, and thank you, Mr. Secretary, for being
with us today.
When the Tax Cuts and Jobs Act was being drafted, Republicans sold the
passthrough deduction as a provision that would benefit small businesses. However, a
recent Joint Committee on Tax Publication on the passthrough deduction found that
two-thirds of the benefit goes to households making above the income threshold. That
threshold is $157,500 for individual filers and $315,000 for joint returns, meaning that
taxpayers above those income thresholds, who only represent 5 percent of taxpayers
claiming the deduction, will reap 66 percent of the benefits from the deduction.
Another report from the Joint Committee on Taxation finds that more than half the

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benefit of the passthrough deduction will be claimed by taxpayers with income in the top 1
percent. Are you concerned that a provision that was supposed to benefit small businesses
is largely benefiting the wealthy?
Secretary Mnuchin. Well, let me just comment that in -- in passthroughs, there is
one level of taxation as opposed to two levels of taxation. The idea of the passthrough
discount was to create businesses that are passthroughs, to make them competitive with
corporations and to eliminate a lot of what would have been the switching costs had people
made those as corporations. So -Ms. DelBene. But our small businesses are not receiving that benefit.
Secretary Mnuchin. Again, I would just say I don't have the specifics and will try
to get back to you on this, but the idea was that no different than corporations would pass
on significant part of those benefits to workers and investment that passthroughs would as
well, and we will try to get back to you with some statistics on that.
Ms. DelBene. Well, I think you should read the report from the Joint Committee
on Taxation because it has that detail. And it is very concerning -Secretary Mnuchin. I have read the report.
Ms. DelBene. -- when the tax bill was -- because when Republicans were talking
about a tax bill, they talked about how it was going to benefit middle-class families and
small businesses. This is yet another proof point that says that that has not been true.
Finally, Mr. Chairman, I would like to enter into record, a letter sent to Secretary
Mnuchin on November 29th, 2018, requesting documents related to the ACA. The
documents have not been produced to the committee, and I ask for unanimous consent to
enter it into the record.
Chairman Neal. Without objection.
Ms. DelBene. Thank you. I yield back.

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Secretary Mnuchin. And we will look into that and get back to you. I am not
aware of why it hasn't been followed up on.
Ms. DelBene. Thank you.
Chairman Neal. I thank the gentlelady.
With that, we will recognize the gentlelady from California, Ms. Chu, to inquire.
Ms. Chu. Secretary Mnuchin, earlier, Mr. Marchant from Texas, from the other
side of the aisle, raised the issue of taxpayers facing a penalty because they did not
withhold enough. I am so glad he did because it shows that this is not a partisan issue.
And I would like to reiterate as to why this is so important. The 2017 tax law was the first
law overhaul in this country and its taxpayers, the first in 30 years. Because of the
sweeping changes made in a very short period of time, including the elimination of
personal exemptions and capping of the State and local tax deduction, many are still
working to understand its impact on their families and on their tax refunds.
Constituents in my district have told me this is the first year in decades that they
have not received a refund and are facing the reality of owing taxes and underpayment
penalties.
Now, the last time the Tax Code was overhauled in 1986, the drafters included a
waiver of penalties for underpayments caused by the change in the tax law. I believe this
provision was included because they knew taxpayers would face the same withholding
challenges that families are facing today.
While Congress did not include such a waiver this time around, I understand that
the IRS did announce it will waive the usual underpayment penalties as long as taxpayers
paid at least 85 percent of the tax they owe. This is a step in the right direction, but it is
ultimately inadequate. Since that announcement, experts and practitioners believe further
relief is needed.

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In fact, the American Institute of CPAs, a nonpartisan organization that represents
over 430,000 accountants and experts across the country, have determined that further
relief is needed to protect the taxpayers this filing season, and would like it to be lowered
to 80 percent.
And that is why I introduced H.R. 1300, the Taxpayer Penalty Protection Act
which follows this recommendation to the 80 percent level. I believe this bill is in the best
interest of taxpayers across the country, and that this should not be a partisan issue. Filing
season impacts all of our constituents.
So, Mr. Secretary, I heard you say earlier to Mr. Marchant, that you will consider
providing further penalty relief through administrative actions. My question is about that
and also about the time schedule because people are filing now, and we have only 1 month
to go before April 15th. Taxpayers need the certainty now. So will you confirm that you
will consider further penalty relief, and what is the timeframe?
Secretary Mnuchin. Well, first of all, again, I appreciate your feedback, and this
isn't a partisan issue, as it was brought up earlier. I appreciate you bringing it up. We
will review it very quickly. I would normally tell you I would review it this afternoon, but
I am testifying at the Senate this afternoon. So I will look at it tomorrow, and we will try
to make a decision within the next week on this.
Ms. Chu. Thank you so much. I yield back.
Ms. Sewell. [Presiding.] Thank you.
The chair will recognize Mr. Rice from South Carolina.
Mr. Rice. Thank you, Madam Chair Lady, and thank you Secretary for being here.
I want to tell you a story, Mr. Secretary. In 2008, when Barack Obama was
campaigning for President, he drove down I-95, and he stopped in a little county in my
district, and it is one of the poorest areas in South Carolina. Three counties there, they

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call it the corridor of shame. They were very heavily invested in textiles and tobacco 40
years ago, and you can imagine what happened to them. And when the President stopped
there, he put a little girl on his knee and decried the poverty and said that we needed to do
something.
It was a beautiful speech, but guess what, nothing happened in the 8 years of his
Presidency. I want to tell you that Marion County, right next to that, is the poorest county
in South Carolina. Fifty-seven percent African American. Twenty-eight percent live in
poverty, twice the South Carolina average. This is a real story for real people. When
President Barack Obama left office in December 2016, 9.6 percent unemployment in
Marion County. Eighteen months later, a year and a half after President Trump took
office, and we had passed this Tax Cuts and Jobs Act, and we had the opportunity zones,
and we had a new piece of infrastructure in Dillon County, the unemployment rate in
Marion County dropped from 9.6 percent to 4.8 percent. That is half -- half -- in 18
months. That is a remarkable success for people who desperately, desperately needed it.
At this point, we have more jobs open than we have people to take them. People
who have suffered generational poverty, who never believed that this land of opportunity
provided opportunity for them, now are coming back into the workforce, and everyone
who does is a win. They recognize -- they are recognizing that they have a chance at the
American Dream. We are engaging educators and pastors to bring people together, to
help them see that opportunity is for them. Barack Obama gave a great speech. Donald
Trump is fixing the problem. Thank you, Mr. Secretary.
Now, we can't stay where we are. I believe that the reason why American workers
suffered for so long is because our economy and our economic policies were not
competitive. We have made our Tax Code competitive. We have got to fix our
unbalanced trade agreements that are balanced against American workers. Please keep

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pushing for the revised NAFTA and a new deal with China. We need infrastructure. Our
workers, if they are going to compete on the world stage, they have got to have world-class
infrastructure.
And we need to shift from family-based to skill-based immigration. If we can get
these things done, we will see upward movement in GDP growth for a sustained period
and a sustained, golden age of opportunity for American workers. Thank you,
Mr. Secretary.
Ms. Sewell. The chair now recognizes myself for 3 minutes of questioning.
Mr. Secretary, I wanted to follow up on the line of questioning regarding the
opportunity zones. I think that we are all agreed that it presents a wonderful opportunity
for us to invest in distressed communities. Mr. Kelly asked about the second tranche of
rules and regulations, and you didn't give a specific timeframe. And I was wondering if
you could give us a thought as to when we can get finalized rules.
There are several opportunity zones in my district that we would love to take
advantage of, but many of the private investors want to know specifically how they are
going to, you know, how opportunity zones -- the credits will actually benefit them. So
can you actually talk a little bit when we can get final rules so that people can have more
specificity?
Secretary Mnuchin. So, first of all, thank you for your focus on this, and I can
assure you, I am as focused on this as you. I ask my team every day: Where are they?
As I said, the next tranche is going through a review. I hope this is a matter of
weeks that we can get these out. So -Ms. Sewell. I just want to stress that I think that this is a tremendous bipartisan
opportunity to really affect communities -- vulnerable communities in our Nation, and
people really want more specifics before they actually invest.

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Secretary Mnuchin. Thank you very much, and I can assure you this is on the top
of my list -Ms. Sewell. Okay.
Secretary Mnuchin. -- when we have tax meetings every day.
Ms. Sewell. And the other thing is that I know that, in January, my colleagues and
I sent a bipartisan, bicameral letter raising a number of issues about the opportunity zones
programs that remain unsettled. One was about data accountability, and that was
addressed a little bit by Mr. Kind and your response. I just want to make sure that
we -- that the focus is on having metrics that will actually get to whether or not
communities -- those communities actually benefited, the impact of the investment on the
communities. In particular, unemployment, but also the -- what do you call it -- the
ancillary things that actually can spawn from economic development.
So I will work with my colleague, Mr. Kind, in helping to draft a letter of the kinds
of metrics and the kinds of data accountability I think that would be necessary in order to
make this really a win-win for the community, as well as for the investors.
Secretary Mnuchin. Good. And let me just assure you that the only reason why
those haven't come out is because we didn't want to rush through them. We want to have
the proper reporting. And those aren't critical for people starting investments. So
whether those come out next week or in 6 months -Ms. Sewell. True, but you know how investors are. They like to get more -Secretary Mnuchin. -- we have time to get it right. But we will work with you
very closely.
Ms. Sewell. Thank you.
Secretary Mnuchin. Thank you.
Ms. Sewell. The other question I had that has been asked of me, is there an

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opportunity to examine whether or not we can do additional designations since the
Governors had to designate prior to actually the rules coming out? Have you -- has there
been any thought as to whether or not additional areas could be designated?
Secretary Mnuchin. We don't believe we have any legal authority to allow for
additional designations at this time, but if that is something that is important, we would
obviously work with you and the committee to pass appropriate legislation and be
supportive of that.
Ms. Sewell. Thank you.
The next -- we will go to Mr. Schweikert of Arizona.
Mr. Schweikert. Thank you, Madam Chairwoman, I appreciate it, just because of
the -- having to run back and forth and vote on the floor.
I am going to run through just a couple things. First, opportunity zones, this is as
much for the staff. For those of us from Arizona, with our Tribal communities, you can't
end up with having ownership of the underlying lands. So you have leasehold interest. It
does make some of the mechanisms a little trickier, maybe having to use tax book basis.
So I appreciate you listening to our concerns on that.
Thank you for hopefully moving us away from the bad old days of what we used to
refer to around here as Operation Choke Point. For some of my border communities, you
had a Hispanic surname. You felt you were being treated differently if you were doing
trade back and forth across the border.
Debt management, there is a number of us who -- we basically look at our
demographics, and that is one of the frustrations you hear in these discussions here if you
actually go 2008 to 2028, 91 percent of all the spending increases are going to be interest,
Social Security, healthcare entitlements. It is our demographics that are driving our debt.
And if you actually look in the next 30 years, I hope the Treasury is thinking of either/also

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instruments, the trills concept from Dr. Shiller, some of these other things as ways to
manage our future debt that is being driven. Many of us get a little nervous when we look
at the subscription rates of some of the sovereign offerings.
Last thing -- and this is actually where the question sort of comes -- CBO actually
put out the 5 months -- you know, the first 5 months' fiscal revenue is in. And it looked as
if actual revenues were pretty much identical to the previous fiscal year's first 5 months.
But the $142 billion of debt looks like it almost solely came from our Bipartisan Budget
Act.
When Treasury is doing some of their documents, do they have the -- is there a
more elegant way to sort of say, look, revenues actually are -- under the new tax reform,
look pretty stable, it is Congress' spending policies that are actually driving up your need to
go and issue more and more debt?
Secretary Mnuchin. Thank you. Let me just comment, the way we designed the
Tax Act was there were incentives for people to do automatic expensing and other things,
which cost tax revenues in the first few years and raise revenues going forward. So, when
we say it has paid for itself or it has generated revenues, that is true, despite -- because we
are looking at it over the window.
Now, let me just comment: We can't spend the growth twice. So growth that we
are using to pay for tax cuts, we got to be careful and not also use for increasing expenses.
And that is the reason why we have adjusted the budgets accordingly.
Chairman Neal. [Presiding.] I thank the gentleman.
Mr. Schweikert. Thank you, Mr. Chairman.
Chairman Neal. Thank you.
With that, let me recognize the gentleman from Pennsylvania, Mr. Evans, to
inquire.

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Mr. Evans. Thank you, Mr. Chairman.
Mr. Secretary, you mentioned -- you talked about the word "poverty," and that is
been a huge concern obviously in the State of Pennsylvania, particularly in the city of
Philadelphia. I want to raise a question about utilizing low-income housing tax credit and
private activity bonds to fund low-income housing. I would like to know your thoughts
on fixing the low-income housing tax credit at 4 percent while either removing the cap on
private activity bonds or having expired cap funds go back into the pool.
Secretary Mnuchin. Mr. Evans, I would be happy to follow up with you and your
office to go through the specifics and your ideas of what we should do on that. We would
be open-minded to looking at your suggestions.
Mr. Evans. Okay. Second question, I wanted to kind of follow up a little bit on
the issue regarding opportunity zones. You know, obviously, that is a great concept.
However, it appears, and understanding that although well intended, wealthy investors
often benefit the most because benefits are limited to capital gains. Investors are not
always focused on the best use. So how can we make it so that we can see more benefits
target to the areas which was originally intended to benefit opportunity zones?
Secretary Mnuchin. Well, Mr. Evans, I think, as I have said before, we are very
excited about opportunity zones and particularly areas where we think there is going to be
a lot of interest, not only in real estate, but more importantly, companies starting and
companies growing in those areas. So we look forward to working with you on
appropriate areas in your area. But we think there will be a lot of money that is
incentivized and we look forward to working with you.
Mr. Evans. Would you also see, around the issue of the opportunity zones, being
able to have a direct benefit towards housing in any way?
Secretary Mnuchin. I think that housing is a very appropriate area that will benefit

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from it.
Mr. Evans. You also talked about the element of -- mentioning the aspect of
poverty, which I totally agree that we need to do -- I think that is absolutely the challenge
that we face in this country, sort of like the two tiers of communities that we have. So I
want you to go back a little bit. In a very specific way, from this administration, you
mentioned the tax package, you mentioned trade. Any other kind of specific ways that
you have specifically on addressing the question around poverty?
Secretary Mnuchin. Well, I think, within Treasury, we are looking at a lot of
issues around financial literacy, opportunities within communities. We have different
advisory groups. Yesterday, I met with many people on this issue. We look forward to
working with you and getting your ideas on how we can address it. It is a very important
issue.
We also think that making sure within these communities we address the
appropriate regulation and the appropriate opportunity for job creation.
Mr. Evans. Thank you, Mr. Chairman.
Chairman Neal. And, with that, as the gentlelady takes her seat, we will recognize
Ms. Moore from Wisconsin to inquire.
Ms. Moore. Thank you so much, Mr. Chairman.
And welcome back, Secretary Mnuchin. I just wanted to make sure that I heard
your testimony correctly. You say that this tax cut has really put families on a great path.
We have doubled the standard deduction, that businesses are creating new jobs, and there
has been great economic growth. Is that your testimony?
Secretary Mnuchin. I believe that is correct.
Ms. Moore. All right. Well, I just want to ask unanimous consent to enter into
the record some of the media stories compiled by the Americans for Tax Fairness, and do

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I -- can I -Chairman Neal. Without objection, those will be entered into the record.
Ms. Moore. Thank you so much.
Secretary Mnuchin, I am wondering, we have doubled the standard deduction.
You know, your claim is that families are going to be better off, but you mentioned in your
testimony that the budget is going to continue to push our economy forward. So I am
wondering how the cuts in Medicaid, Medicare, cuts in Social Security, to disabled people
who are trying to work, the elimination of the social services block grant fund, huge cuts,
how will the doubling the standard deduction, eliminating Medicaid expansion, how will a
struggling family of taxpayers benefit with the combination of the tax cut, which gave
them double the standard deduction, and the elimination of these other safety net
initiatives? How do you see that working with your theory of families being better off?
Secretary Mnuchin. Well, I think families are better off. Because of the tax cuts,
they have more money in their pockets. They have -Ms. Moore. -- excuse me, my time.
Secretary Mnuchin. -- growing wages -Ms. Moore. They have tax cuts -Secretary Mnuchin. Can I at least finish?
Ms. Moore. -- like $20 extra.
Secretary Mnuchin. Again, the example that I gave you before -- and everybody is
different, okay -- is, in a family that makes $75,000, had their taxes cut 55 percent. I
believe the average tax across the board was lower than that, but -Ms. Moore. Reclaiming my time, sir, I am not talking about a family making
$75,000 a year. I want to talk about the families that are struggling in the middle class.
How does cutting these other benefits they might need, ObamaCare, how will they benefit

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from this tax cut?
Secretary Mnuchin. I am going to respect your reclaiming your time because the
last time I got into a video on that.
Ms. Moore. That is exactly right. That is how it started.
Secretary Mnuchin. But let me just emphasize: We are not cutting programs.
We are lowering the rate of growth on programs, as I mentioned -Ms. Moore. You are cutting Social Security, Medicare, and Medicaid. You are
eliminating the social services block grant fund.
Chairman Neal. The gentlelady -Ms. Moore. And thank God my time has concluded, right, Secretary, and you
didn't have to answer. Okay.
Chairman Neal. I thank the gentlelady.
With that, let me recognize the gentleman from Illinois, Mr. LaHood, to inquire.
Mr. LaHood. Thank you, Mr. Chairman.
And thank you, Mr. Secretary, for being here and for your service to our country.
Secretary Mnuchin. I just want to say I didn't mean to say yes to -- I was -- that
your time was over. I was saying yes to my reclaiming my time thing. So I apologize for
that.
Mr. LaHood. Mr. Secretary, I appreciate you being here, and I would just start off,
in my district, in central and west central Illinois, I look at the effect that the Tax Cuts and
Jobs Act has had on my district, and probably the number one complaint that I hear in my
district as I travel around, is: We don't have enough workers to fill the jobs.
We have 7.3 million unfilled jobs in this country. And I look at my district, and
whether it is truck drivers, whether it is mechanics, whether it is welders, whether it is
nurses, technicians, we can't fill the jobs that we have, as a direct result of the Tax Cuts and

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Jobs Act that was passed by this Congress. And that is a positive thing. I also look at
recent Gallup Poll, U.S. small business owners optimism, the highest in 10 years. Look at
the fact a Gallup poll, just last month, in the middle class, 70 percent are more optimistic
this year than they were last year.
And so, by every measure, you look at the optimism in the economy as a result of
the Tax Cuts and Jobs Act; it is working.
And so, question for you on filling that jobs gap out there, skilled labor, career
technical education, can you talk a little bit about what the administration is looking at so
that we can fill these jobs and educate folks for -- so that we can keep this economy
moving?
Secretary Mnuchin. Thank you. I think there are really two important issues.
One is worker training and to make sure that, as you said, there are as many open jobs as
there are workers, so that we train people for those jobs. And, two, we need to have legal
immigration growth to increase our economy. So I know this is something that the
President continues to be focused on and working with Congress on, but we need more
workers.
Mr. LaHood. Switching gears to trade, can you give us a little update on where we
are at with China? I know you and Ambassador Lighthizer have been very engaged with
the Chinese, and we are at a critical point with those negotiations. And, specifically, if
you could comment on -- we heard a lot about the enforcement mechanism that we are
trying to put in place to change the behavior of China as it relates to making them comply,
making them abide by what every other industrialized country in the world does, and
whatever that structural change is, is going to be important moving forward. Can you talk
a little bit about that?
Secretary Mnuchin. Yes. So I think, as you know, President Trump has been

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focused on this issue of trade with China for the last 2 years, since the first meeting at
Mar-a-Lago, between the two Presidents. He made very clear, and they agreed, that the
trade deficit had to be reduced and that they had to create more opportunities for U.S.
companies and protect our technology and stop forced joint ventures.
Ambassador Lighthizer and I have worked very close together. We had a call with
the Vice Premier as recent as last night. We are working diligently. There is over
150-page document that we are working on. It will have, if we reach an agreement, a very
clear enforcement provision, and as the President said yesterday, we want to get the
agreement right. That is more important than the exact timing. But I expect it is
something we will resolve in the near future.
Mr. LaHood. Thank you, Mr. Secretary.
Chairman Neal. I thank the gentleman.
And, with that, let me recognize the gentleman from Virginia, Mr. Beyer, to
inquire.
Mr. Beyer. Mr. Chairman, thank you very much.
Mr. Secretary, pleased -- thank you for being with us.
Mr. Chairman, without objection, I would like to offer for the record an article from
this morning's Wall Street Journal entitled "Steve Wynn Met With Treasury Officials
About Opportunity Zones After Stock Sale."
Chairman Neal. Without objection.
[The information follows:]

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Mr. Beyer. And I also note that FOIA requests about these meetings have been
pending since last September, and the Treasury Secretary -- and I urge the Treasury
Secretary to make these FOIA requests a priority.
Secretary Mnuchin, in contrast to the rest of the nondefense budget, the President's
budget does request an increase in funding for the IRS. This signals a recognition of the
problem but doesn't go nearly far enough to address a decade of underfunding on the IRS
workforce and its mission. Much of the funding is addressed on new initiatives, like the
technology, that, while worthy, don't address some of the main problems we have seen
arise during a decade of underfunding. The IRS enforcement budget is 23 percent below
where it was in 2010, and this even -- in 2010, there was a tax gap of almost half a trillion
dollars. We have talked a lot about the budget deficit. That half a trillion dollars per year
would go a long way. And that is just 2010 numbers.
From 2011 to 2017, audits of the wealthy fell at an alarming 75 percent, a much
higher rate than the audits fell for poor and middle-class taxpayers. And this comes at a
time when wealthy tax evaders are using ever more complex schemes, including a
proliferation of global LLCs designed to hide assets. The IRS has many talented and
dedicated employees, many of them are my constituents, but they simply can't keep up.
And there is concrete evidence that the wealthy enjoy widespread immunity, not
just to practice aggressive tax-avoidance schemes, but to engage in fraud and evasion as
well. Some wealthy people clearly share that belief. That is why tax-deductible
donations for fraudulent charities, and bribes to get their kids into college, or aggressively
and illegally undervaluing real estate assets to avoid tax liabilities. So this not only
undermines Federal revenues but also just confidence in our democracy and the rule of
law. So, Mr. Secretary, what steps are you taking to reduce the tax gap and increase

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public confidence in the IRS?
Secretary Mnuchin. Thank you very much. So, first, let me just comment on
your first issue on Mr. Wynn. We will be happy to follow up with the FOIA request.
Mr. Beyer. Thank you very much.
Secretary Mnuchin. I can confirm there was a meeting with the experts who deal
with opportunity zones. We had meetings with lots of people. I think I stopped in for
literally 2 minutes to say hello. That was not a meeting that was scheduled with me, but I
can assure you this was a normal meeting like we meet with other people.
Now, in regards -Mr. Beyer. -- the tax -Secretary Mnuchin. In regards to the IRS funding, I very much appreciate, a major
priority for me is technology and upgrading the technology. I think, as you know, we had
an issue this year on tax day with the technology. We make big investments in lots of
other things that are important to the government. The IRS needs technology to bring it
into the modern age. And compliance in shrinking the tax gap, in my opinion, updated
technology is the number one way for us to accomplish that. So I very much support the
IRS' plan. I appreciate the bipartisan support for the IRS, and again, IRS technology is on
my top 10 list to get done.
Chairman Neal. I thank the gentleman.
With that, let me recognize the gentleman from Illinois, Mr. Schneider, to inquire.
Mr. Schneider. Thank you, Mr. Chairman, for holding this hearing.
Thank you to the Secretary for being here.
I would like to focus on a topic we have touched on already, the State and local tax
deduction, the cap on that. The last tax package put a cap at $10,000. We had this earlier
discussion of, does that affect middle-class families? Well, in my State of Illinois, it does

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affect middle-class families. In my district, roughly 42 percent of all tax filers are
impacted by this, and the average in Lake County, one of the counties I represent, is more
than $18,000 in State and local taxes because Lake County has a reputation of
comparatively high property taxes.
This is affecting working middle-class families who are struggling to make ends
meet. I take it a step further and say that it is double taxation. They are being taxed on
the taxes they are already paying to fund their schools, their local communities, the
operations of our State.
Eleven million households nationwide are affected by this. As I mentioned, in
Illinois, this is a disproportionate impact. I hear from constituents everywhere I go that
this is really having a harmful effect on their ability to make ends meet and take care of
their families.
So my question for you is basically this: What do you say to these middle-class
families who were promised a tax break by the President, but who are, in fact, experiencing
a tax increase, reduction in their refunds, et cetera?
Secretary Mnuchin. Well, Mr. Schneider, first of all, let me acknowledge, okay,
we are carefully looking at the impact on SALT on the appropriate States, as to what the
impact is on these economies because these economies are a large component of U.S.
growth. So it is something that we are monitoring carefully. I won't get into a debate as
to what is the middle class and what -- who is exactly being impacted, but I will
acknowledge we do have certain concerns we are monitoring on these economies. I think
you know the President has made some recent comments on this, that he is aware of it. So
I do want to just say we do understand it, and we look forward to working with you
specifically to understand the impact in your areas.
Mr. Schneider. Thank you. And I will say that a young family that is making,

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say, $75,000 to $125,000, which defines a big portion of my district, families that
are start -- couples that are starting their families, moving to the district, buying their first
home, and getting hit with not just the impact of the cost of starting a family, but then a
double tax on their State and local taxes they are paying for funding their kids' schools, is a
real burden on these families.
So I look forward to working with you. This is something that I think we need to
address and give relief to these families that were promised a tax break.
And, with that, I yield back.
Chairman Neal. Thank you. The chair would exercise a prerogative here. I
think that the President did note that he was open to a discussion about the SALT
deduction?
Secretary Mnuchin. I will comment yes. I was just referring to the President is
aware of this, and as I said, we are carefully monitoring the impact on these parts of the
economy, which I want to acknowledge is a very important part of the U.S. economy.
Chairman Neal. I thank the gentleman.
With that, Dr. Wenstrup is recognized to inquire.
Mr. Wenstrup. Thank you, Mr. Chairman.
Thank you, Mr. Secretary for being here today.
I can say throughout my district in some areas where they were really struggling,
there is a lot more optimism than we had a couple of years ago, and we are also seeing a
great increase in the capabilities and needs being filled through our community colleges
and our vocational schools.
You know, through this process -- you know, we are a great country that provides
safety nets, and we never want to let those go away. But they are sometimes very
challenging for people. Well, you have an opportunity right now with growth and more

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jobs available, enhancing the lives of blue-collar workers and their families.
But in addition, I want to take a moment here to talk about those that are in poverty
and the opportunities for them. And one of the things that I am finding -- and I want to
hear what the Treasury Department feels about this and how we can do things better -- but
for those that find themselves in poverty, our fellow Americans that, you know, are making
every effort they can, one of the problems that they find all the time is they have to go one
place for their housing, another place for their nutrition, and another place for their
healthcare. And too often, as they start to succeed and make their way, they are penalized.
They are penalized for making too much. They suddenly get into a higher level of
income, and their kids lose their Medicaid. That is a real scenario that I think both sides
of the aisle recognize, at least I hope they do.
But how is that affecting you at Treasury, and maybe what recommendations might
you make that we do so that people aren't stymied in the process of trying to come out of
poverty?
Secretary Mnuchin. Well, I think you have raised some very important issues. I
look forward to sitting down with you and other people on a bipartisan basis on the
committee to look at this issue. I think clearly we want to have incentives for people to
work. So we want to put people back to work. The best way to get them out of poverty
is to have them have jobs, and we look forward to addressing some of the issues that you
have raised.
Mr. Wenstrup. Yeah, and I am talking about Americans that are very incentivized
to work, and they are working, and they are given a greater opportunity at work, but they
can't take it because of what we have in place here. What we are telling them is: Well,
now your kids will no longer have healthcare because you are going to make $5 an hour
more, or something like that. So I think we have to do some math here.

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Secretary Mnuchin. I understand it, and I hope this is something that Republicans
and Democrats can look at together on the committee.
Mr. Wenstrup. And I want to applaud the focus on customer service with the IRS.
And I think that -- I met with the Commissioner the other day, and I think that he gets it,
and hopefully we are going to be on the right track there. Thank you.
Secretary Mnuchin. And thank you for noting that. And let me just say we can
always do better. One of the things we are focused on, again with technology, is
automated callbacks. There is no reason why, in this day and age, hardworking
Americans need to stay on the phone on hold for long periods of time. So this is a priority
for us with technology.
Mr. Wenstrup. Thank you.
Chairman Neal. I thank the gentleman.
With that, let me recognize the gentleman from New York, Mr. Suozzi, to inquire.
Mr. Suozzi. Thank you, Mr. Chairman.
Thank you, Mr. Secretary for being here today.
I didn't want to talk about this, but I am going to. You know, you have talked
about it a little bit. SALT is awful for my district. The SALT cap is awful for my
district. It is bad for all of New York -- at least downstate New York. In fact, every
Democrat and every Republican in New York City on Long Island and the downstate
suburbs voted against the tax bill because it is bad for the people of the area I represent.
And I know that you are from New York as well. That is correct?
Secretary Mnuchin. That is, and I can assure you I hear it from plenty of people in
New York all the time.
Mr. Suozzi. And you know that New York is the largest net donor to the Federal
Government of any State in the United States of America. We send more than $36 billion,

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maybe as much as $48 billion a year to the Federal Government than we get back in tax
returns. Are you aware of that fact?
Secretary Mnuchin. I am. Although I would just comment on the net donor issue,
it happens to be because it also has a predominant portion of the wealthy people.
Mr. Suozzi. And we are subsidizing the rest of the country more than any other
place in the country. Maybe because we have wealthy people in New York City and other
places, we also have middle-class people. The country is different from place to place.
You would argue that, wouldn't you?
Secretary Mnuchin. I would, and again, let me acknowledge, I appreciate the
issue. The SALT issue, as I have said -Mr. Suozzi. So, if somebody is making $150,000 in some places in the country,
they are doing great, but if they are making $150,000 between a husband and a wife in my
district, you are actually facing a tough time because of your high cost of your home value,
because of the high cost of your property taxes, the cost of living. You understand that,
based upon your personal experience, don't you?
Secretary Mnuchin. I do, indeed.
Mr. Suozzi. Okay. So we have got to try and address that.
Now, Mr. Secretary, in June of last year, you said the new postcard-size Form 1040
is designed to simplify and expedite filing tax returns, providing much needed relief to
hardworking taxpayers. This is a copy of the postcard that was used for a lot of the press
that the Republicans and the administration were using, saying how much easier it was
going to be for people. Now, we have asked for a report, the staff of Ways and Means has
asked for a report that has been issued about how well the postcard is working out, and we
haven't been able to get that report. Do you think we can get that report from you?
Secretary Mnuchin. So, again, I understand from my staff that we sent you back a

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response yesterday.
Mr. Suozzi. Was it a response or the comments? We want the actual report.
Can we get that report?
Secretary Mnuchin. I am aware of -- you do want the report. We are getting the
report to you. Quickly, the report is in draft. Our preference would be to wait until -Mr. Suozzi. We would like to see the draft of the report.
Secretary Mnuchin. I believe that we are accommodating that. We are working
with the chairman on that, but I understand the request. I understand that -Mr. Suozzi. Let me just point out, Mr. Secretary -- thank you so much. Nina
Olson, who is the National Taxpayer Advocate, gave testimony a week or two ago, and
said there is a 200-percent increase -- a 200-percent increase -- in the errors that taxpayers
are filing. Are you aware of that?
Secretary Mnuchin. I am not aware of that statistic, no.
Mr. Suozzi. -- 200 -- this is an independent person who has been working for 18
years as an independent person. She says there is a 200-percent increase in the errors in
taxpayers' forms.
Secretary Mnuchin. I understand who she is, and I look forward to hearing the -Mr. Suozzi. She also testified that people have to wait 17 minutes before someone
picks up the phone, and only 18 percent of taxpayers' calls are actually answered. Are you
aware of that fact?
Secretary Mnuchin. I am, and as I just noted, okay, I want to work on the issue.
And, again, we should have ways that taxpayers can communicate electronically so they
don't have to sit on -Mr. Suozzi. So the IRS has been picked on for many, many years. It is getting
worse under these new tax laws --

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Chairman Neal. The gentleman will wind -- the gentleman will wind down his -Mr. Suozzi. Thank you, Mr. Chairman.
Do you agree that things have gotten worse under the new -Chairman Neal. I thank the gentleman. His time has expired.
With that, we will recognize -Secretary Mnuchin. No, I don't.
Chairman Neal. -- from California, Mr. Panetta?
Mr. Panetta. Thank you, Mr. Chairman.
Mr. Secretary, thank you for being here. I appreciate your time and your patience.
I wanted to -- I was going to talk about this, but you brought it up, and I really
appreciate you bringing this up: immigration reform, basically immigration and how that
is a crucial part of the economy.
And we are going to -- it is very important in my district on the central coast of
California. The number one industry is agriculture. Therefore, an ag-labor bill will be
coming to the administration hopefully. It is going to come out of the House, hopefully
get through the Senate, and I would hope that because of the importance that you just
stressed on immigration and immigration reform, that you would be an advocate to
outweigh the anti-immigration reform elements in this administration, showing the
President how important it is, not just for my district but for districts across this country.
Can I get your commitment to being that advocate for that type of immigration reform?
Secretary Mnuchin. I don't know the specifics of the bill, but I am an advocate for
legal immigration reform. I think you know the President very much supports agriculture
and the hardworking farmers. I am familiar with your district, and you know, this is an
issue we need to address, not only for farmers but for skilled people as well. There are
way too many people that come here, study in the U.S., get Ph.D.s, can't stay here to work.

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So legal immigration reform is something I think is very important for Congress to work
on.
Mr. Panetta. Exactly. And I would also mention that a lot of the work that my
farm workers do, on the central coast, I would call skilled labor. There is a reason why
the domestic workforce is not filling those jobs because it is very difficult to do, and,
therefore, that is why we have people coming into this country to do it, thankfully for my
community, our economy, and our agriculture.
I want to mention something in regards to the budget that came out just a couple
days ago. Part of the Budget Committee, we had OMB Acting Director Vought come and
talk about it. It claims to reduce the debt as a percent of GDP to 71 percent by 2029.
However, according to the nonpartisan Committee for a Responsible Federal Budget,
without the growth assumptions in the budget, it would show debt reaching roughly 87
percent of the GDP by 2029, our adding $2.2 trillion to the budget, more than the budget
claims. Do you have any -- does the administration have any independent or nonpartisan
estimates of your policies that justify the 3-percent growth rate?
Secretary Mnuchin. So the 3-percent growth rate is done by the combination of
the Troika, the Council of Economic Advisers, our economics group, and OMB. But let
me just comment, you know, we look at 10-year budgets, okay? I encourage it as
something -- we are not making a 10-year commitment on spending. And I do think the
right way to look at debt is a percentage of relative to GDP. And I encourage Congress to
look at over the next 10 years: If we have the growth, we will spend the money. If we
don't have that type of growth, Congress doesn't have to make the commitment to spend
the money.
Mr. Panetta. Thank you, Mr. Secretary.
Thank you, Mr. Chairman.

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Chairman Neal. I thank the gentleman.
With that, let me recognize the gentleman from Texas, Mr. Arrington, to inquire.
Mr. Arrington. Thank you, Mr. Chairman.
Thank you, Mr. Secretary, for your leadership. Thank you for working with us to
put pro-growth, free market, pro-ag, pro-energy, pro-small business, pro-American worker
policies in place, and they are working. They are working because our
job-creator-in-chief, like many of us, believe that if you get off the backs and out of the
way of our entrepreneurs, our innovators, our job creators, they will do the work; they will
create growth.
Jobs are up and wages are up, and the performance is really unprecedented. I
mean, this is an economic renaissance. This is a great American comeback, and I am so
proud to be a part of it. And not only are those things up, that I mentioned, but the
American spirit is up. There is hope for a better future, and I can tell you this, in rural
America, they feel like their best days are yet to come, now, now that we have with taken
off the shackles of high taxes and regulations. These are working families, middle-class
families, farmers and ranchers, and community banks, and rural hospitals. These are the
guys that bear a disproportionate brunt of big government, and now there is hope.
Let me give you some examples. Happy State Bank, little community-relationship
bank, the employees are happier than they have ever been. A million dollars distributed in
pay increases in bonuses for nonexecutives. Forty of their employees have had an
increase of 50 percent.
Mike Lambert, my buddy from Idalou, who runs Feed and Thangs, he has now
been able to give guaranteed benefits to three of his full-time and four of his part-time
workers. And he said he has got a hundred new -- he had a hundred new customers in the
first quarter of 2018, compared to 2017, and he said: Please tell Ms. Pelosi those aren't

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crumbs to us out here in Idalou, Texas.
And then there is the gal from Post, Texas, and she was facing, unfortunately,
because her parents died this last year, both, in 1 year, she had a ranch that was in the
family since 1900. They worked hard. They paid their taxes. They played by the rules,
and she was facing millions of dollars in the most unfair, most un-American double tax in
the death tax. But because of tax reform -- Mr. Ranking Member, thank you for your
leadership -- she wasn't having to be forced, because of government policies, to sell that
ranch. This is what she said. She said: People in D.C. have no idea how hard we work.
We wake up at the crack of dawn to feed cattle. That is no glamourous job, especially to
do it alone as a single female. These taxes ruin families and their long-lasting memories
working on the farm together.
Now, I have heard people say this is a sugar high, Mr. Secretary. Is this a sugar
high, or is this just a strong response from a healthier and freer market that was sick and in
the ICU from too much government? Would you answer that question for me, please?
Secretary Mnuchin. I don't believe it is a sugar high.
Chairman Neal. I thank the gentleman.
With that, let me recognize the gentlelady from Florida, Mrs. Murphy, to inquire.

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RPTR MERTENS
EDTR SECKMAN
[10:58 a.m.]
Mrs. Murphy. Thank you, Mr. Chairman.
Mr. Secretary, when it comes to fiscal discipline, the hypocrisy in the
administration's budget is almost too much to bear. You know, the President says the
budget builds on the tremendous progress we have made to bring Federal spending and
debt under control and that we must protect the future generations from Washington's
habitual deficit spending. I co-chair the Blue Dog Democrats, and we have been urging
fiscal discipline out of both parties because of the threat that excessive debts and debt
poses to our economy, our security, and our children's future. And yet, in 2017, the
Republican Congress passed and the President signed a tax law that CBO projected would
increase deficits by $1.5 trillion over the next decade.
On a side note, the signature Democratic law, the Affordable Care Act, was
projected to reduce deficits by $143 billion over the decade.
I put a chart up on the screens, a little bit of an eye chart, but I am sure you are
familiar with this. This is a CBO chart about the Federal receipts and outlays, deficit, and
debt. It basically summarizes our fiscal situation. And what I see when I look at this
chart is deficits rising, hitting a trillion dollars by 2022. These are CBO's projections.
Yours are even worse, projecting a trillion dollars of deficit during the current fiscal year.
And you said in response to a previous question that we should look at debt as a percentage
of GDP. And when I look at debt as a percentage of GDP here, I see it rising there as
well. That percentage is projected to exceed 80 percent by 2022, the highest percentage
since 1948.

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So my question to you is this: Can you explain to me where anywhere on this
chart you see evidence of the tremendous progress in bringing debt under control that
President Trump cited? Point to just a single number or a trend that you think is positive,
and please don't pivot to GDP. I want to hear about deficits and debt.
Secretary Mnuchin. Well, first of all, I think I can see the chart, although it is a
little bit far. And, first, let me just comment: I do think, on a bipartisan basis, this is
something that people should be looking at, so I appreciate your concerns, debt as a
percent of GDP and what we look at the debt over time. I would just comment on a
couple of things. First of all, you see on the upper part of the chart where the deficit is a
percent of GDP, if I can see, this is kind in the 7, 8, 9, 10 type of range which is quite
concerning. I would also just highlight, in 2017, a major reason for the deficit in 2017
was the fact that Congress passed a very large spending increase, which I think, as you
know, the President felt like we needed to make an investment in military, and the
Democrats required us to have a big increase in nonmilitary spending. But, really, the tax
bill has really not had a material impact on these numbers on the chart. As I said, it will
over the next 10 years one way or another, but I would just encourage people on a
bipartisan basis to look at the spending issue.
Mrs. Murphy. Thank you, and I yield back.
Chairman Neal. I thank the gentlelady.
With that, let me recognize the gentleman from Nevada, Mr. Horsford, to inquire.
Mr. Horsford. Thank you very much, Chairman Neal, and to the ranking member.
Mr. Secretary, it is good to have you here today. I am very honored to serve on
this committee and as one of the members also on the Budget Committee, and so I have a
perspective to see the proposal from the President from both committees. And there are a
number of discrepancies and really flat out contradictions in both areas, in my view, and I

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would like to ask a couple of areas.
For example, the fantasy economic projection for growth. The fact that we say
that there is no impacts to preexisting conditions when it specifically eliminates access to
care. The President in his State of the Union address talked about eradicating HIV and
AIDS, but yet it cuts $1.2 billion to the Centers for Disease Control and to NIH.
Another area is infrastructure. I know you answered the chairman's question about
what you feel like the level of funding should be around infrastructure at the $1.5 trillion
level. However, the President's budget called for only $200 billion investment for
infrastructure, which is inadequate to cover the Nation's infrastructure needs.
And in a study of contradictions, I understand other parts of the budget make cuts
as well, such as cuts to the highway trust fund after 2021, approximately $150 billion. So
I guess my overall question specifically around infrastructure is, the $200 billion net of
cuts, or is it new money? Where does this money come from, and where is it going?
And has the administration prioritized infrastructure investments in its budget?
Secretary Mnuchin. Well, let me just comment on the $1.5 trillion, which we very
much support for infrastructure, but I just want to be clear. That doesn't have to be all
Federal spending. That can be a combination of various different things.
Now, again, we look forward to working with Congress on infrastructure.
Obviously, how it is paid for is a major component. So we didn't put bigger numbers on
infrastructure in the budget because this is something we know that needs bipartisan
consensus.
Mr. Horsford. And in the areas where, again, the President is speaking in one way
that he is preserving and protecting while making cuts to Medicare, Medicaid, SNAP
assistance, food assistance for children, and needy seniors.
Secretary Mnuchin. Well, I would just comment: The overall budget is going up

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considerably over time, and the President and we look forward to working with Congress
on how that money is allocated between different programs. The President is not cutting
these programs on an absolute basis but, in many cases, is lowering the rate of growth of
expense.
Mr. Horsford. Thank you, Mr. Chairman. I yield back.
Chairman Neal. I thank the gentleman.
And, with that, let me recognize the gentleman from Kansas, Mr. Estes, to inquire.
Mr. Estes. Thank you, Mr. Chairman.

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And thank you, Secretary, for joining us today.
Mr. Chairman, I would like to submit for the record an article from AEI entitled
"Wages Rising: The U.S. economy is now working best for lower wage workers" where it
talks about wage growth has picked up sharply for the bottom half of the wage scale.
Chairman Neal. Without objection.
[The information follows:]

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Mr. Estes. As you mentioned in your testimony, Mr. Secretary, the economy is
growing at historic levels, you know. In addition to the highest GDP in the last 14 years,
we have seen wages grow. We have seen unemployment rates near a 50-year low. We
have more job openings than job seekers. And following that progress over the last few
years, to jump-start the economy, you know, with all of the regulatory reform and all of the
Tax Cuts and Jobs Act benefit, we can't deny that those changes are making benefits for
millions of Americans. And the growth really helped the country, helped us move on a
better footing, and there are some of things that we need to keep moving forward.
You know, I represent Wichita, the air capital of the world. Obviously, trade is a
big issue for us, both from an aviation standpoint but also from agriculture as well, and I
am hopeful that Congress moves forward quickly with the USMCA and ratifies that
because it is such a boon for not just our country but also countries throughout the world to
see a strong economy in North America. You know, as we continue that progress, I want
to make sure that we then have the opportunity to move forward with China and other
countries and other regions to make sure we have good trade agreements with them as
well.
Another area we need to address is our deficit and our debt, and like many people
on this committee, I ran because I am concerned about that. I want to make sure we leave
the country better off for our children and grandchildren. And I want to thank you for
addressing that on the President's behalf with this budget and some of the focus that you
are putting on making sure that that moves forward. And I am hopeful that the combined
effort that we are making with our economic growth and making sure that we are doing
appropriate government spending, that we can help achieve that goal.
There is one quick question I want to talk about. We have seen some recent

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proposals, particularly coming from France, about taxing particularly technology
companies, you know, companies, like Amazon and Apple and Google and Facebook, who
have really used new technology to provide great innovation for our country and for the
world. How is the best approach that we kind of attack that misguided approach? Is it a
direct contact with a country like France, or is it more multilateral with the EU?
Secretary Mnuchin. So let me just comment. I was in Europe last week. I had
the opportunity to meet with the Finance Minister, Bruno Le Maire, as well as President
Macron. This was one of the specific issues I brought up. It is also an issue in the U.K.
I had the opportunity to speak to Philip Hammond about that -- the Chancellor of
Exchequer there.
We have been discussing this at the G7, and we have made it very clear that digital
taxes aimed at U.S. companies are unfair, and we won't put up with that. We are working
very closely at the OECD with them and others, and I am hopeful we can come up with a
G7 view that can then be moved through the rest of the world. So I am cautiously
optimistic. We need a combined solution on that.
Mr. Estes. Thank you, Mr. Secretary.
I yield back.
Chairman Neal. I thank the gentleman.
With that, the chair will recognize the gentleman from Michigan, Mr. Kildee, to
inquire. Oh. I am sorry. Well, Mr. Kildee, would you go ahead? And we will come
right back to Mr. Gomez. Please. I recognized you first. We will come right back to
Mr. Gomez.
Mr. Kildee. Thank you, Mr. Chairman.
And thank you, Secretary Mnuchin, for being here.
I represent a string of older industrial communities in Michigan: Saginaw,

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Michigan; Bay City, Michigan; my hometown of Flint. These are communities that have
been significantly negatively affected by long-term economic trends, particularly by trade
policy that has really expedited the offshoring of manufacturing jobs. Because of that,
they are communities that are, unfortunately, uniquely not in a position to take full
advantage of even significant infrastructure investment unless there is a recognition of the
particular needs that they face. So I was really troubled by what feels like an
infrastructure plan that disproportionately puts the burden of that investment on State and
local governments.
I don't know what the particular plans for the $1.5 trillion investment would be, but
it was not a good signal with the initial plan that we saw that 80 percent of the money
would have to come from those States and local governments, which to be honest with
you, Mr. Secretary, if they had the 80 percent, they would be spending it right now. There
has to be significantly more investment.
So the one thing before I ask another question that I would ask is if the
administration would be willing to work with those of us who represent those particularly
distressed communities to make sure their unique needs are comprehended as an
infrastructure plan goes forward and not simply take the position that one size fits all.
Even if we got together around a more rational apportionment of the investment, even in
that circumstance, communities with really limited capacity and very little excess capital
are not going to be able to take advantage of this. I would just ask that you make a
commitment to work with some of us who represent those particularly distressed
communities.
Secretary Mnuchin. I will. Let me just comment. I had the opportunity to visit
Flint, Michigan, during the campaign with the President, and I must say I appreciate
personally seeing it and the difficulties in that community, and we look forward to working

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with you. And, again, I look forward to working with Chairman Neal and the rest of the
committee on a bipartisan basis. We will sit down and listen to your views and try to get a
combination of the administration, the House, and the Senate on a bipartisan basis -Mr. Kildee. I appreciate it.
Secretary Mnuchin. -- to try to pass legislation this year.
Mr. Kildee. I appreciate that. I would ask that the President answer my letter and
designate someone to work with me on Flint's recovery. The only person he ever
mentioned that was our point of contact was Omarosa, and she left about a day after that
appointment was made.
If I could just make one final point, you know, the notion that tax cuts create
growth and then reduce the deficit is one that I understand, but I would suggest that
particularly investments also can have the effect of reducing the deficit. I think it is
unconscionable that this budget would reduce National Institutes of Health research into
cancer research, for example, when the cure to these debilitating diseases would not only
have a moral value but could potentially reduce healthcare costs into the future, and I
would ask you to look at that.
I yield back.
Chairman Neal. I thank the gentleman.
Secretary Mnuchin. If you could send my office a copy of the letter that you sent
to the President, I will personally speak to him and make sure it got to him and we have
someone in the White House that can work with you on that. Again, I know he personally
appreciates that community and what they have gone through.
Mr. Kildee. Thank you.
Chairman Neal. With that, let me recognize the gentleman from California,
Mr. Gomez, to inquire.

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Mr. Gomez. Thank you, Mr. Chairman.
Mr. Secretary, thank you for being here. I am going to back to a line of
questioning from earlier. In 2017, there were 151 million disclosures of tax records under
section 6103(f).
Mr. Secretary, have you ever denied a request for tax records under 6103(f) by the
Ways and Means Committee or the Senate Finance Committee?
Secretary Mnuchin. I think I understand what people are trying to get me to
address, but again, let me just say that the use of 6103, and I believe it is 9 billion of
disclosures, not 11 billion, okay, has to do with sharing of information, whether it is with
States, whether it is with the Department of Education. This is a bulk issue. This is
different than what I read about in the press, is the committee chair requesting any specific
individual tax return, which, again, I am not aware of that having been done in the past,
especially on an elected official.
Mr. Gomez. So there has never been a request denied?
Secretary Mnuchin. I am not going to answer that because I don't know whether
there has been a request denied or not, but equating -Mr. Gomez. Okay. Thank you.
Secretary Mnuchin. -- the 9 billion of disclosures on 6103 -Mr. Gomez. Mr. Secretary, I am reclaiming my time real quick because I am
running out of time.
Mr. Secretary, has President Trump ever asked you to intervene or ignore the
coming request for his tax returns?
Secretary Mnuchin. He has not.
Mr. Gomez. Have you ever discussed the topic of President Trump's tax returns
with the President or anyone in the White House?

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Secretary Mnuchin. I have not discussed with anybody in the White House the
issue of his tax returns or the request of his tax return.
Mr. Gomez. Anybody outside the White House?
Secretary Mnuchin. Again, I am not at liberty to make comments about people
outside the White House I discuss things with one way or another.
Mr. Gomez. So you might have discussed this with his attorneys?
Secretary Mnuchin. I have had no discussions with his attorneys, but again, I am
not continuing to go down this, again, of you asking me 20 questions on this.
Mr. Gomez. That is what we do here. We ask questions. I, at least, ask
questions.
Secretary Mnuchin. Actually, with all due respect, I take that back. You can ask
the questions, and I will try to answer them, but I think what -Mr. Gomez. Thank you. I appreciate that.
Secretary Mnuchin. Keep going.
Mr. Gomez. Thank you. I appreciate your responses.
Mr. Chairman, I yield back.
Chairman Neal. Thank you, gentleman.
With that, let me recognize the gentleman from California, Mr. Nunes, to inquire.
Mr. Nunes. Thank you, Mr. Chairman.
Secretary, welcome. Thank you for being here.
I don't think anyone has talked about the pending agreement with the United States,
Mexico, and Canada. The administration has completed that agreement. Where do we
stand now in terms of getting that agreement approved by Congress?
Secretary Mnuchin. Thank you for bringing that up. I think this is one of the
most important economic issues that is on the table. This agreement is a big step in the

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right direction that protects everything from workers to farmers to intellectual property to
currency. This is the strongest currency provisions. I know that Ambassador Lighthizer
has been up here. I would urge Congress -- I see no reason why this Congress cannot take
this up quickly. So I would urge the chairman working with the leader and others to bring
this to the floor as quickly as possible. The sooner that this is passed, the better this will
be for the U.S. economy. And I can tell you from having been at a bipartisan meeting of
Governors at the White House recently, there is enormous support from the Governors on
this legislation. So I look forward to the chairman working with Ambassador Lighthizer
and others on this.
Mr. Nunes. Thank you, Mr. Secretary.
Because, as you know, NAFTA was outdated. It needed to be updated. And as
far as I can tell from the agreement, many sectors of the economy will have dramatically
improved trade capability with Mexico, with Canada so that we can export more of our
products, especially agricultural products, to both Canada and Mexico. Is that correct?
Secretary Mnuchin. Yeah. This is very important to our farmers, both in selling
things to Canada and Mexico, and again, I would just urge Congress to take this up as soon
as possible.
Mr. Nunes. I agree with you, and I hope that we can get this done sooner rather
than later.
Just to finish up here, Mr. Secretary, a lot of discussion about your budget, and you
are up here talking about the administration's budget. Have you compared that yet to the
House budget, the House of Representatives budget?
Secretary Mnuchin. I haven't done a line-by-line basis. I have been working on
our budget, to be honest with you.
Mr. Nunes. Well, it is a trick question a little bit because the House of

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Representatives doesn't have a budget yet. And I am not sure -- I guess from what I
understand is that the majority is not going to have a budget this year. So budgets are
oftentimes never followed, but at least it is a pathway for what the administration believes
is the appropriate approach for budgeting over the next 15 years, and the House of
Representatives should have a budget also.
Secretary Mnuchin. I would just commend the House on the new rules associated
with the debt ceiling on the budget in the House, so I look forward to if they can pass that
or pass a clean debt ceiling quickly.
Mr. Nunes. Perfect.
Thank you, Mr. Chairman. I yield back.
Chairman Neal. I thank the gentleman. And the chair is prepared to acknowledge
that, from time to time, there are trick questions that take place here.
With that, let me recognize the gentleman from Connecticut, Mr. Larson.
Mr. Larson. I assure you there will be no trick question here -Secretary Mnuchin. Thank you.
Mr. Larson. -- Mr. Secretary, and thank you for both your patience and
perseverance today. We appreciate the time you have afforded us and look forward to
coming back and further exchange as well whether it is in the form of a briefing or
otherwise.
Your continued emphasis on bipartisanship is clearly welcome here, especially
noting what Chairman Neal said before, the need for us to get after pension reform, the
opportunity that it presents us, and the timeliness. Also, you mentioned it again, repeated
it, and I thank Mr. Nunes as well, to get a clean vote on a debt ceiling and get that taken
care of so that we don't end up into a protracted stall would be important as well. What
you had to say on infrastructure, both to the chairman and your exchange with

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Mr. Blumenauer, I think is also extraordinarily helpful.
I think what you see here is the rub that Democrats have based on the juxtaposition
of a $2 trillion tax cut and then looking at a budget that cuts to the heart of Medicare and
Medicaid. And what I think where the rub is here is that those oftentimes, especially
Medicare and Social Security, being labeled as entitlements. They are, of course, the
insurance that people have paid for. Give President Trump credit. When 16 other
Republicans on the stage tried to corner him and say that it was an entitlement, he said:
No. It is a benefit they earned, and I will not cut it.
And so I think that is the further rub that people on our side have.
But we look forward, in our committee, Subcommittee on Social Security is
working bipartisanly to achieve these goals, and so I further appreciate what you had to say
there. And I would point out that, in 1983, the last time that we did anything constructive
with Social Security, Ronald Reagan was the President. Tip O'Neill was Speaker.
Howard Baker was the Senate majority leader. It is not different today with Nancy Pelosi
and also with Mitch McConnell, except this: President Trump -- Ronald Reagan was
opposed to Social Security. President Trump has defended this, and it is something that
the administration, I think, should take credit for and work bipartisanly because I think you
can bring along many moderate Republicans that believe, as the President does, that these
are not entitlements, and we need to reform these in a way to take care of those American
people who solely relied on this because they know it is the full faith and credit of the
United States Government.
I thank you for your service, and I hope you will pass that message along to the
President, and we can continue to work with you.
Secretary Mnuchin. I will, and thank you very much, and as trustee of the Social
Security trust funds, I take this responsibility very seriously, so I look forward to meeting

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 107 of 413
92

with you and other members of the committee as appropriate to get your ideas.
Mr. Larson. Thank you. I look forward to meeting with you.
Secretary Mnuchin. We will follow up and try to schedule that.
Mr. Larson. Please do. Thank you.
Chairman Neal. I thank the gentleman.
With that, we will recognize, I believe, the last point of inquiry from the gentleman
from Pennsylvania, Mr. Boyle.
Mr. Boyle. Thank you.
And thank you for being here, Mr. Secretary. I wanted to follow up.
At the very beginning, Chairman Neal had asked you about the debt limit, the debt
ceiling. I was very happy to hear you say you are supportive of a clean raise. So I
wanted to follow up on that and actually go to the next step.
The concept of the debt ceiling and the constant crisis it creates through repeated
threats of not being raised is completely unnecessary and achieves nothing, in my view. It
is no wonder that only a handful of countries around the world even follow this disruptive,
arbitrary, and restrictive fiscal practice. When you receive your credit card statement at
the end of the month, you can't decide, well, I will pay this, but I won't pay that.
Our current process -- and we came most close up to the brink in 2011, but there
have been other subsequent times. Our constant process of playing chicken with the debt
ceiling achieves nothing, and God forbid, one day we might actually risk the full faith and
credit of the United States. So, last Congress, I introduced resolution H.R. 3693 that
would simply and cleanly abolish the debt ceiling once and for all. I wanted to know what
your opinion was on whether my specific legislation or just the concept of eliminating the
debt ceiling altogether and not having that potential danger lurking out there.
Secretary Mnuchin. Well, let me just comment: I share your concern about going

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 108 of 413
93

to the brinksmanship and risking the credit of the U.S. Government. Obviously, this is
something we can never let occur.
I am not familiar with your specific legislation. I will look at it. My own opinion
is that when we approve spending, we should approve raising the debt ceiling. So I am
not sure we need to get rid of it, but like any other business, when you approve spending,
you have a plan how to finance that spending. And if we want to cut spending, we should
cut spending, but that is the time to deal with it. We should make sure that if we approve
funding -- we approve spending, we approve the necessary funding as well.
Mr. Boyle. Correct. And I am in agreement, and I would point out that, in 2011,
even though we ultimately raised the debt ceiling, just the fact we came close and created
that uncertainty in the markets led to the first ever downgrade of the credit of the United
States.
Briefly, in the time remaining, could you describe some of the things that would
happen, given your role as Secretary of Treasury, if we were to ever fail, now or a future
Congress, to raise the debt ceiling?
Secretary Mnuchin. I can't imagine that this Congress or any other Congress
would ever let the U.S. Government fail. So I don't even want to go speculate on what the
implications would be. Honoring the full faith and credit of the United States Government
is one of the most important issues, and as Treasury Secretary, I will do everything in my
power to make sure that we honor the full faith and credit.
Mr. Boyle. I yield back.
Chairman Neal. I certainly appreciate the Secretary's commentary as he concluded
his presence today, and I thank the gentleman for that line of inquiry as well.
Let me thank you for your participation today, Mr. Secretary.
Please be advised that members have 2 weeks to submit written questions to be

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 109 of 413
94

answered later in writing. Those questions and your answers will be made part of the
formal hearing record.
With that, the committee stands adjourned.
[Whereupon, at 11:25 a.m., the committee was adjourned.]
Questions for the Record follow:

Questions can be found here.
Responses to the Questions for the Record

 Case Document 44-3 Filed 09/06/19 Page 110 of 413

EXHIBIT 

Case Document 44-3 Filed 09/06/19

RICHARD E. NEAL.
MASSACHUSETTS,
CHAIRMAN

JOHN LEWIS. GEORGIA

LLOYD TEXAS

MIKE THOMPSON. CALIFORNIA
JOHN B. LARSON. CONNECTICUT
EARL BLUMENAUER. OREGON
RON KIND. WISCONSIN

BILL PASCRELL JR., NEW JERSEY
DANNY K. DAVIS. ILLINOIS
LINDA T. SANCHEZ. CALIFORNIA
BRIAN HIGGINS. NEW YORK
TERRI A. SEWELL, ALABAMA
SUZAN WASHINGTON
CHU. CALIFORNIA

GWEN MOORE. WISCONSIN

DAN KILDEE, MICHIGAN
BRENDAN BOYLE. 
DON BEYER. VIRGINIA

DWIGHT EVANS, 
BRAD SCHNEIDER, ILLINOIS

TOM NEW YORK

JIMMY CALIFORNIA
STEPHANIE MURPHY. FLORIDA
JIMMY GOMEZ, CALIFORNIA
STEVEN IIORSFORD, NEVADA

BRANDON CASEY.
MAJORITY STAFF DIRECTOR

Congress at the States
35$. 123mm at Espresentatihrs

COMMITTEE ON WAYS AND MEANS

1102 LONGWORTH HOUSE OFFICE BUILDING
(202) 225?3625

Washington, ?01: 20515?0348

http?waysandmeans.h0use.gov

April 3, 2019

The Honorable Charles P. Rettig
Commissioner

Internal Revenue Service

1111 Constitution Avenue, NW
Washington, DC. 20224

Dear Commissioner Rettig:

Page 111 of 413

KEVIN BRADY,
TEXAS.
RANKING MEMBER

DEVIN NUNES. CALIFORNIA
VERN BUCHANAN, FLORIDA
ADRIAN SMITH. NEBRASKA
KENNY MARCHANT. TEXAS
TOM REED. NEW YORK

MIKE KELLY, 
GEORGE HOLDING. NORTH CAROLINA
JASON SMITH. MISSOURI
TOM RICE. SOUTH CAROLINA
DAVID SCI-IWEIKERT, ARIZONA
JACKIE WALORSKI. INDIANA
DARIN LAHOOD. ILLINOIS
BRAD R. OHIO
JODEY ARRINGTON. TEXAS
DREW FERGUSON. GEORGIA
RON ESTES, KANSAS

GARY ANDRES.
MINORITY STAFF DIRECTOR

The Committee on Ways and Means (?Committee?) has oversight and legislative authority

over our Federal tax laws. With this authority comes a responsibility to ensure that the Internal
Revenue Service is enforcing the laws in a fair and impartial manner.

Consistent with its authority, the Committee is considering legislative proposals and
conducting oversight related to our Federal tax laws, including, but not limited to, the extent to
which the IRS audits and enforces the Federal tax laws against a President. Under the Internal
Revenue Manual, individual income tax returns of a President are subject to. mandatory
examination, but this practice is IRS policy and not codi?ed in the Federal tax laws. It is necessary
for the Committee to determine the scope of any such examination and whether it includes a review
of underlying business activities required to be reported on the individual income tax return.

Pursuant to my authority under Internal Revenue Code section 6103(f), for each of the tax
years 2013 through 2018, I request the following return and return information:

1. The Federal individual income tax returns of Donald J. Trump.

2. For each Federal individual income tax return requested above, a statement specifying:
whether such return is or was ever under any type of examination or audit; the
length of such examination or audit; the applicable statute of limitations on such
examination or audit; the issue(s) under examination or audit; the reason(s) the
return was selected for examination or audit; and the present status of such
examination or audit (to include the date and description of the most recent return or
return information activity).

3. All administrative ?les (workpapers, af?davits, etc.) for each Federal individual
income tax return requested above.

Case Document 44-3 Filed 09/06/19 Page 112 of 413
Commissioner Rettig
April 3, 2019
Page 2

4. The Federal income tax returns of the following entities:

The Donald J. Trump Revocable Trust;

0 DJT Holdings 

0 DJT Holdings Managing Member 

a DTTM Operations 

0 DTTM Operations Managing Member Corp;

LFB Acquisition Member Corp;
LF Acquisition and
Lamington Farm Club, LLC d/b/a Trump National Golf Club?Bedminster.

5. For each Federal income tax return of each entity listed above, a statement Specifying:
whether such return is or was ever under any type of examination or audit; the
length of such examination or audit; (0) the applicable statute of limitations on such
examination or audit; the issue(s) under examination or audit; the reason(s) the
return was selected for examination or audit; and the present status of such
examination or audit (to include the date and description of the most recent return or
return information activity).

6. All administrative ?les (workpapers, af?davits, etc.) for each Federal income tax return
of each entity listed above.

7. If no return was ?led for the tax year requested, a statement that the entity or individual
did not ?le a return for such tax year.

This document is a record of the Committee and is entrusted to the IRS only for use in
handling this matter. Additionally, any documents created by the IRS in connection with a
reSponse to this Committee document, including (but not limited to) any replies to the Committee,
are records of the Committee and shall be segregated from agency records and remain subject to
the control of the Committee. Accordingly, the aforementioned documents are not ?agency
records? for purposes of the Freedom of Information Act. Absent explicit Committee
authorization, access to this document and any responsive documents shall be limited to IRS
personnel who need such access for the purpose of providing information or assistance to the
Committee.

Please provide the requested return and return information by April 10, 2019. Thank you

for your prompt attention to this matter.
Sincerely, 

ThQ-H?iorable Richard E. Neal, Chat: man

Case Document 44-3 Filed 09/06/19 Page 113 of 413

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 114 of 413
Vaughan, Frederick
From:
Sent:
To:
Cc:
Subject:
Attachments:

Vaughan, Frederick
Wednesday, April 10, 2019 6:21 PM
'brandon.casey@mail.house.gov'
'gary.andres@mail.house.gov'; LegAffairs
Treasury correspondence
6103 Letter to Neal.pdf

Attached is a letter to Chairman Neal.  As a courtesy, I wanted to let you know that the letter will be made public, 
consistent with the Committee’s approach to its request. 
 
We note that your letter directs the Department not to create any “agency records” related to the request and further 
directs that any document created in connection with your request “shall be segregated from agency records and shall 
remain subject to the control of the Committee.”  The Department does not intend to abide by that directive.  It is our 
understanding that no committee of Congress has the authority to issue such a directive to an Executive Branch agency.  
 
-Frederick W. Vaughan
Deputy Assistant Secretary
Legislative Affairs
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
202-622-2678

 

1

 Case Documen Filed 09/06/19 Page 115 of 413
1%

    

DEPARTMENT OF THE TREASURY
WASHINGTON, D.c.

SECRETARY OF THE TREASURY

April 10, 2019

The Honorable Richard E. Neal
Chairman

Committee on Ways and Means
US. House of Representatives

Washington, DC 20515
Dear Chairman Neal:

I write in response to the Committee?s April 3 letter to the Commissioner of Internal
Revenue requesting private tax return information under 26 U.S.C. 6103(f). The Committee
requests the materials by April 10, but the Treasury Department will not be able to complete its
review of your request by that date.]

We begin with an awareness of Congressional concerns already raised regarding this
inquiry. In the last Congress, the Committee on Ways and Means issued a formal report
concerning a House resolution of inquiry seeking information substantially similar to the
information you request. The Committee determined that such a request would be an ?abuse of
authority? and ?set a dangerous precedent by targeting a single individual?s con?dential tax
returns and associated ?nancial documents for disclosure? for political reasons.2 The Committee
recognized that section 6103(1) may not be used ?for purposes of embarrassing or attacking
political ?gures of another party.?3 Noting a similar concern in a recent ?oor speech, the
Chairman of the Senate Finance Committee?who shares the same section 6103(f) authority as
you?described the April 3 request as lacking the requisite ?legitimate legislative purpose? and
as ?Nixonian to the core.?4

You too have acknowledged the unprecedented nature of this request. As you stated in
October 2018 with respect to this long-planned inquiry, ?[t]his has never happened before, so
you want to be very meticulous.?5 We share that caution, and we agree that this is not a routine
section 6103(f) request. The Committee?s request raises serious issues concerning the

 

Although the letter attempts to instruct the Commissioner to strictly limit access to the letter to personnel?
only, the Committee released the letter on Twitter and its website.

2 H. Comm. on Ways Means, H. Rept. No. 115-309, at 2, 3 (2017),

51'crpt/hrpt309ICRPT- 1 15hrpt309.pdf.

3 Id. at 3.

4 165 Cong. Rec. S225 8-02 (Apr. 4, 2019) (statement of Sen. Charles Grassley).

5 R. Rubin, Wall Street Journal (Oct. 3, 2018) (quoting then-Ranking Member Neal),
8575880.

Case Document 44-3 Filed 09/06/19 Page 116 of 413

constitutional scope of Congressional investigative authority, the legitimacy of the asserted
legislative purpose, and the constitutional rights of American citizens. 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. Given the seriousness of
these issues, which bear no connection to ordinary tax administration, we have begun
consultations with the Department of Justice to ensure that our reSponse is fully consistent with
the law and the Constitution. For the same reasons, I intend to supervise the Department?s
review of the Committee?s request to ensure that taxpayer protections and applicable laws are
scrupulously observed, consistent with my statutory responsibilities.6

The Department reSpects Congressional oversight, and we intend to review your request
carefully.

Sincerely,

?le 

Steven T. Mnuchin

cc: The Honorable Kevin Brady, Ranking Member, Committee on Ways and Means

 

6 See 26 U.S.C. 6103(0 (entrusting responsibility to ?the Secretary?); see also 26 U.S.C. 7801(a)(l) (?Except as
otherwise expressly provided by law, the administration and enforcement of this title shall be performed by or under
the supervision of the Secretary of the Treasury?); 31 U.S.C. 321(c) (?Duties and powers of of?cers and
employees of the Department are vested in the Secretary. . . 

Case Document 44-3 Filed 09/06/19 Page 117 of 413

EXHIBIT 

Case Document 44-3 Filed 09/06/19 Page 118 of 413
A Congress at the @Imtrh States

CHAIRMAN RANKING MEMBER
JOI-IN LEWIS. GEORGIA ?90058 0f BE DEVIN NUNES. CALIFORNIA
LLOYD TEXAS VERN BUCHANAN. FLORIDA
MIKE THOMPSON. CALIFORNIA ADRIAN SMITH, NEBRASKA
JOHN B. LARSON, CONNECTICUT COM ITTEE ON WAYS AND MEANS KENNY MARCHANT. TEXAS
EARL SLUMENAUER, OREGON TOM REED. NEW YORK
RON KIND. WISCONSIN 1102 LONGWORTH HOUSE OFFICE BUILDING MIKE KELLY, 
RILL PASCRELL JR, NEW JERSEY 202 225?3625 GEORGE HOLDING, NORTH CAROLINA
DANNY K. DAVIS, ILLINOIS JASON SMITH. MISSOURI
LINDA T. SANCHEZ. CALIFORNIA TOM RICE. SOUTH CAROLINA
BRIAN HIGGINS. NEW YORK DAVID SCHWEIKERT. ARIZONA
TERRI A. SEWELL. ALABAMA 20315 0348 JACKIE WALORSKI, INDIANA
SUZAN DELRENE. WASHINGTON DARIN LAHOOD, ILLINOIS
JUDY CI-ILI. CALIFORNIA BRAD H. WENSTRUPI OHIO
GWEN MOORE. WISCONSIN JODEY ARRINGTON. TEKAS
DAN KILDEE. MICHIGAN DREW FERGUSON. GEORGIA
BRENDAN ROYLE, RON ESTES. KANSAS
DON REYER, VIRGINIA
DWIGHT EVANS. GARY ANDRES
BRAD SCHNEIDER. ILLINOIS DIRECTOR

TOM SUOZZI. NEW YOFIK
JIMMY CALIFORNIA
STEPHANIE MURPHY, FLORIDA
JIMMY GOMEZ, CALIFORNIA

STEVEN HUHSFURD, NEVADA .
April 13, 2019

BRANDON CASEY.
MAJORITY STAFF DIRECTOR

The Honorable Charles P. Rettig
Commissioner

Internal Revenue Service

1111 Constitution Avenue, NW
Washington, DC. 20224

Dear Commissioner Rettig:

On April 3, 2019, pursuant to my authority under section 6103(1) of the Internal Revenue
Code I requested that the Internal Revenue Service furnish certain return and
return information by April 10, 2019. As I explained in my earlier letter, that request is in
furtherance of consideration by the Committee on Ways and Means (?Committee?) of legislative
proposals and oversight related to our Federal tax laws, including, but not limited to, the extent to
which the IRS audits and enforces the Federal tax laws against a President.

I am aware that concerns have been raised regarding my request and the authority of the
Committee. Those concerns lack merit. Moreover, judicial precedent commands that none of the
concerns raised can legitimately be used to deny the Committee?s request.

First, it bears noting that the statutory language of section 6103(1) is unambiguous and
raises no complicated legal issues that warrant supervision or review by the Department of the
Treasury (?Treasury?) or the Department of Justice (?Justice?). Section 6103(1) commands that
?[u]pon written request from the chairman of the Committee on Ways and Means of the House of
Representatives . . . the Secretary shall furnish such committee with any return or return
information specified in such request.? 26 U.S.C. 6103(f)(1) (emphasis added). It is a well-
established principle of statutory interpretation that words that are neither terms of art nor
statutorily de?ned be given their ordinary meaning. Here, the statute?s use of the ?mandatory
?shall? . . . creates an obligation impervious to judicial discretion.? Lexecon, Inc. v. Milberg Weiss
Bersl'zad Hynes Leraelz, 523 US. 26, 35 (1998); see also. 6g, EPA 12. EME Homer City
Generation, 572 US. 489, 509 (2014); Barnharz? V. Sigmon Coal Ca, 534 US 438, 461-62 (2002)
(courts ?must presume that a legislature says in a statute what it means and means in a statute what
it says there.? (internal quotation marks omitted)).

Second, there is no valid basis to question the legitimacy of the Committee?s legislative
purpose here. The Supreme Court has instructed that Congress?s power to investigate is ?broad?

Case Document 44-3 Filed 09/06/19 Page 119 of 413

Commissioner Rettig
April 13, 2019
Page 2

and ?encompasses inquiries concerning the administration of existing laws as well as proposed or
possibly needed statutes.? Watkins v. United States, 354 U.S. 178, 187 (1957).

It is not the proper function of the IRS, Treasury, or Justice to question or second guess the
motivations of the Committee or its reasonable determinations regarding its need for the requested
tax returns and return information. Indeed, the Supreme Court has consistently noted that the
motivations underlying Congressional action are not to be second guessed, even by the courts.
Eastland v. US. Servicemen ?3 Fund, 421 U.S. 491, 509 (1975) (?The wisdom of congressional
approach or methodology is not open to judicial veto?); Watkins, 354 U.S. at 200 (?But a solution
to our problem is not to be found in testing the motives of committee members for this purpose.
Such is not our function?); Barenblatt v. United States, 360 U.S. 109, 132 (1959) (?So long as
Congress acts in pursuance of its constitutional power, the Judiciary lacks authority to intervene
on the basis of the motives which spurred the exercise of that power?).

Courts have held that, where ?a rational legislative purpose is present for investigating a
particular person, organization, or institution[,] [t]here is no requirement that every piece of
information gathered in such an investigation be justi?ed before the judiciary.? McSureZy v.
McClellan, 521 F.2d 1024, 1041 (DC. Cir. 1975); see also Townsend v. United States, 95 F.2d
352, 361 (DC. Cir. 1938). legislative inquiry may be as broad, as searching, and as exhaustive
as is necessary to make effective the constitutional powers of Congress.? Townsend, 95 F.2d at
361. Furthermore, the Supreme Court has expressly recognized that be a valid legislative
inquiry there need be no predictable end result.? Easdand, 421 U.S. at 509.

Third, concerns about what the Committee may do with the tax returns and return
information are baseless. As my April. 3rd letter noted, this request falls squarely within the
Committee?s oversight authority. It is well-established law in the DC. Circuit that ?[t]he
presumption of regularity supports the official acts of public of?cers and, in the absence of clear
evidence to the contrary, courts presume that they have properly discharged their of?cial duties.?
v. U.S. Marshals Serv, 494 F.3d 1106, 1117 (DC. Cir. 2007) (citation omitted); Exxon
Corp. v. FTC, 589 F.2d 582, 589 (DC. Cir. 1978) (?committees of Congress will exercise their
powers responsibly and with due regard for the rights of affected parties?). In other words, the
IRS, Treasury, and Justice must assume that the Committee Members, like all government
officials, will act prOperly in the conduct of their of?cial duties.

To date, the IRS has failed to provide the requested return and return information despite
an unambiguous legal obligation to do so under section 6103(f). I expect a reply from the IRS by
5:00 pm. on April 23, 2019. Please know that, if you fail to comply, your failure will be interpreted
as a denial of my request.

Thank you for your prompt attention to this matter.

Sincerely,

@5245

The Ho?iibrable Richard E. Neal, C-iqairman

Case Document 44-3 Filed 09/06/19 Page 120 of 413

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 121 of 413
Vaughan, Frederick
From:
Sent:
To:
Cc:
Subject:
Attachments:

Vaughan, Frederick
Tuesday, April 23, 2019 4:57 PM
'Casey, Brandon'
Andres, Gary
Treasury correspondence
Secretary Mnuchin Response to Chairman Neal.pdf; Secretary Mnuchin Response to 
Chairman Neal, Appedix B.pdf

Please see the attached correspondence from Secretary Mnuchin to Chairman Neal. 
 
Best, Fritz 
 
-Frederick W. Vaughan
Deputy Assistant Secretary
Legislative Affairs
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
202-622-2678

 

1

 Case Document 44-3 Filed 09/06/19 Page 122 of 413

 

DEPARTMENT OF THE TREASURY
WASHINGTON, o.c.

SECRETARY OF THE TREASURY

April 23, 2019

The Honorable Richard E. Neal
Chairman
Committee on Ways and Means

U.S. House of Representatives
Washington, DC 20515

Dear Chairman Neal:

I write in reSponse to your April 13 letter to the Commissioner of Internal Revenue concerning your
April 3 request to obtain the con?dential tax returns (and other return information) of President Trump
and related business entities for 2013 through 2018. As explained in my April 10 letter, the
Department of the Treasury shares your view that the Committee?s request is unprecedented.1
Accordingly, the Department cannot act upon your request unless and until it is determined to be
consistent with law.

Due to the serious constitutional questions raised by this request and the serious consequences that a
resolution of those questions could have for taxpayer privacy, the Department is consulting with the
Department of Justice. Although federal law establishes no deadline for a response to your request, we
expect to provide the Committee with a ?nal decision by May 6, after receiving the Justice
Department?s legal conclusions.2

As you know, the overwhelming majority of requests for tax return information from the
Congressional tax committees seek statistical data to inform the drafting of tax legislation. That is
wholly appropriate, and we remain committed to providing information to assist the
committees in their legislative work. Your April 3 request is categorically different. It seeks the
returns of a single individual taxpayer for an asserted purpose that is at odds with what you and many
others have repeatedly said is the request?s intent: to publicly release the President?s tax returns. The
Supreme Court has made clear that exposure for the sake of exposure is never a permissible purpose of
Congressional inquiries} and this principle is all the more important when private and legally
protected tax information is at stake.

 

See Robert Rubin, Trump ?3 Tax Returns in the Spotlight if Democrats Capture the House, Wall St. 1., Oct. 3, 2018 (?This
has never happened before, so you want to be very meticulous,? Mr. Neal said?).

2 Unlike other provisions in section 6103, subsection imposes no deadline for action on the Committee?s request.
Compare 26 U.S.C. 6103(f) with, e. 3., id. at 1n the absence of a statutory deadline, agencies are entitled to a
reasonable time to evaluate a requested action. While the Committee?s April 3 letter was received three months after the
beginning of the current Congress, we expect to provide the Committee with a ?nal decision in substantially less time.

3 See Watkins v. United States, 354 178, 2.00 (1957).

Case Document 44-3 Filed 09/06/19 Page 123 of 413

History demonstrates that private tax return information is susceptible to abuse for partisan purposes?
regardless of which party is in power. Unless carefully restrained by law, this risk threatens the

privacy of all taxpayers. Millions of Americans are required to entrust their personal ?nancial
information to the IRS every year, and they expect that their information will be used only for
legitimate governmental purposes. The Department takes this public trust seriously. IRS employees
are forbidden from accessing return information unless the information is necessary to perform their
bona ?de job responsibilities. Accessing private tax returns for any other purpose is prohibited, and
intentionally disclosing tax return information for political purposes would be an egregious violation of
the trust that American taxpayers place in the IRS. Any IRS employee who does so could face

criminal penalties, in addition to termination.

Your request presents the question whether there are any legal limits on the ability of a Congressional
tax-writing committee to obtain an individual?s private tax returns from the IRS and disclose them
publicly. Your April 13 letter indicates that the Committee believes there is only one: the Committee
need simply recite a legislative purpose, after which the Department must ignore all evidence in the
public record, however overwhelming, that the asserted purpose is pretext for a constitutionally suSpect
one. We have concerns about that view of the law because it appears to neglect our respective
constitutional duties. The Committee?s request presents the legal question especially starkly because
the public record surrounding the request indicates an impermissible purpose that is impossible to
ignore. The resolution of this issue could set a precedent that will reverberate for years to come?
again, regardless of which party is in power.

Out of respect for the Committee on Ways and Means, this letter explains some of the legal concerns
that have prompted the Department to consult the Department of Justice.

The Constitutional Limits

Our concerns begin with common ground. Based on your April 13 letter, the Committee appears to
agree that a request under 26 U.S.C. any government action?must comply with the
Constitution. The Committee?s authority under section 6103(1) cannot, of course, exceed Congress?s
powers under Article 1. Consequently, parsing the language of section 6103(1) alone cannot resolve
the legal issues raised by your request.

It is also common ground that Congress?s investigative power is not unlimited. Article I grants
Congress no express power to investigate. The Supreme Court has explained that Congress?s
investigative power exists as an ?auxiliary to the legislative function,? and so ?the only legitimate
object? of this power is ?to aid [Congress] in legislating.?4 As the authorities cited in your letter
establish, Congressional committee requests for information must be pertinent to an investigation
within the jurisdiction of the committee and must reasonably serve a legitimate legislative purpose.

 

4 McGrain v. Daugherol, 273 vs. 135, 174, 178 (1927).

Case Document 44-3 Filed 09/06/19 Page 124 of 413

The Supreme Court has made clear that inquiry is an end in itself; it must be related to, and in
furtherance of, a legitimate task of the Congress.? The Court has also made clear what is illegitimate,
expressing ?no doubt that there is no congressional power. . . to expose for the sake of exposure.?6

The Committee?s Asserted ngose

The Committee?s April 3 letter requests President Trump?s tax returns ostensibly to conduct
?oversight? of ?the extent to which the IRS audits and enforces the Federal tax laws against a
President.? But an honest assessment of the Committee?s purpose must start with a recognition that
the Committee?s letter is not the beginning of the story.

The Committee?s April 3 request is the culmination of a long-running, well-documented effort to
expose the President?s tax returns for the sake of exposure. This effort arose from the presidential
election campaign of 2016. After the President took office, this effort continued throughout the
previous Congress with what you and Representative Pascrell described in a committee report as the
Committee Democrats? ?steadfast . . . pursuit? to use section 6103(f) ?to have [President Trump?s]
individual tax returns disclosed to the public.?1r Then-Leader Pelosi and senior Ways and Means
Committee members repeatedly acknowledged that the purpose of requesting the President?s tax
returns was to ?make those tax returns public.?8 Indeed, the chief architects of the April 3 request also
served as original c05ponsors of a House resolution of inquiry that sought to force the immediate
public release of the President?s tax returns.9

Although those efforts failed in the last Congress, Leader Pelosi made clear that exposing the
President?s tax returns would remain a top priority in the current Congress, describing it as ?one of the
?rst things we?d do?that?s the easiest thing in the world.?10 With the new majority in place, the
Committee took up Speaker Pelosi?s charge and, in your own words, ?constructed? a ?case? to obtain
the President?s tax returns.?1 The public record demonstrates that the animating purpose of this effort

 

5 Watkins, 354 US. at 187.
6 Id. at 200.

7 HR. Rep. No. 1 15-73, Dissenting Views, at 8 (Mar. 30, 2017), 
1 15hrpt73.pdf (?Committee Democrats remain steadfast in our pursuit to have [President Trump?s] individual tax returns
disclosed to the public?).

3 Transcript, House Democratic Leadership Press Conference at 2017 Issues Conference (Feb. 8, 2017),
(hereinafter Issues Conference).

9 H. Res. 186, 1 15th Cong. (Mar. 9,2017).

'0 John Wildermuth, Pelosi: Trump ?s tax returns are fair game if Democrats win House, S.F. Chron., Oct. 1 1, 2018,
(quoting Leader
Pelosi).

Sunlen Serfaty, et a1., Republicans Warn Trump Tar Request ?Sets A Dangerous Standard and Accase Dems 0f
Weaponizing IRS, CNN, Apr. 5, 2019, 
wanted to make sure that the case that we constructed was in fact one that would stand up
under the critical scrutiny of the federal courts").

Case Document 44-3 Filed 09/06/19 Page 125 of 413

was and remains exposure of a political opponent?s private tax information. A chronology of this
public record is attached to this letter as Appendix A.12

No doubt aware of the public record showing that the Committee?s constructed case is a pretext for
exposure, the Committee has urged the Department to ?not . . . question or second guess? the motives
behind the legislative purpose the Committee now invokes. But it is not questioning or second-
guessing the Committee to credit its Chairman?s and Members? own public statements as to the
purpose of their request, or to credit similar statements by the Speaker of the House.

Even if those public statements could be ignored, the Committee?s stated interest in ?the extent to
which the IRS audits and enforces the Federal tax laws against a President? is dif?cult to accept on its
face. As an objective matter, the terms of the Committee?s request do not ?t the Committee?s asserted
purpose in several reSpects. To start, the Committee does not inquire about the procedures for
presidential audits. Although the IRS has conducted mandatory examinations of Presidents? tax
returns since 1976, the Committee does not request additional information about those policies or ask
whether those policies and procedures have changed over time. '3 Nor does the Committee ask for any
information about the extensive protections that ensure such audits are conducted with extreme
con?dentiality and without imprOper interference.

In addition, the request seeks tax information related only to the current President. The Committee?s
exclusive focus on a single taxpayer cannot be explained by the public availability of past Presidents?
tax returns; to the best of our knowledge, much of the tax information that the Committee requests for
President Trump, including all IRS audit ?les, has never been publicly released with respect to any
past President.

Further, any genuine assessment of the effectiveness of a speci?c taxpayer audit requires reviewing the
outcome of the audit?revisions in liability, settlements, and other resolutions. But rather than request
completed audit ?les on past Presidents, the Committee seeks the returns of the only President for
whom the audit process necessarily remains ongoing, as sitting Presidents are subject to mandatory
examinations under IRS rules.l4

On the other hand, the Committee?s request is perfectly tailored to the other purpose that you have
repeatedly and publicly stated: to obtain and expose the President?s tax returns. See App. A.

The Department?s Concerns

The Committee has not denied that the stated purpose of its April 3 letter is a constructed pretext.
Instead, it has maintained that the veracity of its stated purpose is irrelevant as a matter of law. As
noted, the Committee?s April 13 letter asserts that ?the motivations underlying Congressional action

 

'2 Appendix B, also attached to this letter, catalogues additional statements concerning the Committee?s purpose and the
efforts culminating in the Committee?s April 3 request.

'3 See IRM 3.28.3.1; see also Joint Committee on Taxation, Background Regarding the Confidentiality and Disclosure of
Federal Tax Returns 9) (Feb. 4, 2019), 

'4 See 32834.3 (?Individual income tax returns for the President and Vice President are subject to mandatory
examinations?).

Case Document 44-3 Filed 09/06/19 Page 126 of 413

are not to be second guessed.? It is not clear to us that the Executive Branch must always accept a
pretextual legislative justi?cation as constitutionally adequate, in the face of widespread,
contemporaneous acknowledgment by the Committee Chairman and other key Members that the actual
objective means to expose the tax returns of a political opponent. Nor do we
share your con?dence that there is no limit to the willingness of the courts to accept obviously
pretextual legislative justi?cations for information demands?particularly when private tax
information is at risk.

We emphasize that the Department?s concerns with the legality of the Committee?s request extend far
beyond its particulars. Taxpayer con?dentiality is the linchpin of our tax system of self-assessment
and voluntary compliance. The IRS promises to ?administer the disclosure provisions of the Internal
Revenue Code . . . according to the spirit and intent of these laws, ever mind?ll of the public trust.?15
This trust would be eroded if government of?cials could obtain the tax returns of any person they
dislike solely for the sake of exposure, to achieve partisan political aims, or for other impermissible
purposes?merely by constructing a pretextual case and demanding all other government actors blindly
defer to that pretext. If that were so, nothing could stop a committee chairman from obtaining the tax
returns of any politically disfavored individual?whether it be the head of a civil rights organization,
an executive of a major corporation, a political donor, or a local activist. In all of these cases, a
committee chairman would need only assert, as here, that he wants the returns of a particular individual
in order to review the adequacy of the process of auditing that individual.

The Department recognizes that the Executive Branch and Legislative Branch have an obligation to
work together to accommodate their respective legitimate needs and interests. To the extent the
Committee wishes to understand, for genuine oversight purposes, how the IRS audits and enforces the
Federal tax laws against a President, we would be happy to accommodate that interest by providing
additional information on the mandatory audit process. I would encourage the Committee to defer its
unprecedented request and revisit this issue after it has the opporttmity to work together with the
Department to meets its stated legislative needs.

Although the Committee has asserted that any response from the Department other than production of
the requested materials will be ?interpreted as a denial,? that would be a misinterpretation. The
Committee?s request has not been denied or granted at this time. The Department expects to take ?nal
action on the Committee?s request by May 6, after receiving the Justice Department?s legal
conclusions.

Sincerely,



Steven T. Mnuchin

 

'5 IRS Pub. 1075, Tax Information Security Guidelines for Federal, State and Local Agencies, at 1,


Case Document 44-3 Filed 09/06/19 Page 127 of 413

APPENDIX A
Chronology

The 2016 Election

The effort to expose President Trump?s tax returns began during the 2016 election. The
Democratic candidate for President urged then-candidate Trump to release his returns. When he
declined to do so, the Democratic candidate sought to generate political pressure to force their
release, repeatedly criticizing his decision and expressing her belief that public exposure of the
returns would be politically damaging to her opponent.?

Representative Neal?s Advocacy for Exposure

When President Trump took of?ce after the election, the House Minority Leader and senior
Democratic members of the Committee on Ways and Means (including Ranking Member Neal)
took up their party?s election season demands in Congress. Their chosen tool was

section 6103(f). The stated rationales have shifted over time, but the objective remained
constant: Use section 6103(t) to obtain the tax returns and make them public.

As Ranking Member of the Committee, Representative Neal immediately began urging the
Committee to obtain President Trump?s tax returns for the purpose of releasing them. In
February 2017, he explained his desire for a public opportunity to ?see the tax forms? and for
?the media to sift and sort" them.2 In March 2017, Ranking Member Neal and other Members
urged Chairman Kevin Brady to submit a section 6103(f) request ?for c0pies of the President?s
federal tax returns for the last ten years.?3 They explained that the Committee should ?then vote
. . . to submit the President?s federal tax returns to the House of Representatives and Senate?
thereby, if successful, making them available to the public.?4 In April 2017, Ranking Member

 

See, The Lead with Jake Tapper (CNN television broadcast May 1 1, 2016) doesn?t he want to release
them? Yes, well, we're going to ?nd out"), l/cg.01.hlml; New Day
(CNN television broadcast Aug. 2, 2016) (?We would like to see those tax returns, wouldn?t 
The Situation Room (CNN television broadcast Aug.
12, 2016) (?He refuses to do what every other presidential candidate in decades has done and release his tax
returns"), Erin Burnett OutFrom (CNN television
broadcast Sept. 6, 2016) (?He said that the American people don?t care about his tax returns, and in fact, he?s also
said that it?s none of our business. [just think he?s dead wrong"),
The Situation Room (CNN television broadcast Sept. 7.
2016) (?He clearly has something to hide?), 1609/07/sitroom.02.html;
Newsroom (CNN television broadcast Sept. 27, 2016) (?Maybe he doesn't want the American people, all of you
watching tonight, to know that he?s paid nothing in Federal taxes. . . 

609/27/cnr.03.html.

3 Press Conference, Rep. Richard Neal, C-SPAN Video, at 19:10-20:19 (Feb. 14, 20l7), 


3 Letter from Hon. Bill Pascrell, Jr., et al., to Hon. Orrin Hatch, Chairman, S. Comm. on Finance, Hon. Kevin
Brady. Chairman, H. Comm. on Ways Means (Mar. 2, 2017).

Id.

Case Document 44-3 Filed 09/06/19 Page 128 of 413

Neal recalled the 2016 election and asserted that President Trump was ?supposed to? have made
these returns available to the public as a candidates

Ranking Member Neal also served as an original cosponsor of a resolution of inquiry, H. Res.
186, providing that ?the Secretary of the Treasury is directed to furnish to the House of
Representatives, not later than 10 days after the adoption of this resolution, the full tax returns of
Donald J. Trump for tax years 2006 through 2015.?6 Ranking Member Neal explained that the
resolution was designed to force the immediate public exposure of those returns."

On March 30, 2017, the Committee voted down H. Res. 186 and issued a report condemning the
resolution as an ?abuse of authority.?8 In dissenting views included in the committee report,
Ranking Member Neal reiterated his ?steadfast? objective of exposing the President?s tax returns
to the public:

Committee Republicans continue to block our requests for this Committee to
exercise its authority under Section 6103 of the Internal Revenue Code to obtain,
examine, and make available to the public President Trump?s federal tax

returns. . . . Committee Democrats remain steadfast in oarpursuit to have

President Trump individual tax returns disclosed to the public.9

Ranking Member Neal?s dissenting views made no mention of any interest in understanding how
the IRS audits and enforces the Federal tax laws against a President, as the Committee?s April 3
letter now asserts.

Other Senior House Democrats? Advocacy for Exposure

Leader Pelosi and other senior Ways and Means Committee members also repeatedly stated that
the purpose of requesting President Trump?s tax returns was to ?make those tax returns 
Leader Pelosi explained that requesting the returns would satisfy the public?s ?right to know""
and complained that Republicans ?won'tjoin us in the release of the President?s tax returns??

 

5 ?This is not about the law, this is about custom and practice. It?s a settled tradition . . . candidates reach the level
of expectation that they?re supposed to release their tax forms." Press Conference, Minority Leader Nancy Pelosi,
Demanding a Vote Requiring President Trump to Release Tax Returns (Apr. 5, 2017),
(remarks of Ranking Member Richard Neal).

6 H. Res. ?36, 15th Cong. (Mar. 9, 2017).

7 See id.; H.R. Rep. No. 115-73, Dissenting Views, at 8 (Mar. 30,2017),
Ways Means Report).

3 Ways Means Report, at 3.
9 Ways Means Report, Dissenting Views, at 7-8 (emphasis added).

'0 Transcript, House Democratic Leadership Press Conference at 2017 Issues Conference (Feb. 3, 2017),
(hereinafter Issues Conference).

?1 163 Cong. Rec. H2498 (daily ed. Mar. 28, 2017) (statement of Rep. Pelosi),


'3 Press Conference, Minority Leader Nancy Pelosi (July 13, 2017), 

IQ

Case Document 44-3 Filed 09/06/19 Page 129 of 413

Exposure for the sake of exposure was the one constant purpose that drove the requests that
Ranking Member Neal and other senior Committee members advocated throughout the previous
Congress. In addition, Congressional leaders offered a wide variety of evolving rationales and
speculation about what, if anything, might be found in the tax returns upon their exposure.
Before the conclusion of the Special Counsel?s investigation, a common theory was that the
President?s tax returns would show ?the President?s relationship with Russia," ?disruption of our
[2016] election,? and ?any personal embarrassment to the President.? ?3 Leader Pelosi
speculated: ?We think [the returns] will show us some connection that will be useful in the
investigation of what do the Russians have on Donald Trump . . . 

Another theory offered by the lead sponsor of H. Res. 186, Representative Pascrell, was that
exposure of the President?s tax returns would help ?make sure the President and his family are
not hiding ?nancial ties that could cause conflicts in decision making.?l5 Representative Pascrell
also thought it was ?imperative for the public to know? the President?s ?self-reported net
and Ranking Member Neal thought they should know ?just how extensive [his]
overseas investments have been,? based on the tax retums?

In yet another theory, Ranking Member Neal?s dissent in support of H. Res. 186 explained that
the President?s tax returns would give the ?clearest picture? of the President?s ??nancial health?
and inform the consideration of tax reform legislation (which was enacted in December 2017).18

Other theories included speculation that the tax returns would expose the President?s
would show his ?charitable donations? or ?tax 100pholes'?20 would reveal

whether he had a ?Chinese connection?;3' or would ?maybe . . . be a path to some other

 

'3 Issues Conference, supra note 10; Press Conference, Minority Leader Nancy Pelosi (Mar. 8, 20l7),


'4 Press Conference, Minority Leader Nancy Pelosi (Apr. 6, 2017), 

'5 Press Conference, House Democrats (Feb. 14, 2017) (statement of Rep. Bill Pascrell, 


Letter from Hon. Bill Pascrell, Jr., to Hon. Kevin Brady, Chairman, H. Comm. on Ways Means (Feb. I, 2017),


Press Conference, Rep. Richard Neal, C-SPAN Video, at 19:46 (Feb. 14, 20l7), 


'8 Ways Means Report, Dissenting Views, at 7.

?9 Letter from Hon. Elijah E. Cummings, Ranking Member, H. Comm. on Oversight Gov?t Reform, et al., to Hon.
Paul Ryan, Speaker, US. House of Reps., at 2,6 (Jan. 12, 2017),

see also Amendment offered by Rep.
Doggett to the Authorization and Oversight Plan of the H. Comm. on Ways Means (Feb. 14, 2017), 


3? See, 163 Cong. Rec. H4212 (May 16, 2017) (statement of Rep. Pascrell),


3' Press Conference, Minority Leader Nancy Pelosi, Demanding a Vote Requiring President Trump to Release Tax
Returns (Apr. 5, 2017), 

Case Document 44-3 Filed 09/06/19 Page 130 of 413

questions.?22 At other times, Leader Pelosi simply explained that exposure of the President?s tax
returns would ?ful?ll? a campaign ?promise,? or would ?honor tradition.? 23

Although the efforts to force the public release of President Trump?s tax returns in the previous
Congress failed (despite numerous letters, committee amendments, resolutions, and other
attempts),24 Leader Pelosi made clear that the effort would continue if Democrats took the House
in 2018. The San Francisco Chronicle reported in October 2018 that Leader Pelosi ?told the
[paper?s] editorial board" that ?demanding the president?s tax returns ?is one of the first things
we?d do?that?s the easiest thing in the world.??25

The Committee?s Construction of a Pretextual Purpose

With a new Democratic majority in the House, the Committee pressed ahead in the effort to
obtain and release the President?s tax returns. Chairman Neal had recognized the unprecedented
nature of the Committee?s planned request: ?This has never happened before, so you want to be
very meticulous.?26

In January 2019, the Committee spokesperson explained the plan to ?force? the disclosure of the
President's returns: ??[Chairman Neal] wants to lay out a case about why presidents should be
disclosing their tax returns before he formally forces [the President] to do it.??37

Because Congress may only conduct investigations to further a legitimate legislative purpose,
Congressional investigations ordinarily begin with a legislative purpose, and that purpose de?nes
the scope of the documents that are pertinent to the Committee?s investigation.28 But here, by
the Committee?s own admission, the Committee?s investigation began in the opposite direction.
The Committee started with the documents it planned to obtain and release (the President?s tax
returns), and then it sought?in Chairman Neal?s words?to ?construct[]? a ?case? for seeking
the documents that would appear to be in furtherance of a legitimate legislative 

 

23 Press Conference, Minority Leader Nancy Pelosi (June 2, 2017), 

13 Blog Post, Minority Leader Nancy Pelosi, Where are President Trump?s Tax Returns?, (June 20, 2017),


1" See Rep. Bill Pascrell, President Trump ?s Tax Returns, 
returns! (last visited Apr. 23, 2019).

35 John Wildermuth, Pelosi: Trtuttp's tax returns are fair game if Democrats win House, S.F. Chron., Oct. 1 l, 2018
(quoting Leader Pelosi), 
13297954.php.

3" Robert Rubin, Trump '5 Tax Returns in the Spotlight ifDentorrats Capture the House, Wall St. 1., Oct. 3, 2013.

37 Brian Faler, Incoming Denier-rattle Tax Chairman Won't Make Quick Grab For Trump 's Returns, Politico, Jan. 2,
2019 (quoting Committee Spokesperson), 
richard-neal- 1056839.

35 See 163 Cong. Rec. 82260 (daily ed. Apr. 4, 2019) (statement of Sen. Grassley),


39 Sunlen Serfaty, et 31., Republicans Warn Trump Tax Request 'Sets A Dangerous Standard and Accuse Dents 0f
Weaponizing IRS, CNN, Apr. 5, 2019, 

Case Document 44-3 Filed 09/06/19 Page 131 of 413

The Committee knew that exposure for the sake of exposure would not be a legitimate purpose,
and so the Committee could no longer rely upon prior statements to that effect. At the same
time, the Committee lacked jurisdiction to rely upon other frequently cited public justi?cations
for the request?such as interest in ?the Russian connection?q?0 and the President?s alleged
?nancial con?icts of interest. Other House committees might have tried to make 6103(f)
requests based upon such justi?cations, but no other House committee would have the authority
to publicly release the tax returns after obtaining them. As the Committee was advised by the
former Chief of Staff of the Joint Committee on Taxation, there is ?one key for purposes of
disclosing the information to the public? and the statute ?gave that key to the tax committees.?3 
To use this key, the Committee on Ways and Means had to make the request, and the other
justi?cations that might have been offered by other committees had to be discarded.

Thus, the Committee with the key to publicly disclose the tax returns, in Chairman Neal?s words,
?constructed? a ?case? tojustify its request.32 The result was the Committee?s letter of April 3,
asserting a single legislative interest in ?the extent to which the IRS audits and enforces the
Federal tax laws against a President,? and requesting the tax returns and related documents of
just one of them?President Trump.33

 

wanted to make sure that the case that we constructed was in fact one that
would stand up under the critical scrutiny of the federal courts")-

1? Press Conference, Minority Leader Nancy Pelosi, Demanding a Vote Requiring President Trump to Release Tax
Returns (Apr. 5, 2017), 

1' Transcript, Legislative Proposals and Tax Law Re/ared to Presidential and Vice-Presidentia/ Tar Returns:
Hearing before Subronmi. an Oi-ersig/ir, H. Comm. on Ways Means, 1 16th Cong. (Feb. 7, 2019) (statement of
Joseph K. Yin, Professor, Univ. of Virginia Law School),



3'3 Serf aty, supra note 30 (quoting Chairman Neal).

31 Letter from Hon. Richard E- Neal, Chairman, H. Comm. on Ways Means, to Hon. Charles P. Rettig, Comm?r,
IRS (Apr. 3, 2019),
20m??-


Case Document 44-3 Filed 09/06/19 Page 132 of 413

APPENDIX 

Additional Statements

Presidential Candidate Hillary Rodham Clinton (May 1 1, 2016)

When you run for president, especially when you become the nominee, that is kind of
expected. My husband and I have released 33 years of tax returns. We have got eight
years on our Web site right now. So you have got to ask yourself, why doesn't he want to
release them? Yes, well, we're going to ?nd out.

The Lead with Jake Tapper (CNN television broadcast May 11, 2016),


Presidential Candidate Hillary Rodham Clinton (Aug. 2, 2016)

We would like to see those tax returns, wouldn't we?

CNN New Day (CNN television broadcast Aug. 2, 2016),


Presidential Candidate Hillarv Rodham Clinton (Aug. 12, 2016)

He refuses to do what every other presidential candidate in decades has done and release
his tax returns.

The Situation Room (CNN television broadcast Aug. 12, 2016),


Presidential Candidate Hillarv Rodham Clinton (Sept. 6, 2016)
He said that the American people don?t care about his tax returns, and in fact, he?s also

said that it?s none of our business. [just think he?s dead wrong. He clearly has something
to hide.

The scams, the frauds and the questionable relationships, the business activities that have
stiffed workers, refused to pay small businesses, so, clearly, his tax returns tell a story
that the American people deserve and need to know.

Erin Burnett Ourfront (CNN television broadcast Sept. 6, 2016),


Page 1 of 42

Case Document 44-3 Filed 09/06/19 Page 133 of 413

Presidential Candidate Hillarv Rodham Clinton and Vice Presidential Candidate Tim Kaine
(Sept. 7,2016)

Clinton: He clearly has something to hide. We don?t know exactly what it is, but we?re
getting better guesses.



Clinton: Clearly, his tax returns tell a story that the American people deserve and need to
know.

4?!le

Kaine: Maybe he doesn?t want people to see that he?s got some connections.

The Situation Room (CNN television broadcast Sept. 7, 2016),
1609/O7fsitroom.02.html.

Presidential Candidate Hillary Rodham Clinton (Sept. 27, 2016)

Maybe he doesn?t want the American people, all of you watching tonight, to know that
he?s paid nothing in Federal taxes.

CNN Newsroom (CNN television broadcast Sept. 27, 2016),


Ranking Member Richard Neal (Jan. 12, 2017)

We request that you join us in ful?lling our sworn constitutional duty by seeking and
obtaining copies of the following documents: President-Elect Trump?s personal and
corporate tax returns, domestic and foreign, for the past ?ve years, regardless of whether
they are still under audit . . . and all other documents necessary to help protect against
violations of the Emoluments Clause of the Constitution and con?icts of interest,
including with foreign adversaries such as Russia.

Letter from Hon. Richard E. Neal, Ranking Member, H. Comm. on Ways Means, et al., to
Hon. Paul Ryan, Speaker, U.S. House of Reps. (Jan. 12, 2017),
7-01-


Rep. Bill Pascrell (D-NJ) (Feb. 1, 2017)

President Trump has chosen to keep an ownership stake in his businesses, the scope of
which we have no knowledge of as he has refused to disclose his tax returns. We believe
that it is imperative for the public to know and understand his 564 ?nancial positions in
domestic and foreign companies and his self-reported net worth of more than $10 billion.

Page 2 of 42

Case Document 44-3 Filed 09/06/19 Page 134 of 413

We know that state-owned enterprises in China and the United Arab Emirates are
involved in his businesses, and that his business ties stretch to India, Turkey, the
Philippines, and beyond. Russia, Saudi Arabia, and Taiwan may also have ties to his
businesses, these foreign entities are paying rents, licensing agreement payments, and

issuing permits for developments -- effectively giving them a tool to influence our new
President.



If the President does not either release his returns or consent to examination of such
returns by this Committee, I urge you, as Chairman of the Committee and pursuant to
Section 6103(f)(1) of the Internal Revenue Code, to submit a written request to the
Secretary of the Treasury for copies of the President?s federal tax returns by February 15,
2017. These returns and all accompanying return information should then be made
available for examination by all Committee Members in a closed executive session. I
further request that the Committee then vote in this closed session to submit the
President?s federal tax returns to the House of Representatives?thereby, if successful,
making them available to the public.



I believe the powerful Ways and Means Committee has the responsibility to use that
power to ensure proper oversight of the executive branch by requesting a review of
President Trump?s tax returns and moving towards a formal release of these documents to
the public.

Letter from Hon. Bill Pascrell, Jr. to Hon. Kevin Brady, Chairman, H. Comm. on Ways Means
(Feb. 1, 2017), 

Minority Leader Nancv Pelosi (Feb. 5, 2017)

I want to know what the Russians have on Donald Trump. I think we have to have an
investigation by the FBI into his ?nancial, personal and political connections to Russia,
and we want to see his tax returns, so we can have truth in the relationship between Putin,
whom he admires, and Donald Trump.

Meet the Press (NBC television broadcast Feb. 5, 2017), at 3:56,

diversionary-tactics?87OS 1 1683900.

Minoritv Leader Nancv Pelosi (Feb. 8, 2017)

As you know, I?ve been questioning the President?s relationship with Russia. It?s
extremely alarming, and it could undermine our national security. What on earth do the
Russians have on Donald Trump? That he could flirt with the idea of lifting sanctions on
Russia despite their aggressive military behavior? That he could lift the sanctions already

Page 3 of 42

Case Document 44-3 Filed 09/06/19 Page 135 of 413

on the successor to the KGB a group that we know hacked into our systems, disrupting
our election? That he is saying things about a person, that quali?es as a war criminal and
giving some equivalence to the United States of America? This is the President of the
United States. The President of the United States.

So I?m just saying, at least Show us your tax returns. Is the audit over? Is this the audit
for eternity? And of course that?s never been a justi?cation for not releasing your tax
returns. The President continues to hide his tax returns which could provide vital insight
into what ?nancial in?uence Russia has on him, whether it?s personal, political or
?nancial. We call upon the FBI to do that investigation, it is in our national security
interest. Chairman Brady is Chairman of the Ways and Means Committee and Chairman
of the Joint Committee of Taxation, is empowered to demand Trump?s tax returns from
the Secretary of the Treasuryask, and hold a committee vote to make
those tax returns public.

Mr. President what do the Russians have on you personally, politically or ?nancially?

The process is the privilege only goes to the Chairman to make the request. But then
the committee can vote to make the tax returns public. This is as you may recall, you
wouldn?t recall, but in your history books you may read what happened with President
Nixon a long time ago. So we?re calling on Chairman Brady to bring out those tax
returns.

Press Conference, Minority Leader Nancy Pelosi, House Democratic Leadership Press
Conference at 2017 Issues Conference (Feb. 8, 2017),


Minoritv Leader Nancv Pelosi (Feb. 13, 2017)

The reports of the Trump-Russia dossier gain credence with each passing day. As long as
Republicans refuse to compel the release of President Trump?s tax returns, they are
complicit in covering up Russia?s ?nancial, personal and political hold on the
Administration.

Press Release, Minority Leader Nancy Pelosi, Pelosi: Fire General (Feb. 13, 2017),
17/.

Minoritv Leader Nancv Pelosi (Feb. 14, 2017)

And again Mr. Neal, whose importance in this meeting is that we need to see the truth of
President Trump?s investments. His committee has the authority, the chairman of the
committee in the House or the chairman of the committee in the Senate, Chairman Brady
or Chairman Hatch and in addition to the Finance Committee, and Ways and Means
Committee the Joint Committee on Taxation, the chairman on that committee, Mr.
Brady, again, have the authority to ask the Secretary of the Treasury for the tax returns of
anyone in our country if there?s reason to know that.

Page 4 of 42

Case Document 44-3 Filed 09/06/19 Page 136 of 413

They can ask for the president's tax returns, and then by a vote in their committee, they
can decide where they should be released to the public, so there?s another stonewalling
because they said they can?t be caught up in rummaging. This isn?t rummaging, this is
truth and consequences. The American people have a right to know the truth. We see the
consequences which can be dangerous to our national security.

So the question is, why is the FBI not fully investigating the political, personal, and
?nancial ties of Donald Trump to the Russians? Show us your tax reforms return so we
can see what some of that connection might be, and stop ?irting with lifting sanctions and
condemning the START Treaty and the rest of that, which have because you?re flirting
with Russia, which has a direct impact on the safety of the American people.

Press Conference, Minority Leader Nancy Pelosi, Reacting to Resignation of National Security
Advisor Michael (Feb. 14, 2017), 

Rep. Bill Pascrell (D-NJ) (Feb. 14, 2017)

The president and the Congressional Republicans have been very vocal about their desire
to enact comprehensive tax reform for this congress. We believe it is imperative for the
public to know and understand how such tax reform will bene?t the president.



This is not willy-nilly, this is a serious attempt to get the truth to the American people,
and you will decide Mr. Chairman, using the power of this committee to make them
public.

I-l. Comm. on Ways Means, Full Committee Markup, at 32:45, 40:45 (Feb. 14, 2017)

(Statement of Rep. Pascrell), 
meeting].

Ranking Member Neal (Feb. 14, 2017)

The President has indicated during the course of the campaign that only he knows how to
?x the tax system and as we proceed to tax reform, which is a very complex issue and
matter, as we all know, and how dif?cult it is to do. There is an opportunity here for all of
us to cooperate and for the president to lead the way. So I am in support of Mr. Doggett?s
amendment and Mr. Pascrell?s letter.

H. Comm. on Ways Means, Full Committee Markup, at 33:23 (Feb. 14, 2017) (statement of
Ranking Member Neal), 

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Rep. Sander Levin (Feb. 14, 2017)
The only way you will bury the doubts is by letting the public see the information.

H. Comm. on Ways Means, Full Committee Markup, at 36:51 (Feb. 14, 2017) (statement of
Rep. Levin), 

Amendment Offered bv Rep. Llovd Doggett (D-TX) (Feb. 14, 2017)

Amend the Ways and Means Committee oversight plan by adding the following under
matters under the Committee's Tax Jurisdiction:

Pursuant to Section 6103(t)(l) of the Internal Revenue Code, the Chairman of the
Committee will submit a written request to the Secretary of the Treasury by March 1,
2017, for copies of the President's federal tax returns for the last ten years. These returns
and all accompanying return information should then be made available for examination
by bipartisan Committee staff, and additionally, in executive session, by all committee
members. The Committee will review potential conflicts and violations of the
emoluments clause, and potential entanglements with foreign governments and foreign
state owned enterprises.

Amendment offered by Rep. Doggett to the Authorization and Oversight Plan of the H. Comm.
on Ways Means (Feb. 14, 2017), 


Ranking Member Richard Neal (Feb. 14, 2017)

The last seven American presidents have released to the American people their tax forms.
And they've done it as a standard operating procedure through the course of the campaign
and then subsequently during their time as president.

It was an annual event, and there was suf?cient opportunity then for members of
Congress, members of the administration and the media to sift and sort what those tax
forms told us. So in this instance, I think there is, again, an opportunity for all of us to
review the president?s tax forms to ?nd out just how extensive the overseas investments
have been.

And it'll then give the American people the chance to see it. He indicated that once the
audit was done, that he would release the tax forms, and then pointed outjust a few
weeks ago through a spokesperson that the American people didn?t care about those tax
forms.

Well I believe that ABC News has indicated that 75 percent of the American people

would like to see the tax forms, consistent with what the last seven American presidents
have done. . . .

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Press Conference, Statement by Rep. Richard Neal, C-Span Video, 19:00 (Feb. 14, 2017),



Rep. Bill Pascrell (D-NJ) (Feb. 14, 2017)

Since February, we've held nine votes on the floor of the House of Representatives. And
in -- March lst, I offered a resolution of inquiry that was debated in the Ways and Means
Committee. At each turn, the Republicans in Congress blocked our efforts.

Why are they hiding and being complicit, to use the speaker's -- the leader's word, in
keeping Trump's conflicts secret and hidden? Why? Why is that? Why won't Republican
members of Congress use their authority in the law to provide oversight and make sure
the president and his family are not hiding ?nancial ties that could cause conflicts in the
decision-making?

We have no way of knowing whether Mr. Trump or his ?rms have received Russian
income or loans or entered into Russian-linked partnerships. We have a right to know
that.

The legislative branch has the responsibility and the authority to check the executive
branch, under Section 6103 of the tax code, which allows for an examination of his
returns, the authority put in place speci?cally so Congress could examine con?icts of
interest in the executive, following that great scandal in the early 1920s.

Today, I'll be introducing a new resolution of inquiry to give the Ways and Means
Committee another chance the way, in conclusion, it's not enough
for Republican congressmen to go to town meetings and say, ?Yes, the president should
give us his tax returns,? and then not -- come back to Washington and not have the
courage to stand up for their convictions and say, ?This is the direction we should be
gorng.?

And that's not good enough. So there's been over 20 people on the other side that have
said he should release his tax returns, but will not vote to do it. Congress can, and must,
use its authority to address President Trump's tax returns and give the American people
the transparency they deserve.

Press Conference, Statement by Rep. Bill Pascrell (D-NJ) (Feb. 14, 2017),
142259.

Minority Leader Nancy Pelosi (Feb. 27, 2017)

What do the Russians have on Donald Trump that he would ?irt with lifting our sanctions
against Russia because of their aggression in eastern Europe? That he would undermine
the START Treaty? Praise Putin and stonewall any investigation to bring the truth to
light including releasing his tax returns?

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Press Conference, Minority Leader Nancy Pelosi, Prebuttal to President Trump?s Speech to Joint
Session of Congress (Feb. 27, 2017), 

Resolution Offered bv Rep. Bill Pascrell (D-NJ) (Feb. 27, 2017)

Expressing the sense of the House of Representatives that the President shall immediately
disclose his tax return information to Congress and the American people.

an?:

Whereas, disclosure of the President's tax returns could help those investigating Russian
influence in the 2016 election understand the President?s ?nancial ties to the Russian
Federation and Russian citizens, including debts owed and whether he shares any
partnership interests, equity interests, joint ventures or licensing agreements with Russia
or Russians;



Whereas, the American people have the right to know whether or not their President is
operating under conflicts of interest related to international affairs, tax reform,
government contracts, or otherwise:

Now, therefore, be it resolved, that the House of Representatives shall, one, immediately
request the tax return information of Donald J. Trump for tax years 2006 through 2015
for review in closed executive session by the Committee on Ways and Means, as
provided under section 6103 of the Internal Revenue Code, and vote to report the
information therein to the full House of Representatives; two, support transparency in
government and the longstanding tradition of Presidents and Presidential candidates
disclosing their tax returns.

163 Cong. Rec. H1337 (daily ed. Feb. 27, 2017) (statement of Rep. Pascrell),


Rep. Bill Pascrell (D-NJ) (Feb. 27, 2017)

To restore the dignity of the House, we must use our authority to request President
Trump?s tax returns and give the American people the transparency they deserve.



Let?s shine a bright light on the President's conflicts together, together, as we, as a
Congress, and the broader American public can judge whether his decisions are being
made for himself, his business interests, or for the greater good of the American people.

163 Cong. Rec. H1337 (daily ed. Feb. 27, 2017) (statement of Rep. Pascrell),
1 337-2.

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Minority Leader Nancy Pelosi (Feb. 28, 2017)

Tonight, House Republicans made themselves accomplices to hiding President Trump?s
tax returns from the American people.

Our security and our democracy have been endangered by Russia?s clear influence on the
Trump Administration. The American people deserve the truth about Russia?s personal,
political and ?nancial grip on President Trump. If there?s nothing there, then what are
Republicans afraid of?

The President?s refusal to release his tax returns is yet another example of his contempt
for the promises he made in his campaign. While Republicans stonewall an independent
investigation, Democrats will continue to demand the truth for the American people.

Press Release, Minority Leader Nancy Pelosi, Statement on Republican Vote to Keep Trump?s
Tax Returns Secret (Feb. 28,2017), 

Minority Leader Nancy Pelosi (Feb. 28, 2017)

What we are calling for is an independent outside commission, take it away from
Congress, take it away from politics, an independent outside commission to look into the
political, personal and ?nancial ties of the Trump organization him personally, his
businesses, his campaign -- to the Russians.



The American people want to know the truth. He could begin by releasing his tax returns.
Why should every president since Gerald Ford in modern history have released his tax

returns, but this president says I'm above not only the law but the traditions of the of?ce
that I hold?

Andrea Mitchell Reports television broadcast Feb. 28, 2017),
gov/newsroom/3 202 

Minority Leader Nancv Pelosi (Mar. 2, 2017)

Well, in all of this all roads lead to the Republicans in the Congress. What are they afraid
of? They have been afraid of the truth every step of the way. They don?t want to see the
President?s tax returns, when every President since Gerald Ford, every President in
modern times has released his tax returns, and candidates release their tax returns.

So what is it? That would be a key indicator of their interest in the truth. So the question
is to them, what are they afraid of in the tax returns? What are they afraid of in the
investigation of the Russian involvement to undermine our democracy, to repeat that in
other countries, to come back here and do that again?

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Press Conference, Minority Leader Nancy Pelosi (Mar. 2, 2017),


Minority Leader Nancy Pelosi (Mar. 3, 2017)

What do the Russian have on Donald Trump that he would do that? And I don't know
who knew what in all of this, but it?s important for us to ?nd out and we must have that
investigation.



What are -- what are the Republicans in Congress afraid of? They don't want to see the
president?s tax returns, the ?rst time since Gerald Ford, who was -- since Gerald Ford, all
presidents have put it out. They don't want to investigate in a wholesome way the hack --
the disruption of our system? What are the Republicans afraid of? This goes right to the
Republicans in Congress to their doorstep. And when the public sentiment, as Lincoln
said, is everything.

As they hear from their constituents, perhaps maybe they'll be more inclined to seek the
truth.

Statement of Minority Leader Nancy Pelosi, Politico Playbook Interview (Mar. 3, 2017),
39 10.

Rep. Bill Pascrell (D-NJ). et al. (Mar. 3, 2017)

We write you to request that you use your authority to request the tax returns of President
Donald Trump for review by the Senate Committee on Finance and House Committee on
Ways and Means.



If the President does not either release his returns or consent to examination of such
returns by this Committee, we urge you, as Chairman of the Committee and pursuant to
Section 6103(f)(1) of the Internal Revenue Code, to submit a written request to the
Secretary of the Treasury by March 15, 2017, for copies of the President?s federal tax
returns for the last ten years. These returns and all accompanying return information
should then be made available for examination by all Committee Members in a closed
executive session. We further request that the Committee then vote in this closed session
to submit the President?s federal tax returns to the House of Representatives and Senate
?thereby, if successful, making them available to the public.

We believe the powerful and respected Committees on Finance and Ways and Means
have the responsibility to ensure oversight of the executive branch by requesting a review
of President Trump?s tax returns and moving toward a formal release of these documents
to the public.

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Letter from Hon. Bill Pascrell, et al., to Hon. Orrin Hatch, Chairman, S. Comm. on Finance,
Hon. Kevin Brady, Chairman, H. Comm. on Ways Means (Mar. 2, 2017),


Resolution Offered bv Rep. Anna Eshoo (D-CA) (Mar. 7, 2017)

Expressing the sense of the House of Representatives that the President shall immediately
disclose his tax return information to Congress and the American people.



Whereas, disclosure of the President's tax returns could help those investigating Russian
influence in the 2016 election understand the President's ?nancial ties to the Russian
Federation and Russian citizens, including debts owed and whether he shares any
partnership interests, equity interests, joint ventures or licensing agreements with Russia
or Russians;



Whereas, the American people have the right to know whether or not their President is
operating under conflicts of interest related to international affairs, tax reform,
government contracts, or otherwise: Now, therefore, be it:

Resolved. That the House of Representatives shall--

1. Immediately request the tax return information of Donald J. Trump for tax years 2006
through 2015 for review in closed executive session by the Committee on Ways and
Means, as provided under Section 6103 of the Internal Revenue Code, and vote to report
the information therein to the full House of Representatives.

2. Support transparency in government and the longstanding tradition of Presidents and
Presidential candidates disclosing their tax returns.

163 Cong. Rec. H1571 (daily ed. Mar. 7, 2017) (statement of Rep. Eshoo),
1-6.

Rep. Bill Pascrell (D-NJ) (Mar. 8, 2017)

And we can?t get the President?s tax returns. Not yet. It?s going to be embarrassing
when those tax returns come out. They? re coming out sooner or later. They?re coming
out sooner or later. I may have nothing at all to do with how they get out, but they?re
going to get out sooner or later.

H. Comm. on Ways Means, Markup of GOP Health Care Repeal Bill, 115th Cong., at 2:41:20
(Mar. 8, 2017), 

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Minority Leader Nancy Pelosi (Mar. 8, 2017)

Well it?s a question of the American people wanting to know the truth. Why is it that
President Trump should be the exception to every candidate or cabinet nominee for
president since Gerald Ford that the public has been able to see the President?s tax
returns. What does the President have to hide? What do the Russians have on Donald
Trump, personally, politically and ?nancially, that he is keeping a secret? Why are the
Republicans in Congress accomplices to that secrecy? Why are the Republicans in
Congress voting to say ?no, we don?t think he should release his tax returns?? It?s a very
bad vote for them. That?s a very bad vote for them, that?s a very bad vote for them.

So our members Mr. Pascrell as you know, acts with great spontaneity, yesterday
Congresswoman Eshoo, others Members of Congress want to say, ?we want the facts, we
want the truth.? The tax returns many believe are part of the Russian connection, the
disruption of our election, the money pouring into the Trump organization, any personal
embarrassment to the President we want to know the truth, and we can start by seeing
his tax returns. Which is not an extraordinary request unless you?re Donald Trump and
think you?re above custom, tradition and maybe even the law. Thank you!

Press Conference, Minority Leader Nancy Pelosi (Mar. 8, 2017),


Minoritv Leader Nancv Pelosi (Mar. 9, 2017)

They don?t want the American people to see the facts. They?re always afraid of the facts.
It?s just a remarkable thing. They?re afraid of the facts of the President?s tax returns.
And we will continue to ask for those tax returns because we want to know about the
Russian connection.

What do the Russians have on Donald Trump politically, ?nancially, and personally?
What is that connection? What would the tax returns tell us about that? And we need a
bipartisan, independent, nonpartisan outside investigation to get to the bottom of that.

Press Conference, Minority Leader Nancy Pelosi (Mar. 9, 2017),


Rep. Sander Levin (D-MI) (Mar. 28, 2017)

I think you are wrong about 90%. Even if it were only 10%, let the public see it. Let the
public see it.



This committee should use its authority to better understand the connections between the
President, and his family, and Russia.

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Case Document 44-3 Filed 09/06/19 Page 144 of 413

The President now says he wants to lead the effort on tax reform. His past returns are
directly relevant to our forthcoming discussions about tax reform. It is important to
understand how such tax reform would bene?t the President, his 564 positions in
domestic and foreign companies, and his self-reported net worth of more than $10 billion.



We are asking for the disclosure because it is relevant to the discussion about the Russian
connectionall say that we want to take up tax reform. The
President says he wants to lead the effort. With hidden tax reform, tax returns, that is
totally incredible.

H. Comm. on Ways Means, Markup of H. Res. 186, 1 15th Cong., at 21:30 (Mar. 28, 2017),


Rep. Bill Pascrell (D-NJ) (Mar. 28, 2017)

Our constituents are demanding transparency. . . . We have the authority. We have the
cause. With all of the conflicts we know about, and all that we don?t, we must gather all
of the possible information we can. The IRS is best equipped to conduct financial
investigations into possible crimes dealing with money. The President?s tax returns will
provide us with the clues.

H. Comm. on Ways Means, Markup of Res. 186, 1 15th Cong, at 28:52 (Mar. 28, 2017),


Rep. Lloyd Doggett (D-TX) (Mar. 28, 2017)

The House investigation has been totally discredited within the last week. Whether it
was discredited or not, this committee has a role to play with reference to tax returns.
And when you have the President?s son in law talking with former KGB of?cial running
a bank in Russia, and you have an indication from the President?s son a few years back
that the Russians make up a pretty disproportionate cross section of a lot of our assets,
and that?s a direct quote, there is reason to want to know whether there is anything in his
tax returns showing payments to Russians, or payments from Russians. It may be that
not every bit of the information we are seeking is not contained within the form on
individual taxes that President Trump may have ?led. But there may well be an
indication in those returns of information that will lead to that information, and that I why
I believe the President went back on his promise to the American people, and refused to
disclose the very information he said he would disclose in the future when these audits
were concluded. I want to know whether he has, as his son said, continued to have a
pretty disproportionate cross section of a lot of their assets with the Russians.



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Case Document 44-3 Filed 09/06/19 Page 145 of 413

I want to emphasize that the Chairman and the members of this committee are
misconstruing section 6103, narrowly construing it to justify this cover-up of the Trump
tax returns, and that this committee has a signi?cant interest in these returns as it relates
to the administration of our business. Both with reference to our trade agenda, from
which we heard about earlier today, given the large number of trademarks that President
Trump was able to magically get approved from the Chinese earlier this year, and with
reference to our tax responsibilities.

464:4:

Without those tax returns to know what con?icts may exist for him, what kind of self-
dealing may exist for him, we will never know. Section 6103 deals with more than tax
administration, it deals with the assessment, collection, enforcement, publication, and
statistical gathering function under the laws and statutes. There is every reason why in
terms of its work in tax and the fact that we are considering major tax legislation, that we
would want to know whether he will bene?t personally, and that is why he is advancing
these various legislative changes.

H. Comm. on Ways Means, Markup of H. Res. 186, 1 15th Cong., at 40:10 (Mar. 28, 2017),


Rep. Ryan Higgins (D-NY) (Mar. 28, 2017)

Ryan Higgins (D-NY) (54:06): The American people have a right to know if the
President would personally gain from proposals he will ask this committee to consider.
The American people have a right to know if the President?s tax returns offers clarity
about business ties he may have to Russia, to Germany, to Saudi Arabia, or any other
foreign interest that may bene?t them and or him.

H. Comm. on Ways Means, Markup of H. Res. 186, 1 15th Cong., at 54:06 (Mar. 28, 2017),


House Resolution 186 (Mar. 9, 2017)

IN THE HOUSE OF REPRESENTATIVES
March 9, 2017

Mr. Pascrell (for himself, Mr. Crowley, Mr. Danny K. Davis of Illinois, Ms. Sewell of
Alabama, Mr. Neal, Ms. Eshoo, Mr. Doggett, Mr. Sarbanes, Ms. DelBene, Mr.
Thompson of California, and Mr. Blumenauer) submitted the following resolution;
which was referred to the Committee on Ways and Means

Of inquiry directing the Secretary of the Treasury to provide to the House of
Representatives the tax returns and other Speci?ed ?nancial information of President
Donald J. Trump.

Page 14 of 42

Case Document 44-3 Filed 09/06/19 Page 146 of 413

Resolved, That the Secretary of the Treasury is directed to furnish to the House of
Representatives, not later than 10 days after the adoption of this resolution, the full tax
returns of Donald J. Trump for tax years 2006 through 2015, as well as ?nancial
documentation and any information in possession of the Secretary that specify?

(1) Mr. Trump?s debts held by foreign governments and foreign companies;
(2) Mr. Trump's investments in foreign countries and foreign enterprises; and

(3) Mr. Trump?s use of any tax shelters, corporate structures, tax avoidance
maneuvers, abatements, or other loopholes to reduce or eliminate tax liability.

H.R. Res. 186, 115th Cong. (2017), 
resolution/186.

Ranking Member Richard Neal and Rep. Bill Pascrell (Mar. 30, 2017)

Committee Democrats strongly oppose the Committee's action of unfavorably reporting
H. Res. 186, Resolution of inquiry directing the Secretary of the Treasury to provide to
the House of Representatives the tax returns and other speci?ed ?nancial information of
President Donald J. Trump. Committee Republicans continue to block our requests for
this Committee to exercise its authority under Section 6103 of the Internal Revenue Code
to obtain, examine, and make available to the public President Trump's federal tax
returns.

This Committee has broad jurisdiction over a variety of laws that affect the lives of
millions of Americans, including the federal tax law. The President and Congressional
Republicans have been very vocal regarding their desire to enact comprehensive tax
reform this Congress. Committee Democrats believe that it is imperative for the public to
know and understand how such tax reform will bene?t the President, his 564 ?nancial

positions in domestic and foreign companies, and his self-reported net worth of more than
$10 billion.



Tax returns provide the clearest picture of a president's ?nancial health, including how
much he earns, how much tax he pays, his sources of income capital gains, dividend
income, and certain business income), the size of his deductions, whether he makes
charitable contributions, and whether he uses tax shelters, loopholes, or other special-
interest provisions to his advantage. All of these items are critical in order for the public
to gain a more complete understanding of how tax reform will bene?t President Trump
and his vast business empire.

If ever there was a president with respect to which this Committee should exercise its
Section 6103 statutory authority to obtain individual tax returns, President Trump is the
one. A president with a vast domestic and international business empire. A president who
has rebuked over 40 years of tradition and refused to release his individual tax returns to

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the public. A president who will negotiate and ultimately may sign comprehensive tax
reform into law. A president who is not the average American--he has assets, business
interests, and foreign entanglements that far surpass the average taxpayer. Hence,
Committee Democrats remain steadfast in our pursuit to have his individual tax returns
disclosed to the public.



Starting in February, Committee Democrats began pressing Committee Republicans to
use the authority under Section 6103 to obtain President Trump's tax returns and make
them available to the public. Committee Democrats have sent letters urging, and offered
amendments to force, the Chairman to obtain President Trump?s tax returns for review by
the Committee.



Procedurally, upon submission to the House, the tax return and return information would
become available to the public.

H.R. Rep. No. 1 15-73 (Mar. 30, 2017), Resolution of Inquiry Directing the Secretary of the
Treasury to Provide to the House of Representatives the Tax Returns and other Speci?ed
Financial Information of President Donald J. Trump, Adverse Report together with Dissenting
Views, l5th-congress/house-report/73; see aiso
H.R. Rep. No. 1 15-309 (Sept. 14, 2017), Resolution of Inquiry Directing the Secretary of the
Treasury to Provide to the House of Representatives the Tax Return Information of President
Donald J. Trump as Well as the Tax Returns of Each Business Entity Disclosed by Donald J.
Trump on His Of?ce of Government Ethics Form 278e, Adverse Report with Dissenting Views,



Resolution Offered bv Rep. Joe Crowlev (D-NY) (Mar. 15, 2017)

Expressing the sense of the House of Representatives that the President shall immediately
disclose his tax return information to Congress and the American people.



Whereas, disclosure of the President's tax returns could help those investigating Russian
influence in the 2016 election understand the President?s ?nancial ties to the Russian
Federation and Russian citizens, including debts owed and whether he shares any

partnership interests, equity interests, joint ventures or licensing agreements with Russia
or Russians;



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Whereas, the American people have the right to know whether or not their President is
operating under conflicts of interest related to international affairs, tax reform,
government contracts, or otherwise: Now, therefore, be it:

Resolved. That the House of Representatives shall?-

1. Immediately request the tax return information of Donald]. Trump for tax years 2006
through 2015 for review in closed executive session by the Committee on Ways and
Means, as provided under Section 6103 of the Internal Revenue Code, and vote to report
the information therein to the full House of Representatives.

2. Support transparency in government and the longstanding tradition of Presidents and
Presidential candidates disclosing their tax returns.?

163 Cong. Rec. H2068 (daily ed. Mar. 15, 2017) (statement of Rep. Crowley),
.

Minority Leader Nancy Pelosi (Mar. 16, 2017)

The De?ector-in-Chief?s desperation demands answer to our original question, the one I
ask almost every day: What is Russia?s political, personal, and ?nancial grip on the
Trump Administration? What do the Russians have on President Trump? They have
stonewalled over 100 letters from House Democrats requesting disclosure and
transparency on his ties to Russia, his con?icts of interest, and other Administration
actions.

You have heard me say before: this has an impact on our national security. What do the
Russians have on him that he should ?irt with the idea of weakening sanctions on Russia,
undermining NATO and Europe? Secondly, undermining and questioning the value of
the New START Treaty. Also, praising Putin at the expense of the greatness of America.
What is it that they have on him? Show us your tax credits - your tax deduction 
returns. Every they did do something the other day, which was curious, to do a transom
report. Who knows where that came from. What we want to see are the President?s tax
returns in the same manner that every President and candidate for President nominee of
the party for President has done since Nixon, but, of course, that was demanded, but then
followed through with wonderful President Gerald Ford. So, if the President wants to
strengthen our security, he should come clean with the American people.

Press Conference, Minority Leader Nancy Pelosi (Mar. 16, 2017),

Resolution Offered bv Rep. Jared Polis (D-CO) (Mar. 21, 2017)

Whereas, tax returns provide an important baseline disclosure because they contain

highly instructive information including whether the candidate can be in?uenced by
foreign entities and reveal any con?icts of interest;

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Whereas, disclosure of the President's tax returns is important towards investigating
Russian in?uence in the 2016 election, understanding the President's ?nancial ties to the
Russian Federation and Russian citizens, including debts owed and whether he shares any
partnership interests, equity interests, joint ventures, or licensing agreements with Russia
or Russian nationals, formally or informally associated with Vladrnir Putin;



Whereas, the American people have the right to know whether or not their President is
operating under conflicts of interest related to international affairs, tax reform,
government contracts, or otherwise:

Now, therefore, be it resolved that the House of Representatives shall:

One, immediately request the tax return information of Donald J. Trump for tax years
2006 through 2015 for review in closed executive session by the Committee on Ways and
Means, as provided under section 6103 of the Internal Revenue Code, and vote to report
the information therein to the full House of Representatives;

Two, support transparency in government and the longstanding tradition of Presidents
and Presidential candidates disclosing their tax returns.

163 Cong. Rec. H2308 (daily ed. Mar. 21, 2017) (statement of Rep. Polis),
.

Minoritv Leader Nancv Pelosi (Mar. 28, 2017)

Since Gerald Ford was President, every candidate for President, every nominee of a
major party, every candidate for President of the United States, Democrat and
Republican, has released their income tax returns out of respect for the American people-
-out of respect for the American people. Week in and week out--in fact, sometimes day in
and day out--in committee as well as on the floor, the Republicans have kept the
President's income tax returns private when the public has a right to know that, that the
public has always known that about every President since Gerald Ford-4n fact, since
Richard Nixon; although, in his case, it wasn't voluntary.

163 Cong. Rec. H2498 (daily ed. Mar. 28, 2017) (statement of Rep. Pelosi),
.

Minoritv Leader Nancv Pelosi (Apr. 5, 2017)

What is President Trump hiding that he refuses to release his taxes to the American
peOple even as an overwhelming 74 percent demand he release them? The disturbing

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conflicts of interests, revelations of shady dealings, and Trump?s deep ties to Putin?s
Russia must be the reason.



But week after week, Republicans have repeatedly voted to help President Trump
stonewall the American people complicit in keeping President Trump?s taxes and
?nances hidden.

That is why House Democrats, led by Congresswoman Anna Eshoo, ?led a discharge
petition today to #DemandAVote to require President Donald Trump to disclose his tax
returns, so the American people can see for themselves the extent of his ?nancial
interests, and whether they are in?uencing his policy decisions toward Russia, on tax
reform and other issues.

Minority Leader Nancy Pelosi, Blog Post, #DemandAVote: House Democrats Launch Discharge
Petition to Release President Donald Trump?s Tax Returns (Apr. 5, 2017),



Minority Leader Nancy Pelosi (Apr. 5, 2017)

As you know, every President since Gerald Ford - actually, every nominee on both sides
of the aisle since then has released their tax returns. So the history of it is important to
American people. It isn?t as if the tax returns tell the whole story but they are a key that
opens the door to so much information.

We?re especially concerned about any information that might show any connection 
Russian connection, Chinese connection, in terms of business interests of the Trump
organization to any of these countries. It?s really a very important thing.

At a time when they are saying, we don?t want to see the President?s tax return they
now say, ?we have to protect the President?s privacy.?

It?s not a right to privacy that the President has. He?s the President of the United States
there is a question about a Russia connection politically, personally, ?nancially to the
President, there's concerns about recent actions by the Chinese government, in relation to
the Trump Organization. There are plenty of reasons why we need this key to open the
door to the information we need to connect the dots and if they have nothing to fear, then
what are they afraid of.

Press Conference, Minority Leader Nancy Pelosi, Demanding a Vote Requiring President Trump
to Release Tax Returns (Apr. 5, 2017), 

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Case Document 44-3 Filed 09/06/19 Page 151 of 413

Ranking Member Richard Neal (Apr. 5, 2017)

This is not about the law, this is about custom and practice. It?s a settled tradition and as
I noted by using the word earlier, about begrudges candidates reach the level of
expectation that they?re supposed to release their tax forms. I?m not aware of any of the
Presidents that have been cited who ever publicly suggested that they thought it was an
invasion of privacy.

Press Conference, Statement by Ranking Member Richard Neal (Apr. 5, 2017),
17/.

Rep. David Cicilline (D-RI) (Apr. 5, 2017)

And this is a very simple idea in that the President?s ability to lead this country is directly
undermined by the questions which continue to rise about his potential conflicts of
interest, and whether or not he?s making decisions in the best interest of the American
peeple, or in his own personal or ?nancial best interest. One way to get at that question
is a simple release of his tax returns, a tradition which has been a tradition of every
president in recent history. His refusal to do that, and sadly the Republicans? refusal so
far to be part of this effort is disappointing, but we?re not going to stop. This is
something the American people are demanding so that they can have a sense of what
those conflicts might be, and we?re going to use every avenue we can to continue to press
until we?re successful in persuading or requiring the President to share those with the
American people.

Press Conference, Statement by Rep. David Cicilline (D-RI) (Apr. 5, 2017),
17/.

Rep. John Sarbanes (Apr. 5, 2017)

Ijust want to thank my colleagues and Anna for their efforts on this issue, which is going
to be continuous. We?re not going to let up. When you talk to people out in the country
as everybody here has said there is real anxiety on the part of Americans about
whether the President may have some divided loyalty whether when he goes to make a
decision that is supposed to be on behalf of the public. There are some other concerns of
interests he has competing with that.

This is the highest of?ce in the land. The public trust is placed in this of?ce. That is the
expectation of 330 million Americans that you will carry out that of?ce, recognizing
the public trust that is placed in it.

And Americans just want to know that when the President is making important decisions
on domestic policy and on foreign policy, that he doesn?t have divided loyalties. This is
nagging away at people. And he can come clean if he provides his tax returns, which is
the ?rst important baseline step in being transparent. That will do a lot to put that anxiety

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to rest. But, the fact that he won?t release the tax returns, I think, is making a lot of
Americans nervous.

Press Conference, Statement by Rep. John Sarbanes (D-MD) (Apr. 5, 2017),
17/.

Minority Leader Nancy Pelosi (Apr. 6, 2017)

Republicans will sell your most private information, your most private information, but
they refuse to reveal the President?s tax returns, something every President since Gerald
Ford has done, and indeed every nominee of the other party has done.

And there is a vital interest in the President?s tax returns. Republicans are desperate,
again, to keep them secret. What is it that they are afraid of? Why don?t they have that
key that 74 percent of the American people want us to unlock that door to see where it
leads?

If it?s all okay, they have nothing to be afraid of. But we think that it will show us some
connection that will be useful in the investigation of what do the Russians have on
Donald Trump politically, personally, and ?nancially.

Press Conference, Minority Leader Nancy Pelosi (Apr. 6, 2017),


Rep. Hakeem Jeffries (Apr. 7, 2017)

Unfortunately, Donald Trump sees things differently. As we approach tax day, it?s
important to remember that every President since Gerald Ford, Democrats and
Republicans, have released their tax returns to the American people. Before the election,
Donald Trump repeatedly promised to release his tax returns, just like Jimmy Carter,
Ronald Reagan, George H.W. Bush, Bill Clinton, George W. Bush and Barack Obama
before him. But as President, Donald Trump has broken this promise.

Is he hiding something from the American people? I certainly hope not. Here?s what I
do know. The American people deserve an answer to that question. The tax return issue
is about fairness. It?s about being straight with the American people. It?s about playing
by the rules.

There is a cloud of uncertainty hanging over the White House when it comes to our
President. He came to Washington on a promise to drain the swamp. But instead, by
failing to keep his word and release his tax returns, Donald Trump is a living, breathing
con?ict of interest.



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This is not a Democratic issue or a Republican issue. This is an American issue. Our
Democracy was attacked. The release of the President?s tax returns will help the
American people better understand the extent of Trump?s ?nancial ties to Putin?s Russia.
The American people have a right to know whether ?nancial con?icts of interest exist
between the President of the United States and a hostile foreign power.

The American people have a right to know whether the decisions being made by
President Trump are in the best interest of America, or are bene?ting other countries and
corporations with whom he has a business relationship. The American people have a
right to know whose side the President is on. His tax returns will help provide the
information necessary to ?gure that out.

Press Conference, Congressman Hakeem Jeffries Delivers Weekly Democratic Address (Apr. 7,
2017), 
democratic-addressl.

Minority Leader Nancy Pelosi (Apr. 17, 2017)

What are President Trump and the Republican Congress hiding? Every President since
Gerald Ford, Democrat and Republican, has released his tax returns to the public.
Despite the history, despite his own promises, President Trump and Republicans in
Congress are desperate to keep the American people in the dark.

Who does President Trump owe? America needs to know. All roads lead back to the
President?s tax returns and the light they can shine on his actions and the Trump-Russia
connection. Releasing the President?s tax returns is vital for our national security and our
democracy.

Press Release, Minority Leader Nancy Pelosi, Statement on Tax Day (Apr. 17, 2017),

Rep. Ben Rav Luizin (D-NM) (Apr. 21, 2017)

The President has done everything possible to distract and mislead the American people
about his connection to Russia and his truly unprecedented web of con?icts.

He has refused to divest his business ties or release his tax returns to the American people
so they can understand his conflicts of interest and get to the truth.

Press Conference, Congressman Ben Ray Lujan Delivers Weekly Democratic Address (Apr. 21,

2017), 
democratic-addressl.

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Case Document 44-3 Filed 09/06/19 Page 154 of 413

Minority Leader Nancy Pelosi (Apr. 23, 2017)

The infrastructure bill is one of the biggest secrets in Washington, DC, second only to
the president not showing us his tax returns.

We need to see those so we can see how his tax policy will affect his own tax situation.
We need to see them so we can see what is the hold that the Russians have on him
politically, ?nancially, and personally.

Meet the Press (NBC television broadcast Apr. 23, 2017), 

5087573, 

Llovd (D-TX) (Apr. 26, 2017)

Without an end to the Republican cover-up of Trump?s tax returns, we cannot determine
whether this is mostly just more self?enrichment for the Trump family. Trump talks like a
populist but governs like a plutocrat. Like the near trillion dollar tax cut in the failed
health care bill that he endorsed, Trump?s tax plan ?lls the coffers of giant corporations
and lines the pockets of the superrich.

Press Release, Rep. Lloyd Doggett (D-TX), Neal, Doggett Statements on President Trump?s Tax
Proposal (Apr. 26, 2017), 


Rep. John Lewis (Apr. 26, 2017)

This afternoon, the Administration released its principles for tax reform. I must express
my concern about beginning tax reform when the public has no idea how the proposal
will personally bene?t the First Family.

On April 15th, thousands of Americans took to the streets and demanded transparency,
truth, and accountability. They know that there is no provision in the Internal Revenue
Code that prevents him from releasing his tax returns. Failure to meet this standard

presents a dangerous and slippery slope for policy makers. The American people expect
and deserve better.

Press Release, Rep. John Lewis (D-GA), Ranking Member Lewis Opening Statement at
Oversight Subcommittee Hearing on 2017 Tax Filing Season (Apr. 26, 2017),



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Minority Leader Nancy Pelosi (May 15, 2017)

One of the concerns that we have is that Russia is an adversary to the United States. And
yet, when the president became president-elect, he was putting Putin on a pedestal and he
was questioning whether we should even have sanctions against Russia for their
aggression in Ukraine and Crimea, et cetera, and questioning the -- undermining the
relationship we have with NATO, which is our transatlantic friendship for security. And
it was like, why on Earth is he undermining our allies and praising Putin?

And so that?s one of the things that we want to see about the investigation, because it
relates to if there have -- as I said, ?nancial. What is the ?nancial connection? Political.
They did - it?s an absolute fact -- disrupt our election by hacking and leaking. The
question is, was there collusion? And, third, personally. What is it that is making him do
all these special things for the Russians?

You only know that if you?re basing it on fact and notjust rumor and hearsay if you have
the investigation. And that's why we?re saying, let?s just ?nd out the truth. Let the chips
fall where they may. And if he has nothing to hide, he shouldn?t be opposing, nor should
my Republican colleagues in Congress, be opposing the release of his tax returns, any of
the investigation into other aSpects of the Trump-Russia connection. And that?s why
when something like this comes up, it?s like predictable, almost, sadly.

CNN Town Hall (CNN television broadcast May 15, 20l7),


Minority Leader Nancy Pelosi (May 16, 2017)

The question is what is the connection? And that requires investigation to get the facts
that proves the case, or not. What are the Republicans and the president afraid of? The
truth.

So, when it comes to our national security, here he is putting Putin on a pedestal,
undermining NATO, questioning whether we should even have sanctions vis-a-vis Russia
in terms of their aggression in Europe. And that is not in our national security interest.
That is undermining our Trans-Atlantic pillar of strength for us. But casual about it and
putting -- so what do the Russians have on him politically, personally, ?nancially?

Go to the next step. We have a chance to see his tax returns. Show us your tax returns so
we can see what the connection is between you and Russia. And, by the way, the
connection between yourself and (inaudible) and the cost to the average person in our
country.

So, this is about our economy as well. And then of course as I mentioned about the
security of our democracy. So, this is intrinsic. It?s fundamental. It?s systemic. It?s very
important that we get to the bottom of it.

And there is so much evidence. . . .

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Case Document 44-3 Filed 09/06/19 Page 156 of 413

Transcript, House Minority Leader Pelosi, Remarks at Center for American Progress Forum
(May 16, 2017), 102881,


Resolution Offered by Rep. Bill Pascrell (D-NJ) (May 16, 2017)

Expressing the sense of the House of Representatives that the President shall immediately
disclose his tax return information to Congress and the American people.



Whereas, tax returns provide an important baseline disclosure because they contain
highly instructive information including whether the candidate paid taxes, what they own,
what they have borrowed and from whom, whether they have made any charitable
donations, and whether they have taken advantage of tax loopholes;

Whereas, disclosure of the President's tax returns could help those investigating Russian
in?uence in the 2016 election understand the President's ?nancial ties to the Russian
Federation and Russian citizens, including debts owed and whether he shares any
partnership interests, equity interests, joint ventures or licensing agreements with Russia
or Russians;



Whereas, the President's tax returns would show us whether he has foreign bank accounts
and how much pro?t he receives from his ownership in myriad partnerships;

Whereas, the Chairmen of the Ways and Means Committee, Joint Committee on

Taxation, and Senate Finance Committee have the authority to request the President's tax
returns under Section 6103 of the tax code;

at: 
Whereas, the American people have the right to know whether or not their President is

operating under con?icts of interest related to international affairs, tax reform,
government contracts, or otherwise: Now, therefore, be it:

Resolved, That the House of Representatives shall--

1. Immediately request the tax return information of Donald J. Trump for tax years 2006
through 2015 for review in closed executive session by the Committee on Ways and
Means, as provided under Section 6103 of the Internal Revenue Code, and vote to report
the information therein to the full House of Representatives

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Case Document 44-3 Filed 09/06/19 Page 157 of 413

2. Support transparency in government and the longstanding tradition of Presidents and
Presidential candidates disclosing their tax returns.

163 Cong. Rec. H4212-13 (daily ed. May 16, 2017) (statement of Rep. Pascrell),
12-1.

Minoritv Leader Nancy Pelosi (May 18, 20l7)

But this is something that has foreign intrigue, it has issues that relate to undermining our
democracy by interference in our election. It?s about, ?Show us your tax returns so we
can see what public policy is regarding that, and do you have a Russian connection, Mr.
President, in your dealings?? And it?s very serious.

So in order for us to move forward in a way where we?re moving forward with the
American people, it?s very important that we do it based on the facts. There is reason to
believe that the President was engaged in some very inappropriate, for the moment,
activity. But until you have the facts that you can present to the public in the public
domain so the American people are moving with you at the same time, I don?t think that
our democracy is well served.

Press Conference, Minority Leader Nancy Pelosi (May 18, 2017),
1817-5l.

Resolution Offered by Rep. Linda Sanchez (D-CA) (May 24, 2017)

Expressing the sense of the House of Representatives that the President shall immediately
disclose his tax return information to Congress and the American people.

51? 
Whereas, tax returns provide an important baseline of reasonable information including

whether the President paid taxes, ownership interests, charitable donations made, and
whether tax deductions have been exploited;

Whereas, disclosure of the President's tax returns could help those investigating Russian
in?uence in the 2016 election understand the President's ?nancial ties to the Russian
Federation and Russian citizens, including debts owed and whether he shares any
partnership interests, equity interests, joint ventures or licensing agreements with Russia
or Russians;



Whereas, the President's tax returns would show us whether he has foreign bank accounts
and how much pro?t he receives from his ownership in myriad partnerships;

an?:

Page 26 of 42

Case Document 44-3 Filed 09/06/19 Page 158 of 413

Whereas, the Chairmen of the Ways and Means Committee, Joint Committee on
Taxation, and Senate Finance Committee have the authority to request the President's tax
returns under Section 6103 of the tax code;



Whereas, the American people have the right to know whether or not their President is
operating under conflicts of interest related to international affairs, tax reform,
government contracts, or otherwise: Now, therefore, be it:

Resolved, That the House of Representatives shall--

1. Immediately request the tax return information of Donald J. Trump for tax years 2006
through 2015 for review in closed executive session by the Committee on Ways and
Means, as provided under Section 6103 of the Internal Revenue Code, and vote to report
the information therein to the full House of Representatives

2. Support transparency in government and the longstanding tradition of Presidents and
Presidential candidates disclosing their tax returns.

163 Cong. Rec. H4523-25 (daily ed. May 24, 2017) (statement of Rep. Sanchez),
.

Minoritv Leader Nancy Pelosi (June 2, 2017)

And speaking of taxes, I think that the decision the President made on the Paris accord, I
think that the budget that he has put forth, again, really speaks further to the fact that he
should show us his tax returns. It?s very important that we see his tax returns. It relates
to Russia. What do the Russians have on Donald Trump, politically, personally, and
?nancially? And he won?t show us his tax returns, to give us some maybe that would
clear up the issue or maybe it will be a path to some other questions. So show us your tax
returns.

We talk about lifting the debt ceiling. We talk about tax returns. We do know that what
he proposed, what he was talking about before would have given him a tax break of $30
million on the year that he has revealed his tax return. A tax break of $30 million. Show
us your tax returns.

Press Conference, Minority Leader Nancy Pelosi (June 2, 2017),


Minority Leader Nancy Pelosi (June 6, 2017)

I think we have to remove all doubt as the impact of Russians in our life. And I think it's
important the American people to know what did Russians have on Donald Trump
politically, ?nancially, and personally, that he is standing in the way of this legitimate

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Case Document 44-3 Filed 09/06/19 Page 159 of 413

investigation as to the Russian impact on our election and to prevent them from doing it
again.

an?:

[T]he American people have a right to know the truth. And why would the Republicans
stand in the way of the truth? Why can't we see his tax returns?

New Day (CNN television broadcast June 6, 2017),
706/06/nday.03.html.

Resolution Offered by Rep. Michael Capuano (June 7, 2017)

Expressing the sense of the House of Representatives that the President shall immediately
disclose his tax return information to Congress and the American peOple.

=14 El:
Whereas, tax returns provide an important baseline of reasonable information including

whether the President paid taxes, ownership interests, charitable donations made, and
whether tax deductions have been exploited;

Whereas, disclosure of the President's tax returns could help those investigating Russian
in?uence in the 2016 election understand the President's ?nancial ties to the Russian
Federation and Russian citizens, including debts owed and whether he shares any

partnership interests, equity interests, joint ventures or licensing agreements with Russia
or Russians;



1iWhereas, the President's tax returns would show us whether he has foreign bank accounts
and how much pro?t he receives from his ownership in myriad partnerships;

a: a:

Whereas, the Chairmen of the Ways and Means Committee, Joint Committee on

Taxation, and Senate Finance Committee have the authority to request the President's tax
returns under Section 6103 of the tax code;



Whereas, the American pe0ple have the right to know whether or not their President is
operating under con?icts of interest related to international affairs, tax reform,
government contracts, or otherwise: Now, therefore, be it:

Resolved, That the House of Representatives shall--

Page 28 of 42

Case Document 44-3 Filed 09/06/19 Page 160 of 413

1. Immediately request the tax return information of Donald J. Trump for tax years 2006
through 2015 for review in closed executive session by the Committee on Ways and
Means, as provided under Section 6103 of the Internal Revenue Code, and vote to report
the information therein to the full House of Representatives

2. Support transparency in government and the longstanding tradition of Presidents and
Presidential candidates disclosing their tax returns.

163 Cong. Rec. H4684 (daily ed. June 7, 2017), 


Rep. Michael Capuano (D-MA) (June 7, 2017)

The investigations are ongoing. At some point, it is unquestioned that the President's tax
returns will become relevant to what the FBI is doing. It is only a matter of time.

For the integrity of the House, for the dignity of the House, I believe ?rmly that we
should exercise the law that the Congress put in place itself to do our own due diligent
investigation and not just simply sit on our hands while others do our work for us.

These documents will become public, and when they do, regardless of what they show, I
believe ?rmly it will reflect negatively on this House for not having done our duty, for
having shirked our responsibilities. That is why I believe this is a privilege of the House.
That is why I believe this House should take this action.



There aren?t any Americans that don't believe they have a right to know that their
President has not been subject to undue in?uence. That is all this does. It draws no
conclusion from it, and it allows the majority party to call on it to make the
determination; not me, but the majority party; the chair of the Ways and Means
Committee.

That is why I offered this resolution. That is why I think this resolution is going to
continue to be offered, and, at some point, the House is going to do it. I don't know why
Members of the House want to drag this out and pretend that somehow you are going to
be able to avoid it. You are not. It is going to happen.

163 Cong. Rec. H4684-86 (daily ed. June 7, 2017) (statement of Rep. Capuano),
.

Minoritv Leader Nancy Pelosi (June 9, 2017)

Well, I think he abused power. I think there is no question be abused power. Whether he
obstructed justice remains for the facts to come forward, and that is what we want: the

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Case Document 44-3 Filed 09/06/19 Page 161 of 413

facts. And I hope that our Republican colleagues will not continue to stand in the way of
our getting the facts.

Also, we?d like to see his tax returns, because that will, again, help connect the dots here.
And, again, maybe it will all be exculpatory, but let?s ?nd that out. Right now we have to
remove all doubt about the integrity of our government.

Press Conference, Minority Leader Nancy Pelosi (June 9, 2017),


Rep. Llovd Doggett (D-TX) (June 13, 2017)

Today, Congressman Lloyd Doggett (D-TX), Ranking Member of the Ways means
Tax Policy Subcommittee, is offering a ?privileged resolution? that would require the
House of Representatives to immediately request the President?s tax returns and those of
his businesses. His resolution, which must be considered within two legislative days,
would also postpone consideration of any tax reform legislation until the President's tax
returns are obtained.

The House Ways and Means Committee has the authority to obtain the President?s tax
returns under section 6103 of the Tax Code. If this ?privileged resolution? were
approved, it would launch the process of reviewing those tax returns in an Executive
Session of the Ways and Means Committee, which could vote to release the returns to the
public.

Rep. Doggett has ?led three separate amendments in the Ways and Means Committee to
obtain President Trump?s tax returns - on February 14, March 8, and March 28. The

Committee voted all three times along party lines to continue to cover-up the President?s
tax returns, and the House has refused nine times to act on President Trump?s tax returns.

an?:

RESOLUTION

Expressing the sense of the House of Representatives that the President shall immediately
disclose his tax return information to the House of Representatives and the American
people.



Whereas, disclosure of the President?s tax returns could help those investigating Russian
influence in the 2016 election better understand the President?s ?nancial ties to the
Russian Federation, Russian businesses, and Russian individuals;

Whereas, after breaking his pledge to make his tax returns available, President Trump

instead presented a one page letter from a law ?rm giving him a clean bill of health on
any business dealings with Russians, but failed to note that the very same law ?rm

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Case Document 44-3 Filed 09/06/19 Page 162 of 413

boasted of the ?prestigious honor? of being named ?Russia Law Firm of the Year" for
2016;

4%
Now, therefore, be it:
Resolved, That the House of Representatives shall?

1. Immediately request the tax return and return information of Donald J. Trump for
tax years 2006 through 2015, as provided under section 6103 of the Internal
Revenue Code of 1986, as well as the tax return (and return information with
respect to the President?s businesses) of each business entity disclosed by Donald
J. Trump on his Of?ce of Government Ethics Form 278e, speci?cally each
corporation and each partnership (within the meaning of subchapter of chapter
1 of the Internal Revenue Code of 1986) where he is listed as an of?cer, director,
or equivalent, or exercises working control; and

2. Postpone consideration of tax reform legislation until the elected Representatives
of the American people in this House have obtained President Trump?s tax returns
and return information to ascertain how any changes to the tax code might
?nancially bene?t the President.

Press Release, Rep. Lloyd Doggett (D-TX), Privileged Resolution Would Require Trump Tax
Returns Before Tax Reform Consideration (June 13, 2017), 

privileged resolution available at 



Minoritv Leader Nancv Pelosi (June 20, 2017)

As Speaker Ryan moves to the question and answer portion of his ?major? tax reform
speech, we have some questions: Where are President Trump?s tax returns? What
happened to ?At some point I?ll release it??

By blatantly refusing to reveal his tax returns, the President fails to ful?ll his promise to
the American people, honor tradition, and be transparent about his ?nancial history 
despite the fact that 74 percent of Americans want Presidents to disclose their tax returns.
House Republicans have voted 9 times to keep President Trump?s tax returns secret.

If Speaker Ryan and House Republicans respect the oath they took to support and defend
the U.S. Constitution, they must stop the pointless distractions and demand transparency
and truth from the White House. American taxpayers deserve to know that the President
of the United States is playing by the rules and putting the peOple?s business before the
Trump family business.

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Case Document 44-3 Filed 09/06/19 Page 163 of 413

Minority Leader Nancy Pelosi, Blog Post, Where are President Trump '5 Tax Returns? (June 20,
2017), 

Minoritv Leader Nancy Pelosi (July 2017)

Republicans . . . won?tjoin us in the release of the President?s tax returns, which could be
very instructive in terms of any connection to Russia. Why should this President of all
Presidents and all candidates for President in the two major parties, since Gerald Ford,
not release his returns so the American people can know?

Press Conference, Minority Leader Nancy Pelosi (July 13, 2017),
3 1 

Rep. Bill Pascrell (D-NJ) (July 14, 2017)

On February the lst, I wrote a letter to the chairman of the committee which I participate
in, and that is the Ways and Means Committee Chairman Kevin Brady. In that letter, I
asked him to use his existing authority to obtain President Trump's tax returns for review
by our committee.

And I would say, from the get-go here, that a lot of the questions that are being asked
today and have been asked in the past could have been avoided if the president of the
United States had followed the ethics commission and -- to divest himself of all of his
holdings and assets. President chose -- chose not to do that.

And the more we get into 2017, the more we understand how the tax returns are critical.
He could have avoided all this by divesting himself, but the deals that have been made
just at the -- during the time that he's been the president is a reflection.

Every president -- and this has nothing to do with party af?liation, which I said to Kevin
Brady in February of this year -- every president must have a clean when he goes into
that of?ce and raises his hand to be sworn, so that he can be objective in his decisions.
We have no assurances of that right now, and we are not going to simply sit back and
re?ect on the good of his word. I'm not. I don't think many Americans are.

And members of Congress, speci?cally the tax-writing committees, currently have
authority in the tax code to get the president's tax returns, to examine his con?icts of
interest.

Press Conference, Statement by Rep. Bill Pascrell (D-NJ) (July 14, 2017),
142259.

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Case Document 44-3 Filed 09/06/19 Page 164 of 413

Resolution Offered bv Rep. David Cicilline (D-RI) (July 18, 2017)

Expressing the sense of the House of Representatives that the President shall immediately
disclose his tax return information to Congress and the American people.



Whereas, the chairmen of the Committee on Ways and Means, Joint Committee on
Taxation, and the Committee on Finance have the authority to request the President's tax
returns under section 6103 of the Internal Revenue Code of 1986;

an?:

Whereas, without access to the President's tax returns, the American people cannot
determine how much he will personally bene?t from proposed changes to the Tax Code
or from policy decisions he makes, nor can the American peOple fully understand the
?nancial interests and motivations of the President;



Whereas, disclosure of the President's tax returns would help those investigating Russian
interference in the 2016 election and assist them in better understanding the President's
?nancial ties to the Russian Federation, Russian businesses, and Russian individuals;

=8 tit
Resolved, That the House of Representatives shall--

1. Immediately request the tax return and return information of Donald J. Trump for tax
years 2006 through 2015, as provided under section 6103 of the Internal Revenue Code
of 1986, as well as the tax return, and return information with respect to the President's
businesses, of each business entity disclosed by Donald J. Trump on his Of?ce of
Government Ethics Form 278e, speci?cally each corporation and each partnership, within
the meaning of subchapter of chapter 1 of the Internal Revenue Code of 1986, where
he is listed as an of?cer, director, or equivalent, or exercises working control; and

2. Postpone consideration of tax reform legislation until the elected Representatives of
the American people in this House have obtained President Trump's tax returns and
return information to ascertain how any changes to the Tax Code might ?nancially
bene?t the President.

163 Cong. Rec. H594l?42 (daily ed. July 18, 2017) (statement of Rep. Cicilline),
1 7/7/ 1 8/house-section/article/h594 - I.

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Case Document 44-3 Filed 09/06/19 Page 165 of 413

House Resolution 479 (July 27, 2017)
IN THE HOUSE OF REPRESENTATIVES
July 27, 2017

Mr. Pascrell (for himself and Mr. Crowley) submitted the following resolution; which
was referred to the Committee on Ways and Means

Of inquiry directing the Secretary of the Treasury to provide to the House of
Representatives the tax return information of President Donald J. Trump as well as the
tax returns of each business entity disclosed by Donald J. Trump on his Of?ce of
Government Ethics Form 2786.

Resolved, That the Secretary of the Treasury is directed to furnish to the House of
Representatives, not later than 14 days after the adoption of this resolution, the full tax
returns of Donald J. Trump for tax years 2006 through 2016, if available, as well as the
tax returns for such taxable years of each business entity disclosed by Donald J. Trump
on his Of?ce of Government Ethics Form 278e, speci?cally each business entity
speci?ed in section 2 of this resolution; and any supplemental information in the
possession of the President relating to?

(1) the amount of taxes paid by Mr. Trump and each such business entity with respect to
such taxable years;

(2) the debts of Mr. Trump and such business entities which are held by foreign
governments or foreign companies;

(3) the investments of Mr. Trump and such business entities which are in foreign
countries or foreign enterprises;

(4) Mr. Trump?s personal and business pro?ts received from foreign enterprises;

(5) the amount of charitable giving claimed by Mr. Trump with respect to such taxable
years; and

(6) any use of tax shelters or other loopholes to reduce the amount of taxes owed.
a:
HR. Res. 479, 155th Cong. (2017), lSth-congress/house-

resolution/479.

Ranking Member Richard Neal (Sept. 7, 2017)

Mr. Pascrell?s resolution would direct the Treasury Secretary to provide the House with
the personal and business tax returns and other ?nancial information of President Trump.

Page 34 of 42

Case Document 44-3 Filed 09/06/19 Page 166 of 413

Let me refresh everyone?s memories on the facts here. Until recently, every President
since Gerald Ford released their tax returns to the American public. President Gerald
Ford releaseda summary of his tax returns. President Jimmy Carter. President Ronald
Reagan. President George H.W. Bush. President Bill Clinton. President George W. Bush.
President Barack Obama.

Republican and Democratic Presidents. They all released their tax returns to the
American people.

This is not a partisan issue. The reason for releasing this information is to avoid conflicts
of interest. Tax returns include important information about income and charitable giving
and business interests, among other things. And this information is important for the
American people to have so they know that their President is always acting in their best
interest.

Therefore, I support my friend Mr. Pascrell?s resolution. Ibelieve it?s in our country?s
best interest for our Presidents to release their tax returns.

H. Comm. on Ways Means, Markup of H. Res. 479, 1 15th Cong., Opening Statement of
Ranking Member Neal (Sept. 7, 2017), 


Rep. Bill Pascrell (D-NJ) (Sept. 7, 2017)

What we need to explore are the possibilities of conflicts of interest. This is not
something we made up, this is provided by the law. It is a ?shing expedition. Why?
Because we don?t have the conclusion. You don?t get to the conclusion until you
investigate, and we have that authority under the law. If you looked at the word, ?under
IRS audit" I want you to prove to me that he is still under audit.

H. Comm. on Ways Means, Markup of Res. 479, 115th Cong, at 47:51 (Sept. 7, 2017)
(Statement of Rep. Pascrell), 

Minoritv Leader Nancy Pelosi (Apr. 17, 2018)

While Americans ?le their taxes, Tax Day also serves as a bitter reminder that President
Trump still refuses to show the public his tax returns. Hard-working families deserve to
know how their president has padded his own pockets with a tax scam that in?icts such
damage on the deficit and the future of Social Security and Medicare. As Republicans in
Congress refuse to demand this basic measure of transparency and accountability from
President Trump, we must ask: what does President Trump have to hide?

Press Release, Minority Leader Nancy Pelosi, Statement on Tax Day (Apr. 17, 2018),


Page 35 of 42

Case Document 44-3 Filed 09/06/19 Page 167 of 413

Rep. Lloyd Doggett (D-TX) (Sept. 13, 2018)

We of course cannot know whether the bene?t for Trump will be bigly or just huge until
we lift this cover up of the Trump tax returns. As the smoke continues to build with one
revelation after another, there?s greater need than ever to see what Trump may be hiding
in those returns, the working papers to explain them, and those for the 500 business
entities which stretch from Manhattan to Azerbaijan. Trump?s tax returns relate directly
to what is before us today.

H. Comm. on Ways Means, Full Committee Markup for Tax Reform 2.0, 115th Cong., at
1:29:00 (Sept. 13, 2018) (Statement of Rep. Doggett), 

Rep. Llovd D0226tt (Sept. 13, 2018)

The stench of corruption permeates this Administration, and it comes right from the top.
This amendment is designed to end the Republican coveru-p of Trump?s tax returns.
While this amendment seeks to achieve the same result that I have sought with 5 prior
attempts in this committee, it includes extensive new ?ndings from some of the notable
developments of recent months that make clear we are not only dealing with the self-
described ?King of Debt,? but someone who continues to act as if he were just King.

Trump?s tax returns relate directly to what is before us today. There is no issue this
Committee could consider more important than the integrity of our tax code, and the faith
that the American people have in our democracy. Trump has surrounded himself with
convicted tax evaders rich friends who have decided they are above the law, and that
working people who can?t afford fancy tax lawyers should have to pick up the slack.
Even Richard Nixon invited the Joint Committee on Taxation to review his tax returns,
explaining that ?people have got to know whether or not their President is a crook.?

While this Committee has refused to do its job?while in this Congress instead of
oversight, we have been overlooking Administration misconduct?the President?s tax
returns have in fact already been reviewed. That was a review that, amazingly, President
Trump presented as his ?Good Housekeeping Seal of Approval ?to assure America he had
no business dealings with the Russians.? It was a review of his tax returns by his personal
law ?rm, which, of course, gave him a clean bill of health on any Russian connection?
only months after it boasted of the ?prestigious honor? of being named ?Russia Law Firm?
of the year. I am only asking that this Committee do for the American people what the
?Russia Law Firm of the Year? has done for Mr. Trump.

Before this Committee considers a dime of more tax breaks, we must obtain and review
the President?s tax returns. Any tax bill released should be accompanied by a line-by-line
report of how much Trump, his family, and his companies will bene?t from each one.

His tax returns can help tell us whether he is putting America First, or Trump ?rst, his
family second, and Russian third.

Page 36 of 42

Case Document 44-3 Filed 09/06/19 Page 168 of 413

Press Release, Rep. Lloyd Doggett (D-TX), Rep. Doggett Offers Amendment to Secure Trump
Tax Returns, Meet the Nixon Standard (Sept. 13, 2018), 



Press Account Quoting Ranking Member Richard Neal (Oct. 3, 2018)
?This has never happened before, so you want to be very meticulous.?

Robert Rubin, Trump 's Tax Returns in the Spotlight if Democrats Capture the House, Wall St. .,
Oct. 3, 2018, 
capture-the-house? 1 53 8575 880.

Press Account Quoting Ranking Member Richard Neal (Oct. 12, 2018)

think we would all be comfortable if this was done on a voluntary basis,? Neal said.

?If they would resist the overture then I think you could probably see a long and grinding
court case," he added.



?It is not cut and dry," Neal said, noting that there was still plenty of discussion ahead for
how and when to request the returns of?cially.


?Anticipate a long court case in the end,? Neal said.

Lauren Fox, Leading Democrat on House Ways and Means would ask for Trump '3 tax returns,
CNN, Oct. I2, 2018, 


Press Account Quoting Minority Leader Nancy Pelosi (Oct. 10, 2018)

Expect Democrats to immediately try to force President Trump to release his tax returns
if they take back the House in November, Minority Leader Nancy Pelosi said
Wednesday.

Demanding the president?s tax returns ?is one of the ?rst things we?d do that?s the
easiest thing in the world. That?s nothing," Pelosi told The Chronicle?s editorial board in
an hour-long interview.

John Wildermuth, Pelosi: Trump?s tax returns are fair game If Democrats win House, S.F.

Chron., Oct. 11, 2018, 


Page 37 of 42

Case Document 44-3 Filed 09/06/19 Page 169 of 413

Press Account Quoting Minority Leader Nancy Pelosi (Dec. 13, 2018)

House Minority Leader Nancy Pelosi (D-Calif.) said Thursday that she expects a House
committee to ?take the ?rst steps? toward obtaining President Trump?s tax returns after
Democrats take control of the chamber next month, but she cautioned that securing them
is ?a little more challenging than you might think."

?There is popular demand for the Congress to request the president?s tax returns,? said
Pelosi, who is likely to become House speaker. ?I'm sure the White House will resist, so
the question is, ?Where do we go from there??

John Wagner, Pelosi says she expects a House committee will ?take the ?rst steps" toward
obtaining Trump ?5 tax retums, Wash. Post, Dec. 13, 2018,

13/fbc02660-feec-1 le8-862a?


Press Account Quoting Spokesperson for Ranking Member Richard Neal (Jan. 2, 2019)

Rep. Richard Neal who will be the new Ways and Means Committee
chairman, wants to take some time to try to build a case with the public about why Trump
ought to voluntarily release his tax ?lings, before tapping an obscure law that allows the
heads of Congress? tax committees to examine anyone?s returns.

?He wants to lay out a case about why presidents should be disclosing their tax returns
before he formally forces him to do it,? said Dan Rubin, a Neal spokesperson. Pulling the
legal trigger may not come until February at the earliest.



?He is a very policy-driven person, and I think he sees that if we break the glass and pull
that alarm, you won?t get anything done after that,? said Rubin.

Brian Faler, Incoming Democratic tax chairman won 't make quick grab for Trump ?3 returns,
Politico, Jan. 2, 2019, 
richard-neal-1056839, 


Press Account Quoting Chairman Richard Neal (Jan. 23, 2019)

The chairman of the House Ways and Means Committee, US. Rep. Richard Neal, D-
Spring?eld, said Wednesday he plans to request President Trump?s tax returns, but
expects a drawn-out legal battle to result, and thus is choosing his words carefully on the
matter.

Page 38 of 42

Case Document 44-3 Filed 09/06/19 Page 170 of 413

plan to do it," Mr. Neal said in a visit to the Telegram Gazette of?ces. ?We are now
in the midst of putting together the case. It will be a long and grinding legal case.?



Mr. Neal added: hope the president will voluntarily release his tax documents. I don?t
think that, given the conversation so far, there is any indication he intends to do that. I
also think the public has reasonably come to expect that presidential candidates and
aspirants release those documents. It?s likely to end up in a court case.?

?We need to approach this gingerly and make sure the rhetoric that is used does not
become a footnote to the court case."

He said: ?I?ve been meticulous about my choice of words, for good reason.?

Mark Sullivan, Powerful Ways and Means chainnan Neal to pursue ?5 tax returns,
Telegram Gazette, Jan. 23, 2019, 



Press Account Quoting Chairman Richard Neal (Jan. 24, 2019)

House Ways and Means Chairman Richard E. Neal said Thursday he plans to approach
the tricky topic of obtaining President Donald Trump?s tax returns ?methodically and
judiciously.?

Neal said he started to have ?preliminary conversations? about the issue after he was
named chairman-designate on Dec. 20, before he formally assumed the position after the
1 16th Congress began earlier this month.

?One of the things you have to be mindful of is that this has to be a part of a carefully
prepared and documented legal case," said Neal, D-Mass. ?And it?s not subject to just
whim and the emotion of the moment.?

Added Neal: ?This has to be prepared in accordance with staff, House counsel and an
understanding that this is likely to become the basis of a long and arduous court case.?



?We?re in this precarious period of time when the American people aren?t quite sure of
what to believe about many, many issues,? Neal continued. ?So again, methodically and
judiciously we?ll proceed.?

Doug Sword, Neal: ?Long and Arduous Process to Get Trump Tax Returns, CQ, Jan. 24,
2019, 

Page 39 of 42

Case Document 44-3 Filed 09/06/19 Page 171 of 413

Speaker Nancy Pelosi (Feb. 7, 2019)

I think, overwhelmingly, the public wants to see the President?s tax returns. And so, they
want to know the truth. They want to know the facts. And he has nothing to hide.

I?ll just tell you this and go on from there, because we have important work to do, and we
have important judgments to make, and we need information to make those judgments.



You have to be very, very careful if you go forward.

As I said, we are in our ?rst month. The committees have been appointed. They have
organized. They are prioritizing their work and, in terms of the tax issue, it?s not a
question of just sending a letter. You have to do it in very careful way. And the
chairman of the committee will be doing that.

So, I know there?s this impatience because people want to know, that answers the
question, but we have to do it in a very careful way.

Press Conference, Speaker Nancy Pelosi (Feb. 7, 2019),


Rep. Dan Kildee (D-MI) (Feb. 7, 2019)

Well, the committee has a right to the returns. The law was written because it expected
that a moment may occur where there?s a public interest in having a tax return gained by
the committee in order to evaluate it, or acquired by the committee for this kind of
evaluation.

What we need to do, and what the speaker said, and what Chairman Neal is absolutely
doing is lay the record, lay the groundwork, make the justi?cation to use this rarely used
authority in order to make sure that we have a solid legal basis. So, today?s hearing was
very much focused on laying a legal foundation to explore what the law allows us to do,
to understand that completely, to make sure that we?re doing this in a methodical way.

This is unchartered territory. It?s clear that the president does not want some information
that is included in his tax return to be revealed, otherwise he would not have broken with
50 years of norms that Democrats and Republicans have adhered to releasing tax returns.
There?s a reason he doesn?t want them there.

So he will ?ght this, and he probably ?ght it as far as he can, because we expect that and
for the reasons that I already stated, this is unchartered territory. It?s very important that
we?re methodical and we lay the foundation for the public purpose to acquire access to
these returns and that?s the process that we?re going through now.

an?:

Page 40 of 42

Case Document 44-3 Filed 09/06/19 Page 172 of 413

The public has a right to know whether or not their elected of?cials are bene?ting from
the decisions that they make using the public responsibilities that the public has vested in
them.

So whether it?s his personal entanglements, debt or the decisions that he?s making on
policy going forward, this is the reason disclosure is so important, this is the reason that
past candidates and presidents have released their returns, so the public will know
whether or not the individual has entanglements that could impact their public decision
making, and that?s really the purpose behind this entire area of inquiry for us.

All In with Chris Hayes television broadcast Feb. 7, 2019),



Press Account Quoting Rep. Bill Pascrell (D-NJ) (Feb. 26, 2019)

?Evidence that Trump has abused our tax laws is plentiful,? Rep. Bill Pascrell (D-NJ),
who has been making the case for pursuing Trump?s tax returns under Section 6103
essentially since Trump was inaugurated, said in an emailed statement to Vox. He cited a
New York Times investigation into Trump and his family?s tax practices that suggested
the family for years engaged in a number of schemes to avoid taxes, and leaked pages
from Trump?s 1995 and 2005 tax returns; the 1995 ones show a nearly $1 billion loss.

?Americans have a right to know if their president has paid his taxes, if he has followed
the law, and if he is free from ?nancial con?icts of interest,? Pascrell continued. ?The
law is clear. Under 6103, the Ways and Means Committee chairman is entitled to request
Trump?s tax returns and the Treasury secretary is obligated to deliver them. That?s all
there is to it.?

Emily Stewart, Democrats? coming battle to get Trump ?s tax returns, expiat'tted, Vox, Feb. 26,
2019, 1 9/2/26] 18223760/democrats-


Sneaker Nancv Pelosi (Apr. 4, 2019)

No president in the modern era has worked so diligently to keep their tax returns out of
the public eye. What is President Trump hiding?

@SpeakerPelosi, Twitter (Apr. 4, 2019),
1 13886412649189376.

Press Account Quoting Chairman Richard Neal (Apr. 5, 2019)

Neal told reporters on Thursday that he took roughly three months to build the case for
requesting the returns, which he argued was reasonable given the gravity of the request.

Page 41 of 42

Case Document 44-3 Filed 09/06/19 Page 173 of 413

?This was a very reasoned approach. Our position from day one was that this would be
measured,? Neal said. ?This is likely to wind its way through the federal court system and
we wanted to make sure that the case that we constructed was in fact one that would

stand up under the critical scrutiny of the federal courts.?

Sunlen Serfaty et Republicans warn Trump tax request ?sets a dangerous standard? and
accuse Dems of weaponizfng IRS, CNN, Apr. 5, 2019,



Page 42 of 42

Case Document 44-3 Filed 09/06/19 Page 174 of 413

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 175 of 413
Vaughan, Frederick
From:
Sent:
To:
Cc:
Subject:
Attachments:

Vaughan, Frederick
Monday, May 6, 2019 5:23 PM
'brandon.casey@mail.house.gov'
'gary.andres@mail.house.gov'
Treasury correspondence
Secretary Mnuchin Response to Chairman Neal (2019‐05‐06).pdf; Appendix A ‐ 
Chronology (5.6.19).pdf; Appendix B ‐ Additional Statements (5.6.19).pdf

Brandon 
 
Attached is a letter from Secretary Mnuchin to Chairman Neal, along with updated appendices concerning the 
Committee’s request. 
 
Best, Fritz 
 
-Frederick W. Vaughan
Deputy Assistant Secretary
Legislative Affairs
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
202-622-2678

 

1

 Page 176 of 413

 

DEPARTMENT OF THE TREASURY
WASHINGTON, D.c.

SECRETARY OF THE TREASURY

May 6, 2019

The Honorable Richard E. Neal
Chairman

Committee on Ways and Means
US. House of Representatives
Washington, DC 20515

Dear Chairman Neal:

I write in further response to your letter of April 3, 2019, requesting the con?dential tax returns
(and other return information) of President Trump and related business entities for 2013 through
2018, pursuant to 26 U.S.C. 6103(f).

As you have recognized, the Committee?s request is unprecedented, and it presents serious
constitutional questions, the resolution of which may have lasting consequences for all taxpayers.
Accordingly, the Department of the Treasury has consulted with the Department of Justice
concerning the lawfulness of your request. As explained in my April 23 letter, the Committee?s
statutory authority under section 6103 is bounded by Congress?s authority under the
Constitution, and the Supreme Court has held that the Constitution requires that Congressional
information demands must reasonably serve a legitimate legislative purpose.

In reliance on the advice of the Department of Justice, I have determined that the Committee?s
request lacks a legitimate legislative purpose, and pursuant to section 6103, the Department is
therefore not authorized to disclose the requested returns and return information.

The Department of Justice has informed us that it intends to memorialize its advice in a
published legal opinion as soon as practicable. Out of respect for the deadlines previously set by
the Committee, and consistent with our commitment to a prompt response, I am informing you
now that the Department may not lawfully ful?ll the Committee?s request.

Although the Department is unable to provide you with the requested con?dential tax returns and
return information, we renew our previous offer to provide information concerning the
Committee?s stated interest in how the IRS conducts mandatory examinations of Presidents, as
provided by the Internal Revenue Manual. If the Committee is interested, we remain committed
to providing such an accommodation.

Sincerely,
N?uk
Steven T. Mnuchin

cc: The Honorable Kevin Brady, Ranking Member

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 177 of 413

APPENDIX A
Chronology
Updated May 6, 2019

The 2016 Election
The effort to expose President Trump’s tax returns began during the 2016 election. The
Democratic candidate for President urged then-candidate Trump to release his returns. When he
declined to do so, the Democratic candidate sought to generate political pressure to force their
release, repeatedly criticizing his decision and expressing her belief that public exposure of the
returns would be politically damaging to her opponent.1
Representative Neal’s Advocacy for Exposure
When President Trump took office after the election, the House Minority Leader and senior
Democratic members of the Committee on Ways and Means (including Ranking Member Neal)
took up their party’s election season demands in Congress. Their chosen tool was
section 6103(f). The stated rationales have shifted over time, but the objective remained
constant: Use section 6103(f) to obtain the tax returns and make them public.
As Ranking Member of the Committee, Representative Neal immediately began urging the
Committee to obtain President Trump’s tax returns for the purpose of releasing them. In
February 2017, he explained his desire for a public opportunity to “see the tax forms” and for
“the media to sift and sort” them.2 In March 2017, Ranking Member Neal and other Members
urged Chairman Kevin Brady to submit a section 6103(f) request “for copies of the President’s

See, e.g., The Lead with Jake Tapper (transcript of CNN television broadcast May 11, 2016) (“[W]hy doesn’t he
want to release them? Yes, well, we’re going to find out.”),
http://www.cnn.com/TRANSCRIPTS/1605/11/cg.01 html; New Day (transcript of CNN television broadcast Aug. 2,
2016) (“We would like to see those tax returns, wouldn’t we?”),
http://www.cnn.com/TRANSCRIPTS/1608/02/nday.03 html; The Situation Room (transcript of CNN television
broadcast Aug. 12, 2016) (“He refuses to do what every other presidential candidate in decades has done and release
his tax returns.”), http://www.cnn.com/TRANSCRIPTS/1608/12/sitroom.01 html; Erin Burnett OutFront (transcript
of CNN television broadcast Sept. 6, 2016) (“He said that the American people don’t care about his tax returns, and
in fact, he’s also said that it’s none of our business. I just think he’s dead wrong.”),
http://www.cnn.com/TRANSCRIPTS/1609/06/ebo.01 html; The Situation Room (transcript of CNN television
broadcast Sept. 7, 2016) (“He clearly has something to hide.”),
http://www.cnn.com/TRANSCRIPTS/1609/07/sitroom.02.html; CNN Newsroom (transcript of CNN television
broadcast Sept. 27, 2016) (“[M]aybe he doesn’t want the American people, all of you watching tonight, to know that
he’s paid nothing in Federal taxes. . . .”), http://www.cnn.com/TRANSCRIPTS/1609/27/cnr.03 html.
1

2

Press Conference, Statement by Rep. Richard Neal, C-SPAN Video, at 19:10–20:19 (Feb. 14, 2017),
https://www.c-span.org/video/?424013-1/house-democrats-call-investigation-wake-michael-flynns-resignation.

1

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 178 of 413

federal tax returns for the last ten years.”3 They explained that the Committee should “then vote
. . . to submit the President’s federal tax returns to the House of Representatives and Senate—
thereby, if successful, making them available to the public.”4 In April 2017, Ranking Member
Neal recalled the 2016 election and asserted that President Trump was “supposed to” have made
these returns available to the public as a candidate.5
Ranking Member Neal also served as an original cosponsor of a resolution of inquiry, H. Res.
186, providing that “the Secretary of the Treasury is directed to furnish to the House of
Representatives, not later than 10 days after the adoption of this resolution, the full tax returns of
Donald J. Trump for tax years 2006 through 2015.”6 Ranking Member Neal explained that the
resolution was designed to force the immediate public exposure of those returns.7
On March 30, 2017, the Committee voted down H. Res. 186 and issued a report condemning the
resolution as an “abuse of authority.”8 In dissenting views included in the committee report,
Ranking Member Neal reiterated his “steadfast” objective of exposing the President’s tax returns
to the public:
Committee Republicans continue to block our requests for this Committee to
exercise its authority under Section 6103 of the Internal Revenue Code to obtain,
examine, and make available to the public President Trump’s federal tax
returns. . . . Committee Democrats remain steadfast in our pursuit to have
[President Trump’s] individual tax returns disclosed to the public.9
Ranking Member Neal’s dissenting views made no mention of any interest in understanding how
the IRS audits and enforces the Federal tax laws against a President, as the Committee’s April 3
letter now asserts.

3

Letter from Hon. Bill Pascrell, Jr., et al., to Hon. Orrin Hatch, Chairman, S. Comm. on Finance, & Hon. Kevin
Brady, Chairman, H. Comm. on Ways & Means (Mar. 2, 2017),
https://pascrell house.gov/news/documentsingle.aspx?DocumentID=1898.
4

Id.

“This is not about the law, this is about custom and practice. It’s a settled tradition . . . candidates reach the level
of expectation that they’re supposed to release their tax forms.” Press Conference, Statement by Ranking Member
Richard Neal (Apr. 5, 2017), https://www.speaker.gov/newsroom/4517/.
5

6

H.R. Res. 186, 115th Cong. (Mar. 9, 2017).

7

See id.; H.R. Rep. No. 115-73, Dissenting Views, at 8 (Mar. 30, 2017),
https://www.congress.gov/115/crpt/hrpt73/CRPT-115hrpt73.pdf (hereinafter Ways & Means Report).
8

Ways & Means Report, supra note 7, at 3.

9

Id., Dissenting Views, at 7–8 (emphasis added).

2

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Other Senior House Democrats’ Advocacy for Exposure
Leader Pelosi and other senior Ways and Means Committee members also repeatedly stated that
the purpose of requesting President Trump’s tax returns was to “make those tax returns public.”10
Leader Pelosi explained that requesting the returns would satisfy the public’s “right to know”11
and complained that Republicans “won’t join us in the release of the President’s tax returns.”12
Exposure for the sake of exposure was the one constant purpose that drove the requests that
Ranking Member Neal and other senior Committee members advocated throughout the previous
Congress. In addition, Congressional leaders offered a wide variety of evolving rationales and
speculation about what, if anything, might be found in the tax returns upon their exposure.
Before the conclusion of the Special Counsel’s investigation, a common theory was that the
President’s tax returns would show “the President’s relationship with Russia,”13 “disruption of
our [2016] election,”14 and “any personal embarrassment to the President.”15 Leader Pelosi
speculated: “We think [the returns] will show us some connection that will be useful in the
investigation of what do the Russians have on Donald Trump . . . .”16
Another theory offered by the lead sponsor of H. Res. 186, Representative Pascrell, was that
exposure of the President’s tax returns would help “make sure the President and his family are
not hiding financial ties that could cause conflicts in the decision making.”17 Representative
Pascrell also thought it was “imperative for the public to know” the President’s “self-reported net
worth,”18 and Ranking Member Neal thought they should know “just how extensive [his]
overseas investments have been,” based on the tax returns.19
In yet another theory, Ranking Member Neal’s dissent in support of H. Res. 186 explained that
the President’s tax returns would give the “clearest picture” of the President’s “financial health”
and inform the consideration of tax reform legislation (which was enacted in December 2017).20
10

Press Conference, Minority Leader Nancy Pelosi, House Democratic Leadership Press Conference at 2017 Issues
Conference (Feb. 8, 2017), https://www.speaker.gov/newsroom/282017/ (hereinafter 2017 Issues Conference).
11

163 Cong. Rec. H2498 (daily ed. Mar. 28, 2017) (statement of Rep. Pelosi),
https://www.congress.gov/congressional-record/2017/03/28/house-section/article/H2489-1.
12

Press Conference, Minority Leader Nancy Pelosi (July 13, 2017), https://www.speaker.gov/newsroom/71317-8/.

13

2017 Issues Conference, supra note 10.

14

Press Conference, Minority Leader Nancy Pelosi (Mar. 8, 2017), https://www.speaker.gov/newsroom/382017-2/.

15

Id.

16

Press Conference, Minority Leader Nancy Pelosi (Apr. 6, 2017), https://www.speaker.gov/newsroom/4617-4/.

17

Press Conference, Statement by Rep. Bill Pascrell (July 14, 2017), http://www.cq.com/doc/newsmakertranscripts5142259; see also House Democrats on Russian Interference in 2016 Election, C-SPAN Video (July 14, 2017),
https://www.c-span.org/video/?431350-1/democrats-step-pressure-gop-amid-widening-russia-probe.
18

Letter from Hon. Bill Pascrell, Jr., to Hon. Kevin Brady, Chairman, H. Comm. on Ways & Means (Feb. 1, 2017),
https://pascrell house.gov/news/documentsingle.aspx?DocumentID=2195.
19

Press Conference, Rep. Richard Neal, C-SPAN Video, at 19:46 (Feb. 14, 2017), https://www.cspan.org/video/?424013-1/house-democrats-call-investigation-wake-michael-flynns-resignation.
20

Ways & Means Report, supra note 7, Dissenting Views, at 7.

3

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Other theories included speculation that the tax returns would expose the President’s
“emoluments;”21 would show his “charitable donations” or “tax loopholes;”22 would reveal
whether he had a “Chinese connection;”23 or would “maybe . . . be a path to some other
questions.”24 At other times, Leader Pelosi simply explained that exposure of the President’s tax
returns would “fulfill” a campaign “promise,” or would “honor tradition.” 25
Although the efforts to force the public release of President Trump’s tax returns in the previous
Congress failed (despite numerous letters, committee amendments, resolutions, and other
attempts),26 Leader Pelosi made clear that the effort would continue if Democrats took the House
in 2018. The San Francisco Chronicle reported in October 2018 that Leader Pelosi “told the
[paper’s] editorial board” that “[d]emanding the president’s tax returns ‘is one of the first things
we’d do—that’s the easiest thing in the world.’”27
The Committee’s Construction of a Pretextual Purpose
With a new Democratic majority in the House, the Committee pressed ahead in the effort to
obtain and release the President’s tax returns. Chairman Neal had recognized the unprecedented
nature of the Committee’s planned request: “This has never happened before, so you want to be
very meticulous.”28

21

Letter from Hon. Richard E. Neal, Ranking Member, H. Comm. on Ways & Means, et al., to Hon. Paul Ryan,
Speaker, U.S. House of Reps., at 2, 6 (Jan. 12, 2017),
https://oversight house.gov/sites/democrats.oversight.house.gov/files/documents/2017-0112.Ranking%20Members%20to%20Speaker%20Ryan%20Re.Trump_.pdf; see also Amendment offered by Rep.
Doggett to the Authorization and Oversight Plan of the H. Comm. on Ways & Means, 115th Cong. (Feb. 14, 2017),
https://gop-waysandmeans house.gov/wp-content/uploads/2017/02/20170214-Doggett-Amendment.pdf.
22

See, e.g., 163 Cong. Rec. H4212-13 (daily ed. May 16, 2017) (statement of Rep. Pascrell),
https://www.congress.gov/congressional-record/2017/05/16/house-section/article/H4212-1.
23

Press Conference, Minority Leader Nancy Pelosi, Demanding a Vote Requiring President Trump to Release Tax
Returns (Apr. 5, 2017), https://www.speaker.gov/newsroom/4517/ (hereinafter Pelosi Press Conference Apr. 5,
2017).
24

Press Conference, Minority Leader Nancy Pelosi (June 2, 2017), https://www.speaker.gov/newsroom/6217-4/.

Blog Post, Minority Leader Nancy Pelosi, Where are President Trump’s Tax Returns? (June 20, 2017),
https://www.speaker.gov/newsroom/where-are-president-trumps-tax-returns/.
25

See Rep. Bill Pascrell, President Trump’s Tax Returns, https://pascrell.house.gov/issues/president-trumps-taxreturns/ (last visited May 6, 2019).
26

John Wildermuth, Pelosi: Trump’s tax returns are fair game if Democrats win House, S.F. Chron., Oct. 11, 2018
(quoting Minority Leader Pelosi), https://www.sfchronicle.com/politics/article/Pelosi-Trump-s-tax-returns-are-fairgame-if-13297954.php.
27

Richard Rubin, Trump’s Tax Returns in the Spotlight if Democrats Capture the House, Wall St. J., Oct. 3, 2018,
https://www.wsj.com/articles/trumps-tax-returns-in-the-spotlight-if-democrats-capture-the-house-1538575880.
28

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In January 2019, the Committee spokesperson explained the plan to “force” the disclosure of the
President’s returns: “‘[Chairman Neal] wants to lay out a case about why presidents should be
disclosing their tax returns before he formally forces [the President] to do it.’”29
Because Congress may only conduct investigations to further a legitimate legislative purpose,
Congressional investigations ordinarily begin with a legislative purpose, and that purpose defines
the scope of the documents that are pertinent to the Committee’s investigation.30 But here, by
the Committee’s own admission, the Committee’s investigation began in the opposite direction.
The Committee started with the documents it planned to obtain and release (the President’s tax
returns), and then it sought—in Chairman Neal’s words—to “construct[]” a “case” for seeking
the documents that would appear to be in furtherance of a legitimate legislative purpose.31
The Committee knew that exposure for the sake of exposure would not be a legitimate purpose,
and so the Committee could no longer rely upon prior statements to that effect. At the same
time, the Committee lacked jurisdiction to rely upon other frequently cited public justifications
for the request—such as interest in “the Russia connection”32 and the President’s alleged
financial conflicts of interest. Other House committees might have tried to make 6103(f)
requests based upon such justifications, but no other House committee would have the authority
to publicly release the tax returns after obtaining them. As the Committee was advised by the
former Chief of Staff of the Joint Committee on Taxation, there is “one key for purposes of
disclosing the information to the public” and the statute “gave that key to the tax committees.”33
To use this key, the Committee on Ways and Means had to make the request, and the other
justifications that might have been offered by other committees had to be discarded.
Thus, the Committee with the key to publicly disclose the tax returns, in Chairman Neal’s words,
“constructed” a “case” to justify its request.34 The result was the Committee’s letter of April 3,
asserting a single legislative interest in “the extent to which the IRS audits and enforces the

Brian Faler, Incoming Democratic tax chairman won't make quick grab for Trump’s returns, Politico (Jan. 2,
2019) (quoting Committee Spokesperson), https://www.politico.com/story/2019/01/02/congress-trump-tax-returnsrichard-neal-1056839.
29

30

See 165 Cong. Rec. S2260 (daily ed. Apr. 4, 2019) (statement of Sen. Grassley),
https://www.congress.gov/116/crec/2019/04/04/CREC-2019-04-04-senate.pdf.
Sunlen Serfaty et al., Republicans warn Trump tax request ‘sets a dangerous standard’ and accuse Dems of
weaponizing IRS, CNN, Apr. 5, 2019, https://www.cnn.com/2019/04/04/politics/trump-tax-returns-requestrepublicans-congress/index.html (“[W]e wanted to make sure that the case that we constructed was in fact one that
would stand up under the critical scrutiny of the federal courts.”).
31

32

Pelosi Press Conference Apr. 5, 2017, supra note 23.

33

Transcript, Legislative Proposals and Tax Law Related to Presidential and Vice-Presidential Tax Returns:
Hearing before Subcomm. on Oversight, H. Comm. on Ways & Means, 116th Cong. (Feb. 7, 2019) (statement of
George K. Yin),
https://waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/documents/Transcript%20%20Final.pdf.
34

Serfaty, supra note 31 (quoting Chairman Neal).

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Federal tax laws against a President,” and requesting the tax returns and related documents of
just one of them—President Trump.35

Letter from Hon. Richard E. Neal, Chairman, H. Comm. on Ways & Means, to Hon. Charles P. Rettig, Comm’r,
IRS (Apr. 3, 2019),
https://waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/documents/Neal%20Letter%20to%
20Rettig%20%28signed%29%20-%202019.04.03.pdf.
35

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APPENDIX B
Additional Statements
Updated May 6, 2019

Presidential Candidate Hillary Rodham Clinton (May 11, 2016)
When you run for president, especially when you become the nominee, that is kind of
expected. My husband and I have released 33 years of tax returns. We have got eight
years on our Web site right now. So you have got to ask yourself, why doesn't he want to
release them? Yes, well, we're going to find out.
The Lead with Jake Tapper (transcript of CNN television broadcast May 11, 2016),
http://www.cnn.com/TRANSCRIPTS/1605/11/cg.01.html.
Presidential Candidate Hillary Rodham Clinton (Aug. 2, 2016)
We would like to see those tax returns, wouldn't we?
New Day (transcript of CNN television broadcast Aug. 2, 2016),
http://www.cnn.com/TRANSCRIPTS/1608/02/nday.03.html.
Presidential Candidate Hillary Rodham Clinton (Aug. 12, 2016)
He refuses to do what every other presidential candidate in decades has done and release
his tax returns.
The Situation Room (transcript of CNN television broadcast Aug. 12, 2016),
http://www.cnn.com/TRANSCRIPTS/1608/12/sitroom.01.html.
Presidential Candidate Hillary Rodham Clinton (Sept. 6, 2016)
He said that the American people don't care about his tax returns, and in fact, he’s also
said that it’s none of our business. I just think he’s dead wrong. He clearly has something
to hide.
***
The scams, the frauds and the questionable relationships, the business activities that have
stiffed workers, refused to pay small businesses, so, clearly, his tax returns tell a story
that the American people deserve and need to know.

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Erin Burnett OutFront (transcript of CNN television broadcast Sept. 6, 2016),
http://www.cnn.com/TRANSCRIPTS/1609/06/ebo.01.html.
Presidential Candidate Hillary Rodham Clinton and Vice Presidential Candidate Tim Kaine
(Sept. 7, 2016)
Clinton: He clearly has something to hide. We don’t know exactly what it is, but we’re
getting better guesses.
***
Kaine: Maybe he doesn’t want people to see that he’s got some connections.
The Situation Room (transcript of CNN television broadcast Sept. 7, 2016),
http://www.cnn.com/TRANSCRIPTS/1609/07/sitroom.02.html.
Presidential Candidate Hillary Rodham Clinton (Sept. 27, 2016)
[M]aybe he doesn’t want the American people, all of you watching tonight, to know that
he’s paid nothing in Federal taxes. . . .
CNN Newsroom (transcript of CNN television broadcast Sept. 27, 2016),
http://www.cnn.com/TRANSCRIPTS/1609/27/cnr.03.html.
Ranking Member Richard Neal (Jan. 12, 2017)
We request that you join us in fulfilling our sworn constitutional duty by seeking and
obtaining copies of the following documents: President-Elect Trump’s personal and
corporate tax returns, domestic and foreign, for the past five years, regardless of whether
they are still under audit . . . and all other documents necessary to help protect against
violations of the Emoluments Clause of the Constitution and conflicts of interest,
including with foreign adversaries such as Russia.
Letter from Hon. Richard E. Neal, Ranking Member, H. Comm. on Ways & Means, et al., to
Hon. Paul Ryan, Speaker, U.S. House of Reps. (Jan. 12, 2017),
https://oversight.house.gov/sites/democrats.oversight.house.gov/files/documents/2017-0112.Ranking%20Members%20to%20Speaker%20Ryan%20Re.Trump_.pdf.
Rep. Bill Pascrell (D-NJ) (Feb. 1, 2017)
President Trump has chosen to keep an ownership stake in his businesses, the scope of
which we have no knowledge of as he has refused to disclose his tax returns. We believe
that it is imperative for the public to know and understand his 564 financial positions in
domestic and foreign companies and his self-reported net worth of more than $10 billion.
We know that state-owned enterprises in China and the United Arab Emirates are
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involved in his businesses, and that his business ties stretch to India, Turkey, the
Philippines, and beyond. Russia, Saudi Arabia, and Taiwan may also have ties to his
businesses. These foreign entities are paying rents, licensing agreement payments, and
issuing permits for developments – effectively giving them a tool to influence our new
President.
***
If the President does not either release his returns or consent to examination of such
returns by this Committee, I urge you, as Chairman of the Committee and pursuant to
Section 6103(f)(1) of the Internal Revenue Code, to submit a written request to the
Secretary of the Treasury for copies of the President’s federal tax returns by February 15,
2017. These returns and all accompanying return information should then be made
available for examination by all Committee Members in a closed executive
session. I further request that the Committee then vote in this closed session to submit
the President’s federal tax returns to the House of Representatives—thereby, if
successful, making them available to the public.
***
I believe the powerful Ways and Means Committee has the responsibility to use that
power to ensure proper oversight of the executive branch by requesting a review of
President Trump’s tax returns and moving towards a formal release of these documents to
the public.
Letter from Hon. Bill Pascrell, Jr. to Hon. Kevin Brady, Chairman, H. Comm. on Ways & Means
(Feb. 1, 2017), https://pascrell.house.gov/news/documentsingle.aspx?DocumentID=2195.
Minority Leader Nancy Pelosi (Feb. 5, 2017)
I want to know what the Russians have on Donald Trump. I think we have to have an
investigation by the FBI into his financial, personal, and political connections to Russia,
and we want to see his tax returns, so we can have truth in the relationship between Putin,
whom he admires, and Donald Trump.
Meet the Press (NBC television broadcast at 3:56, Feb. 5, 2017)
https://www.nbcnews.com/meet-the-press/video/full-pelosi-interview-trump-white-house-usingdiversionary-tactics-870511683900.
Minority Leader Nancy Pelosi (Feb. 8, 2017)
As you know, I’ve been questioning the President’s relationship with Russia. It’s
extremely alarming, and it could undermine our national security. What on earth do the
Russians have on Donald Trump? That he could flirt with the idea of lifting sanctions on
Russia despite their aggressive military behavior? That he could lift the sanctions already
on the successor to the KGB a group that we know hacked into our systems, disrupting
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our election? That he is saying things about a person, that qualifies as a war criminal and
giving some equivalence to the United States of America? This is the President of the
United States. The President of the United States.
So I’m just saying, at least show us your tax returns. Is the audit over? Is this the audit
for eternity? And of course that’s never been a justification for not releasing your tax
returns. The President continues to hide his tax returns which could provide vital insight
into what financial influence Russia has on him, whether it’s personal, political or
financial. We call upon the FBI to do that investigation, it is in our national security
interest. Chairman Brady is Chairman of the Ways and Means Committee and Chairman
of the Joint Committee of Taxation, is empowered to demand Trump’s tax returns from
the Secretary of the Treasury. All he has to do is ask, and hold a committee vote to make
those tax returns public.
Mr. President what do the Russians have on you personally, politically or financially?
The process is – the privilege only goes to the Chairman to make the request. But then
the committee can vote to make the tax returns public. This is as you may recall, you
wouldn’t recall, but in your history books you may read what happened with President
Nixon a long time ago. So we’re calling on Chairman Brady to bring out those tax
returns.
Press Conference, Minority Leader Nancy Pelosi, House Democratic Leadership Press
Conference at 2017 Issues Conference (Feb. 8, 2017),
https://www.speaker.gov/newsroom/282017/.
Minority Leader Nancy Pelosi (Feb. 13, 2017)
The reports of the Trump-Russia dossier gain credence with each passing day. As long as
Republicans refuse to compel the release of President Trump’s tax returns, they are
complicit in covering up Russia’s financial, personal and political hold on the
Administration.
Press Release, Minority Leader Nancy Pelosi, Pelosi: Fire General Flynn (Feb. 13, 2017),
https://www.speaker.gov/newsroom/21317/.
Minority Leader Nancy Pelosi (Feb. 14, 2017)
And again Mr. Neil [sic], whose importance in this meeting is that we need to see the
truth of President Trump’s investments. His committee has the authority, the chairman of
the committee in the House or the chairman of the committee in the Senate, Chairman
Brady or Chairman Hatch and in addition to the Finance Committee, and Ways and
Means Committee – the Joint Committee on Taxation, the chairman on that committee,
Mr. Brady, again, have the authority to ask the Secretary of the Treasury for the tax
returns of anyone in our country if there’s reason to know that.

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They can ask for the president’s tax returns, and then by a vote in their committee, they
can decide where they should be released to the public, so there’s another stonewalling
because they said they can’t be caught up in rummaging. This isn’t rummaging, this is
truth and consequences. The American people have a right to know the truth. We see the
consequences which can be dangerous to our national security.
***
So, the question is: why is the FBI not fully investigating the political, personal, and
financial ties of Donald Trump to the Russians? Show us your tax returns so we can see
what some of that connection might be. And stop flirting with lifting sanctions and
condemning the [new] START Treaty and the rest of that because you’re flirting with
Russia – which has a direct impact on the safety of the American people.
Press Conference, Minority Leader Nancy Pelosi, Reacting to Resignation of National Security
Advisor Michael Flynn (Feb. 14, 2017), https://www.speaker.gov/newsroom/2142017/.
Rep. Bill Pascrell (D-NJ) (Feb. 14, 2017)
The President and the Congressional Republicans have been very vocal regarding their
desire to enact comprehensive tax reform for this Congress. We believe it is imperative
for the public to know and understand how such tax reform will benefit the President.
***
This is not willy-nilly. This is a serious attempt to get the truth to the American people,
and then . . . you will decide Mr. Chairman, under the law, whether or not that it should
be made public. That’s the power and the authority that rests with you and the
Committee.
Full Committee Markup: Hearing Before the H. Comm. on Ways & Means, 115th Cong., at
32:30, 40:45 (Feb. 14, 2017) (Statement of Rep. Pascrell),
https://www.youtube.com/watch?v=NSYeHHG7KMw.
Ranking Member Neal (Feb. 14, 2017)
The President has indicated during the course of the campaign that only he knows how to
fix the tax system. And as we proceed to tax reform, which is a very complex issue and
matter, as we all know, and how difficult it is to do, there is an opportunity here for all of
us to cooperate and for the president to lead the way. So I am in support of Mr.
Doggett’s amendment and Mr. Pascrell’s letter.
Full Committee Markup: Hearing Before the H. Comm. on Ways & Means, 115th Cong., at
33:23 (Feb. 14, 2017) (statement of Ranking Member Neal),
https://www.youtube.com/watch?v=NSYeHHG7KMw.

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Rep. Sander Levin (D-MI) (Feb. 14, 2017)
The only way you’ll bury the doubts is by letting the public see the information.
Full Committee Markup: Hearing Before the H. Comm. on Ways & Means, 115th Cong., at
36:45 (Feb. 14, 2017) (statement of Rep. Levin),
https://www.youtube.com/watch?v=NSYeHHG7KMw.
Amendment Offered by Rep. Lloyd Doggett (D-TX) (Feb. 14, 2017)
Amend the Ways and Means Committee oversight plan by adding the following under
matters under the Committee's Tax Jurisdiction:
Pursuant to Section 6103(f)(1) of the Internal Revenue Code, the Chairman of the
Committee will submit a written request to the Secretary of the Treasury by March 1,
2017, for copies of the President's federal tax returns for the last ten years. These returns
and all accompanying return information should then be made available for examination
by bipartisan Committee staff, and additionally, in executive session, by all committee
members. The Committee will review potential conflicts and violations of the
emoluments clause, and potential entanglements with foreign governments and foreign
state owned enterprises.
Amendment offered by Rep. Doggett to the Authorization and Oversight Plan of the H. Comm.
on Ways & Means, 115th Cong. (Feb. 14, 2017), https://gop-waysandmeans.house.gov/wpcontent/uploads/2017/02/20170214-Doggett-Amendment.pdf.
Ranking Member Richard Neal (Feb. 14, 2017)
The last seven American presidents have released to the American people their tax forms.
And they've done it as a standard operating procedure through the course of the campaign
and then subsequently during their time as president.
It was an annual event, and there was sufficient opportunity then for members of
Congress, members of the administration and the media to sift and sort what those tax
forms told us. So in this instance, I think there is, again, an opportunity for all of us to
review the president’s tax forms to find out just how extensive the overseas investments
have been.
And it'll then give the American people the chance to see it. He indicated that once the
audit was done, that he would release the tax forms, and then pointed out just a few
weeks ago through a spokesperson that the American people didn’t care about those tax
forms.
Well I believe ABC News has indicated that 75 percent of the American people would
like to see the tax forms, consistent with what the last seven American presidents have
done. . . .
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Press Conference, Statement by Rep. Richard Neal, C-SPAN Video, at 19:10 – 20:19 (Feb. 14,
2017), https://www.c-span.org/video/?424013-1/house-democrats-call-investigation-wakemichael-flynns-resignation.
Minority Leader Nancy Pelosi (Feb. 27, 2017)
What do the Russians have on Donald Trump that he would flirt with lifting our sanctions
against Russia because of their aggression in eastern Europe? That he would undermine
the START Treaty? Praise Putin and stonewall any investigation to bring the truth to
light – including releasing his tax returns?
Press Conference, Minority Leader Nancy Pelosi, Prebuttal to President Trump’s Speech to Joint
Session of Congress (Feb. 27, 2017), https://www.speaker.gov/newsroom/22717-2/.
Resolution Offered by Rep. Bill Pascrell (D-NJ) (Feb. 27, 2017)
Expressing the sense of the House of Representatives that the President shall immediately
disclose his tax return information to Congress and the American people.
***
Whereas, disclosure of the President's tax returns could help those investigating Russian
influence in the 2016 election understand the President's financial ties to the Russian
Federation and Russian citizens, including debts owed and whether he shares any
partnership interests, equity interests, joint ventures or licensing agreements with Russia
or Russians;
***
Whereas, the American people have the right to know whether or not their President is
operating under conflicts of interest related to international affairs, tax reform,
government contracts, or otherwise:
Now, therefore, be it resolved, that the House of Representatives shall, one, immediately
request the tax return information of Donald J. Trump for tax years 2006 through 2015
for review in closed executive session by the Committee on Ways and Means, as
provided under section 6103 of the Internal Revenue Code, and vote to report the
information therein to the full House of Representatives; two, support transparency in
government and the longstanding tradition of Presidents and Presidential candidates
disclosing their tax returns.
163 Cong. Rec. H1337-38 (daily ed. Feb. 27, 2017) (statement of Rep. Pascrell),
https://www.congress.gov/congressional-record/2017/02/27/house-section/article/H1337-2.

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Rep. Bill Pascrell (D-NJ) (Feb. 27, 2017)
To restore the dignity of the House, we must use our authority to request President
Trump’s tax returns and give the American people the transparency they deserve.
***
Let’s shine a bright light on the President's conflicts together, together, as we, as a
Congress, and the broader American public can judge whether his decisions are being
made for himself, his business interests, or for the greater good of the American people.
163 Cong. Rec. H1338-39 (daily ed. Feb. 27, 2017) (statement of Rep. Pascrell),
https://www.congress.gov/congressional-record/2017/02/27/house-section/article/H1337-2.
Minority Leader Nancy Pelosi (Feb. 28, 2017)
Tonight, House Republicans made themselves accomplices to hiding President Trump’s
tax returns from the American people.
Our security and our democracy have been endangered by Russia’s clear influence on the
Trump Administration. The American people deserve the truth about Russia’s personal,
political and financial grip on President Trump. If there’s nothing there, then what are
Republicans afraid of?
The President’s refusal to release his tax returns is yet another example of his contempt
for the promises he made in his campaign. While Republicans stonewall an independent
investigation, Democrats will continue to demand the truth for the American people.
Press Release, Minority Leader Nancy Pelosi, Statement on Republican Vote to Keep Trump’s
Tax Returns Secret (Feb. 28, 2017), https://www.speaker.gov/newsroom/2272017-2/.
Minority Leader Nancy Pelosi (Feb. 28, 2017)
What we are calling for is an independent outside commission, take it away from
Congress, take it away from politics, an independent outside commission to look into the
political, personal, and financial ties of the Trump organization, him personally, his
businesses, his campaign, to the Russians.
***
The American people want to know the truth. He could begin by releasing his tax returns.
Why should every president since Gerald Ford in modern history have released his tax
returns, but this president says I'm above not only the law but the traditions of the office
that I hold?

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Andrea Mitchell Reports (MSNBC television broadcast at 07:28, 07:58, Feb. 28, 2017),
https://www.msnbc.com/andrea-mitchell-reports/watch/house-dem-leader-we-ve-gotten-undertrump-s-skin-886623299804.
Minority Leader Nancy Pelosi (Mar. 2, 2017)
Well, in all of this all roads lead to the Republicans in the Congress. What are they afraid
of? They have been afraid of the truth every step of the way. They don’t want to see the
President’s tax returns, when every President since Gerald Ford, every President in
modern times has released his tax returns, and candidates release their tax returns.
So what is it? That would be a key indicator of their interest in the truth. So the question
is to them, what are they afraid of in the tax returns? What are they afraid of in the
investigation of the Russian involvement to undermine our democracy, to repeat that in
other countries, to come back here and do that again?
Press Conference, Minority Leader Nancy Pelosi (Mar. 2, 2017),
https://www.speaker.gov/newsroom/322017-3/.
Minority Leader Nancy Pelosi (Mar. 3, 2017)
What do the Russian have on Donald Trump that he would do that? And I don't know
who knew what in all of this, but it's important for us to find out and we must have that
investigation.
***
What are – what are the Republicans in Congress afraid of? They don't want to see the
president’s tax returns, the first time since Gerald Ford, who was – since Gerald Ford, all
presidents have put it out. They don't want to investigate in a wholesome way the hack –
the disruption of our system? What are the Republicans afraid of? This goes right to the
Republicans in Congress – to their doorstep. And when the public sentiment, as Lincoln
said, is everything.
As they hear from their constituents, perhaps maybe they'll be more inclined to seek the
truth.
Statement of Minority Leader Nancy Pelosi, Politico Playbook Interview (Mar. 3, 2017),
http://www.cq.com/doc/newsmakertranscripts-5053910.
Rep. Bill Pascrell (D-NJ), et al. (Mar. 3, 2017)
We write you to request that you use your authority to request the tax returns of President
Donald Trump for review by the Senate Committee on Finance and House Committee on
Ways and Means.
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***
If the President does not either release his returns or consent to examination of such
returns by this Committee, we urge you, as Chairman of the Committee and pursuant to
Section 6103(f)(1) of the Internal Revenue Code, to submit a written request to the
Secretary of the Treasury by March 15, 2017, for copies of the President’s federal tax
returns for the last ten years. These returns and all accompanying return information
should then be made available for examination by all Committee Members in a closed
executive session. We further request that the Committee then vote in this closed session
to submit the President’s federal tax returns to the House of Representatives and Senate
—thereby, if successful, making them available to the public.
We believe the powerful and respected Committees on Finance and Ways and Means
have the responsibility to ensure oversight of the executive branch by requesting a review
of President Trump’s tax returns and moving toward a formal release of these documents
to the public.
Letter from Hon. Bill Pascrell, Jr., et al., to Hon. Orrin Hatch, Chairman, S. Comm. on Finance,
& Hon. Kevin Brady, Chairman, H. Comm. on Ways & Means (Mar. 2, 2017),
https://pascrell.house.gov/news/documentsingle.aspx?DocumentID=1898.
Resolution Offered by Rep. Anna Eshoo (D-CA) (Mar. 7, 2017)
Expressing the sense of the House of Representatives that the President shall immediately
disclose his tax return information to Congress and the American people.
***
Whereas, disclosure of the President's tax returns could help those investigating Russian
influence in the 2016 election understand the President's financial ties to the Russian
Federation and Russian citizens, including debts owed and whether he shares any
partnership interests, equity interests, joint ventures or licensing agreements with Russia
or Russians;
***
Whereas, the American people have the right to know whether or not their President is
operating under conflicts of interest related to international affairs, tax reform,
government contracts, or otherwise: Now, therefore, be it:
Resolved. That the House of Representatives shall–
1. Immediately request the tax return information of Donald J. Trump for tax years 2006
through 2015 for review in closed executive session by the Committee on Ways and
Means, as provided under Section 6103 of the Internal Revenue Code, and vote to report
the information therein to the full House of Representatives.

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2. Support transparency in government and the longstanding tradition of Presidents and
Presidential candidates disclosing their tax returns.
163 Cong. Rec. H1572 (daily ed. Mar. 7, 2017) (statement of Rep. Eshoo),
https://www.congress.gov/congressional-record/2017/03/07/house-section/article/H1571-6.
Rep. Bill Pascrell (D-NJ) (Mar. 8, 2017)
And we can’t get the President’s tax returns. Not yet. It’s going to be embarrassing
when those tax returns come out. They’re coming out sooner or later. They’re coming
out sooner or later. I may have nothing at all to do with how they get out, but they’re
going to get out sooner or later.
Markup of GOP Health Care Repeal Bill: Hearing Before the H. Comm. on Ways & Means,
115th Cong., at 2:41:20 (Mar. 8, 2017), https://youtu.be/3RMbUKK9ETs.
Minority Leader Nancy Pelosi (Mar. 8, 2017)
Well it’s a question of the American people wanting to know the truth. Why is it that
President Trump should be the exception to every candidate or cabinet nominee for
president since Gerald Ford – that the public has been able to see the President’s tax
returns. What does the President have to hide? What do the Russians have on Donald
Trump, personally, politically and financially, that he is keeping a secret? Why are the
Republicans in Congress accomplices to that secrecy? Why are the Republicans in
Congress voting to say “no, we don’t think he should release his tax returns?” It’s a very
bad vote for them. That’s a very bad vote for them, that’s a very bad vote for them.
So our members – Mr. Pascrell as you know, acts with great spontaneity, yesterday
Congresswoman Eshoo, others [sic] Members of Congress want to say, “we want the
facts, we want the truth.” The tax returns many believe are part of the Russian
connection, the disruption of our election, the money pouring into the Trump
organization, any personal embarrassment to the President – we want to know the truth,
and we can start by seeing his tax returns. Which is not an extraordinary request – unless
you’re Donald Trump and think you’re above custom, tradition and maybe even the law.
Thank you!
Press Conference, Minority Leader Nancy Pelosi (Mar. 8, 2017),
https://www.speaker.gov/newsroom/382017-2/.
Minority Leader Nancy Pelosi (Mar. 9, 2017)
They don’t want the American people to see the facts. They’re always afraid of the facts.
It’s just a remarkable thing. They’re afraid of the facts of the President’s tax returns.
And we will continue to ask for those tax returns because we want to know about the
Russian connection.
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What do the Russians have on Donald Trump politically, financially, and personally?
What is that connection? What would the tax returns tell us about that? And we need a
bipartisan, independent, nonpartisan outside investigation to get to the bottom of that.
Press Conference, Minority Leader Nancy Pelosi (Mar. 9, 2017),
https://www.speaker.gov/newsroom/3917/.
House Resolution 186 (Mar. 9, 2017)
Mr. Pascrell (for himself, Mr. Crowley, Mr. Danny K. Davis of Illinois, Ms. Sewell of
Alabama, Mr. Neal, Ms. Eshoo, Mr. Doggett, Mr. Sarbanes, Ms. DelBene, Mr.
Thompson of California, and Mr. Blumenauer) submitted the following resolution;
which was referred to the Committee on Ways and Means
RESOLUTION
Of inquiry directing the Secretary of the Treasury to provide to the House of
Representatives the tax returns and other specified financial information of President
Donald J. Trump.
Resolved, That the Secretary of the Treasury is directed to furnish to the House of
Representatives, not later than 10 days after the adoption of this resolution, the full tax
returns of Donald J. Trump for tax years 2006 through 2015, as well as financial
documentation and any information in possession of the Secretary that specify—
(1) Mr. Trump’s debts held by foreign governments and foreign companies;
(2) Mr. Trump’s investments in foreign countries and foreign enterprises; and
(3) Mr. Trump’s use of any tax shelters, corporate structures, tax avoidance
maneuvers, abatements, or other loopholes to reduce or eliminate tax liability.
H.R. Res. 186, 115th Cong. (2017), https://www.congress.gov/bill/115th-congress/houseresolution/186.
Resolution Offered by Rep. Joe Crowley (D-NY) (Mar. 15, 2017)
Expressing the sense of the House of Representatives that the President shall immediately
disclose his tax return information to Congress and the American people.
***
Whereas, disclosure of the President's tax returns could help those investigating Russian
influence in the 2016 election understand the President's financial ties to the Russian
Federation and Russian citizens, including debts owed, and whether he shares any
partnership interests, equity interests, joint ventures, or licensing agreements with Russia
or Russians;
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***
Whereas, the American people have the right to know whether or not their President is
operating under conflicts of interest related to international affairs, tax reform,
government contracts, or otherwise:
Now, therefore, be it resolved, that the House of Representatives shall:
One, Immediately request the tax return information of Donald J. Trump for tax years
2006 through 2015 for review in closed executive session by the Committee on Ways and
Means, as provided under Section 6103 of the Internal Revenue Code, and vote to report
the information therein to the full House of Representatives
Two, Support transparency in government and the longstanding tradition of Presidents
and Presidential candidates disclosing their tax returns.
163 Cong. Rec. H2068-69 (daily ed. Mar. 15, 2017) (statement of Rep. Crowley),
https://www.congress.gov/congressional-record/2017/03/15/house-section/article/H2068-1.
Minority Leader Nancy Pelosi (Mar. 16, 2017)
The Deflector-in-Chief’s desperation demands answer to our original question, the one I
ask almost every day: What is Russia’s political, personal, and financial grip on the
Trump Administration? What do the Russians have on President Trump? They have
stonewalled over 100 letters from House Democrats requesting disclosure and
transparency on his ties to Russia, his conflicts of interest, and other Administration
actions.
You have heard me say before: this has an impact on our national security. What do the
Russians have on him that he should flirt with the idea of weakening sanctions on Russia,
undermining NATO and Europe? Secondly, undermining and questioning the value of
the New START Treaty. Also, praising Putin at the expense of the greatness of America.
What is it that they have on him? Show us your tax credits – your tax deduction –
returns. Every – they did do something the other day, which was curious, to do a transom
report. Who knows where that came from. What we want to see are the President’s tax
returns in the same manner that every President and candidate for President – nominee of
the party for President has done since Nixon, but, of course, that was demanded, but then
followed through with wonderful President Gerald Ford. So, if the President wants to
strengthen our security, he should come clean with the American people.
Press Conference, Minority Leader Nancy Pelosi (Mar. 16, 2017),
https://www.speaker.gov/newsroom/31617/.
Resolution Offered by Rep. Jared Polis (D-CO) (Mar. 21, 2017)

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Whereas, tax returns provide an important baseline disclosure because they contain
highly instructive information including whether the candidate can be influenced by
foreign entities and reveal any conflicts of interest;
***
Whereas, disclosure of the President's tax returns is important towards investigating
Russian influence in the 2016 election, understanding the President's financial ties to the
Russian Federation and Russian citizens, including debts owed and whether he shares any
partnership interests, equity interests, joint ventures, or licensing agreements with Russia
or Russian nationals, formally or informally associated with Vladmir Putin;
***
Whereas, the American people have the right to know whether or not their President is
operating under conflicts of interest related to international affairs, tax reform,
government contracts, or otherwise:
Now, therefore, be it resolved that the House of Representatives shall:
One, immediately request the tax return information of Donald J. Trump for tax years
2006 through 2015 for review in closed executive session by the Committee on Ways and
Means, as provided under section 6103 of the Internal Revenue Code, and vote to report
the information therein to the full House of Representatives;
Two, support transparency in government and the longstanding tradition of Presidents
and Presidential candidates disclosing their tax returns.
163 Cong. Rec. H2308-09 (daily ed. Mar. 22, 2017) (statement of Rep. Polis),
https://www.congress.gov/congressional-record/2017/03/22/house-section/article/H2308-1.
Rep. Sander Levin (D-MI) (Mar. 28, 2017)
I think you are wrong perhaps about 90%. Even if it were only 10%, let the public see it.
Let the public see it.
***
This committee should use its authority to better understand the connections between the
President, and his family, and Russia.
The President now says he wants to lead the effort on tax reform. His past returns are
directly relevant to our forthcoming discussions about tax reform. It is important to
understand how such tax reform would benefit the President, his 564 financial positions
in domestic and foreign companies, and his self-reported net worth of more than $10
billion.
***
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We’re asking for the disclosure because it’s relevant to the discussion about the Russian
connection, and now you all and we all say that we want to take up tax reform. The
President said he wants to lead the effort. With hidden tax reform, tax returns, that is
totally incredible.
Markup of H. Res. 186: Hearing Before the H. Comm. on Ways & Means, 115th Cong., at 21:33
(Mar. 28, 2017), https://www.youtube.com/watch?v=CeRfw_m9bMw&feature=youtu.be.
Rep. Bill Pascrell (D-NJ) (Mar. 28, 2017)
Our constituents are demanding transparency. . . . We have the authority. We have the
cause. With all the conflicts we know about, and all that we don’t, we must gather all the
possible information we can. The IRS is best equipped to conduct financial
investigations into possible crimes dealing with money. The President’s tax returns will
provide us with the clues.
Markup of H. Res. 186: Hearing Before the H. Comm. on Ways & Means, 115th Cong., at 29:05
(Mar. 28, 2017), https://www.youtube.com/watch?v=CeRfw_m9bMw&feature=youtu.be.
Rep. Lloyd Doggett (D-TX) (Mar. 28, 2017)
The House investigation has been totally discredited within the last week. Whether it
was discredited or not, this Committee has a role to play with reference to tax returns.
And when you have the President’s son-in-law talking with a former KGB official
running a bank in Russia, and you have an indication from the President’s son a few
years back that the Russians make up a pretty disproportionate cross section of a lot of
our assets, and that’s a direct quote, there is reason to want to know whether there is
anything in his tax returns showing payments to Russians, or payments from Russians. It
may be that not every bit of the information we are seeking is contained within the form
on individual taxes that President Trump may have filed. But there may well be an
indication in those returns of information that will lead to that information, and that’s
why I believe the President went back on his promise to the American people, and
refused to disclose the very information he said he would disclose in the future when
these audits were concluded. I want to know whether he has, as his son said, continued to
have a pretty disproportionate cross section of a lot of their assets with the Russians.
***
I want to emphasize that the Chairman and the members of this Committee are
misconstruing section 6103, narrowly construing it really to justify this cover-up of the
Trump tax returns, and that this Committee has a significant interest in these returns as it
relates to the administration of our business. Both with reference to our trade agenda,
from which we heard about earlier today, given the large number of trademarks that
President Trump was able to magically get approved from the Chinese earlier this year,
and with reference to our tax responsibilities.
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***
Without those tax returns to know what conflicts may exist for him, what kind of selfdealing may exist for him, we will never know. Section 6103 deals with more than tax
administration, it deals with the assessment, collection, enforcement, publication, and
statistical gathering functions under the laws and statutes. There is every reason why in
terms of its work in tax and the fact that we are considering major tax legislation, that we
would want to know whether he will benefit personally, and that’s why he is advancing
these various legislative changes.
Markup of H. Res. 186: Hearing Before the H. Comm. on Ways & Means, 115th Cong., at 41:28
(Mar. 28, 2017), https://www.youtube.com/watch?v=CeRfw_m9bMw&feature=youtu.be.
Rep. Brian Higgins (D-NY) (Mar. 28, 2017)
The American people have a right to know if the President would personally gain from
proposals he will ask this Committee to consider. The American people have a right to
know if the President’s tax returns offers clarity about business ties he may have to
Russia, to Germany, to Saudi Arabia, or any other foreign interest that may benefit them
and/or him.
Markup of H. Res. 186: Hearing Before the H. Comm. on Ways & Means, 115th Cong., at 54:06
(Mar. 28, 2017), https://www.youtube.com/watch?v=CeRfw_m9bMw&feature=youtu.be.
Minority Leader Nancy Pelosi (Mar. 28, 2017)
Since Gerald Ford was President, every candidate for President, every nominee of a
major party, every candidate for President of the United States, Democrat and
Republican, has released their income tax returns out of respect for the American people
– out of respect for the American people. Week in and week out – in fact, sometimes day
in and day out – in committee as well as on the floor, the Republicans have kept the
President's income tax returns private when the public has a right to know that, that the
public has always known that about every President since Gerald Ford – in fact, since
Richard Nixon; although, in his case, it wasn't voluntary.
163 Cong. Rec. H2498 (daily ed. Mar. 28, 2017) (statement of Rep. Pelosi),
https://www.congress.gov/congressional-record/2017/3/28/house-section/article/H2489-1.
Ranking Member Richard Neal and Rep. Bill Pascrell (D-NJ) (Mar. 30, 2017)
Committee Democrats strongly oppose the Committee's action of unfavorably reporting
H. Res. 186, Resolution of inquiry directing the Secretary of the Treasury to provide to
the House of Representatives the tax returns and other specified financial information of
President Donald J. Trump. Committee Republicans continue to block our requests for
this Committee to exercise its authority under Section 6103 of the Internal Revenue Code
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to obtain, examine, and make available to the public President Trump's federal tax
returns.
This Committee has broad jurisdiction over a variety of laws that affect the lives of
millions of Americans, including the federal tax law. The President and Congressional
Republicans have been very vocal regarding their desire to enact comprehensive tax
reform this Congress. Committee Democrats believe that it is imperative for the public to
know and understand how such tax reform will benefit the President, his 564 financial
positions in domestic and foreign companies, and his self-reported net worth of more than
$10 billion.
***
Tax returns provide the clearest picture of a president's financial health, including how
much he earns, how much tax he pays, his sources of income (e.g., capital gains, dividend
income, and certain business income), the size of his deductions, whether he makes
charitable contributions, and whether he uses tax shelters, loopholes, or other specialinterest provisions to his advantage. All of these items are critical in order for the public
to gain a more complete understanding of how tax reform will benefit President Trump
and his vast business empire.
If ever there was a president with respect to which this Committee should exercise its
Section 6103 statutory authority to obtain individual tax returns, President Trump is the
one. A president with a vast domestic and international business empire. A president who
has rebuked over 40 years of tradition and refused to release his individual tax returns to
the public. A president who will negotiate and ultimately may sign comprehensive tax
reform into law. A president who is not the average American–he has assets, business
interests, and foreign entanglements that far surpass the average taxpayer. . . . Hence,
Committee Democrats remain steadfast in our pursuit to have his individual tax returns
disclosed to the public.
***
Starting in February, Committee Democrats began pressing Committee Republicans to
use the authority under Section 6103 to obtain President Trump's tax returns and make
them available to the public. Committee Democrats have sent letters urging, and offered
amendments to force, the Chairman to obtain President Trump's tax returns for review by
the Committee.
***
Procedurally, upon submission to the House, the tax return and return information would
become available to the public.
H.R. Rep. No. 115-73 (Mar. 30, 2017), Resolution of Inquiry Directing the Secretary of the
Treasury to Provide to the House of Representatives the Tax Returns and other Specified
Financial Information of President Donald J. Trump, Adverse Report together with Dissenting
Views, 115th Cong., https://www.congress.gov/congressional-report/115th-congress/housePage 17 of 45

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report/73; see also H.R. Rep. No. 115-309 (Sept. 14, 2017), Resolution of Inquiry Directing the
Secretary of the Treasury to Provide to the House of Representatives the Tax Return Information
of President Donald J. Trump as Well as the Tax Returns of Each Business Entity Disclosed by
Donald J. Trump on His Office of Government Ethics Form 278e, Adverse Report together with
Dissenting Views, 115th. Cong., https://www.congress.gov/congressional-report/115thcongress/house-report/309/1; Markup of H. R. Res. 479: Hearing Before the H. Comm. on Ways
& Means, 115th Cong. (Sept. 7, 2017), https://gop-waysandmeans.house.gov/event/markup-hres-479/.
Minority Leader Nancy Pelosi (Apr. 5, 2017)
What is President Trump hiding that he refuses to release his taxes to the American
people – even as an overwhelming 74 percent demand he release them? The disturbing
conflicts of interests, revelations of shady dealings, and Trump’s deep ties to Putin’s
Russia must be the reason.
***
But week after week, Republicans have repeatedly voted to help President Trump
stonewall the American people – complicit in keeping President Trump’s taxes and
finances hidden.
That is why House Democrats, led by Congresswoman Anna Eshoo, filed a discharge
petition today to #DemandAVote to require President Donald Trump to disclose his tax
returns, so the American people can see for themselves the extent of his financial
interests, and whether they are influencing his policy decisions toward Russia, on tax
reform and other issues.
Minority Leader Nancy Pelosi, Blog Post, #DemandAVote: House Democrats Launch Discharge
Petition to Release President Donald Trump’s Tax Returns (Apr. 5, 2017),
https://www.speaker.gov/newsroom/demandavote-house-democrats-launch-discharge-petitionto-release-president-donald-trumps-tax-returns/.
Minority Leader Nancy Pelosi (Apr. 5, 2017)
As you know, every President since Gerald Ford – actually, every nominee on both sides
of the aisle since then has released their tax returns. So the history of it is important to
American people. It isn’t as if the tax returns tell the whole story but they are a key that
opens the door to so much information.
We’re especially concerned about any information that might show any connection –
Russian connection, Chinese connection, in terms of business interests of the Trump
organization to any of these countries. It’s really a very important thing.
At a time when they are saying, we don’t want to see the President’s tax return . . . they
now say, “we have to protect the President’s privacy.”
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It’s not a right to privacy that the President has. He’s the President of the United States
there is a question about a Russia connection politically, personally, financially to the
President, there’s concerns about recent actions by the Chinese government, in relation to
the Trump Organization. There are plenty of reasons why we need this key to open the
door to the information we need to connect the dots and if they have nothing to fear, then
what are they afraid of.
Press Conference, Minority Leader Nancy Pelosi, Demanding a Vote Requiring President Trump
to Release Tax Returns (Apr. 5, 2017), https://www.speaker.gov/newsroom/4517/.
Ranking Member Richard Neal (Apr. 5, 2017)
This is not about the law, this is about custom and practice. It’s a settled tradition and as
I noted by using the word earlier, about begrudges – candidates reach the level of
expectation that they’re supposed to release their tax forms. I’m not aware of any of the
Presidents that have been cited who ever publicly suggested that they thought it was an
invasion of privacy.
Press Conference, Statement by Ranking Member Richard Neal (Apr. 5, 2017),
https://www.speaker.gov/newsroom/4517/.
Rep. David Cicilline (D-RI) (Apr. 5, 2017)
And this is a very simply [sic] idea in that the President’s ability to lead this country is
directly undermined by the questions which continue to rise about his potential conflicts
of interest, and whether or not he’s making decisions in the best interest of the American
people, or in his own personal or financial best interest. One way to get at that question
is a simple release of his tax returns, a tradition which has been a tradition of every
president in recent history. His refusal to do that, and sadly the Republicans’ refusal so
far to be part of this effort is disappointing, but we’re not going to stop. This is
something the American people are demanding so that they can have a sense of what
those conflicts might be, and we’re going to use every avenue we can to continue to press
until we’re successful in persuading or requiring the President to share those with the
American people.
Press Conference, Statement by Rep. David Cicilline (D-RI) (Apr. 5, 2017),
https://www.speaker.gov/newsroom/4517/.
Rep. John Sarbanes (D-MD) (Apr. 5, 2017)
I just want to thank my colleagues and Anna for their efforts on this issue, which is going
to be continuous. We’re not going to let up. When you talk to people out in the country
– as everybody here has said – there is real anxiety on the part of Americans about
whether the President may have some divided loyalty – whether when he goes to make a

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decision that is supposed to be on behalf of the public. There are some other concerns of
interests he has competing with that.
This is the highest office in the land. The public trust is placed in this office. That is the
expectation of 330 million Americans – that you will carry out that office, recognizing
the public trust that is placed in it.
And Americans just want to know that when the President is making important decisions
on domestic policy and on foreign policy, that he doesn’t have divided loyalties. This is
nagging away at people. And he can come clean if he provides his tax returns, which is
the first important baseline step in being transparent. That will do a lot to put that anxiety
to rest. But, the fact that he won’t release the tax returns, I think, is making a lot of
Americans nervous.
Press Conference, Statement by Rep. John Sarbanes (D-MD) (Apr. 5, 2017),
https://www.speaker.gov/newsroom/4517/.
Minority Leader Nancy Pelosi (Apr. 6, 2017)
Republicans will sell your most private information, your most private information, but
they refuse to reveal the President’s tax returns, something every President since Gerald
Ford has done, and indeed every nominee of the other party has done.
And there is a vital interest in the President’s tax returns. Republicans are desperate,
again, to keep them secret. What is it that they are afraid of? Why don’t they have that
key that 74 percent of the American people want us to unlock that door to see where it
leads?
If it’s all okay, they have nothing to be afraid of. But we think that it will show us some
connection that will be useful in the investigation of what do the Russians have on
Donald Trump politically, personally, and financially.
Press Conference, Minority Leader Nancy Pelosi (Apr. 6, 2017),
https://www.speaker.gov/newsroom/4617-4/.
Rep. Hakeem Jeffries (D-NY) (Apr. 7, 2017)
Unfortunately, Donald Trump sees things differently. As we approach tax day, it’s
important to remember that every President since Gerald Ford, Democrats and
Republicans, have released their tax returns to the American people. Before the election,
Donald Trump repeatedly promised to release his tax returns, just like Jimmy Carter,
Ronald Reagan, George H.W. Bush, Bill Clinton, George W. Bush and Barack Obama
before him. But as President, Donald Trump has broken this promise.
Is he hiding something from the American people? I certainly hope not. Here’s what I
do know. The American people deserve an answer to that question. The tax return issue
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is about fairness. It’s about being straight with the American people. It’s about playing
by the rules.
There is a cloud of uncertainty hanging over the White House when it comes to our
President. He came to Washington on a promise to drain the swamp. But instead, by
failing to keep his word and release his tax returns, Donald Trump is a living, breathing
conflict of interest.
***
This is not a Democratic issue or a Republican issue. This is an American issue. Our
Democracy was attacked. The release of the President’s tax returns will help the
American people better understand the extent of Trump’s financial ties to Putin’s Russia.
The American people have a right to know whether financial conflicts of interest exist
between the President of the United States and a hostile foreign power.
The American people have a right to know whether the decisions being made by
President Trump are in the best interest of America, or are benefiting other countries and
corporations with whom he has a business relationship. The American people have a
right to know whose side the President is on. His tax returns will help provide the
information necessary to figure that out.
To whom much is given, much is expected. Donald Trump has been given the
opportunity to lead this great nation. The least we can expect is that President Trump
play by the rules and share his tax returns with the American people.
Press Conference, Congressman Hakeem Jeffries Delivers Weekly Democratic Address (Apr. 7,
2017), https://www.speaker.gov/newsroom/congressman-hakeem-jeffries-delivers-weeklydemocratic-address/.
Minority Leader Nancy Pelosi (Apr. 17, 2017)
What are President Trump and the Republican Congress hiding? Every President since
Gerald Ford, Democrat and Republican, has released his tax returns to the public.
Despite the history, despite his own promises, President Trump and Republicans in
Congress are desperate to keep the American people in the dark.
Who does President Trump owe? America needs to know. All roads lead back to the
President’s tax returns – and the light they can shine on his actions and the Trump-Russia
connection. Releasing the President’s tax returns is vital for our national security and our
democracy.
Press Release, Minority Leader Nancy Pelosi, Statement on Tax Day (Apr. 17, 2017),
https://www.speaker.gov/newsroom/41717/.

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Rep. Ben Ray Luján (D-NM) (Apr. 21, 2017)
The President has done everything possible to distract and mislead the American people
about his connection to Russia and his truly unprecedented web of conflicts.
He has refused to divest his business ties or release his tax returns to the American people
so they can understand his conflicts of interest and get to the truth.
Press Conference, Congressman Ben Ray Luján Delivers Weekly Democratic Address (Apr. 21,
2017), https://www.speaker.gov/newsroom/congressman-ben-ray-lujan-delivers-weeklydemocratic-address/.
Minority Leader Nancy Pelosi (Apr. 23, 2017)
The infrastructure bill is one of the biggest secrets in Washington, D.C., second only to
the president not showing us his tax returns.
We need to see those so we can see how his tax policy will affect his own tax situation.
We need to see them so we can see what is the hold that the Russians have on him
politically, financially, and personally.
Meet the Press (transcript of NBC television broadcast Apr. 23, 2017),
https://www.nbcnews.com/meet-the-press/meet-press-april-23-2017-n749866.
Rep. Lloyd Doggett (D-TX) (Apr. 26, 2017)
Without an end to the Republican cover-up of Trump’s tax returns, we cannot determine
whether this is mostly just more self-enrichment for the Trump family. Trump talks like a
populist but governs like a plutocrat. Like the near trillion dollar tax cut in the failed
health care bill that he endorsed, Trump’s tax plan fills the coffers of giant corporations
and lines the pockets of the superrich.
Press Release, Ranking Member Richard Neal (D-MA) and Rep. Lloyd Doggett (D-TX), Neal,
Doggett Statements on President Trump’s Tax Proposal (Apr. 26, 2017),
https://waysandmeans.house.gov/media-center/press-releases/neal-doggett-statements-presidenttrump-s-tax-proposal.
Rep. John Lewis (D-GA) (Apr. 26, 2017)
This afternoon, the Administration released its principles for tax reform. I must express
my concern about beginning tax reform when the public has no idea how the proposal
will personally benefit the First Family.
On April 15th, thousands of Americans took to the streets and demanded transparency,
truth, and accountability. They know that there is no provision in the Internal Revenue
Code that prevents him from releasing his tax returns. Failure to meet this standard
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presents a dangerous and slippery slope for policy makers. The American people expect
and deserve better.
Press Release, Ranking Member John Lewis (D-GA), Opening Statement at Oversight
Subcommittee Hearing on 2017 Tax Filing Season (Apr. 26, 2017),
https://waysandmeans.house.gov/media-center/press-releases/ranking-member-lewis-openingstatement-oversight-subcommittee-hearing-5.
Minority Leader Nancy Pelosi (May 15, 2017)
One of the concerns that we have is that Russia is an adversary to the United States. And
yet, when the president became president-elect, he was putting Putin on a pedestal and he
was questioning whether we should even have sanctions against Russia for their
aggression in Ukraine and Crimea, et cetera, and questioning the – undermining the
relationship we have with NATO, which is our transatlantic friendship for security. And
it was like, why on Earth is he undermining our allies and praising Putin?
And so that’s one of the things that we want to see about the investigation, because it
relates to if there have – as I said, financial. What is the financial connection? Political.
They did – it’s an absolute fact – disrupt our election by hacking and leaking. The
question is, was there collusion? And, third, personally. What is it that is making him do
all these special things for the Russians?
You only know that if you’re basing it on fact and not just rumor and hearsay if you have
the investigation. And that's why we’re saying, let’s just find out the truth. Let the chips
fall where they may. And if he has nothing to hide, he shouldn’t be opposing, nor should
my Republican colleagues in Congress, be opposing the release of his tax returns, any of
the investigation into other aspects of the Trump-Russia connection. And that’s why
when something like this comes up, it’s like predictable, almost, sadly.
CNN Town Hall (transcript of CNN television broadcast May 15, 2017),
http://transcripts.cnn.com/TRANSCRIPTS/1705/15/se.01.html.
Minority Leader Nancy Pelosi (May 16, 2017)
The question is what is the connection? And that requires investigation to get the facts
that proves the case, or not. What are the Republicans and the president afraid of? The
truth.
So, when it comes to our national security, here he is putting Putin on a pedestal,
undermining NATO, questioning whether we should even have sanctions vis-a-vis Russia
in terms of their aggression in Europe. And that is not in our national security interest.
That is undermining our Trans-Atlantic pillar of strength for us. But casual about it and
putting – so what do the Russians have on him politically, personally, financially?

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Go to the next step. We have a chance to see his tax returns. Show us your tax returns so
we can see what the connection is between you and Russia. And, by the way, the
connection between your self-aggrandizement and the cost to the average person in our
country.
So, this is about our economy as well. And then of course as I mentioned about the
security of our democracy. So, this is intrinsic. It’s fundamental. It’s systemic. It’s very
important that we get to the bottom of it.
And there is so much evidence. . . .
Rep. Nancy Pelosi, House Minority Leader, Remarks at Center for American Progress Forum
(May 16, 2017), http://www.cq.com/doc/newsmakertranscripts-5102881; see also Video: Rep.
Nancy Pelosi (D-CA), See Progress, at 10:13 (May 16, 2017),
https://www.youtube.com/watch?v=WoMAnFNyV94.
Resolution Offered by Rep. Bill Pascrell (D-NJ) (May 16, 2017)
Expressing the sense of the House of Representatives that the President shall immediately
disclose his tax return information to Congress and the American people;
***
Whereas, tax returns provide an important baseline disclosure because they contain
highly instructive information, including whether the candidate paid taxes, number one;
what they own, number two; what they have borrowed and from whom, number three;
whether they have made any charitable donations, number four; and whether they have
taken advantage of tax loopholes, number five.
Whereas, disclosure of the President's tax returns could help those investigating Russian
influence in the 2016 election understand the President's financial ties to the Russian
Federation and Russian citizens, including debts owed and whether he shares any
partnership interests, equity interests, joint ventures or licensing agreements with Russia
or Russians;
***
Whereas, the President's tax returns would show us whether he has foreign bank accounts
and how much profit he receives from his ownership in myriad partnerships;
***
Whereas, the Chairmen of the Ways and Means Committee, Joint Committee on
Taxation, and Senate Finance Committee have the authority to request the President's tax
returns under Section 6103 of the tax code;
***
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Whereas, the American people have the right to know whether or not their President is
operating under conflicts of interest related to international affairs, tax reform,
government contracts, or otherwise: Now, therefore, be it:
Resolved, That the House of Representatives shall–
1. Immediately request the tax return information of Donald J. Trump for tax years 2006
through 2015 for review in closed executive session by the Committee on Ways and
Means, as provided under Section 6103 of the Internal Revenue Code, and vote to report
the information therein to the full House of Representatives
2. Support transparency in government and the longstanding tradition of Presidents and
Presidential candidates disclosing their tax returns.
163 Cong. Rec. H4212-13 (daily ed. May 16, 2017) (statement of Rep. Pascrell),
https://www.congress.gov/congressional-record/2017/05/16/house-section/article/H4212-1.
Minority Leader Nancy Pelosi (May 18, 2017)
But this is something that has foreign intrigue, it has issues that relate to undermining our
democracy by interference in our election. It’s about, “Show us your tax returns so we
can see what public policy is regarding that, and do you have a Russian connection, Mr.
President, in your dealings?” And it’s very serious.
So in order for us to move forward in a way where we’re moving forward with the
American people, it’s very important that we do it based on the facts. There is reason to
believe that the President was engaged in some very inappropriate, for the moment,
activity. But until you have the facts that you can present to the public in the public
domain so the American people are moving with you at the same time, I don’t think that
our democracy is well served.
Press Conference, Minority Leader Nancy Pelosi (May 18, 2017),
https://www.speaker.gov/newsroom/51817-5/.
Resolution Offered by Rep. Linda Sanchez (D-CA) (May 24, 2017)
Expressing the sense of the House of Representatives that the President shall immediately
release his tax return information to Congress and the American people.
***
Whereas, tax returns provide an important baseline of reasonable information including
whether the President paid taxes, ownership interests, charitable donations made, and
whether tax deductions have been exploited;

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Whereas, disclosure of the President's tax returns could help those investigating Russian
influence in the 2016 election understand the President's financial ties to the Russian
Federation and Russian citizens, including debts owed and whether he shares any
partnership interests, equity interests, joint ventures or licensing agreements with Russia
or Russians;
***
Whereas, the President's tax returns would show us whether he has foreign bank accounts
and how much profit he receives from his ownership in myriad partnerships;
***
Whereas, the Chairmen of the Ways and Means Committee, Joint Committee on
Taxation, and Senate Finance Committee have the authority to request the President's tax
returns under Section 6103 of the tax code;
***
Whereas, the American people have the right to know whether or not their President is
operating under conflicts of interest related to international affairs, tax reform,
government contracts, or otherwise: Now, therefore, be it:
Resolved, That the House of Representatives shall–
1. Immediately request the tax return information of Donald J. Trump for tax years 2006
through 2015 for review in closed executive session by the Committee on Ways and
Means, as provided under Section 6103 of the Internal Revenue Code, and vote to report
the information therein to the full House of Representatives
2. Support transparency in government and the longstanding tradition of Presidents and
Presidential candidates disclosing their tax returns.
163 Cong. Rec. H4524 (daily ed. May 24, 2017), https://www.congress.gov/congressionalrecord/2017/5/24/house-section/article/h4523-1.
Minority Leader Nancy Pelosi (June 2, 2017)
And speaking of taxes, I think that the decision the President made on the Paris accord, I
think that the budget that he has put forth, again, really speaks further to the fact that he
should show us his tax returns. It’s very important that we see his tax returns. It relates
to Russia. What do the Russians have on Donald Trump, politically, personally, and
financially? And he won’t show us his tax returns, to give us some [–] maybe that would
clear up the issue or maybe it will be a path to some other questions. So show us your tax
returns.

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We talk about lifting the debt ceiling. We talk about tax returns. We do know that what
he proposed, what he was talking about before would have given him a tax break of $30
million on the year that he has revealed his tax return. A tax break of $30 million. Show
us your tax returns.
Press Conference, Minority Leader Nancy Pelosi (June 2, 2017),
https://www.speaker.gov/newsroom/6217-4/.
Minority Leader Nancy Pelosi (June 6, 2017)
I think we have to remove all doubt as the impact of the Russians in our life. And I think
it's important the American people to know what did Russians have on Donald Trump
politically, financially, and personally, that he is standing in the way of this legitimate
investigation as to the Russian impact on our election and to prevent them from doing it
again.
***
[T]he American people have a right to know the truth. And why would the Republicans
stand in the way of the truth? Why can't we see his tax returns?
New Day (transcript of CNN television broadcast June 6, 2017),
http://transcripts.cnn.com/TRANSCRIPTS/1706/06/nday.03.html.
Resolution Offered by Rep. Michael Capuano (D-MA) (June 7, 2017)
Expressing the sense of the House of Representatives that the President shall immediately
release his tax return information to Congress and the American people.
***
Whereas, tax returns provide an important baseline of reasonable information including
whether the President paid taxes, ownership interests, charitable donations made, and
whether tax deductions have been exploited;
Whereas, disclosure of the President's tax returns could help those investigating Russian
influence in the 2016 election understand the President's financial ties to the Russian
Federation and Russian citizens, including debts owed and whether he shares any
partnership interests, equity interests, joint ventures or licensing agreements with Russia
or Russians;
***
Whereas, the President's tax returns would show us whether he has foreign bank accounts
and how much profit he receives from his ownership in myriad partnerships;
***
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Whereas, the Chairmen of the Ways and Means Committee, Joint Committee on
Taxation, and Senate Finance Committee have the authority to request the President's tax
returns under Section 6103 of the tax code;
***
Whereas, the American people have the right to know whether or not their President is
operating under conflicts of interest related to international affairs, tax reform,
government contracts, or otherwise: Now, therefore, be it:
Resolved, That the House of Representatives shall–
1. Immediately request the tax return information of Donald J. Trump for tax years 2006
through 2015 for review in closed executive session by the Committee on Ways and
Means, as provided under Section 6103 of the Internal Revenue Code, and vote to report
the information therein to the full House of Representatives
2. Support transparency in government and the longstanding tradition of Presidents and
Presidential candidates disclosing their tax returns.
163 Cong. Rec. H4685 (daily ed. June 7, 2017), https://www.congress.gov/congressionalrecord/2017/06/07/house-section/article/H4684-1.
Rep. Michael Capuano (D-MA) (June 7, 2017)
The investigations are ongoing. At some point, it is unquestioned that the President's tax
returns will become relevant to what the FBI is doing. It is only a matter of time.
For the integrity of the House, for the dignity of the House, I believe firmly that we
should exercise the law that the Congress put in place itself to do our own due diligent
investigation and not just simply sit on our hands while others do our work for us.
These documents will become public, and when they do, regardless of what they show, I
believe firmly it will reflect negatively on this House for not having done our duty, for
having shirked our responsibilities. That is why I believe this is a privilege of the House.
That is why I believe this House should take this action.
***
There aren't any Americans that don't believe they have a right to know that their
President has not been subject to undue influence. That is all this does. It draws no
conclusion from it, and it allows the majority party to call on it to make the
determination; not me, but the majority party; the chair of the Ways and Means
Committee.
That is why I offered this resolution. That is why I think this resolution is going to
continue to be offered, and, at some point, the House is going to do it. I don't know why
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Members of the House want to drag this out and pretend that somehow you are going to
be able to avoid it. You are not. It is going to happen.
163 Cong. Rec. H4684-86 (daily ed. June 7, 2017) (statement of Rep. Capuano),
https://www.congress.gov/congressional-record/2017/06/07/house-section/article/H4684-1.
Minority Leader Nancy Pelosi (June 9, 2017)
Well, I think he abused power. I think there is no question he abused power. Whether he
obstructed justice remains for the facts to come forward, and that is what we want: the
facts. And I hope that our Republican colleagues will not continue to stand in the way of
our getting the facts.
Also, we’d like to see his tax returns, because that will, again, help connect the dots here.
And, again, maybe it will all be exculpatory, but let’s find that out. Right now we have to
remove all doubt about the integrity of our government.
Press Conference, Minority Leader Nancy Pelosi (June 9, 2017),
https://www.speaker.gov/newsroom/61217-2/.
Rep. Lloyd Doggett (D-TX) (June 13, 2017)
Today, Congressman Lloyd Doggett (D-TX), Ranking Member of the Ways & means
[sic] Tax Policy Subcommittee, is offering a “privileged resolution” that would require
the House of Representatives to immediately request the President's tax returns and those
of his businesses. His resolution, which must be considered within two legislative days,
would also postpone consideration of any tax reform legislation until the President's tax
returns are obtained.
The House Ways and Means Committee has the authority to obtain the President’s tax
returns under section 6103 of the Tax Code. If this “privileged resolution” were
approved, it would launch the process of reviewing those tax returns in an Executive
Session of the Ways and Means Committee, which could vote to release the returns to the
public.
Rep. Doggett has filed three separate amendments in the Ways and Means Committee to
obtain President Trump’s tax returns—on February 14, March 8, and March 28. The
Committee voted all three times along party lines to continue to cover-up the President’s
tax returns, and the House has refused nine times to act on President Trump’s tax returns.
***

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RESOLUTION
Expressing the sense of the House of Representatives that the President shall immediately
disclose his tax return information to the House of Representatives and the American
people.
***
Whereas, disclosure of the President’s tax returns could help those investigating Russian
influence in the 2016 election better understand the President’s financial ties to the
Russian Federation, Russian businesses, and Russian individuals;
Whereas, after breaking his pledge to make his tax returns available, President Trump
instead presented a one page letter from a law firm giving him a clean bill of health on
any business dealings with Russians, but failed to note that the very same law firm
boasted of the “prestigious honor” of being named “Russia Law Firm of the Year” for
2016;
***
Now, therefore, be it:
Resolved, That the House of Representatives shall—
1. Immediately request the tax return and return information of Donald J. Trump for
tax years 2006 through 2015, as provided under section 6103 of the Internal
Revenue Code of 1986, as well as the tax return (and return information with
respect to the President’s businesses) of each business entity disclosed by Donald
J. Trump on his Office of Government Ethics Form 278e, specifically each
corporation and each partnership (within the meaning of subchapter K of chapter
1 of the Internal Revenue Code of 1986) where he is listed as an officer, director,
or equivalent, or exercises working control; and
2. Postpone consideration of tax reform legislation until the elected Representatives
of the American people in this House have obtained President Trump’s tax returns
and return information to ascertain how any changes to the tax code might
financially benefit the President.
Press Release, Rep. Lloyd Doggett (D-TX), Privileged Resolution Would Require Trump Tax
Returns Before Tax Reform Consideration (June 13, 2017), https://doggett.house.gov/mediacenter/press-releases/privileged-resolution-would-require-trump-tax-returns-tax-reform; see also
163 Cong. Rec. H4898-99 (daily ed. June 13, 2017) (statement of Rep. Doggett),
https://www.congress.gov/congressional-record/2017/6/21/house-section/article/h5013-1;163
Cong. Rec. H5013-16 (daily ed. June 21, 2017) (statement of Rep. Doggett),
https://www.congress.gov/congressional-record/2017/6/21/house-section/article/h5013-1.

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Minority Leader Nancy Pelosi (June 20, 2017)
As Speaker Ryan moves to the question and answer portion of his ‘major’ tax reform
speech, we have some questions: Where are President Trump’s tax returns? What
happened to ‘At some point I’ll release it’?
By blatantly refusing to reveal his tax returns, the President fails to fulfill his promise to
the American people, honor tradition, and be transparent about his financial history –
despite the fact that 74 percent of Americans want Presidents to disclose their tax returns.
House Republicans have voted 9 times to keep President Trump’s tax returns secret.
If Speaker Ryan and House Republicans respect the oath they took to support and defend
the U.S. Constitution, they must stop the pointless distractions and demand transparency
and truth from the White House. American taxpayers deserve to know that the President
of the United States is playing by the rules and putting the people’s business before the
Trump family business.
Blog Post, Minority Leader Nancy Pelosi, Where are President Trump’s Tax Returns? (June 20,
2017), https://www.speaker.gov/newsroom/where-are-president-trumps-tax-returns/.
Minority Leader Nancy Pelosi (July 13, 2017)
Republicans . . . won’t join us in the release of the President’s tax returns, which could be
very instructive in terms of any connection to Russia. Why should this President of all
Presidents and all candidates for President in the two major parties, since Gerald Ford,
not release his returns so the American people can know?
Press Conference, Minority Leader Nancy Pelosi (July 13, 2017),
https://www.speaker.gov/newsroom/71317-8/.
Rep. Bill Pascrell (D-NJ) (July 14, 2017)
On February the 1st, I wrote a letter to the chairman of the committee which I participate
in, and that is the Ways and Means Committee Chairman Kevin Brady. In that letter, I
asked him to use his existing authority to obtain President Trump's tax returns for review
by our committee.
And I would say, from the get-go here, that a lot of the questions that are being asked
today and have been asked in the past could have been avoided if the president of the
United States had followed the ethics commission and – to divest himself of all of his
holdings and assets. President chose – chose not to do that.
And the more we get into 2017, the more we understand how the tax returns are critical.
He could have avoided all this by divesting himself, but the deals that have been made
just at the – during the time that he's been the president is a reflection.

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Every president – and this has nothing to do with party affiliation, which I said to Kevin
Brady in February of this year – every president must have a clean slate when he goes
into that office and raises his hand to be sworn, so that he can be objective in his
decisions. We have no assurances of that right now, and we are not going to simply sit
back and reflect on the good of his word. I'm not. I don't think many Americans are.
And Members of Congress, specifically the tax-writing committees, currently have
authority in the tax code to get the President's tax returns, to examine his conflicts of
interest.
***
Since February, we've held nine votes on the floor of the House of Representatives. And
in – March 1st, I offered a resolution of inquiry that was debated in the Ways and Means
Committee. At each turn, the Republicans in Congress blocked our efforts.
Why are they hiding and being complicit, to use the speaker's – the leader's word, in
keeping Trump's conflicts secret and hidden? Why? Why is that? Why won't Republican
Members of Congress use their authority in the law to provide oversight and make sure
the president and his family are not hiding financial ties that could cause conflicts in the
decision-making?
We have no way of knowing whether Mr. Trump or his firms have received Russian
income or loans or entered into Russian-linked partnerships. We have a right to know
that.
The legislative branch has the responsibility and the authority to check the executive
branch, under Section 6103 of the tax code, which allows for an examination of his
returns, the authority put in place specifically so Congress could examine conflicts of
interest in the executive, following that great scandal in the early 1920s.
Today, I'll be introducing a new resolution of inquiry to give the Ways and Means
Committee another chance to get it. And – and by the way, in conclusion, it's not enough
for Republican congressmen to go to town meetings and say, “Yes, the president should
give us his tax returns,” and then not – come back to Washington and not have the
courage to stand up for their convictions and say, “This is the direction we should be
going.”
And that's not good enough. So there's been over 20 people on the other side that have
said he should release his tax returns, but will not vote to do it. Congress can, and must,
use its authority to address President Trump's tax returns and give the American people
the transparency they deserve.
Press Conference, Rep. Bill Pascrell (D-NJ) (July 14, 2017),
http://www.cq.com/doc/newsmakertranscripts-5142259; House Democrats on Russian
Interference in 2016 Election (C-SPAN Video July 14, 2017, at 09:54), https://www.cspan.org/video/?431350-1/democrats-step-pressure-gop-amid-widening-russia-probe.
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Resolution Offered by Rep. David Cicilline (D-RI) (July 18, 2017)
Expressing the sense of the House of Representatives that the President shall immediately
disclose his tax return information to Congress and the American people.
***
Whereas, the chairmen of the Committee on Ways and Means, Joint Committee on
Taxation, and the Committee on Finance have the authority to request the President's tax
returns under section 6103 of the Internal Revenue Code of 1986;
***
Whereas, without access to the President's tax returns, the American people cannot
determine how much he will personally benefit from proposed changes to the Tax Code
or from policy decisions he makes, nor can the American people fully understand the
financial interests and motivations of the President;
***
Whereas, disclosure of the President's tax returns would help those investigating Russian
interference in the 2016 election and assist them in better understanding the President's
financial ties to the Russian Federation, Russian businesses, and Russian individuals;
***
Now, therefore, be it resolved, that the House of Representatives shall–
one, immediately request the tax return and return information of Donald J. Trump for tax
years 2006 through 2015, as provided under section 6103 of the Internal Revenue Code
of 1986, as well as the tax return, and return information with respect to the President's
businesses, of each business entity disclosed by Donald J. Trump on his Office of
Government Ethics Form 278e, specifically each corporation and each partnership, within
the meaning of subchapter K of chapter 1 of the Internal Revenue Code of 1986, where
he is listed as an officer, director, or equivalent, or exercises working control; and
Two, postpone consideration of tax reform legislation until the elected Representatives of
the American people in this House have obtained President Trump's tax returns and
return information to ascertain how any changes to the Tax Code might financially
benefit the President.
163 Cong. Rec. H5941-42 (daily ed. July 18, 2017) (statement of Rep. Cicilline),
https://www.congress.gov/congressional-record/2017/7/18/house-section/article/h5941-1.
House Resolution 479 (July 27, 2017)

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Mr. Pascrell (for himself and Mr. Crowley) submitted the following resolution; which
was referred to the Committee on Ways and Means
RESOLUTION
Of inquiry directing the Secretary of the Treasury to provide to the House of
Representatives the tax return information of President Donald J. Trump as well as the
tax returns of each business entity disclosed by Donald J. Trump on his Office of
Government Ethics Form 278e.
Resolved, That the Secretary of the Treasury is directed to furnish to the House of
Representatives, not later than 14 days after the adoption of this resolution, the full tax
returns of Donald J. Trump for tax years 2006 through 2016, if available, as well as the
tax returns for such taxable years of each business entity disclosed by Donald J. Trump
on his Office of Government Ethics Form 278e, specifically each business entity
specified in section 2 of this resolution; and any supplemental information in the
possession of the President relating to—
(1) the amount of taxes paid by Mr. Trump and each such business entity with respect to
such taxable years;
(2) the debts of Mr. Trump and such business entities which are held by foreign
governments or foreign companies;
(3) the investments of Mr. Trump and such business entities which are in foreign
countries or foreign enterprises;
(4) Mr. Trump’s personal and business profits received from foreign enterprises;
(5) the amount of charitable giving claimed by Mr. Trump with respect to such taxable
years; and
(6) any use of tax shelters or other loopholes to reduce the amount of taxes owed.
***
H.R. Res. 479, 115th Cong. (2017), https://www.congress.gov/bill/115th-congress/houseresolution/479.
Ranking Member Richard Neal (Sept. 7, 2017)
Mr. Pascrell’s resolution would direct the Treasury Secretary to provide the House with
the personal and business tax returns and other financial information of President Trump.
Let me refresh everyone’s memories on the facts here. Until recently, every President
since Gerald Ford released their tax returns to the American public. President Gerald
Ford released a summary of his tax returns. President Jimmy Carter. President Ronald
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Reagan. President George H.W. Bush. President Bill Clinton. President George W. Bush.
President Barack Obama.
Republican and Democratic Presidents. They all released their tax returns to the
American people.
This is not a partisan issue. The reason for releasing this information is to avoid conflicts
of interest. Tax returns include important information about income and charitable giving
and business interests, among other things. And this information is important for the
American people to have so they know that their President is always acting in their best
interest.
Therefore, I support my friend Mr. Pascrell’s resolution. I believe it’s in our country’s
best interest for our Presidents to release their tax returns.
Press Release, Ranking Member Richard Neal, Opening Statement at Markup of H.R. Res. 479
(Sept. 7, 2017), https://waysandmeans.house.gov/media-center/press-releases/ranking-memberneal-opening-statement-markup-hres-479.
Rep. Bill Pascrell (D-NJ) (Sept. 7, 2017)
What we need to explore are the possibilities of conflicts of interest. This is not
something we made up, this is provided by the law. Now . . . it’s a fishing expedition.
Why? Because we don’t have the conclusion. You don’t get to the conclusion until
you’re allowed to investigate, and we have that authority under the law. And if you
looked at the word, “under IRS audit,” I want you to prove to me that he’s still under
audit.
Markup of H.R. Res. 479: Hearing Before the H. Comm. on Ways & Means, 115th Cong., at
47:51 (Sept. 7, 2017) (statement of Rep. Pascrell), https://youtu.be/F2AyBERrEIY.
Minority Leader Nancy Pelosi (Apr. 17, 2018)
While Americans file their taxes, Tax Day also serves as a bitter reminder that President
Trump still refuses to show the public his tax returns. Hard-working families deserve to
know how their president has padded his own pockets with a tax scam that inflicts such
damage on the deficit and the future of Social Security and Medicare. As Republicans in
Congress refuse to demand this basic measure of transparency and accountability from
President Trump, we must ask: what does President Trump have to hide?
Press Release, Minority Leader Nancy Pelosi, Statement on Tax Day (Apr. 17, 2018),
https://www.speaker.gov/newsroom/41718-2/.

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Rep. Lloyd Doggett (D-TX) (Sept. 13, 2018)
We of course cannot know whether the benefit for Trump will be bigly or just huge until
we lift this cover-up of the Trump tax returns. As the smoke continues to build with one
revelation after another, there’s greater need than ever to see what Trump may be hiding
in those returns, the working papers to explain them, and those for the 500 business
entities which stretch from Manhattan to Azerbaijan. Trump’s tax returns relate directly
to what is before us today.
Full Committee Markup of Tax Reform 2.0: Hearing Before the H. Comm. on Ways & Means,
115th Cong., at Part 2, 1:29:00 (Sept. 13, 2018) (statement of Rep. Doggett),
https://youtu.be/SmtV7Jnx6PY.
Rep. Lloyd Doggett (D-TX) (Sept. 13, 2018)
The stench of corruption permeates this Administration, and it comes right from the top.
This amendment is designed to end the Republican coverup of Trump’s tax returns.
While this amendment seeks to achieve the same result that I have sought with 5 prior
attempts in this committee, it includes extensive new findings from some of the notable
developments of recent months that make clear we are not only dealing with the selfdescribed “King of Debt,” but someone who continues to act as if he were just King.
Trump’s tax returns relate directly to what is before us today. There is no issue this
Committee could consider more important than the integrity of our tax code, and the faith
that the American people have in our democracy. Trump has surrounded himself with
convicted tax evaders—rich friends who have decided they are above the law, and that
working people who can’t afford fancy tax lawyers should have to pick up the slack.
Even Richard Nixon invited the Joint Committee on Taxation to review his tax
returns, explaining that “people have got to know whether or not their President is a
crook.”
While this Committee has refused to do its job—while in this Congress instead of
oversight, we have been overlooking Administration misconduct—the President’s tax
returns have in fact already been reviewed. That was a review that, amazingly, President
Trump presented as his “Good Housekeeping Seal of Approval” to assure America he
had no business dealings with the Russians. It was a review of his tax returns by his
personal law firm, which, of course, gave him a clean bill of health on any Russian
connection—only months after it boasted of the “prestigious honor” of being named
“Russia Law Firm” of the year. I am only asking that this Committee do for the American
people what the “Russia Law Firm of the Year” has done for Mr. Trump.
Before this Committee considers a dime of more tax breaks, we must obtain and review
the President’s tax returns. Any tax bill released should be accompanied by a line-by-line
report of how much Trump, his family, and his companies will benefit from each one.

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His tax returns can help tell us whether he is putting America First, or Trump first,
his family second, and Russian third.
Press Release, Rep. Lloyd Doggett (D-TX), Rep. Doggett Offers Amendment to Secure Trump
Tax Returns, Meet the Nixon Standard (Sept. 13, 2018), https://doggett.house.gov/mediacenter/press-releases/rep-doggett-offers-amendment-secure-trump-tax-returns-meet-nixon
(emphases in original); see also Rep. Lloyd Doggett, My Remarks Offering an Amendment to
Secure Trump Tax Returns, Meet the Nixon Standard (Sept. 13, 2018),
https://www.youtube.com/watch?v=6UuAmtMzs8E&feature=youtu.be.
Press Account Quoting Ranking Member Richard Neal (Oct. 3, 2018)
“This has never happened before, so you want to be very meticulous,” Mr. Neal said.
Richard Rubin, Trump’s Tax Returns in the Spotlight if Democrats Capture the House, Wall St.
J. (Oct. 3, 2018), https://www.wsj.com/articles/trumps-tax-returns-in-the-spotlight-if-democratscapture-the-house-1538575880.
Press Account Quoting Minority Leader Nancy Pelosi (Oct. 10, 2018)
Expect Democrats to immediately try to force President Trump to release his tax returns
if they take back the House in November, Minority Leader Nancy Pelosi said
Wednesday.
Demanding the president’s tax returns “is one of the first things we’d do—that’s the
easiest thing in the world. That’s nothing,” Pelosi told The Chronicle’s editorial board in
an hour-long interview.
John Wildermuth, Pelosi: Trump’s tax returns are fair game if Democrats win House, S.F.
Chron. (Oct. 11, 2018), https://www.sfchronicle.com/politics/article/Pelosi-Trump-s-tax-returnsare-fair-game-if-13297954.php.
Press Account Quoting Ranking Member Richard Neal (Oct. 12, 2018)
“I think we would all be comfortable if this was done on a voluntary basis,” Neal said.
“If they would resist the overture then I think you could probably see a long and grinding
court case,” he added.
***
“It is not cut and dry,” Neal said, noting that there was still plenty of discussion ahead for
how and when to request the returns officially.
***

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“Anticipate a long court case in the end,” Neal said.
Lauren Fox, Leading Democrat on House Ways and Means would ask for Trump's tax returns,
CNN (Oct. 12, 2018), https://www.cnn.com/2018/10/12/politics/house-ways-mean-tax-returnsrichard-neal/index.html.
Press Account Quoting Minority Leader Nancy Pelosi (Dec. 13, 2018)
House Minority Leader Nancy Pelosi (D-Calif.) said Thursday that she expects a House
committee to “take the first steps” toward obtaining President Trump’s tax returns after
Democrats take control of the chamber next month, but she cautioned that securing them
is “a little more challenging than you might think.”
“There is popular demand for the Congress to request the president’s tax returns,” said
Pelosi, who is likely to become House speaker. “I’m sure the White House will resist, so
the question is, ‘Where do we go from there?’”
John Wagner, Pelosi says she expects a House committee will ‘take the first steps’ toward
obtaining Trump’s tax returns, Wash. Post (Dec. 13, 2018),
https://www.washingtonpost.com/powerpost/pelosi-says-she-expects-a-house-committee-willtake-the-first-steps-toward-obtaining-trumps-tax-returns/2018/12/13/fbc02660-feec-11e8-862ab6a6f3ce8199_story.html?utm_term=.ebb1d6c1325c.
Press Account Quoting Spokesperson for Ranking Member Richard Neal (Jan. 2, 2019)
Rep. Richard Neal (D-Mass.), who will be the new Ways and Means Committee
chairman, wants to take some time to try to build a case with the public about why Trump
ought to voluntarily release his tax filings, before tapping an obscure law that allows the
heads of Congress’ tax committees to examine anyone’s returns.
***
“He wants to lay out a case about why presidents should be disclosing their tax returns
before he formally forces him to do it,” said Dan Rubin, a Neal spokesperson.
***
“He is a very policy-driven person, and I think he sees that if we break the glass and pull
that alarm, you won’t get anything done after that,” said Rubin.
Brian Faler, Incoming Democratic tax chairman won't make quick grab for Trump’s returns,
Politico (Jan. 2, 2019), https://www.politico.com/story/2019/01/02/congress-trump-tax-returnsrichard-neal-1056839; see also Press Release, Rep. Richard Neal (Jan. 2, 2019),
https://neal.house.gov/in-the-news/incoming-democratic-tax-chairman-wont-make-quick-grabtrumps-returns.

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Press Account Quoting Chairman Richard Neal (Jan. 23, 2019)
The chairman of the House Ways and Means Committee, U.S. Rep. Richard Neal, DSpringfield, said Wednesday he plans to request President Trump’s tax returns, but
expects a drawn-out legal battle to result, and thus is choosing his words carefully on the
matter.
“I plan to do it,” Mr. Neal said in a visit to the Telegram & Gazette offices. “We are now
in the midst of putting together the case. It will be a long and grinding legal case.”
***
Mr. Neal added: “I hope the president will voluntarily release his tax documents. I don’t
think that, given the conversation so far, there is any indication he intends to do that. I
also think the public has reasonably come to expect that presidential candidates and
aspirants release those documents. It’s likely to end up in a court case.”
“We need to approach this gingerly and make sure the rhetoric that is used does not
become a footnote to the court case.”
He said: “I’ve been meticulous about my choice of words, for good reason.”
Mark Sullivan, Powerful Ways and Means chairman Neal to pursue Trump’s tax returns,
Telegram & Gazette (Jan. 23, 2019), https://www.telegram.com/news/20190123/powerful-waysand-means-chairman-neal-to-pursue-trumps-tax-returns; see also Press Release, Rep. Richard
Neal (Jan. 23, 2019), https://neal.house.gov/in-the-news/powerful-ways-and-means-chairmanneal-pursue-trump-s-tax-returns.
Press Account Quoting Chairman Richard Neal (Jan. 24, 2019)
House Ways and Means Chairman Richard E. Neal said Thursday he plans to approach
the tricky topic of obtaining President Donald Trump’s tax returns “methodically and
judiciously.”
Neal said he started to have “preliminary conversations” about the issue after he was
named chairman-designate on Dec. 20, before he formally assumed the position after the
116th Congress began earlier this month.
“One of the things you have to be mindful of is that this has to be a part of a carefully
prepared and documented legal case,” said Neal, D-Mass. “And it’s not subject to just
whim and the emotion of the moment.”
Added Neal: “This has to be prepared in accordance with staff, House counsel and an
understanding that this is likely to become the basis of a long and arduous court case.”
***

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“We’re in this precarious period of time when the American people aren’t quite sure of
what to believe about many, many issues,” Neal continued. “So again, methodically and
judiciously we’ll proceed.”
Doug Sword, Neal: “Long and Arduous” Process to Get Trump’s Tax Returns, CQ, Jan. 24,
2019, http://www.cq.com/doc/news-5449807.
Speaker Nancy Pelosi (Feb. 7, 2019)
I think, overwhelmingly, the public wants to see the President’s tax returns. And so, they
want to know the truth. They want to know the facts. And he has nothing to hide.
I’ll just tell you this and go on from there, because we have important work to do, and we
have important judgments to make, and we need information to make those judgments.
***
You have to be very, very careful if you go forward.
As I said, we are in our first month. The committees have been appointed. They have
organized. They are prioritizing their work and, in terms of the tax issue, it’s not a
question of just sending a letter. You have to do it in very careful way. And the
chairman of the committee will be doing that.
So, I know there’s this impatience because people want to know, that answers the
question, but we have to do it in a very careful way.
Press Conference, Speaker Nancy Pelosi (Feb. 7, 2019),
https://www.speaker.gov/newsroom/2719-2/.
Rep. Dan Kildee (D-MI) (Feb. 7, 2019)
Well, the committee has a right to the returns. The law was written because it expected
that a moment may occur where there’s a public interest in having a tax return gained by
the committee in order to evaluate it, or acquired by the committee for this kind of
evaluation.
What we need to do, and what the Speaker said, and what Chairman Neal is absolutely
doing is lay the record, lay the groundwork, make the justification to use this rarely used
authority in order to make sure that we have a solid legal basis. So, today’s hearing was
very much focused on laying a legal foundation to explore what the law allows us to do,
to understand that completely, to make sure that we’re doing this in a methodical way.
This is unchartered territory. It’s clear that the President does not want some information
that is included in his tax return to be revealed, otherwise he would not have broken with

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50 years of norms that Democrats and Republicans have adhered to releasing tax returns.
There’s a reason he doesn’t want them there.
So he will fight this, and he probably fight it as far as he can, because we expect that and
for the reasons that I already stated, this is unchartered territory. It’s very important that
we’re methodical and we lay the foundation for the public purpose to acquire access to
these returns and that’s the process that we’re going through now.
***
The public has a right to know whether or not their elected officials are benefiting from
the decisions that they make using the public responsibilities that the public has vested in
them.
So whether it’s his personal entanglements, debt or the decisions that he’s making on
policy going forward, this is the reason disclosure is so important, this is the reason that
past candidates and presidents have released their returns, so that the public will know
whether or not the individual has entanglements that could impact their public decision
making, and that’s really the purpose behind this entire area of inquiry for us.
All In with Chris Hayes (transcript of MSNBC television broadcast Feb. 7, 2019),
http://www.msnbc.com/transcripts/all-in/2019-02-07.
Press Account Quoting Rep. Bill Pascrell (D-NJ) (Feb. 26, 2019)
“Evidence that Trump has abused our tax laws is plentiful,” Rep. Bill Pascrell (D-NJ),
who has been making the case for pursuing Trump’s tax returns under Section 6103
essentially since Trump was inaugurated, said in an emailed statement to Vox. He cited a
New York Times investigation into Trump and his family’s tax practices that suggested
the family for years engaged in a number of schemes to avoid taxes, and leaked pages
from Trump’s 1995 and 2005 tax returns; the 1995 ones show a nearly $1 billion loss.
“Americans have a right to know if their president has paid his taxes, if he has followed
the law, and if he is free from financial conflicts of interest,” Pascrell continued. “The
law is clear. Under 6103, the Ways and Means Committee chairman is entitled to request
Trump’s tax returns—and the Treasury secretary is obligated to deliver them. That’s all
there is to it.”
Emily Stewart, Democrats’ coming battle to get Trump’s tax returns, explained, Vox (Feb. 26,
2019), https://www.vox.com/platform/amp/policy-and-politics/2019/2/26/18223760/democratstrump-tax-returns-richard-neal.
Speaker Nancy Pelosi (Apr. 4, 2019)
No president in the modern era has worked so diligently to keep their tax returns out of
the public eye. What is President Trump hiding?
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Nancy Pelosi (@SpeakerPelosi), Twitter (Apr. 4, 2019, 3:29 p.m.),
https://twitter.com/SpeakerPelosi/status/1113886412649189376.
Press Account Quoting Chairman Richard Neal (Apr. 5, 2019)
Neal told reporters on Thursday that he took roughly three months to build the case for
requesting the returns, which he argued was reasonable given the gravity of the request.
“This was a very reasoned approach. Our position from day one was that this would be
measured,” Neal said. “This is likely to wind its way through the federal court system and
we wanted to make sure that the case that we constructed was in fact one that would
stand up under the critical scrutiny of the federal courts.”
Sunlen Serfaty et al., Republicans warn Trump tax request ‘sets a dangerous standard’ and
accuse Dems of weaponizing IRS, CNN (Apr. 5, 2019),
https://www.cnn.com/2019/04/04/politics/trump-tax-returns-request-republicanscongress/index.html.
Chairman Richard Neal (Apr. 5, 2019)
I want to make this very clear: this is about policy. We have resisted politics. . . .
***
We’re anticipating that we’re in the midst of building a case. . . .
***
Our intent is to test a federal law that has been on the books since 1924 and to apply the
full tenor of that law to the request that we've made and to make sure that that law under
again the magnifying glass stands up.
***
This was not motivated by malevolence. . . .
***
I think if people could say that no other American president has ever submitted their tax
forms, then I could understand that people might suggest . . . this was an ill-considered
strategy. . . . When you have eight American presidents in succession who have all
previewed their tax forms for the American people, I don’t think that there’s any sense
here one would be feeling any heat over this.
Emily Judem, Rep. Neal: Request for Trump’s Taxes ‘Was Not Motivated By Malevolence’,
WGBH News (Apr. 5, 2019), https://www.wgbh.org/news/national-news/2019/04/05/rep-nealrequest-for-trumps-taxes-was-not-motivated-by-malevolence; Connecting Point (WGBY
television broadcast Apr. 5, 2019), https://video.wgby.org/video/the-state-were-in-rep-nealrequests-trumps-tax-returns-i1mcqf/.
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Press Account Quoting Chairman Richard Neal (Apr. 25, 2019)
Anticipating a court fight with Donald Trump over access to the president’s tax returns,
U.S. Rep. Richard E. Neal, D-Springfield, said he’s likely to release his own returns in
the future.
“And I certainly would if I were running for president,” Neal said. . . .
Jim Kinney, Rep. Richard Neal says he may release his own taxes as fight with President Donald
Trump heats up, The Republican (Springfield, Mass.) (Apr. 25, 2019),
https://www.masslive.com/news/2019/04/rep-richard-neal-says-he-will-release-his-own-taxesas-fight-with-president-donald-trump-heats-up.html.
Chairman Richard Neal (Apr. 26, 2019)
I’ve always thought that this was headed to court. I did not believe there would be any
voluntary inclination to turn over the tax forms.
***
I’d go so far as to state the following: the law doesn’t say “maybe,” and the law doesn’t
say “what if,” and I can assure you that this is a discussion about policy and not about
politics. A reminder—I have to be a bit careful if it’s okay partially because I’m
petitioner in the case, so my comments are probably going to be broad and general—but
the last eight presidents going back to President Nixon have all voluntarily submitted
their tax forms. And in the case of President Nixon, he actually turned the tax forms over
to what is known as the Joint Tax Committee. The Joint Tax Committee staff is
comprised of economists, tax attorneys, and accountants. And Chuck Grassley, who is
the Chairman of the Finance Committee in the Senate, he’s currently the Vice-Chairman
of that committee and I’m currently the Chairman. And our positions would revert come
next January, because it’s always been bipartisan in nature. But it has broad
responsibility on the tax front. And they reviewed President Nixon’s forms. President
Ford and others all released their forms without any public argument. And I think in this
case here, all we’re saying here is we’d like to have some idea as to how the Internal
Revenue Service—and you should remember that is the body that I have petitioned for
the President’s tax forms. We have not petitioned the President directly because that
would not be within the confines of the law. And in 1955, the Treasury Secretary
delegated to the IRS this broad responsibility. So, our requests have gone to the Internal
Revenue Service.
***
The law is very clear, and it says “shall furnish.” There’s a series of steps after this. This
idea that all of a sudden the President’s tax forms would become public is not accurate.
There would have to be a careful process of review. And after the review concluded, we
could reach a determination as to Members of the Ways and Means Committee actually
casting a vote on that basis. But not to miss the point that we have not gone lightly into
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this consideration. And we have been very careful. I have pointed out time and again,
that this is not about painting your face and going to a demonstration. I’ve carefully
refrained from a lot of commentary with the cable shows and others. I’ve stayed away
from it largely because I think this is a matter of policy.
***
And I must tell you from the outset as we prepared this case, I want to point out that
House Counsel as well as the tax staff of the Ways and Means Committee – they have in
a very meticulous manner prepared the documentation.
***
We believe that, as I indicated, that they do review the President’s tax forms. We’re
suggesting we would like to see the procedure as to how that is done.
***
The House of Representatives after we became the majority in early January, and
reminding all that we were not in a position to demand those tax forms until we became
the majority because upon becoming the majority then we were in charge of appointing
House Counsel. So, we’ve done this on the basis of House Counsel, and in early January,
we voted in the House of Representatives—I think it’s H.R. 1—to require presidents to
release their tax forms. We think that that’s entirely consistent with the vote we’ve
already cast.
Arjun Singh, Neal Says Request for Trump’s Tax Returns Is About Policy, Not Politics, Bos. Pub.
Radio (Apr. 26, 2019), https://www.wgbh.org/news/politics/2019/04/26/neal-says-request-fortrumps-tax-returns-is-about-policy-not-politics.
Press Account Quoting Rep. Bill Pascrell (D-NJ) (Apr. 26, 2019)
“Mr. Trump thinks he’s above the law. He thinks he’s king,” said Pascrell, a political
street fighter who mastered the art of hurling verbal brickbats long before Trump entered
politics. “This is a Democracy. Go to Russia. He’ll be very comfortable there, I’m sure,
from what I hear.”
***
But Pascrell also had some strategic advice. Republicans should take steps to insulate
themselves from the fallout if Trump's tax returns are eventually made public and contain
scandalous details, he argued.
“This could get messy down the line,” Pascrell said. “This is going to come out sooner or
later. And somebody is going to ask, ‘how come you weren’t asking for it.?’ [sic] And I
don’t think it is good enough just to say you were protecting the president.”

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Charles Stile, As Trump keeps tax return under wraps, Pascrell turns up the heat, N. Jersey
Record (Apr. 26, 2019), https://www.northjersey.com/story/news/columnists/charlesstile/2019/04/26/trump-tax-returns-target-nj-congressman/3551375002/.
Speaker Nancy Pelosi
By stonewalling Congress, Trump is refusing to allow the American people to make an
independent judgment about his Administration’s policies and his personal conduct in
office.
President Trump’s stonewalling has metastasized from refusing to release his tax returns
or divest his assets to the Trump Administration now refusing to cooperate on every level
of government, from sabotaging Americans’ health care to protecting our elections.
***
What is President Trump Hiding?
President Trump is taking extraordinary and unprecedented measures to conceal
information about himself and to cover-up his Administration’s dangerous and secretive
activities from the public. This is part of a massive, unprecedented and growing pattern of
obstruction.
***
Trump Concealing Truth from the Public: The President is . . . stonewalling
Congressional inquiries. . . . The President’s behavior has consequences for the country:
***
Violates 30 years of Presidential Precedent: U.S. tax code Section 6103 provides
Congress the legal authority to request tax returns, yet Trump’s Treasury Department is
refusing to provide the Ways and Means Committee the President’s tax returns. The law
is explicit: “the Secretary shall furnish such committee with any return or return
information...” requested by the Chairman of the Committee. To date, no requests under
6103 have been denied.
Nancy Pelosi, Speaker of the House, Trump Administration Obstruction: Unprecedented,
Unwarranted, Unconstitutional, https://www.politico.com/f/?id=0000016a-72b0-dca8-a1ff7fb813f60001 (last visited May 6, 2019) (emphases in original).

Page 45 of 45

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EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 229 of 413
Vaughan, Frederick
From:
Sent:
To:
Cc:
Subject:
Attachments:

McAfee, Karen <Karen.McAfee@mail.house.gov>
Friday, May 10, 2019 2:50 PM
Vaughan, Frederick
Sok, Justin
House Ways & Means Subpoena to Secretary Mnuchin
WM Subpoena Mnuchin 5.10.19.pdf

Fritz, 
 
I am confirming that you agreed by telephone to waive in‐person service and allow the Committee to serve the 
Secretary electronically.  Accordingly, please find attached a letter and enclosure to Secretary Mnuchin.  Please feel free 
to reach out to me if you have any questions. 
 
Best, 
Karen 
 
Karen B. McAfee 
Staff Director, Subcommittee on Oversight 
Committee on Ways & Means, Democratic Staff 
1129 Longworth House Office Building 
Washington, DC 20515 
(202) 225‐4021 
This document and any related communications or documents generated by the Committee on Ways and Means are confidential congressional records, remain 
subject to congressional control, and are entrusted to you only for use in handling this matter.  Any related documents communicated to us in response to this 
document or to any related House communications are also confidential congressional records and remain subject to congressional control.  Accordingly, the 
aforementioned materials are not "agency records" for purposes of the Freedom of Information Act or other law.   

 
From: Frederick.Vaughan@treasury.gov <Frederick.Vaughan@treasury.gov>  
Sent: Friday, May 10, 2019 2:38 PM 
To: McAfee, Karen <Karen.McAfee@mail.house.gov> 
Cc: Justin.Sok@treasury.gov 
Subject: RE: House Ways & Means Committee Request 
 
Just tried your direct. Mine is 202‐622‐2678. 
 
Best, Fritz 
 
-Frederick W. Vaughan
Deputy Assistant Secretary
Legislative Affairs
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
202-622-2678

 
From: McAfee, Karen <Karen.McAfee@mail.house.gov>  
Sent: Friday, May 10, 2019 2:27 PM 
To: Vaughan, Frederick <Frederick.Vaughan@treasury.gov> 
1

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 230 of 413
Cc: Sok, Justin <Justin.Sok@treasury.gov> 
Subject: House Ways & Means Committee Request 
 
Frederick, 
 
I received your name from my Staff Director, Brandon Casey, at the Ways and Means Committee.  Would you be able to 
call me today to discuss documents that we would like to deliver to the Secretary of Treasury?  My direct number is 202‐
226‐1432. 
 
Thanks, 
Karen 
 
Karen B. McAfee 
Staff Director, Subcommittee on Oversight 
Committee on Ways & Means, Democratic Staff 
1129 Longworth House Office Building 
Washington, DC 20515 
(202) 225‐4021 
This document and any related communications or documents generated by the Committee on Ways and Means are confidential congressional records, remain 
subject to congressional control, and are entrusted to you only for use in handling this matter.  Any related documents communicated to us in response to this 
document or to any related House communications are also confidential congressional records and remain subject to congressional control.  Accordingly, the 
aforementioned materials are not "agency records" for purposes of the Freedom of Information Act or other law.   

 

2

 RICHARDE NEAL Case Document 44-3 ,Filed 09/06/19 Page 231 of BRADY
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TERRI A. SEWEI.L, ALABAMA mag? "Igtnu? ma 20513 0348 
SUZAN DELRENE, WASHINGTON . DARIN LAHOOD, ILLINOIS
JUDY CW CALIFORNM http?waysandmeans.housegov BRAD H. WENSTHUF. 
GWEN MOORE. WISCONSIN JODEY ARRINGTON, TEXAS
DAN KILDEE, MICHIGAN DREW FERGUSON, GEORGIA
BRENDAN BOYLE, RON ESTES. KANSAS
DON BEYER, VIRGINIA
DWIGHT EVANS. GARY ANDRES
BFIAD SCHNEIDER. ILLINOIS I
TOM SUDZZI. NEW YORK MINORITY STAFF DIRECTOR
JIMMY PANETTA, CALIFORNIA
STEPHANIE MURPHY. FLORIDA
JIMMY GOMEZ. CALIFORNIA
STEVEN HORSFORD NEVADA
Ma 10 2019
BRANDON CASEY, 3
MAJORITY STAFF DIRECTOR

The Honorable Charles P. Retti The Honorable Steven T. Mnuchin

Commissioner Secretary

Internal Revenue Service Department of the Treasury

1 1 1 1 Constitution Avenue, NW 1 500 Avenue, NW

Washington, DC. 20224 Washington, DC. 20220

Dear Commissioner Rettig and Secretary Mnuchin,

To date, the Internal Revenue Service has failed to provide the return and return
information requested by my April 3, 2019 letter, despite an unambiguous legal obligation to do
so. Such information originally was due by April 10, 2019. In a letter dated April 23, 2019, I was
noti?ed that the Department of the Treasury (?Treasury?) was consulting with the Department of
Justice (?Justice?) in connection with this request. The letter advised that Treasury, and not the
IRS, expected to provide the Committee on Ways and Means (?Committee?) a ?nal decision by
May 6, 2019, after it had received Justice?s legal guidance. On May 6, relying on advice from
Justice, Treasury noti?ed me by letter of its determination that it is not authorized to disclose the
requested tax returns and return information because the Committee?s request ?lacks a legitimate
legislative purpose.?

As stated in my prior correspondence, the IRS is under a mandatory obligation to provide
the information requested under section 6103(f)(1) of the Internal Revenue Code, which states that
?[u]pon 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 shall furnish such committee with any return or return
information speci?ed in such request? (emphasis added). Section 6103 has long been regarded as
clear and unambiguous. Compliance is not discretionary under any circumstance, even if the
taxpayer is under audit. The Committee never has been denied a request made under section
6103(t). Although the Committee is not required to provide a reason for requests under section
6103(i), I am responding to your letters out of respect for the IRS, Treasury, and their responsibility
to fairly and impartially administer the Federal tax laws.

The Committee Has a Legitimate Legisiarive Purpose

The April 23 letter alleges that the Committee?s asserted purpose is a pretext, but this claim
is false. As stated in my April 3 letter, the Committee requested the return and return information

Case Document 44-3 Filed 09/06/19 Page 232 of 413

Commissioner Rettig
Secretaly Mnuchin
May 10, 2019

Page 2

because it is considering legislative proposals and conducting oversight related to our Federal tax
laws, including, but not limited to, the extent to which the IRS audits and enforces the Federal tax
laws against a President. Earlier this Congress, compliance and disclosure related to the Federal
tax returns of the President and Vice President were included in the scope of a Committee hearing.
As you know, the mandatory examination of the President and Vice President is set forth in the
Internal Revenue Manual but is not codi?ed. Legislation may therefore be necessary. It
cannot be denied that legislation related to IRS examination and enforcement is within the
Committee?s jurisdiction, and the Committee has a responsibility to inform itself in the course of
legislating.

The President is the most powerful public of?cial in this country. No other single
American has the power to sign bills into law and direct an entire branch of government. The
Committee believes this fact calls for concordant scrutiny into the President?s ability to in?uence,
even indirectly, the administration of the Federal tax laws. The purpose underlying inclusion of
the mandatory audit in the IRM was so that no IRS employee would have to make the decision to
audit a sitting President] However, there is more to an audit than just the decision to initiate it.
Among other considerations, the Committee wants to be sure that IRS employees who determine
the scope of the President?s audit, or who determine whether to continue previously-initiated
audits, are protected in the course of their work.

As the Supreme Court has stated: legislative body cannot legislate wisely or effectively
in the absence of information respecting the conditions which the legislation is intended to affect
or change; and where the legislative body does not itself possess the requisite information?which
not infrequently is true?recourse. must be had to others who do possess it.?2 With respect to the
Committee?s consideration of legislative proposals concerning mandatory examination, the
President?s tax returns and return information are necessary to guide that legislative action.

Treasury takes issue with the fact that the Committee seeks tax information related to only
the current President. This concern is miSplaced and ignores the fact that the tax issues raised by
the current President are unique. The President has stated repeatedly that his returns are under
routine audit,3 and, in 2016, his tax attorneys reported that his returns have been under continuous
examination since 2002 and involve transactions and activities reported on returns in 2008 and
earlier.4 The continuous audit and activities from 2008 and before, the use by the President of a
grantor trust controlling hundreds of businesses, and the volume of his tax returns5 make this
President markedly different from previous Presidents or Vice Presidents examined under the
mandatory audit procedures.

 

Background Regarding the Confidentiality and Disclosure of Federal Tax Returns (Feb. 4, 2019), at 21
(quoting IRS spokesperson).

2 MCGrain v. Daugherty, 273 US. 135, 175 (1927).

3 See, e. g, Donald J. Trump (@realDonaldTrump), Twitter (May 1 l, 2016, 1:51 PM),


4 Letter from Sheri A. Dillon and William F. Nelson to Mr. Donald J. Trump, Re: Status ofU.S.federaZ income tax
returns (Mar. 7, 2016).

5 See, Donald J. Trump (@realDonaldTrump), Twitter (Oct. 15, 2015, 10:13 AM),


Case Document 44-3 Filed 09/06/19 Page 233 of 413

Commissioner Rettig
Secretary Mnuchin
May 10, 2019

Page 3

Case Law Supports the Committee

The April 23 letter relies heavily on a single quotation from Watkins 12. United States about
exposure ?for the sake of exposure.?6 In Watkins, the facts at hand and the nature of the
investigation were wholly different from the Committee?s current oversight efforts. The
Committee?s efforts to understand the mandatory audit of the President, the head of the
Executive Branch, bear no similarity to the House Un-American Activities Committee?s efforts to
uncover members of the Communist Party. Moreover, the Court?s objection in Watkins was that
the witness was not informed adequately of the scope of the Committee?s investigation, a defect
that certainly cannot be claimed here. In this instance, the Committee clearly has de?ned the scope
of its investigation, and your letters evidence that you are fully aware of and have Spent much time
pondering the Committee?s legislative purpose.

Furthermore, selectively quoting from Watkins does not erase the remainder of the Court?s
opinion. Importantly, the Court lays out the obligation here: ?It is unquestionably the duty
of all citizens to cooperate with the Congress in its efforts to obtain the facts needed for intelligent
legislative action. It is their unremitting obligation . . . to respect the dignity of the Congress and
its committees.?7 Watkins also undermines Treasury?s efforts to second-guess why the Committee
requested certain tax returns instead of others: ?The legislature is free to determine the kinds of
data that should be collected.?8 Clearly, the Supreme Court agrees that Congress is in the best
position to determine what information it requires to perform its own legislative work.

In closing, I appreciate Treasury?s offer for a brie?ng. A briefing, however, is not a
substitute for the requested tax returns and return information. In total, the IRS has had more than
four weeks to comply with the Committee?s straightforward request. Therefore, please see the
enclosed subpoena. The return date is May 17, 2019. Thank you for your prompt attention to this
matter.

Sincerely,

 
        



The Honorable Richard E. N?/al, Chatrma
Committee on Ways and Means

 

Enclosure

 

6 354 U.S. 178, 200 (1957).
71d. at 187.
81d. at215.

Case Document 44-3 Filed 09/06/19 Page 234 of 413

SUBPOENA

BY AUTHORITY OF THE HOUSE OF REPRESENTATIVES OF THE
CONGRESS OF THE UNITED STATES OF AMERICA

The Honorable Steven Mnuchin, Secretary
To United States Department of the Treasury

 

You are hereby commanded to be and appear before the
Committee on Ways and Means

 

 

of the House of Representatives of the United States at the place, date, and time speci?ed below.

to produce the things identi?ed on the attached schedule touching matters of inquiry committed to said
committee or subcommittee; and you are not to depart without leave of said committee or subcommittee. .

 

Place of production: 1102 Longworth House Of?ce Building, Washington, DC. 20515

 

 

 

Date: May 17, 2019 Time: 5100 pm.

 

to testify at a deposition touching matters of inquiry committed to said committee or subcommittee;
and you are not to depart without leave of said committee or subcommittee.

 

Place of testimony:

 

 

 

 

 

Date: Time:

 

CI to testify at a hearing touching matters of inquiry committed to said committee or subcommittee; and
you are not to depart without leave of said committee or subcommittee.

 

Place oftestimony:

 

Date Time:

 

 

 

 

To examiners or agents designated by Chairman Richard Neal

to serve and make return.

 

Witness my hand and the seal of the House of Representatives of the United States, at


the city of Washington, DC. this 10th Tday'Chairman or Authorized Member

Case Document 44-3 Filed 09/06/19 Page 235 of 413

Schedule A

In accordance with the attached instructions, you are required to produce, for each of the
tax years 2013 through 2018, the following return and return information:

1. The Federal individual income tax returns of Donald J. Trump.

2. All administrative ?les (workpapers, affidavits, etc.) for each requested Federal
individual income tax return of Donald J. Trump.

3. The Federal income tax returns of the following entities:

The Donald J. Trump Revocable Trust;

DJT Holdings 

DJT Holdings Managing Member 

DTTM Operations 

DTTM Operations Managing Member Corp;

LFB Acquisition Member Corp;

LFB Acquisition and

Lamington Farm Club, LLC d/b/a Trump National Golf Club?Bedminster.

4. All administrative ?les (workpapers, af?davits, etc.) for each requested Federal
income tax return of each entity listed above.

Case Document 44-3 Filed 09/06/19 Page 236 of 413

10.

11.

12.

Schedule (Instructions)

. In complying with this subpoena, you are required to produce all responsive documents

that are in your possession, custody, or control, whether held by you or your past or
present agents, employees, and representatives acting on your behalf.

Subpoenaed documents, and all documents reasonably related to the subpoenaed
documents, should not be destroyed, altered, removed, transferred, or otherwise made
inaccessible to the Committee on Ways and Means (?Committee?).

. In the event that any entity, organization, or individual denoted in this subpoena is or has

been known by any name other than that herein denoted, the subpoena shall be read also
to include that alternative identi?cation.

All documents shall be Bates?stamped sequentially and produced sequentially.

Documents produced in electronic format should be organized, identified, and indexed
electronically. The Committee?s preference is to receive any electronic documents in
Portable Document Format (PDF).

Documents produced in response to this subpoena should include an index describing the
contents of the production. To the extent more than one CD, hard drive, memory stick,
thumb drive, zip file, box, or folder is produced, each should contain an index describing
its contents.

Documents produced in response to this subpoena shall be produced together with copies
of file labels, dividers, or identifying markers with which they were associated when the
subpoena was served.

When you produce documents, you should identify the paragraph(s) in the subpoena
schedule to which the documents respond.

The pendency of or potential for litigation shall not be a basis to withhold any
information.

In accordance with 5 U.S.C. 552(d), the Freedom of Information Act and any
statutory exemptions to FOIA shall not be a basis for withholding any information.

Pursuant to 5 U.S.C. 552a(b)(9), the Privacy Act shall not be a basis for withholding
information.

If compliance with the subpoena cannot be made in full by the speci?ed due date,
compliance shall be made to the extent possible by that date. An explanation of why full
compliance is not possible shall be provided along with any partial production.

13

14.

15.

16.

17.

18.

19.

Case Document 44-3 Filed 09/06/19 Page 237 of 413

. In the event that a document is withheld in full or in part on a claim of privilege, provide
a privilege log containing the following information concerning any such document: 
every privilege asserted; the type of document; (0) the general subject matter; the
date, author, addressee, and any other the relationship of the author and
addressee to each other; and the basis for the privilege(s) asserted. If a claimed
privilege applies to only a portion of any document, that portion only should be withheld
and the remainder of the document should be produced. As used herein, ?claim of
privilege? includes, but is not limited to, any claim that a document either may or must be
withheld from production pursuant to any statute, rule, or regulation.

In complying with the subpoena, be apprised that (unless otherwise determined by the
Committee) the Committee does not recognize: any purported non-disclosure privileges
associated with the common law including, but not limited to, the deliberative-process
privilege, the attorney-client privilege, and attorney work product protections; any
purported privileges or protections from disclosure under FOIA or the Privacy Act; or
any purported contractual privileges, such as non-disclosure agreements.

Any assertion by a subpoena recipient of any such non?constitutional legal bases for
withholding documents or other materials shall be of no legal force and effect and shall
not provide a justi?cation for such withholding or refusal, unless and only to the extent
that the Committee (or the chair of the Committee, if authorized) has consented to
recognize the assertion as valid.

If any document responsive to this subpoena was, but no longer is, in your possession,
custody, or control, identify the document (by date, author, subject, and recipients), and
explain the circumstances under which the document ceased to be in your possession,
custody, or control.

If a date or other descriptive detail set forth in this subpoena referring to a document is
inaccurate, but the actual date or other descriptive detail is known to you or is otherwise
apparent from the context of the subpoena, produce all documents that would be
responsive as if the date or other descriptive detail were correct.

This subpoena is continuing in nature and applies to any new information. Any record,
document, compilation of data, or information not produced because it has not been
located or discovered by the due date shall be produced immediately upon subsequent
location or discovery.

Upon completion of the production, submit a written certi?cation, signed by you or your
counsel, stating that: a diligent search has been completed of all documents in your
possession, custody, or control that reasonably could contain responsive documents; and
(2) all documents located during the search that are responsive have been produced to the
Committee.

Case Document 44-3 Filed 09/06/19 Page 238 of 413

Schedule (De?nitions)
. The term ?return? shall have the meaning given to it in 26 U.S.C. 6103(b)(l).

. The term ?return information? shall have the meaning given to it in 26 U.S.C.
6103(b)(2).

. The term ?individual income tax return? shall have the meaning given to it in 26 U.S.C.
6011(e)(3)(C).

Case Document 44-3 Filed 09/06/19 Page 239 of 413

PROOF OF SERVICE

 

 

 

Subpoena for The Honorable Steven Mnuchin, Secretary
United States Department of the Treasury

Address 1500 Avenue, NW

Washington, DC. 20220

before the Committee on Ways and Means

 

US. House of Representatives
1 I 6th Congress

 

 

 

 

Served by (print name) Karen B. McAfee

Title Staff Director, Subcommittee on Oversight, Committee on Ways and Means

Manner of service Electronic

 

Date May 10, 2019

Signature of Server WMAA p) 
I 

Address 1102 Longworth House Of?ce Building

Washington, DC. 20515

 

 

 

Case Document 44-3 Filed 09/06/19 Page 240 of 413

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 241 of 413
Vaughan, Frederick
From:
Sent:
To:
Cc:
Subject:
Attachments:

Vaughan, Frederick
Friday, May 17, 2019 3:35 PM
'brandon.casey@mail.house.gov'; 'McAfee, Karen'
'gary.andres@mail.house.gov'
Treasury correspondence
Secretary Mnuchin Letter to Chairman Neal (2019‐05‐17).pdf

Please see the attached correspondence from Secretary Mnuchin to Chairman Neal. 
 
Best, Fritz 
 
-Frederick W. Vaughan
Deputy Assistant Secretary
Legislative Affairs
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
202-622-2678

 

1

 Filed 09/06/19 Page 242 of 413

 

DEPARTMENT OF THE TREASURY
WASHINGTON, D.c.

SECRETARY OF THE TREASURY

May 17, 2019

The Honorable Richard E. Neal
Chairman
Committee on Ways and Means

US. House of Representatives
Washington, DC 20515

Dear Chairman Neal:

I write in response to your letter of May 10, 2019, in which you reiterate your request for the
con?dential tax returns (and other return information) of President Trump and related business
entities, and in which you include a subpoena for the documents you have requested.

As I explained in my May 6 letter to the Committee, the Department of the Treasury (the
Department) has consulted with the Department of Justice concerning the lawfulness of the
Committee?s unprecedented request. In reliance on the advice of the Department of Justice, we
have determined that the Committee?s request lacks a legitimate legislative purpose, and
pursuant to section 6103, the Department is therefore not authorized to disclose the requested
returns and return information. For the same reasons, we are unable to provide the requested
information in response to the Committee?s subpoena. As I explained in my May 6 letter, the
Department of Justice has informed us that it intends to memorialize its advice in a published
legal opinion as soon as practicable.

In my April 23 letter to the Committee, I offered to work with the Committee to accommodate its
stated interest in understanding how the IRS audits and enforces the Federal tax laws against a
President by providing the Committee with additional information on the mandatory audit
process. I renewed that offer in my May 6 letter. While the Committee?s latest letter appears to
decline these offers because they are ?not a substitute? for the President?s tax returns, the
Department?s offer would provide information that directly bears upon what the Committee has
stated to be its legislative interest in this subject. Consistent with the Executive Branch?s
constitutional commitment to accommodation, the Department remains committed to providing
such an accommodation.

Sincerely,

549%.? ?wok/g

Steven T. Mnuchin

Case Document 44-3 Filed 09/06/19 Page 243 of 413

EXHIBIT I

Case Document 44-3 Filed 09/06/19 Page 244 of 413

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224

 

COMMISSIONER

May 17, 2019

The Honorable Richard E. Neal
Chairman

Committee on Ways and Means
US. House of Representatives

Washington, DC 20515

Dear Chairman Neal:

write in response to your letter dated May 10, 2019, transmitting a subpoena for
returns and return information of speci?c individual and business taxpayers. Based on
advice received from the Department of Justice, as explained in the Secretary?s letter
sent to you earlier today, we are precluded by law from providing the requested returns
and return information.

Although we cannot provide the documents requested by the subpoena, we have
offered to provide additional information to accommodate the Committee's stated
interest in understanding how the IRS audits and enforces the tax laws against a
President, and we remain committed to providing such information if the Committee
requests it.

Your letter expresses a concern that IRS employees could be subject to undue
in?uence when conducting mandatory audits of a President's tax returns. More
speci?cally, your letter references a concern that ?employees who determine the scope
of the President's audit, or who determine whether to continue previously-initiated
audits, are protected in the course of their work." That concern is unfounded for the
reasons described below.

The IRS strives to treat all taxpayers with the highest degree of impartiality. Procedures
implemented by the IRS in 1977 strongly protect the integrity of the mandatory audit
process set forth in Internal Revenue Manual (IRM) 3.28.3 and 4.2.1.11. These
procedures were implemented, and have been maintained in largely the same form for
over 40 years in order to insulate the IRS's examination process from any bias or
appearance of bias. Under the procedures, within 10 days of receiving a copy of a
President or Vice President's return, a manager in one of the IRS's operating divisions
assigns the examination to a revenue agent who is instructed to follow the IRM's
general audit procedure guidelines. IRM 4.2.1.11(5) and IRM Under
those guidelines. the scope and depth of the examination is determined by the revenue

Case Document 44-3 Filed 09/06/19 Page 245 of 413

agent, based on established risk protocols. IRM 4.10.3.2. In accordance with normal
examination procedures, where warranted, the mandatory examination of a President or
Vice President?s return can be expanded to include related or prior year returns. IRM
4.2.1.1 

From start to ?nish, all aspects of the processing and examination of a President or Vice
President's returns are conducted by experienced, career IRS employees. As with any
examination, if any IRS or Treasury of?cial other than the career employees responsible
for the examination attempts to in?uence its outcome or direction, procedures are in
place to notify the Treasury Inspector General for Tax Administration. These procedures
play a critical role in ensuring the integrity and impartiality of the examination process.
No political appointee has to our knowledge had any involvement in any examination of
a President or Vice President's tax returns at any time since the mandatory procedures
were put in place in 1977.

If you would like additional information regarding the mandatory examination
procedures, please contact me directly, or a member of your staff may contact
Leonard Oursler, Director, Legislative Affairs, at (202) 317-6985.

Sincerely,

Mtg?

Charles P. Re

Case Document 44-3 Filed 09/06/19 Page 246 of 413

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 247 of 413
Vaughan, Frederick
From:
Sent:
To:
Cc:
Subject:

McAfee, Karen <Karen.McAfee@mail.house.gov>
Friday, May 24, 2019 1:01 PM
Vaughan, Frederick
Sok, Justin; Leonard.T.Oursler@irs.gov; Probst, Scott; Casey, Brandon
Re: Ways and Means Response to Offer for Additional Information

Hi Fritz, 
 
Thanks for your response.  It looks like the best day for us right now is Tuesday, June 4th.  We are fairly flexible on time 
that day.   
 
We would like to speak to the experts that are involved with the audits.  We want to understand exactly what happens 
from the moment the returns enter the mail to the IRS through the time that the audit is completed.  Our questions go 
beyond what is outlined in the IRM.   
 
I understand your preference for a bipartisan briefing.  However, the Minority is not a party to the Chairman’s 
request.  Thus, we do not feel it would be appropriate to make this a bipartisan briefing.   
 
Please suggest a few times on June 4th that work for you, and I will secure a meeting space for us.  Enjoy your weekend.  
 
Best, 
Karen 
 
On May 24, 2019, at 12:00 PM, "Frederick.Vaughan@treasury.gov" <Frederick.Vaughan@treasury.gov> wrote: 

Karen
To follow up, we would be happy to provide a detailed briefing to the Committee on the
mandatory audit process. We want to make sure that we have the right experts available to
provide the information you’re interested in. Please let us know what particular aspects of the
audit process you would like the briefing to focus on. Our preference would be for a bipartisan
briefing. Please let us know if you would like to invite the Minority staff or if we should.
As for scheduling, please let us know if there’s a particular day in the week of June 3 that is best
for you.
Have a great long weekend.
Best, Fritz
-Frederick W. Vaughan
Deputy Assistant Secretary
Office of Legislative Affairs
U.S. Department of the Treasury

1

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 248 of 413
From: Sok, Justin <Justin.Sok@treasury.gov>
Date: May 23, 2019 at 11:46:12 AM EDT
To: 'McAfee, Karen' <Karen.McAfee@mail.house.gov>, Oursler Leonard T
<Leonard.T.Oursler@irs.gov>
Cc: Probst, Scott <Scott.Probst@mail.house.gov>, Casey, Brandon
<Brandon.Casey@mail.house.gov>, Vaughan, Frederick <Frederick.Vaughan@treasury.gov>
Subject: RE: Ways and Means Response to Offer for Additional Information
Hey Karen, thanks for the email. I am adding Fritz, and I know Lenny is out for a funeral. Let us have a 
conversation and see what we can do on this. Thank you!—JS  
  
Justin W. Sok 
Office of Legislative Affairs 
U.S. Department of Treasury 
202‐622‐0488 (o) 
202‐738‐3442 (c) 
  
From: McAfee, Karen <Karen.McAfee@mail.house.gov>  
Sent: Wednesday, May 22, 2019 6:30 PM 
To: Oursler Leonard T <Leonard.T.Oursler@irs.gov>; Sok, Justin <Justin.Sok@treasury.gov> 
Cc: Probst, Scott <Scott.Probst@mail.house.gov>; Casey, Brandon <Brandon.Casey@mail.house.gov> 
Subject: Ways and Means Response to Offer for Additional Information 
  
Good evening Lenny and Justin, 
  
I hope all is well.  We wanted to thank Treasury and the IRS for the accommodation offered to the 
Committee to provide additional information on the mandatory audit process.  This offer was made in 
the Secretary’s April 23, May 6, and May 17 letters to Chairman Neal and the Commissioner’s May 17 
letter to the Chairman.   
  
It is unclear from the letters exactly what type of additional information Treasury and the IRS intend to 
provide to Committee.  If there are documents or other written materials that Treasury and the IRS 
would like to provide, please feel free to send those documents to me.  If the intent is to provide a 
briefing, Committee staff is available to meet this week in our offices.  Please suggest some potential 
times. 
  
If you have any questions, please feel free to reach me at 226‐1432.  I look forward to hearing from you. 
  
Best, 
Karen   
  
Karen B. McAfee 
Staff Director, Subcommittee on Oversight 
Committee on Ways & Means, Democratic Staff 
1129 Longworth House Office Building 
Washington, DC 20515 
(202) 225‐4021 
This document and any related communications or documents generated by the Committee on Ways and Means 
are confidential congressional records, remain subject to congressional control, and are entrusted to you only for use in handling this 
matter.  Any related documents communicated to us in response to this document or to any related House communications are 
also confidential congressional records and remain subject to congressional control.  Accordingly, the aforementioned materials are not 
"agency records" for purposes of the Freedom of Information Act or other law.   

  
2

 Case Document 44-3 Filed 09/06/19 Page 249 of 413

Case Document 44-3 Filed 09/06/19 Page 250 of 413

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 251 of 413
Vaughan, Frederick
From:
Sent:
To:
Cc:
Subject:

McAfee, Karen <Karen.McAfee@mail.house.gov>
Wednesday, June 5, 2019 4:06 PM
Vaughan, Frederick
Casey, Brandon; Andres, Gary; Kaldahl, Rachel; Leonard.T.Oursler@irs.gov; 
Scott.S.Landes@irs.gov; Sok, Justin
RE: Briefing on Mandatory Audit Process

Hi Fritz, 
 
Thanks for your response.  We look forward to the briefing.  As an accommodation to Treasury and the IRS, we will start 
the Monday briefing at 9AM on every term dictated by Treasury below.  Thus, we have satisfied every condition set by 
Treasury to date in order to obtain the briefing offered in the four letters from Treasury and the IRS.  We will see you on 
June 10th in Rayburn 2020.  Please send the list of attendees.   
 
Best, 
Karen 
 
 
From: Frederick.Vaughan@treasury.gov <Frederick.Vaughan@treasury.gov>  
Sent: Tuesday, June 4, 2019 5:16 PM 
To: McAfee, Karen <Karen.McAfee@mail.house.gov> 
Cc: Casey, Brandon <Brandon.Casey@mail.house.gov>; Andres, Gary <Gary.Andres@mail.house.gov>; Kaldahl, Rachel 
<Rachel.Kaldahl@mail.house.gov>; Leonard.T.Oursler@irs.gov; Scott.S.Landes@irs.gov; Justin.Sok@treasury.gov 
Subject: Briefing on Mandatory Audit Process 
 
Karen 
 
Following up on the Committee’s request for a briefing on the mandatory audit process, you asked if we can do 8:30 
a.m. on June 10. The morning of June 10 works for us as well. But due to childcare responsibilities for one of our IRS 
briefers, we will need to begin at 9 a.m. Assuming that start time works for you, I am confirming that we will provide a 
briefing to you on the mandatory audit process at 2020 Rayburn HOB on June 10 at 9 a.m. 
 
We understand that Minority staff also has expressed an interest in attending this briefing. While you have indicated 
your preference that the briefing not be bipartisan, our practice has been to provide bipartisan briefings when both 
sides have expressed interest in attending. Accordingly, we will provide a bipartisan briefing. To ensure there is plenty of 
time for all questions, we are willing to stay as long as necessary so that you have as much time as you need. 
 
We will plan to see you at 9 a.m. on Monday. I will get you a list of attendees later this week. 
 
Best, Fritz 
 
-Frederick W. Vaughan
Deputy Assistant Secretary
Legislative Affairs
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
202-622-2678
1

 Case Document 44-3 Filed 09/06/19 Page 252 of 413

Case Document 44-3 Filed 09/06/19 Page 253 of 413

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 254 of 413
Vaughan, Frederick
From:
Sent:
To:
Subject:
Attachments:

Oursler Leonard T <Leonard.T.Oursler@irs.gov>
Saturday, June 8, 2019 12:12 PM
Desmond, Michael J.; Wielobob, Kirsten; Grant Dianne; Cullinan, Thomas A.; Vaughan, 
Frederick; Sok, Justin; Chapman Robert B; Lemons, Terry L
FW: Briefing on Mandatory Audit Process
Neal Letter to Rettig 6103 mandatory audit process 2019.06.04.pdf

All, 
Attached is an agent letter from Chairman Neal covering Ways & Means Democratic staff for Monday briefing.  
 
From: McAfee, Karen <Karen.McAfee@mail.house.gov>  
Sent: Friday, June 7, 2019 7:08 PM 
To: Oursler Leonard T <Leonard.T.Oursler@irs.gov> 
Cc: Landes Scott S <Scott.S.Landes@irs.gov>; Chapman Robert B <Robert.B.Chapman@irs.gov> 
Subject: Briefing on Mandatory Audit Process 
 
Lenny, 
 
Please see attached letter regarding the briefing.  Please let me know if you need anything further.  Have a good 
weekend. 
 
Best, 
Karen 
 
Karen B. McAfee 
Staff Director, Subcommittee on Oversight 
Committee on Ways & Means, Democratic Staff 
1129 Longworth House Office Building 
Washington, DC 20515 
(202) 225‐4021 
This document and any related communications or documents generated by the Committee on Ways and Means are confidential congressional records, remain 
subject to congressional control, and are entrusted to you only for use in handling this matter.  Any related documents communicated to us in response to this 
document or to any related House communications are also confidential congressional records and remain subject to congressional control.  Accordingly, the 
aforementioned materials are not "agency records" for purposes of the Freedom of Information Act or other law.   
 

 
 
 
From: Frederick.Vaughan@treasury.gov <Frederick.Vaughan@treasury.gov>  
Sent: Friday, June 7, 2019 2:00 PM 
To: McAfee, Karen <Karen.McAfee@mail.house.gov> 
Cc: Casey, Brandon <Brandon.Casey@mail.house.gov>; Andres, Gary <Gary.Andres@mail.house.gov>; Kaldahl, Rachel 
<Rachel.Kaldahl@mail.house.gov>; Leonard.T.Oursler@irs.gov; Scott.S.Landes@irs.gov; Justin.Sok@treasury.gov 
Subject: RE: Briefing on Mandatory Audit Process 
 
Karen 
 
Below is a list of who we expect to attend: 
 
1

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 255 of 413









Kirsten Wielobob, Deputy Commissioner for Services and Enforcement, IRS 
Diane Grant, Senior Advisor to the Office of the Commissioner, IRS 
Mike Desmond, IRS Chief Counsel 
Thomas Cullinan, Counselor to the Commissioner and Chief Counsel, IRS 
Robert Chapman, Analysis, Legislative Affairs, IRS 
Fritz Vaughan, Deputy Assistant Secretary for Legislative Affairs, Department of the Treasury 
Justin Sok, Senior Advisor, Office of Legislative Affairs, Department of the Treasury 
Arianne Couch, Special Assistant, Department of the Treasury 

 
Have a nice weekend. See you on Monday morning. 
 
Best, Fritz 
 
From: McAfee, Karen <Karen.McAfee@mail.house.gov>  
Sent: Wednesday, June 5, 2019 4:06 PM 
To: Vaughan, Frederick <Frederick.Vaughan@treasury.gov> 
Cc: Casey, Brandon <Brandon.Casey@mail.house.gov>; Andres, Gary <Gary.Andres@mail.house.gov>; Kaldahl, Rachel 
<Rachel.Kaldahl@mail.house.gov>; Leonard.T.Oursler@irs.gov; Scott.S.Landes@irs.gov; Sok, Justin 
<Justin.Sok@treasury.gov> 
Subject: RE: Briefing on Mandatory Audit Process 
 
Hi Fritz, 
 
Thanks for your response.  We look forward to the briefing.  As an accommodation to Treasury and the IRS, we will start 
the Monday briefing at 9AM on every term dictated by Treasury below.  Thus, we have satisfied every condition set by 
Treasury to date in order to obtain the briefing offered in the four letters from Treasury and the IRS.  We will see you on 
June 10th in Rayburn 2020.  Please send the list of attendees.   
 
Best, 
Karen 
 
 
From: Frederick.Vaughan@treasury.gov <Frederick.Vaughan@treasury.gov>  
Sent: Tuesday, June 4, 2019 5:16 PM 
To: McAfee, Karen <Karen.McAfee@mail.house.gov> 
Cc: Casey, Brandon <Brandon.Casey@mail.house.gov>; Andres, Gary <Gary.Andres@mail.house.gov>; Kaldahl, Rachel 
<Rachel.Kaldahl@mail.house.gov>; Leonard.T.Oursler@irs.gov; Scott.S.Landes@irs.gov; Justin.Sok@treasury.gov 
Subject: Briefing on Mandatory Audit Process 
 
Karen 
 
Following up on the Committee’s request for a briefing on the mandatory audit process, you asked if we can do 8:30 
a.m. on June 10. The morning of June 10 works for us as well. But due to childcare responsibilities for one of our IRS 
briefers, we will need to begin at 9 a.m. Assuming that start time works for you, I am confirming that we will provide a 
briefing to you on the mandatory audit process at 2020 Rayburn HOB on June 10 at 9 a.m. 
 
We understand that Minority staff also has expressed an interest in attending this briefing. While you have indicated 
your preference that the briefing not be bipartisan, our practice has been to provide bipartisan briefings when both 
sides have expressed interest in attending. Accordingly, we will provide a bipartisan briefing. To ensure there is plenty of 
time for all questions, we are willing to stay as long as necessary so that you have as much time as you need. 
 
2

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 256 of 413
We will plan to see you at 9 a.m. on Monday. I will get you a list of attendees later this week. 
 
Best, Fritz 
 
-Frederick W. Vaughan
Deputy Assistant Secretary
Legislative Affairs
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
202-622-2678

 

3

 Case Document 44-3 Filed 09/06/19 Page 257 of 413
RICHARD E. NEAL, 
WA Congress of the ??mteh ?tates

CHAIRMAN RANKING MEMBER

JOHN LEWIS, GEORGIA 3501131: [If ??pf?g??t?tlh BE DEVIN NUNES, CALIFORNIA
kh?ii?ti?g?gs?' 3350mm VEHN BUCHANAN 

- . ADRIAN SMITH, NEBRASKA
JOHN B. LARSON. CONNECTICUT COMMITTEE ON WAYS AND MEANS KENNY MARCHANT. TEXAS
EARL BLUMENAUER. OREGON TOM REED, NEW YORK
EON JERSEY 1102 LONGWORTH HOUSE OFFICE BUILDING MIKE KELLY, 
DANNY K. DAVIS, ILLINOIS (202] 225?3625 TEESSESRRLIPNITSSNOOLIITIH CAROLINA
LINDA T. SANCHEZ, CALIFORNIA TOM RICE SOUTH CAROLINA
BRIAN HIGGINS. NEW YORK .- . DAVID SCIIWEIKERT ARIZONA
TERRI A. SEWELL. ALABAMA 33?: 20513 0348 JACKIE WALORSKI INDIANA
SUZAN DELBENE, WASHINGTON DARIN LAHOOD, ILLINOIS
JUDY CHU. CALIFORNIA BRAD OHIO
GWEN MOORE. WISCONSIN JODEY ARRINGTON, TEXAS
DAN KILDEE, MICHIGAN DREW FERGUSON, GEORGIA
BRENDAN BOYLE, HON ESTES. KANSAS
DON EIEYER, VIRGINIA
DWIGHT EVANS, GARY ANDRES

BRAD SCHNEIDER, ILLINOIS
TOM SUOZZI, NEW YORK
JIMMY CALIFORNIA
STEPHANIE MURPHY. FLORIDA
JIMMY GOMEZ. CALIFORNIA

STEVEN HORSFORD. NEVADA June 4 2019
3

BRANDON CASEY.
MAJORITY STAFF DIRECTOR

MINORITY STAFF DIRECTOR

The Honorable Charles P. Rettig
Commissioner

Internal Revenue Service

1111 Constitution Avenue, NW
Washington, DC. 20224

Dear Commissioner Rettig:

As you know, the Committee is considering legislative proposals and conducting oversight
related to our Federal tax laws, including, but not limited to, the extent to which the Internal
Revenue Service audits and enforces the Federal tax laws against a President.

Pursuant to my authority under Internal Revenue Code Section 6103(f)(4), I designate the
following individuals as my agents to inSpect and receive returns and return information related to
IRS audits of a President and enforcement of the Federal tax laws against a President, including
the mandatory audit process and the auditing of Presidential tax returns and any related individuals
and entities: Brandon Casey, Karen McAfee, Susan Athy, Zachary Baron, Isabella More, and
Moyer McCoy.

This document is a record of the Committee and is entrusted to the IRS only for use in
handling this matter. Additionally, any documents created by the IRS in connection with a
response to this Committee document, including (but not limited to) any replies to the Committee,
are records of the Committee and shall be segregated from agency records and remain subject to
the control of the Committee. Accordingly, the aforementioned documents are not ?agency
records? for purposes of the Freedom of Information Act. Absent explicit Committee
authorization, access to this document and any responsive documents shall be limited to IRS
personnel who need such access for the purpose of providing information or assistance to the
Committee.

Thank you for your prompt attention to this matter.

Sincerely,



THE/Honorable Richard E. Neal, Chairman

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 258 of 413
Vaughan, Frederick
From:
Sent:
To:
Subject:
Attachments:

Oursler Leonard T <Leonard.T.Oursler@irs.gov>
Saturday, June 8, 2019 12:15 PM
Desmond, Michael J.; Wielobob, Kirsten; Grant Dianne; Cullinan, Thomas A.; Vaughan, 
Frederick; Sok, Justin; Chapman Robert B; Lemons, Terry L
FW: Briefing on Mandatory Audit Process
Neal Letter to Rettig 6103R mandatory audit process 2019.06.05.pdf

All, 
 
Attached is an agent letter signed by Chairman Neal covering Republican staff for Monday briefing.  
 
From: McAfee, Karen <Karen.McAfee@mail.house.gov>  
Sent: Friday, June 7, 2019 6:59 PM 
To: Oursler Leonard T <Leonard.T.Oursler@irs.gov> 
Cc: Kaldahl, Rachel <Rachel.Kaldahl@mail.house.gov>; Landes Scott S <Scott.S.Landes@irs.gov>; Chapman Robert B 
<Robert.B.Chapman@irs.gov> 
Subject: FW: Briefing on Mandatory Audit Process 
 
Lenny, 
 
Please see attached letter.  Please let me know if you need anything further.  Have a good weekend. 
 
Best, 
Karen 
 
Karen B. McAfee 
Staff Director, Subcommittee on Oversight 
Committee on Ways & Means, Democratic Staff 
1129 Longworth House Office Building 
Washington, DC 20515 
(202) 225‐4021 
This document and any related communications or documents generated by the Committee on Ways and Means are confidential congressional records, remain 
subject to congressional control, and are entrusted to you only for use in handling this matter.  Any related documents communicated to us in response to this 
document or to any related House communications are also confidential congressional records and remain subject to congressional control.  Accordingly, the 
aforementioned materials are not "agency records" for purposes of the Freedom of Information Act or other law.   
 

 
 
 
From: Frederick.Vaughan@treasury.gov <Frederick.Vaughan@treasury.gov>  
Sent: Friday, June 7, 2019 2:00 PM 
To: McAfee, Karen <Karen.McAfee@mail.house.gov> 
Cc: Casey, Brandon <Brandon.Casey@mail.house.gov>; Andres, Gary <Gary.Andres@mail.house.gov>; Kaldahl, Rachel 
<Rachel.Kaldahl@mail.house.gov>; Leonard.T.Oursler@irs.gov; Scott.S.Landes@irs.gov; Justin.Sok@treasury.gov 
Subject: RE: Briefing on Mandatory Audit Process 
 
Karen 
 
Below is a list of who we expect to attend: 
1

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 259 of 413
 









Kirsten Wielobob, Deputy Commissioner for Services and Enforcement, IRS 
Diane Grant, Senior Advisor to the Office of the Commissioner, IRS 
Mike Desmond, IRS Chief Counsel 
Thomas Cullinan, Counselor to the Commissioner and Chief Counsel, IRS 
Robert Chapman, Analysis, Legislative Affairs, IRS 
Fritz Vaughan, Deputy Assistant Secretary for Legislative Affairs, Department of the Treasury 
Justin Sok, Senior Advisor, Office of Legislative Affairs, Department of the Treasury 
Arianne Couch, Special Assistant, Department of the Treasury 

 
Have a nice weekend. See you on Monday morning. 
 
Best, Fritz 
 
From: McAfee, Karen <Karen.McAfee@mail.house.gov>  
Sent: Wednesday, June 5, 2019 4:06 PM 
To: Vaughan, Frederick <Frederick.Vaughan@treasury.gov> 
Cc: Casey, Brandon <Brandon.Casey@mail.house.gov>; Andres, Gary <Gary.Andres@mail.house.gov>; Kaldahl, Rachel 
<Rachel.Kaldahl@mail.house.gov>; Leonard.T.Oursler@irs.gov; Scott.S.Landes@irs.gov; Sok, Justin 
<Justin.Sok@treasury.gov> 
Subject: RE: Briefing on Mandatory Audit Process 
 
Hi Fritz, 
 
Thanks for your response.  We look forward to the briefing.  As an accommodation to Treasury and the IRS, we will start 
the Monday briefing at 9AM on every term dictated by Treasury below.  Thus, we have satisfied every condition set by 
Treasury to date in order to obtain the briefing offered in the four letters from Treasury and the IRS.  We will see you on 
June 10th in Rayburn 2020.  Please send the list of attendees.   
 
Best, 
Karen 
 
 
From: Frederick.Vaughan@treasury.gov <Frederick.Vaughan@treasury.gov>  
Sent: Tuesday, June 4, 2019 5:16 PM 
To: McAfee, Karen <Karen.McAfee@mail.house.gov> 
Cc: Casey, Brandon <Brandon.Casey@mail.house.gov>; Andres, Gary <Gary.Andres@mail.house.gov>; Kaldahl, Rachel 
<Rachel.Kaldahl@mail.house.gov>; Leonard.T.Oursler@irs.gov; Scott.S.Landes@irs.gov; Justin.Sok@treasury.gov 
Subject: Briefing on Mandatory Audit Process 
 
Karen 
 
Following up on the Committee’s request for a briefing on the mandatory audit process, you asked if we can do 8:30 
a.m. on June 10. The morning of June 10 works for us as well. But due to childcare responsibilities for one of our IRS 
briefers, we will need to begin at 9 a.m. Assuming that start time works for you, I am confirming that we will provide a 
briefing to you on the mandatory audit process at 2020 Rayburn HOB on June 10 at 9 a.m. 
 
We understand that Minority staff also has expressed an interest in attending this briefing. While you have indicated 
your preference that the briefing not be bipartisan, our practice has been to provide bipartisan briefings when both 
sides have expressed interest in attending. Accordingly, we will provide a bipartisan briefing. To ensure there is plenty of 
time for all questions, we are willing to stay as long as necessary so that you have as much time as you need. 
2

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 260 of 413
 
We will plan to see you at 9 a.m. on Monday. I will get you a list of attendees later this week. 
 
Best, Fritz 
 
-Frederick W. Vaughan
Deputy Assistant Secretary
Legislative Affairs
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
202-622-2678

 

3

 Case Document 44-3 Filed 09/06/19

RICHARD E. NEAL.
MASSACH USETTS.
CHAIRMAN

JOHN LEWIS. GEORGIA

LLOYD TEXAS

MIKE THOMPSON, CALIFORNIA
JOHN B. LARSON, CONNECTICUT
EARL BLUMENAUER, OREGON
RON KIND. WISCONSIN

BILL PASCRELL JR.. NEW JERSEY
DANNY DAVIS, ILLINOIS
LINDA T. SANCHEZ. CALIFORNIA
BRIAN HIGGINS, NEW YORK
TERRI A. SEWELL. ALABAMA
SUZAN DELEENE, WASHINGTON
JUDY CI-IU, CALIFORNIA

GWEN WISCONSIN

DAN KILDEE, MICHIGAN
BRENDAN BOYLE, 
DON BEYER. VIRGINIA

DWIGHT EVANS, 
BRAD SCHNEIDER, ILLINOIS

TOM SUOZZI, NEW YORK

JIMMY PANETTA, CALIFORNIA
STEPHANIE MURPHY. FLORIDA
JIMMY GOMEZ. CALIFORNIA
STEVEN HORSFORD, NEVADA

BRANDON CASEY,
MAJORITY STAFF DIRECTOR

(?ungress of the ?annel] States
313$). Iguanas at ?rpre?mtati?e?

COMMITTEE ON WAYS AND MEANS

1102 LONGWORTH HOUSE OFFICE BUILDING
(202) 225?3625

f??tla?ljingtun. AGE 20515?0348



June 5, 2019

Page 261 of 413

KEVIN BRADY,
TEXAS,
RAN KING MEMBER

DEVIN NUNES, CALIFORNIA
VERN BUCHANAN, FLORIDA
ADRIAN SMITH, NEBRASKA
KENNY MARCHANT, TEXAS
TOM REED. NEW YORK

MIKE KELLY. 
GEORGE HOLDING. NORTH CAROLINA
JASON SMITH. MISSOURI
TOM RICE. SOUTH CAROLINA
DAVID SCHWEIKERT. ARIZONA
JACKIE WALORSKI. INDIANA
DARIN LAHOOD. ILLINOIS
BRAD R. WENSTRUP, OHIO
JODEY ARRINGTON. TEXAS
DREW FERGUSON. GEORGIA
RON ESTES, KANSAS

GARY ANDRES,
MINORITY STAFF DIRECTOR

The Honorable Charles P. Rettig
Commissioner

Internal Revenue Service

1111 Constitution Avenue, NW
Washington, DC. 20224

Dear Commissioner Rettig:

As you know, the Committee is considering legislative proposals and conducting oversight
related to our Federal tax laws, including, but not limited to, the extent to which the Internal
Revenue Service audits and enforces the Federal tax laws against a President.

Pursuant to my authority under Internal Revenue Code Section 6103(f)(4), I designate the
following individuals as my agents, only for the purpose of receiving an in-person brie?ng about
the Presidential mandatory audit process from the IRS on June 10, 2019, to inSpect and receive
returns and return information related to how the IRS audits and enforces the Federal tax laws
against a President, including the mandatory audit process and the auditing of Presidential tax
returns and any related individuals and entities: Rachel Kaldahl, Jason Vassilicos, Sean Clerget,
and Molly Fromm.

This document is a record of the Committee and is entrusted to the IRS only for use in
handling this matter. Additionally, any documents created by the IRS in connection with a
response to this Committee document, including (but not limited to) any replies to the Committee,
are records of the Committee and shall be segregated from agency records and remain subject to
the control of the Committee. Accordingly, the aforementioned documents are not ?agency
records? fOr purposes of the Freedom of Information Act.

Thank you for your prompt attention to this matter.

Sincerely,

   

 

TITETIonorable Richard E. Neal, Chairman

Case Document 44-3 Filed 09/06/19 Page 262 of 413

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 263 of 413
Vaughan, Frederick
From:
Sent:
To:
Cc:
Subject:
Attachments:

Vaughan, Frederick
Monday, June 10, 2019 2:12 PM
Casey, Brandon; 'McAfee, Karen'
Andres, Gary; Kaldahl, Rachel; Sok, Justin; Leonard.T.Oursler@irs.gov; LegAffairs
Today's Briefing on Mandatory Audit Process
Letter to Chairman Neal (2019‐06‐10).pdf; Briefing on Mandatory Examinations of 
Officeholders.pdf; Attachments for Briefing on Mandatory Examinations Process.zip

Brandon and Karen 
 
Attached is a letter from me, as well as copies of the slide deck and tabbed materials from the briefing. Please let us 
know if you need additional copies of the other historical materials we provided in binders. 
 
Best, Fritz 
 
-Frederick W. Vaughan
Deputy Assistant Secretary
Legislative Affairs
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
202-622-2678

 

1

 Case Document 44-3 Filed 09/06/19 Page 264 of 413

. DEPARTMENT OF THE TREASURY
5 WASHINGTON, D.C. 20220

 

June 10, 2019

The Honorable Richard E. Neal
Chairman
Committee on Ways and Means

US. House of Representatives
Washington, DC. 20515

Dear Chairman Neal:

This morning, senior of?cials ?om the Internal Revenue Service (IRS) provided your staff a
thorough, three?hour brie?ng concerning the process by which the IRS audits and enforces the
Federal tax laws against a President. We appreciate that your staff consented to make this
brie?ng bipartisan after initially seeking to exclude Minority staff.

The IRS has conducted mandatory examinations of the tax returns of all Presidents and Vice
Presidents since 1977. As IRS of?cials explained at today?s brie?ng, the IRS is not aware of any
reports of improper bias or partiality in the conduct of the mandatory examinations in the more
than forty-year history of that process. These examinations are performed by experienced, career
IRS civil servants and are conducted pursuant to established IRS protocols. The process is
shielded ?om improper in?uence of any kind by a variety of robust safeguards and legal
constraints, as extensively detailed in today?s brie?ng.

Consistent with the Executive Branch?s constitutional commitment to accommodation, we will
continue to address the Committee?s stated interest within the limits of the law. IRS of?cials
answered most of your staffs questions about the mandatory examination process. At the close
of the brie?ng, your staff committed to send us a list of follow?up questions, which we look
forward to receiving.

Sincerely,

mrugr

Frederick W. Vaughan
Deputy Assistant Secretary
Of?ce of Legislative Affairs

cc: The Honorable Kevin Brady, Ranking Member

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 265 of 413

Mandatory Examinations of
Presidents’ and Vice Presidents’
Income Tax Returns

June 10, 2019

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 266 of 413

Contents
Slides

Topic

3-4

Overview

5-6

Special Processing Procedures

7-8

Assignment of Return

9-10

Impartiality

11-31

Mandatory Examination Procedures

32

Office of Appeals Consideration

33

Judicial Review

2

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 267 of 413

Overview
•

Since 1977, the IRS has conducted mandatory examinations of the federal income
tax returns filed by Presidents and Vice Presidents of the United States
(Officeholders).

•

Robust safeguards ensure the integrity of the mandatory examination process.

•

The mandatory examinations are conducted by experienced, career IRS Revenue
Agents:
• It is the Revenue Agent’s “duty to determine the correct amount of the tax, with
strict impartiality as between the taxpayer and the Government, and without
favoritism or discrimination as between taxpayers.”
• Revenue Agents are required to objectively apply IRS examination procedures
and applicable provisions of tax law.

3

•

Efforts by certain executive branch employees to influence the examination
process are prohibited by law and subject to mandatory disclosure to the Treasury
Inspector General for Tax Administration (TIGTA).

•

The IRS is not aware of any reports of improper bias or partiality in the conduct of
an Officeholder’s examination in the more than 40-year history of the mandatory
procedures.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 268 of 413

Overview

4

•

In a memorandum dated June 6, 1977 (Tab A), the Internal Revenue Service (IRS)
formally documented special procedures for processing the income tax returns of
the President and Vice President (collectively “Officeholders”) and for mandatory
examinations of those returns.

•

The special processing and mandatory examination procedures were incorporated
into the Internal Revenue Manual and are now set forth in IRM 3.28.3 (Special
Processing Procedures) (Tab B) and IRM 4.2.1 (General Examination Procedures)
(Tab C).

•

Because they are subject to a mandatory examination, Officeholder returns are
excluded from the IRS’s normal discriminant index function (DIF) selection
procedures. IRM 3.28.3.4.3(3)(a); IRM 4.2.1.15(3)(a).

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 269 of 413

Special Processing Procedures:
Return Intake
•

If the Officeholder submits a paper income tax return, it is filed with the IRS’s
Austin Submission Processing Campus. IRM 3.28.3.2(3).
• Once received, the Officeholder’s return is initially processed by the Austin
Campus under normal return-processing procedures, including processing of
payment or refund and capturing information from the return for the IRS’s
account records. IRM 3.28.3.4.1(1).
• After the original return is processed, it is delivered to the Office of the Deputy
Commissioner for Services and Enforcement, a career civil servant office. IRM
3.28.3.4.1(4).
• The original return is secured and maintained by the Office of the Deputy
Commissioner as a permanent record of the United States. IRM 3.28.3.4.1(5).

5

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 270 of 413

Special Processing Procedures:
Return Intake
•

If the Officeholder submits their income tax return electronically, the return is
processed in the same manner as all other e-filed individual income tax returns,
including processing of payment or refund and capturing information from the
return for the IRS’s account records.
• After the electronically filed return is processed, a hard copy is printed from the
electronic record and delivered to the Office of the Deputy Commissioner for
Services and Enforcement.
• The paper copy of the return is secured and maintained by the Office of the
Deputy Commissioner as a permanent record of the United States.

6

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 271 of 413

Assignment of Return for Mandatory
Examination

7

•

Upon receipt, the Office of the Deputy Commissioner for Services and
Enforcement provides a copy of the Officeholder’s return to the appropriate IRS
business division – either Small Business/Self Employed (SBSE) or Large
Business & International (LB&I) – for examination. E.g., IRM 4.2.1.15.

•

The appropriate business division is determined by the Office of the Deputy
Commissioner for Services and Enforcement based on the complexity of the return
and whether the Officeholder’s return (or a related return) is already under
examination by one of the divisions for prior years.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 272 of 413

Assignment of Return for Mandatory
Examination

8

•

The head of the business division to which the return is assigned determines the
appropriate revenue agent group to conduct the mandatory examination. E.g., IRM
4.2.1.15(3).

•

Once transmitted to a revenue agent group, the Group Manager must assign the
Officeholder’s return to a specific Revenue Agent for examination within 10 days.
IRM 4.2.1.15(5).

•

The location of the Officeholder’s return is monitored at all times through the
examination process and special procedures are in place to ensure its security.
IRM 4.2.1.15(7).

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 273 of 413

Impartiality of the Mandatory
Examination

9

•

The mandatory audit process for Officeholders is handled by career IRS
employees and managers.

•

If a Revenue Agent has any reason to believe that their impartiality and
independence may be questioned, the Agent is instructed to discuss the matter
with their immediate supervisor for reassignment consideration. External attempts
to corrupt or threaten IRS employees in the performance of their duties, including
examining returns, are reported to and investigated by TIGTA.

•

In the more than 40-year history of the mandatory examination procedures, the IRS
is not aware of any reports of improper bias or partiality in the examination of
Officeholders’ returns.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 274 of 413

Impartiality of the Mandatory
Examination
•

Under IRS Policy Statement 4-7, it is the assigned Revenue Agent’s “duty to
determine the correct amount of the tax, with strict impartiality as between the
taxpayer and the Government, and without favoritism or discrimination as between
taxpayers.”

•

By statute, efforts by certain executive branch employees to influence the
examination process are prohibited and subject to mandatory TIGTA disclosure
requirements. IRC § 7217.
• More specifically, with narrow exceptions inapplicable to mandatory
Officeholder examinations, the President, Vice President, members of the
Cabinet, members of the Executive Office of the President, and other senior
executive branch officials are forbidden from requesting “directly or indirectly,
any officer or employee of the Internal Revenue Service to conduct or
terminate any audit or other investigation of any particular taxpayer with
respect to the tax liability of such taxpayer.” I.R.C. § 7217.

10

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 275 of 413

Mandatory Examination Process:
Overview
•

There are four general components to the mandatory Officeholder examination
process:
• Audit Planning, including scope determinations, preliminary research, and
whether special expertise may be required;
• Contact with the Officeholder’s representative;
• Information gathering; and
• Exam determinations and response.

•

11

All relevant IRM provisions apply to mandatory Officeholder examinations. IRM
3.28.3.4.3(3)(d).

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 276 of 413

Mandatory Examination Process:
Scope Determination
•

The scope and depth of the mandatory examination is determined by reference to
established risk protocols.

•

“[E]xaminers must use their professional judgment to set the scope of the
examination. Examiners should only work issues of merit and conclude the
examination when the issues no longer warrant examination.”

•

Examiners are expected to effectively manage their workload by prioritizing the
issues so that the issues with higher audit potential are examined over those with
lower potential. Issues with little or no audit potential should not be selected for
examination.
• The goal of any examination is to determine the “substantially correct” tax
liability applying an 80/20 concept, i.e., the principle that in general the first 20
percent of effort yields 80 percent of business results.

12

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Mandatory Examination Process:
Scope Determination
•

The initial examination scope determinations are revisited throughout the course of
the mandatory examination and, at a minimum, must be evaluated at the midpoint
of the examination and when a significant event occurs.

•

The examiner must consider the facts and circumstances, evaluate internal
controls and use professional judgment to determine whether the scope should be
expanded or contracted.
• Examiners must document the reasons for expanding or contracting the scope
of the examination.

13

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 278 of 413

Mandatory Examination Process:
Scope Determination

14

•

Based on risk protocols, the scope of the mandatory examination can be expanded
to include prior year and related returns as well as other types of tax liabilities (e.g.,
gift tax liabilities and employment tax liabilities with respect to household
employees). IRM 4.2.1.15(6).

•

Entity and other returns that impact the Officeholder’s income tax return (e.g., the
return of a partnership issuing a Schedule K-1 to the Officeholder) are subject to
mandatory compliance checks.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 279 of 413

Mandatory Examination Process:
Scope Determination

15

•

After the Officeholder’s return is assigned but prior to initial contact, the Revenue
Agent will risk assess the return and review any large, unusual or questionable
items (LUQ items).

•

The IRM contains a checklist of issues that the Revenue Agent should consider in
the pre-contact analysis to determine whether an item on a return is an LUQ item.

•

Whether an item on an Officeholder’s return is an LUQ item will depend on the
Revenue Agent’s perception of the return as a whole and the separate items that
comprise the return.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 280 of 413

Mandatory Examination Process:
Scope Determination
•

Factors Revenue Agents are directed to consider when identifying LUQs include:
• Comparative size of the item;
• Absolute size of the item;
• Inherent character of the item;
• Evidence of intent to mislead;
• Beneficial effect of the manner in which an item is reported;
• Relationship to other items;
• Whipsaw issues; and
• Missing items.

16

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 281 of 413

Mandatory Examination Process:
Preliminary Research
•

The Revenue Agent will conduct preliminary research of IRC sections, Treasury
regulations, rulings and court cases concerning the proper tax treatment of a
particular issue identified in the preliminary analysis of the Officeholder’s return.
• This assists the Revenue Agent in the development of specific interview
questions, determining possible audit procedures, and determining what
information should be requested from the Officeholder.

17

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 282 of 413

Mandatory Examination Process:
Initial Contact
•

The Examination Area Director or other appropriate manager, arranges for
preliminary contact with the Officeholder’s authorized representative.

•

After the planning phase and the initial manager contact, the assigned Revenue
Agent will contact the Officeholder’s representative to initiate the mandatory
examination, sending an initial contact letter. A copy of the initial contact letter is
provided at Tab D.
• The initial contact letter must include IRS Publication 1 (Tab E), Your Rights As
A Taxpayer, and Notice 609, Privacy Act and Paperwork Reduction Act.
The letter will also provide contact information for the Revenue Agent’s
manager in the event that an issue needs to be elevated.
• The initial contact letter should include a focused Information Document
Request informing the Officeholder of the specific information or documents to
be provided at the initial appointment.

18

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 283 of 413

Mandatory Examination Process:
Initial Contact

19

•

Separate initial contact letters are sent to the Officeholder and their spouse in the
case of a joint return filed under IRC § 6013. Section 3201(d) of RRA 98.

•

Generally, the Officeholder will have 14 days from the date of the initial contact
letter to respond to the Revenue Agent.

•

After sending the initial contact letter, the Revenue Agent will schedule an initial
meeting with the Officeholder’s representative.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 284 of 413

Mandatory Examination Process:
Information Gathering

20

•

The Revenue Agent will request information (e.g., books and records) from the
Officeholder’s representative by issuing Form 4564, Information Document
Request. A sample Information Document Request is provided at Tab F.

•

IRS Form 4564 will be used to document all requested information and documents
needed to support items being examined.

•

The Information Document Request will list the specific records, information, and
documents the Officeholder should have available at the initial interview.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 285 of 413

Mandatory Examination Process:
Information Gathering

21

•

The examination of an Officeholder may include interviews of the Officeholder, the
person preparing the Officeholder’s return, or third parties with knowledge of items
reported on the return.

•

In addition to document requests, the Revenue Agent may conduct a site visit of
the Officeholder’s prior residence or place of business.

•

If all information necessary to resolve the examination is not provided by the
Officeholder in response to Information Document Requests, the Revenue Agent
may consider issuing an administrative summons, including a summons to a third
party, such as a bank or other financial institution or the counterparty to a
transaction involving the Officeholder.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 286 of 413

Mandatory Examination Process:
Referrals for Specialists
•

During the planning phase, Revenue Agents should determine if their case requires
a referral for specialist assistance in developing and resolving complex issues.
• Informal advice from a specialist may be solicited on issues that do not appear
to warrant a referral, but for which some assistance is required.

22

•

Specialists include computer audit specialists, economists, engineers, and
actuaries, among others. When a specialist is involved in a case, the Revenue
Agent maintains control of the examination.

•

Any specialist assigned to the case meets with the Revenue Agent and the
Officeholder’s representative to discuss the issue, information required, time for
information to be presented, and an estimated completion date of the Specialist’s
report.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 287 of 413

Mandatory Examination Process:
Depth Determination
•

In conducting the examination of an Officeholder’s return, the Revenue Agent must
exercise judgment in determining the depth required for the examination, i.e., the
degree of intensity and thoroughness applied in order to make a determination as
to the correctness of a reported item.

•

Factors that the Revenue Agent should consider in making the depth determination
include:
• Type of evidence available or expected for the issue;
• Complexity of the issue;
• Materiality of the issue; and
• Internal controls.

23

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 288 of 413

Mandatory Examination Process:
Assistance From the Office of Chief
Counsel

24

•

The Revenue Agent may request advice or guidance from the Office of Chief
Counsel on any technical or procedural matter related to the tax liability of the
Officeholder.

•

Area Counsel may provide advice through consultation or by memorandum.
Written advice is generally first requested through IRS Technical Services, which
acts as a liaison in responding to examiners’ technical questions.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 289 of 413

Mandatory Examination Process:
Assistance From the Office of Chief
Counsel
•

Examples of Area Counsel assistance include providing advice regarding:
• The meaning, enforceability, and effect of legal terms in a contract;
• Application of State laws to the elements of a contract;
• Information regarding applicable State statutes that relate to corporate
existence and the status of transferee assets;
• Review of a case to ascertain favorable points, factual weaknesses, and/or
adverse circumstances to the government's case in order to determine whether
the Service's position on the issue would be fairly presented in court;
• Evaluation of primary or secondary evidence in a case, which would be useful
in litigation; and
• Documentation of evidence; review of proposed statutory notices of deficiency;
and advice related to the issuance and enforcement of summons.

•

25

The Revenue Agent may also request informal advice from Counsel.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 290 of 413

Mandatory Examination Process:
Determination and Response

26

•

After all the facts have been gathered through examination of the books, records
and supporting documents, interviews, etc. and the Revenue Agent has all the
information to be considered in resolving the issues, the Revenue Agent applies
their professional judgment to arrive at a conclusion regarding all items that were
identified for examination.

•

Revenue Agents are expected to arrive at a definite conclusion by a balanced and
impartial evaluation of all of the evidence. Revenue Agents are given the authority
to recommend the proper disposition of all identified issues, as well as any issues
raised by the Officeholder.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 291 of 413

Mandatory Examination Process:
Determination and Response
•

Given the length of time it may take to gather all relevant documents and
information, during the course of the mandatory examination, the Revenue Agent
may solicit a consent to extend the normal three-year assessment limitations
period under IRC section 6501(c)(4).
• Statute extensions are generally requested on Form 872, Consent to Extend
the Time to Assess Tax. A copy of the Form 872 is provided at Tab G.

27

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 292 of 413

Mandatory Examination Process:
Determination and Response
•

The Revenue Agent employs independent and objective judgment in reaching
conclusions on issues being examined and in all aspects of their duties and will
decide all matters on their merits, free from bias and conflicts of interest.

•

Internal Revenue Manual 4.10.7.4(4) instructs that the fairness of the Revenue
Agent’s conclusions will be demonstrated by:
• Making decisions impartially and objectively based on consistent application of
procedures and the applicable tax law;
• Treating individuals equitably;
• Being open-minded and willing to seek out and consider all relevant
information, including opposing perspectives;
• Voluntarily correcting mistakes and improprieties made by the Revenue Agent
or someone else in the Service and refusing to take unfair advantage of
mistakes or ignorance of taxpayers; and
• Employing open, equitable and impartial processes for gathering and
evaluating information necessary to decisions.

28

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 293 of 413

Mandatory Examination Process:
Determination and Response

29

•

When the mandatory examination is complete, any proposed adjustments to the
Officeholder’s return are summarized and explained on an IRS Form 4549, Income
Tax Examination Changes or an IRS Form 5701, Notice of Proposed Adjustment.
Copies of the Form 4549 and Form 5701 are provided at Tab H.

•

As part of the mandatory examination process, the Revenue Agent’s
determinations are subject to mandatory quality review to ensure that issues were
properly identified and documented. E.g., IRM 4.2.1.15(8)(b).

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 294 of 413

Mandatory Examination Process:
Determination and Response
•

The Revenue Agent should solicit agreement to any proposed adjustments and
attempt to secure agreement to the proposed tax liability.
• In making a proposed adjustment, the Revenue Agents should adhere to the
law, regulations, rulings, and court decisions on which their conclusions are
based and provide the Officeholder with copies of workpapers explaining the
proposed adjustment.

•

30

The Revenue Agent must inform their group manager when they believe an
examination will have unagreed issues.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 295 of 413

Mandatory Examination Process:
Determination and Response

31

•

If there are unagreed issues, the Revenue Agent must issue the appropriate 30day letter (e.g., Tab I) to transmit the examination report to the Officeholder’s
representative and provide 30 days to request consideration by the IRS Office of
Appeals.

•

IRS Publication 3498 (Tab J), The Examination Process, is provided to the
Officeholder’s representative with the examination report and with all 30-day letters
providing an opportunity to pursue administrative appeals. Section 3504 of the
IRS Restructuring and Reform Act of 1998 (RRA 98), Pub. L. No. 105-206.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 296 of 413

Office of Appeals Consideration

32

•

The Office of Appeals is an independent organization within the IRS that helps
taxpayers, including Officeholders, resolve their tax disputes through an informal,
administrative process. See generally IRM 8.1.

•

The Appeals Mission is to resolve tax controversies, without litigation, on a basis
which is fair and impartial to both the Government and the taxpayer and in a
manner that will enhance voluntary compliance and public confidence in the
integrity and efficiency of the Service.

•

Appeals holds conferences to provide a meaningful opportunity for Officeholders,
through their representatives, to present their position and to consider settlement
proposals.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 297 of 413

Judicial Review

33

•

If a basis for settlement is not reached, Appeals will issue a statutory notice of
deficiency (90 day letter) (Tab K) to the Officeholder.

•

The Officeholder may thereafter petition the United States Tax Court for
independent judicial review. IRC §§ 6212, 6213.

•

Officeholders may also pay the amount due, file a claim for refund, wait for the
claim to be acted on (or passage of time) and file suit in the United States District
Court or the United States Court of Federal Claims. IRC § 7422.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 298 of 413

Department of the Treasury
Internal Revenue Service
www.irs.gov

34

  of413
Case Document 44-3 Filed 09/06/19 Page 299

_lntemal Revenue Service

memorandum

tot-All Regional Coumissicners



from: Deputy Carr?issioner

subject: Processing Returns and Accomts of the President and Vice President:

 

For some time. me have cmtralized the procedures for processing

returns and accounts of the Presidmt and Vice President. lhese
ures have been in effect since the unauthorized disclosure of

tax return infometion relating to then President Ni: .
intended to protect the confidentiality of tax data
by severely limiting access to their
of the costs involved and the
of cmtralked procedures be
been made to discontinue then.

For you: information, the fella-ring processing guidelines
re lace the fame: special procedures. All prior on this
ject no longer have effect.

1. All tax returns for the President and Vice President will
receive nonnal pipeline processing through the service center. In
the case of individual income tax returns, however, the whereabouts
of the rerun-n will at all times during processing. .-
After cmpletion of processimg, the incense tax returns will be former-dad
(in double sealed envelopes) to the Deputy Cannissimer.

3. Individual inctme tee; realms for the President and Vice a?
President: will be subject to mandatory audit The district 
responsible for the elimination will be determined by the De

scioner after cmsultation with the respective Re
and the Assistant Ccnmissioner (Compliance) . 

having jurisdi 
essery mam.

Any line marked
'13 for Official

?-uo

 

Case Document 44-3 Filed 09/06/19 Page 300 9-13All Regional Curn?ssiomrs

., i a. Regardless of DIF score, the return will be - i?

I: exu?ned. 1.. . . 

b. Personnel should be assigned to the eneminatim' 

f. .- as necessary, including specialists, to oonductthe auditmk 

I . c. District Director. or ckeaigzmee;__should anrrEoge 

3 i for contact: with the authorized representative fort-ho beginning 

of the audit. - .f

d. All current prescribed Internal Revenue I-Izoual .. 

procedures. requesting tedmical assistance, information 

. from other agencies, etc., will'apply in theseiaa-in all other r? - 

5 i 2' cases. - if

i .. e. 1119. return copies and any related returns examined . 

-f . - ~31 concurrentl . as well as the relevant workpapers and emanation 14:2."

reports, 1 be subject to regular filing and retention procedures. . 

.4. Gift: (and/or Estate) tax returns will be exasdned in . I
i. accordance with procedm?es relating to all-taxpayers. 

i W. Williams

(6-6-77) 

These instructions will be reissued in the iR,Menual and . - A
Law Enforcement Manual in accordance with IBM 1254.

Any line marked with a q? ?9
. is for Official Use Only

?.In

 

 

 

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 301 of 413

MANUAL
TRANSMITTAL

3.28.3

Department of the Treasury

OCTOBER 31, 2018

Internal Revenue Service

EFFECTIVE DATE
(01-01-2019)
PURPOSE
(1)
This transmits revised IRM 3.28.3, Special Processing Procedures - Individual Income Tax Returns.
MATERIAL CHANGES
(1)
Minor editorial changes throughout.
(2)

IRM 3.28.3.1 Added new Program Scope and Objectives

(3)

IRM 3.28.3.2 Updated Introduction to place the President and Vice President returns are placed as
permanent records by the National Archives.

(4)

IRM 3.28.3 Added new Acronyms Chart

(5)

IRM 3.28.3.4.1 Updated to forward the original income tax return in double sealed envelopes

(6)

IRM 3.28.3.5.1 Corrected from Appendix to Title 5 to Appendix 4 to Title 5 in several sections

(7)

IRM 3.28.3.5.2.1 Deleted alpha list and created numeric listing

(8)

IRM 3.28.3.5.2.2 Added Code and Edit should review Form 2848 for completeness

EFFECT ON OTHER DOCUMENTS
IRM 3.28.3, dated November 02, 2017 effective January 1, 2018 is superseded.
AUDIENCE
Wage and Investment Submission Processing Campus personnel

Linda J. Brown
Director, Submission Processing
Wage and Investment Division

Cat. No. 34521K (10-31-2018)

Internal Revenue Manual

3.28.3

 Case Document 44-3 Filed 09/06/19 Page 302 of 413

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 303 of 413
Part 3
Chapter 28 Special Processing Procedures

IRM 3.28.3

Manual
3.28.3 Transmittal
Individual Income Tax Returns

Table of Contents

Table of Contents

3.28.3.1

Program Scope and Objectives

3.28.3.2

Introduction

3.28.3.3

Deviations From This Internal Revenue Manual (IRM)

3.28.3.3.1
3.28.3.4

Acronyms

Processing Returns and Accounts of the President and Vice President

3.28.3.4.1

Individual and Gift Tax Return Processing

3.28.3.4.2

Account Data Storage and Access

3.28.3.4.3

Mandatory Examination

3.28.3.5

Blind Trust Form 1040 Returns

3.28.3.5.1

General Information and Instructions

3.28.3.5.2

Blind Trust Tax Return Processing

3.28.3.5.2.1

Document Perfection Procedures

3.28.3.5.2.2

Accounts Management Centralized Authorization File (CAF) Procedures - Processing the
Power of Attorney (POA)

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Individual Income Tax Returns
3.28.3.1
(01-01-2019)
Program Scope and
Objectives

3.28.3

page 1

(1) Purpose: This Internal Revenue Manual (IRM) provides instructions for processing returns and the accounts of the President and Vice President of the
United States of America.
(2) Audience: This IRM is used by tax examiners and clerks in Austin Submission
Processing site.
(3) Policy Owner: The Director of Submission Processing (SP)
(4) Program Owner: Wage and Investment (W&I)
(5) Primary Stakeholders: Other areas that may be affected by these procedures
include (but not limited to):
x
x
x

Information Technology (IT) Programmers
Chief Counsel
Submission Processing

(6) Program Goals: The goal of this IRM is to provide instructions to process the
tax returns and accounts of the President and Vice President of the United
States of America.
(7) Annual Clearance of IRM: This IRM is updated and published annually after
review and concurrence by affected offices according to the clearance process
established in IRM 1.11.9 Internal Management Documents, Clearing and
Approving Internal Management Documents
3.28.3.2
(01-01-2019)
Introduction

(1)

This section of the Internal Revenue Manual (IRM) provides instructions for
processing:
x
x

The tax returns and accounts of the President and Vice President of the
United States of America.
The tax returns of political appointees who have their assets placed in a
qualified blind trust as defined by section 102(f)(3) of the Appendix to
Title 5 of the United States Code (or any successor provision of the
United States Code).

(2)

These procedures apply to all functions within the campuses.

(3)

The tax returns of the President and Vice President will be mailed to the Field
Director, Austin Submission Processing Campus.

(4)

The Field Director of Austin can designate the walk- through processing of
the President and Vice President’s returns to a subordinate. This person must
make sure that the original returns are not unnecessarily folded or bent, and
the edit marks and stamps are neatly placed on the returns, since they are
deemed permanent records by the National Archives.

(5)

When filing a political appointee’s tax return, the trustees of to a qualified blind
trust as defined by section 102(f)(3) of the Appendix 4 to Title 5 of the United
States Code (“blind trust”) are to follow the “Where to File” Instructions for
Form 1040 and file the tax return at the appropriate campus based on the appointee’s address.

(6)

The President, Vice President, or any political appointee who has placed his/
her assets in a blind trust must request permission for the trustee to prepare
and file their individual tax return. The request for permission must be in

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3.28

Special Processing Procedures

writing and be submitted with the tax return and a properly executed Form
2848, Power of Attorney and Declaration of Representative. Permission for the
trustee to prepare and file the return will be granted automatically on receipt of
the required documents. The IRS does not send an approval letter to the
President, Vice President, political appointee or trustee.
(1) Service Center Directors, Headquarter Branch Chiefs, and Headquarter
3.28.3.3
Analysts do not have the authority to approve deviations from IRM procedures.
(01-01-2019)
Any request for an exception or deviation to an IRM procedure must be
Deviations From This
elevated through appropriate channels for executive approval. This will ensure
Internal Revenue Manual
that other functional areas are not adversely affected by the changes and that
(IRM)
it does not result in disparate treatment of taxpayers.

3.28.3.3.1
(01-01-2019)
Acronyms

(2)

See guidelines in IRM 1.11.2, Internal Management Documents System,
Internal Revenue Manual(IRM) Process. Request for an IRM deviation must
be submitted in writing and signed by the Field Director, following instructions
from IRM 1.11.2.2.4.

(3)

Any disclosure issues will be coordinated by the Program Owner. No deviations can begin until they are reviewed by the Program Owner and approved at
the Executive Level. All requests must be submitted to the Submission Processing Headquarters IRM Coordinator.

(1)

An acronym is an abbreviated word formed from the initial letter or letters of
each major part of a compound term, such as IDRS for Integrated Data
Retrieval System.

(2)

A list of some of the acronyms and definitions used in this IRM are listed in the
chart below.
ACRONYM

3.28.3.3

DEFINITION

CAF

Centralized Authorization File

DIF

Discriminant Index Function

IDRS

Integrated Data Retrieval System

IRM

Internal Revenue Manual

IT

Information Technology

POA

Power of Attorney

SB/SE

Small Business/Self-Employed

SP

Submission Processing

W&I

Wage & Investment

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Individual Income Tax Returns

3.28.3

page 3

(1) Follow the instructions in this subsection of the manual when processing the
3.28.3.4
individual tax returns and accounts of the President and Vice President of the
(01-01-2019)
United States in office at the time of filing.
Processing Returns and
Accounts of the
(2) This IRM provides procedures for:
President and Vice
President
x
Individual and Gift Tax Returns Processing
x
Account Data Storage and Access
x
Mandatory Examination
3.28.3.4.1
(01-01-2019)
Individual and Gift Tax
Return Processing

(1)

Follow the normal return-processing procedures for all tax returns of the
President and Vice President of the United States.

(2)

Maintain the privacy of the tax return of the President and Vice-President at all
times during processing.
x
x

Ensure that other employees in the immediate area cannot view the
returns.
Keep the returns locked in a secure drawer or cabinet while you are
away from your work area and the returns are still under your control.

(3)

Once the individual income tax return has posted, make a photocopy of the
return and stamp “COPY” in the top margin of the copy. Route the copy to
Files.

(4)

Forward the original processed individual income tax return in double-sealed
envelopes to prevent any damage to the return to:
Internal Revenue Service
Deputy Commissioner for Services and Enforcement
1111 Constitution Ave NW, Room 3000 IR
Washington, DC 20224

(5)

The tax returns of both the President and Vice President are permanent
records under the Records Control Schedules Document 12990, RCS 8, Item
12, since they are deemed permanent records by the National Archives.

(6)

Process gift tax returns in accordance with the same procedures relating to all
taxpayers.

3.28.3.4.2
(01-01-2019)
Account Data Storage
and Access

(1)

Carry the account data of the President and Vice President on the appropriate
Master File.

(2)

Do not subject the accounts to restricted access procedures.

3.28.3.4.3
(01-01-2019)
Mandatory Examination

(1)

Individual income tax returns for the President and Vice President are subject
to mandatory examinations. See IRM 4.2.1.11, Processing Returns and
Accounts of the President and Vice President.

(2)

The Small Business/Self-Employed (SB/SE) Director of Examination will
determine the area office responsible for the examination of the return.

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3.28
(3)

Copies of the returns to be examined will be transmitted after the examining
office with jurisdiction is selected. Copies of returns must bear the word Copy
in the top right margin. The transmittal memorandum will contain the following
directions:
a.
b.
c.

d.
e.

3.28.3.5
(01-01-2019)
Blind Trust Form 1040
Returns

Special Processing Procedures

Regardless of the Discriminant Index Function (DIF) score, the returns
will be examined.
IRS personnel, including specialists, will be assigned to the examination
as appropriate.
The Examination Area Director, or his/her designee, will arrange for
contact with the authorized representatives of the President and Vice
President for the beginning of the examination.
All relevant IRM procedures will apply to these return examinations.
The examination papers of the President and Vice President are subject
to regular retention procedures Document 12990, RCS 23, Item 43a.

(1)

Follow the instructions in this subsection of the IRM when processing blind
trust individual income tax returns.

(2)

The instructions include the following procedures:
x
x
x
x

General Information and Instructions
Blind Trust Tax Return Processing
Document Perfection Procedures
Accounts Management Centralized Authorization File (CAF) Procedures
- Processing the Form 2848

(1) The President, Vice President, or a political appointee will be considered to
3.28.3.5.1
have shown good cause for receiving permission and will automatically be
(01-01-2019)
granted permission to have their return filed by a trustee when both of the
General Information and
following conditions are met:
Instructions
a.

b.

The President, Vice President, or political appointee has an interest in a
blind trust that meets the requirements of Section 102(f)(3) of the
Appendix 4 to Title 5 of the United States Code (USC) or any successor
provision of the USC.
The President, Vice President, or political appointee in accordance with
Rev. Proc. 2010–11 submits with the income tax return both a letter requesting permission for the trustee to prepare and file the income tax
return on behalf of the eligible individual and a power of attorney.

Note: A separate request must be made for each tax year (tax period).
(2)

The trustee must attach both of the following to their filed return:
x
x

(3)

3.28.3.5

A letter requesting permission for the trustee to prepare and file the
President’s, Vice President’s, or political appointee’s return.
A valid power of attorney authorizing the trustee to represent the
taxpayer that includes a statement specifically authorizing the trustee to
prepare and file the taxpayer’s return on behalf of the taxpayer.

The IRS must use extreme caution not to violate a blind trust.

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Individual Income Tax Returns
a.
b.
(4)

3.28.3

page 5

Address all correspondence and refunds concerning the blind trust tax
return to the authorized trustee.
Do not disclose any information regarding the source(s) or nature of the
blind trust income to the taxpayer.

Generally, the taxpayer’s name will be in the Entity, but the address will belong
to the trustee to ensure that any correspondence and/or refund is mailed only
to the trustee. Any attached Power of Attorney (POA) should be reviewed for
completeness using the criteria in IRM 3.28.3.5.2.1, Document Perfection Procedures by the Code and Edit tax examiner, then faxed to the Ogden CAF Unit
to be posted.

(5) Do not disclose information regarding the source of the blind trust income if
contact with the taxpayer is ever required.
3.28.3.5.2
(01-01-2019)
Blind Trust Tax Return
Processing

(1)

Blind Trust returns can generally be identified by the presence of any of the
following:
x
x
x
x
x

(2)

The letter requesting permission and the POA must be attached to the return.
It is the responsibility of the Code and Edit tax examiner to determine that the
POA is complete before routing it to the Ogden CAF Unit. If the POA is already
posted, the Code and Edit tax examiner should ensure that the Blind Trust Authorization Indicator is posted on the account. See IRM 3.28.3.5.2.1, Document
Perfection Procedures.

(3)

If the Form 2848 is an original, or the CAF needs to be updated with the Blind
Trust Authorization Indicator, the Code and Edit tax examiner will:
a.
b.
c.
d.
e.

3.28.3.5.2.1
(01-01-2019)
Document Perfection
Procedures

The notation “Blind Trust” in the signature area
An income statement or schedule indicating “Income from Blind Trust”
A trust agreement which specifies “Blind Trust”
A POA attached indicating “Blind Trust,” or posted to the CAF with a
Blind Trust Authorization Indicator or
A letter requesting permission for the trustee to prepare and file the
President’s, Vice President’s or political appointee’s return

Perfect the Form 2848. See IRM 3.28.3.5.2.1(3) for specific procedures
Call the Ogden CAF Unit Manager to alert him/her that they are faxing a
POA for a “Blind Trust” to the unit
Edit “Blind Trust” in the top margin of the Form 2848
Fax the original Form 2848 to the Ogden CAF Unit
Staple the Form 2848 to the back of the return

(4)

If the request letter is attached and the POA is posted correctly, continue processing the return. Leave the request letter (and any POA) attached to the
return.

(5)

If the POA is posted to the CAF, but the Blind Trust Authorization Indicator
needs updating, refer to IRM 3.28.3.5.2.1(6) for instructions on how to contact
the Ogden CAF Unit to update that field.

(1)

Determine that the letter requesting permission for the trustee to prepare and
file the President’s, Vice President’s, or political appointee’s return is present
and the POA is attached when “blind trust” is indicated on the return.

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3.28

Special Processing Procedures

Note: The POA authorization may be contained in the trust agreement when a
blind trust agreement is attached. If all of the items required to be included
in a valid POA authorization, including the specific acts, are listed in the blind
trust agreement, then it is acceptable. Edit the taxpayer’s name and social
security number (SSN), and “See Attached” on a Form 2848. Then, fax the
“Form 2848” package to the Ogden CAF Unit for processing.
(2)

If a Form 2848 is attached, check Command Code (CC) CFINK to determine if
it is an original or copy of the POA. If the CAF is up to date (including the
blind trust Authorization Indicator), then continue processing the return and
leave the copy of the Form 2848 attached to the return.

(3)

If an original Form 2848 is attached to the return, the Code and Edit tax
examiner will edit “BLIND TRUST” in the top-center margin of the Form 2848
and ensure that the following applicable parts of the Form 2848 are completed.
a.
b.
c.
d.
e.

x
x
x
x
f.
g.

h.
i.

(4)

Waiver of restriction on assessment or collection
Waiver of notice of disallowance
Consent to extend the period for assessment or collection
Closing agreement
Line 5b - Specific acts not authorized - Should be blank.
Line 6 - Retention/revocation of prior power(s) of attorney: If the box
is checked, research CC CFINK to determine if it should have been
checked.
Line 7 - Signature of taxpayer(s) and date: The signature of the
taxpayer(s) and the date is required.
Part II - Declaration of Representative: Designation, jurisdiction,
signature, and date of agent is required. Correspond with the agent if this
is missing.

If the Form 2848 is complete:
1.

2.
3.

3.28.3.5.2.1

Line 1 - Taxpayer information: Taxpayer name(s) and address, SSN(s).
Line 2 - Representative(s): Representative(s) name(s) and address,
CAF number, telephone number.
Line 3 - Acts authorized: Description of matter (type of tax form number
(e.g., Form 1040), tax period (must be only ONE tax period)
Line 4 - Specific use not recorded on Centralized Authorization File
(CAF): Box should be checked.
Line 5a - Additional acts authorized - Sign a return box should be
checked. A statement should be included granting the trustee permission
to sign the tax return. “This power of attorney is being filed pursuant to
Treasury Regulation section 1.6012-1(a)(5), which requires a power of
attorney to be attached to a return if a return is signed by an agent by
reason of specific permission granted by IRS” Line 5a may also
include the following authorizations:

Detach the Form 2848 from the return and call the Ogden CAF Unit
Manager to notify him/her that you are faxing a blind trust POA for
expedite processing
Fax the original Form 2848 to the Ogden CAF unit.
Upon acknowledgement of receipt from the Ogden CAF Unit Manager
that the POA was input correctly to the CAF, staple the Form 2848 to the
back of the return and continue processing.
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3.28.3

page 7

(5)

Correspond with the political appointee for the missing items or authorizations
when the POA does not grant the trustee authority to perform all of the specific
acts (Line 5 on Form 2848) on behalf of the political appointee, or any other
required items are missing, except Part II. If Part II is incomplete, correspond
with the trustee.

(6)

The request letter and POA must be present. If either one is missing or incomplete, use the table below to determine the proper action:

If a POA is:

and request letter is:

Then:

1) Attached, or already correctly
posted on the CAF with the
Blind Trust Authorization
Indicator

Attached

Continue processing.

2) On the CAF, but the Blind
Trust Authorization Indicator is
not present

Attached

Contact the Ogden CAF Unit
Manager. Fax the request letter to
them for verification to allow the
update to the CAF with the Blind
Trust Authorization Indicator.

3) Not found on the CAF, or
attached to the return

Attached

Correspond with the trustee for
the missing POA.
Suspend the return while corresponding for the missing POA.

4) Attached, or already posted
on the CAF

Not attached

Correspond with the trustee for a
copy of the request letter.
Suspend the return while corresponding for the missing request
letter.

5) Not found on the CAF, or
attached to the return

Not attached

There is an indication of a sblind
trust.s Code and Edit should correspond with the strustees for the
missing documents. Suspend the
return while corresponding for the
missing documents.

(7) If the request letter is attached, a valid POA has posted, and other correspondence conditions are present on the return, suspend the return and
correspond with the trustee.
(1) The Form 2848 (POA) for the “blind trust” can be mailed or faxed directly to
3.28.3.5.2.2
any CAF unit by the agent or taxpayer. If any CAF Unit, other than Ogden,
(01-01-2019)
receives a Form 2848 (POA) with indication of “blind trust”, they should contact
Accounts Management
the Ogden CAF Unit Manager, and fax the Form 2848 directly to him/her for
Centralized
processing.
Authorization File (CAF)
Procedures - Processing
the Power of Attorney
(POA)

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3.28
(2)

Special Processing Procedures

When the Form 2848 (POA) is attached to a blind trust tax return, the Code
and Edit tax examiner should review the Form 2848 for completeness, then
phone the Ogden CAF Unit Manager and immediately fax the Form 2848 to
him/her for input to the CAF. The CAF Unit Manager will acknowledge receipt
and input the Form 2848. After input to the CAF, the Code and Edit tax
examiner will continue processing the return.

(3) Ogden CAF Unit Only – Process the blind trust POA according to instructions.
in IRM 21.3.7.8.10, Blind Trust Authorizations.

3.28.3.5.2.2

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MANUAL
TRANSMITTAL

4.2.1

Department of the Treasury

MAY 29, 2019

Internal Revenue Service

EFFECTIVE DATE
(05-29-2019)
PURPOSE
(1)

This transmits revised IRM 4.2.1, General Examining Procedures, General Examination Information.

MATERIAL CHANGES
(1)

Significant changes to this IRM are listed in the table below.

Prior Reference

New Reference

Description of Change

N/A

IRM 4.2.1.1 through IRM
4.2.1.1.6

Added and moved content to
provide background information,
legal authorities that govern the
actions covered in this IRM, roles
and responsibilities, terms,
acronyms, and related resources
available to assist examiners
when conducting examinations. In
addition, content from IRM
4.2.1.13.1, Definitions, has been
moved to IRM 4.2.1.1.4, Terms.

N/A

IRM 4.2.1.6

Guidance for “reopening of closed
cases” has been added as it was
not moved to another section
when IRM 4023 was obsoleted.

IRM 4.2.2.1 through IRM
4.2.2.1.2

IRM 4.2.1.7 through IRM
4.2.1.7.2

Content from IRM 4.2.2.1, Collateral Examinations, was moved
from IRM 4.2.2.1 through IRM
4.2.2.1.2 to IRM 4.2.1.7 through
IRM 4.2.1.7.2.

N/A

IRM 4.2.1.11

Moved guidance on “Assistance
to Chief Counsel” from IRM
4.10.1.4.8 to IRM 4.2.1.11.

IRM 4.2.1.16

N/A

Content has been removed. See
IRM 25.24.5, Return Preparer
Misconduct Field Examination.

IRM 4.2.1.19

IRM 4.2.1.22

Renumbered and added a “Note”
providing guidance for when the
taxpayer’s problem involves an
Appeals’ agreed resolution not
being implemented or there was
an error involving the implementation.

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Manual Transmittal Cont. (1)

Prior Reference

New Reference

Description of Change

IRM 4.2.2.3 through IRM
4.2.2.3.1

IRM 4.2.1.23

Moved and revised content from
IRM 4.2.2.3, Extensions of the
Replacement Period of Involuntary Converted Property. IRM
4.2.2.3.1, Involuntary Converted
Property Extension Procedures,
has been replaced by a reference
to IRM 4.8.8.6, Involuntary
Converted Property.

IRM 4.2.2.4

IRM 4.2.1.24

Moved and revised content from
IRM 4.2.2.4, Identification of Bad
Payer Information.

IRM 4.2.2.5

IRM 4.2.1.25

Moved and revised content from
IRM 4.2.2.5, Awards Received by
Informants.

Throughout IRM 4.2.1

Minor editorial changes have
been made throughout this IRM.
Website addresses, legal references, and IRM references were
reviewed and updated as
necessary.

EFFECT ON OTHER DOCUMENTS
This material supersedes IRM 4.2.1, dated November 23, 2016 and incorporates content from IRM 4.2.2,
General Examining Procedures.
AUDIENCE
Small Business and Self-Employed (SB/SE), Large Business and International (LB&I), and Wage and Investment (W&I) examiners.

Maha H. Williams
Director, Examination-Field and Campus Policy
Small Business/Self-Employed

4.2.1

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Part 4
Chapter 2 General Examining Procedures

IRM 4.2.1

Manual
4.2.1 Transmittal
General Examination Information

Table of Contents
4.2.1.1

Table of Contents

Program Scope and Objectives

4.2.1.1.1

Background

4.2.1.1.2

Authority

4.2.1.1.3

Responsibilities

4.2.1.1.4

Terms

4.2.1.1.5

Acronym

4.2.1.1.6

Related Resources

4.2.1.2

Identification and Control Numbers

4.2.1.3

Potentially Dangerous Taxpayer (PDT) and Caution Upon Contact (CAU) Indicators

4.2.1.4

Request for Armed Escort

4.2.1.5

1254 Suspense

4.2.1.6

Reopening of Closed Cases

4.2.1.7

Collateral Examinations

4.2.1.7.1

Collateral Examination Procedures: Initiating Area

4.2.1.7.2

Collateral Examinations: Receiving Area

4.2.1.8

General Appeals Guidelines

4.2.1.8.1

Cases Not Fully Developed

4.2.1.8.2

New or Reopened Issues

4.2.1.8.3

Disagreements With Appeals Determinations

4.2.1.8.4

Docketed Case Examination Assistance

4.2.1.8.4.1

New Information Received in Appeals

4.2.1.8.4.2

Examination Assistance Request Package

4.2.1.8.4.3

Examination Assistance Point of Contact Actions

4.2.1.8.4.4

Examiner Secures New Information and Related Case File

4.2.1.8.4.4.1

Examiner Responsibilities

4.2.1.8.4.4.2

Examiner Returns New Information and Related Case File

4.2.1.8.4.5
4.2.1.9
4.2.1.10

Examination Assistance Point of Contact

New Issues Raised by Counsel
Litigation Affecting the IRS

4.2.1.10.1

Notification to Area Counsel in State Court Suits

4.2.1.10.2

Suits for Recovery of Erroneous Refunds

4.2.1.11

Assistance to Chief Counsel or U.S. Attorney

4.2.1.11.1

Chief Counsel or U.S. Attorney Requests for Civil Suit Data

4.2.1.12

Awards of Litigation and Administrative Costs in Tax Cases

4.2.1.13

Statute Expiration Reports

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Part 4
Chapter 2 General Examining Procedures
4.2.1.14

IRM 4.2.1

Taxpayer Notification of Assessment Statute Expiration and Acceptance of Voluntary Payments on
Expired Statute Returns When Taxpayer Was Contacted for Examination

4.2.1.14.1

Guidelines for Cases with Expired Statutes Where the Deficiency Cannot Be Determined

4.2.1.14.2

Guidelines for Cases with Expired Statutes Where the Deficiency Can Be Determined or there is
No Change to Tax

4.2.1.14.3

Guidelines for Cases with Expired Statutes Where the Taxpayer Makes a Voluntary Payment

4.2.1.15

Processing Returns and Accounts of the President and Vice President

4.2.1.16

Blind Trust Income Tax Returns Filed by Presidential Appointees

4.2.1.17

Reporting Allegations of Tax Violations Involving Senior Treasury Officials

4.2.1.17.1

Compliance Examination Procedures

4.2.1.18

Reporting Misconduct of IRS Employees or Officials

4.2.1.19

Income Tax Bonds Under IRC 332(b) and IRC 905(c)

4.2.1.20

Property Blocked by Foreign Funds Control or Vested by Office of Foreign Assets Control

4.2.1.20.1

Office of Foreign Assets Control (OFAC) Information

4.2.1.20.2

Investigation and Disposition

4.2.1.20.3

Payor Failure to Withhold Tax at Source

4.2.1.21

Witness Security Program

4.2.1.22

Taxpayer Advocate Program

4.2.1.23

Extensions of the Replacement Period of Involuntarily Converted Property

4.2.1.24

Identification of Bad Payer Information

4.2.1.25

Awards Received by Informants

4.2.1.26

Restructuring and Reform Act of 1998

4.2.1

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4.2.1

page 1

(1)

Purpose. This IRM section provides information on various topics as shown in
the table of contents. References to other resources, such as related IRMs and
websites are included when applicable and provide additional guidance as
needed to ensure a thorough understanding of the topic.

(2)

Audience. These procedures apply to examiners in Small Business and SelfEmployed (SB/SE) Field Examination, SB/SE Speciality Examination, Large
Business and International (LB&I), and W&I.

(3)

Policy Owner. The Director, Examination - Field and Campus Policy, who is
under the Director, Headquarters Examination, owns the policy in this IRM.

(4)

Contact Information. To recommend changes or make any other suggestions
related to this IRM section, see IRM 1.11.6.6, Providing Feedback About an
IRM Section - Outside of Clearance.

4.2.1.1.1
(05-29-2019)
Background

(1)

This IRM provides information for general examination procedures that
examiners should understand and apply in the performance of their duties.

4.2.1.1.2
(05-29-2019)
Authority

(1)

By law, the Service has the authority to conduct examinations under Title 26,
Internal Revenue Code, Subtitle F – Procedure and Administration, Chapter
78, Discovery of Liability and Enforcement of Title, Subchapter A, Examination
and Inspection.

(2)

The following IRC sections, Rev. Procs, and Delegation Orders provide the
authority for various topics as referenced within this IRM:

4.2.1.1
(05-29-2019)
Program Scope and
Objectives

x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x

Cat. No. 34440Q (05-29-2019)

IRC 332(b) - Complete liquidations of subsidiaries
IRC 905(c) - Applicable rules
IRC 6501(a) - Limitations on assessment and collection
IRC 6532(b) - Periods of limitation on suits
IRC 7121 - Closing agreements
IRC 7405 - Action for recovery of erroneous refunds
IRC 7430 - Awarding of costs and certain fees
IRC 7605(b) -Time and place of examination
Rev. Proc. 64-22, Statement of some principles of Internal Revenue tax
administration.
Rev. Proc. 2005-32, Examination of returns and claims for refund, credit,
or abatement; determination of correct tax liability.
Rev. Proc. 2010-11, Forms and Instructions.
Rev. Proc. 2012-18, Ex Parte communications between appeals and
other Internal Revenue Service employees.
Rev. Proc. 2016-22, Appeals Functions.
Delegation Order 4-7(formerly DO-57, Rev. 9) - IRM 1.2.43.8, Delegation Order 4-7 (formerly DO-57, Rev. 9).
Delegation Order 4-47(New) - IRM 1.2.43.37, Delegation Order 4-47
(New).
SBSE Delegation Order 1-23-33, Authority to Grant Extensions of Time
to Replace Involuntarily Converted Property Under Section 1033 of the
Internal Revenue Code - IRM 1.2.65.4.11.

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4.2.1.1.3
(05-29-2019)
Responsibilities

4.2.1.1.4
(04-23-2014)
Terms

4.2

General Examining Procedures

(1)

The Director, Headquarters Examination, is the executive responsible for
providing policy and guidance for SB/SE Examination employees and ensuring
consistent application of policy, procedures and tax law to effect tax administration while protecting taxpayers’ rights. See IRM 1.1.16.3.5, Headquarters
Examination, for additional information.

(2)

The Director, Examination - Field and Campus Policy, reports to the Director,
Headquarters Examination, and is responsible for the delivery of policy and
guidance that impacts the field examination process. See IRM 1.1.16.3.5.1,
Field and Campus Policy, for additional information.

(3)

Field Examination General Processes (FEGP), which is under the Director, Examination - Field and Campus Policy, is the group responsible for providing
policy and procedural guidance on standard examination processes to field
employees. See IRM 1.1.16.3.5.1.1, Field Exam General Processes, for additional information.

(4)

All examiners must perform their professional responsibilities in a way that
supports the IRS Mission. This requires examiners to provide top quality service and to apply the law with integrity and fairness to all.

(5)

Income tax examiners and their managers should thoroughly acquaint themselves with the examination procedures and information contained in this IRM,
as well as other resources, such as those listed in IRM 4.2.1.1.6, Related
Resources, below.

(1)

The following table lists terms and their definitions that are used in this IRM:

Term

Definition

Senior Treasury Official

For purposes of this IRM is defined as:
x
All individuals within the Treasury Department serving in Executive Levels I through
V.
x
All individuals within the Treasury Department serving in the Senior Executive
Service or positions classified above grade
general schedule (GS)-15 (or comparable
pay band).
x
All individuals within the IRS in grade GS-15
(or comparable pay band) serving in
positions centralized in the IRS Executive
Resources Board.
x
All individuals within the Treasury Department (other than IRS) in grade GS-15 (or
comparable pay band), which the Deputy
Secretary may designate.

Treasury Department

The Office of the Secretary and all agencies,
bureaus, and other organizational elements within
the Department of the Treasury.

4.2.1.1.3

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4.2.1.1.5
(05-29-2019)
Acronym

(1)

4.2.1

page 3

The following table lists commonly used acronyms and their definitions used
throughout this IRM:

Acronym

Definition

AARS

Appeals Account Resolution Specialists

ADP

Automated Data Processing

ATE

Appeals Technical Employee

AUR

Automated Underreporter

CAU

Caution Upon Contact

CI

Criminal Investigation

DOJ

Department of Justice

EA

Examination Assistance

IRP

Information Reporting Program

LB&I

Large Business & International

LTA

Local Taxpayer Advocate

OEP

Office of Employee Protection

PDT

Potentially Dangerous Taxpayer

RRA

Restructuring and Reform Act

SAC

Special Agent in Charge

TAS

Taxpayer Advocate Service

TC

Transaction Code

TIGTA

Treasury Inspector General for Tax Administration

TS

Technical Services

WSC

Witness Security Coordinator

4.2.1.1.6
(05-29-2019)
Related Resources

(1) Helpful information can be found on websites, including, but not limited to the
following:

4.2.1.2
(04-23-2014)
Identification and
Control Numbers

(1) The similarity of taxpayers’ names and the voluminous flow of documents
require the use of permanent identifying numbers coupled with taxpayers’
names. These numbers are necessary for automated data processing (ADP)
purposes to ensure positive control of each tax account and all related transactions. Some standard titles and abbreviations used are as follows:

x
x
x
x
x

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AUR HQ Payer Agent Coordinator
EA Routing Instructions
Office of Employee Protection
Office of Foreign Assets Control
http://www.treasury.gov/tigta/contact_report.shtml

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4.2
a.
b.

c.

d.

e.

4.2.1.3
(04-23-2014)
Potentially Dangerous
Taxpayer (PDT) and
Caution Upon Contact
(CAU) Indicators

Social security number (SSN)—the number assigned to an individual for
social security purposes, tax account purposes, or both.
Employer identification number (EIN)—the number assigned for any tax
purpose to a person other than an individual. Also means the identification number which is assigned to an individual who is required to file a
return with respect to their liability for any tax other than income, estate,
or gift taxes.
Document locator number (DLN)—the number assigned to each return or
other document introduced into processing for control and file reference
purposes.
Individual taxpayer identification number (ITIN)—the number assigned to
individuals who are required for U.S. tax purposes to have a U.S.
taxpayer identification number but who do not have, and are not eligible
to obtain a SSN issued by the Social Security Administration.
Internal revenue service number (IRSN)—the number used in place of a
required TIN during processing.

(2)

The spacing of the digits in identifying numbers is an integral part of the
number. The proper spacing must be observed in all instances. The spaces
may be indicated by using hyphens, blank spaces, etc. For example, EIN as
00-0000000; and, SSN as 000-00-0000.

(3)

The foregoing identification and control numbers do not preclude the use of
reference or control numbers such as Tax Court docket numbers, Criminal Investigation (CI) case numbers, reference numbers used in connection with the
collection of delinquent accounts, or other numbers or codes used for control
or reference purposes.

(1)

The IRS has two servicewide employee safety programs designed to warn
employees of taxpayers who have been designated as potentially dangerous
and or should be approached with caution:
x
x

(2)

(3)

Potentially Dangerous Taxpayer (PDT) Program
Caution Upon Contact (CAU) Taxpayer Program

The Office of Employee Protection (OEP) has sole responsibility for administering the PDT and CAU programs. The OEP enhances the safety of IRS
employees by taking the following actions:
a.
b.
c.

Making PDT and CAU determinations.
Maintaining the PDT and CAU indicator databases.
Providing information and feedback to employees, managers, and executives.

OEP maintains two IRMs that provide guidance and information:
a.

b.

4.2.1.3

General Examining Procedures

IRM 25.4.1, Potentially Dangerous Taxpayer, provides procedures and
guidelines for referring and designating taxpayers under the PDT
program. See IRM Exhibit 25.4.1-1, Display of PDT Indicator, for a listing
of documents and systems that display the PDT indicator.
IRM 25.4.2, Caution Upon Contact Taxpayer, provides procedures and
guidelines for referring and designating taxpayers under the CAU
program. See IRM Exhibit 25.4.2-1, Display of CAU Indicator, for a listing
of documents and systems that display the CAU indicator.

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(4)

The OEP performs PDT and CAU five-year reviews, which consist of reviewing
the taxpayer against established five-year renewal criteria. See IRM 25.4.1.8,
Five-Year Review of PDT Records and IRM 25.4.2.7, Five-Year Review of CAU
Records, for additional information.

(5)

The OEP Office of Employee Protection website provides additional guidance
and information such as the following:
x
x
x
x
x
x
x
x
x

4.2.1.4
(04-23-2014)
Request for Armed
Escort

4.2.1

(1)

Definition of assaults, threats, and intimidation
Process of reporting assaults, threats, and intimidation
Criteria for PDT
Criteria for CAU
Explanation of relationship between the TIGTA and the OEP
“A Guide to the Office of Employee Protection Programs” desk guide
Spotlight on Safety brochure
Spotlight on Safety newsletter
Frequently asked questions

The TIGTA Office of Investigations (OI) has primary responsibility to provide
armed escorts for IRS personnel who in the course of their official duties have
been threatened with bodily harm indicating the need for such protection. See
IRM 9.5.11.10, Armed Escort Assignment.

Exception: CI has primary responsibility for the protection of the Commissioner of
Internal Revenue.
(2)

When an examiner feels they need an armed escort, they will immediately
report the facts causing the need to their group manager. Armed escorts may
be requested by IRS employees when they intend to meet with taxpayers who
have been designated by the OEP as PDT or CAU, or in other circumstances
where the examiner and the group manager believe any interaction during the
performance of duties may pose a risk of injury to the employee.

(3)

If the group manager determines that an armed escort is necessary, they will
request such protection in writing via a memorandum, not to exceed two
pages, to the TIGTA-OI special agent in charge (SAC) of the appropriate
TIGTA-OI field division. To ensure the safety of IRS and TIGTA-OI personnel,
as well as guarantee the operational integrity of the armed escort, a request
must be submitted at a minimum one week prior to the scheduled appointment
date. If a request is submitted with less than a one week notification, it may
require a postponement of the appointment or an alternate meeting location.

(4)

All armed escort requests will be reviewed by the respective TIGTA-OI SAC.
Armed escorts will be provided on a case-by-case basis. If the TIGTA-OI SAC
determines that an armed escort is not warranted, IRS management may seek
a reconsideration of the denied request by contacting the TIGTA-OI SAC who
rendered the decision. If a resolution cannot be reached and the requesting
IRS management official still believes an armed escort is warranted, the IRS
management official can request a final reconsideration from the TIGTA-OI,
Deputy Assistant Inspector General for Investigations (DAIGI)-Field Operations.

(5)

Since TIGTA-OI has primary responsibility for providing armed escorts, IRS
management may not request and or alternatively seek assistance from CI if
the request for an armed escort has been denied. If CI receives a request for

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4.2

General Examining Procedures

an armed escort from an IRS employee or management official, CI will refer
the IRS employee or management official to the nearest TIGTA-OI office.
Note: Unless specifically asked for assistance by TIGTA-OI, CI will no longer be
responsible for providing armed escorts to IRS employees except as noted in
paragraph (1) above. If CI assistance is needed, the TIGTA SAC will forward
the request in writing to the appropriate CI Director, Field Operations, for
concurrence.
(6)

If an armed escort is being considered for a taxpayer designated a PDT,
contact TIGTA-OI directly. The memorandum should contain the following information:
a. Taxpayer name.
b. Taxpayer social security number.
c. Taxpayer contact number(s).
d. Taxpayer home address.
e. Assigned IRS employee name, position, and contact information.
f.
Supervisor name, position, and contact information.
g. Description of the tax issue.
h. Description of activity to take place.
i. Phone number of IRS employees or others who will attend.
j. Location of activity.
k. Any contacts or statements related to the taxpayer that caused concern.
l. Any other information related to the subject that would indicate an armed
escort is warranted.

(7)

If an armed escort is being considered for a taxpayer designated as CAU, the
requesting employee or management official must contact the OEP and obtain
the basis for the OEP’s designation. IRS management must evaluate this information and if it is decided an armed escort is still needed, proceed with the
memorandum. The memorandum should contain the following information:
a. Taxpayer name.
b. Taxpayer social security number.
c. Taxpayer contact number(s).
d. Taxpayer home address.
e. Assigned IRS employee name, position, and contact information.
f.
Supervisor name, position, and contact information.
g. Basis for the OEP CAU designation.
h. Description of the tax issue.
i. Description of activity to take place.
j. Number of IRS employees or others who will attend.
k. Location of activity.
l. Any contacts or statements related to the taxpayer that caused concern.
m. Any other information related to the subject that would indicate an armed
escort is warranted.

(8)

If an employee is requesting an armed escort for reasons other than PDT and
CAU, IRS management must evaluate the situation. If IRS management
concurs with requesting an armed escort, prepare a memorandum. The memorandum should contain the following information:
a.
b.
c.

4.2.1.4

Taxpayer name.
Taxpayer social security number.
Taxpayer contact number(s).
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d.
e.

Taxpayer home address.
Position, grade, function, and POD information, if the taxpayer is an IRS
employee or contractor.
f. Assigned IRS employee name, position, and contact information.
g.
Supervisor name, position, and contact information.
h.
Background information concerning the taxpayer.
i.
Description of activity to take place.
j. Number of IRS employees, management officials, and or others who will
attend.
k. Location of activity.
l. Any contacts or statements related to the taxpayer that caused concern.
m. Any other information related to the subject that would indicate an armed
escort is warranted.

4.2.1.5
(04-23-2014)
1254 Suspense

(9)

When an actual threat or assault has been made, TIGTA has primary jurisdiction and must be contacted. For contact information, refer to the TIGTA-OI
website.

(1)

Examination Technical Services holds cases pending a court decision or
business unit guidance. Cases may be held in 1254 suspense under the
following circumstances:
a.
b.

c.

The facts in the case to be suspended are the same or similar to an
issue pending in a federal court.
The issue is similar to one that is under consideration in District Court in
another jurisdiction, but only if a Form 906, Closing Agreement on Final
Determination Covering Specific Matters, has been secured, usually by
Appeals.
Chief Counsel or another business unit has identified the issue as a
suspense issue.

(2)

For cases held in 1254 suspense pending a court decision, the facts in the
case to be suspended must be so similar to those in the pending case that a
decision in one will ultimately decide the other.

(3)

The examiner must discuss any case being considered for 1254 suspense with
the group manager. The group manager must contact the area Examination
Technical Services function to determine whether the case meets the criteria
for 1254 suspense.

(4)

Prior to forwarding a case to Examination Technical Services for 1254
suspense, the examiner must:
a.
b.

Develop the case to the fullest extent possible.
Ensure a partial agreement is assessed if a case has other issue(s) that
do not meet 1254 suspense criteria. See instructions for preparing
partially agreed reports in IRM 4.10.8.5, Partially Agreed Cases. The only
issues that may be placed in 1254 suspense are unagreed issues
meeting the 1254 suspense criteria.
Note: If a partial agreement cannot be secured, the case should not be
sent to 1254 suspense. Prepare an unagreed report for all issues
pursuant to the instructions in IRM 4.10.8.11, Unagreed Case Procedures (SB/SE Field and Office Examiners only). If the taxpayer
fails to file a protest, close the case for issuance of a statutory
notice of deficiency.

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4.2
c.

d.

e.

f.

4.2.1.6
(05-29-2019)
Reopening of Closed
Cases

General Examining Procedures

Ensure an examination report addressing the unagreed issue(s) being
suspended is shared with the taxpayer and a copy is retained in the case
file, for purposes of IRC 6404(g).
Ensure a claim disallowance that addresses the unagreed issue(s) being
suspended is in the case file, if applicable. A claim allowance must also
be included in the case file should the taxpayer’s position prevail.
Ensure there are at least 24 months remaining on the statute of limitations. If not, secure an extension prior to sending the case to
Examination Technical Services for 1254 suspense.
Complete Form 1254, Examination Suspense Report, and ensure the key
case is identified.

(5)

See IRM 4.8.2.11, Suspense Cases, for additional guidance.

(1)

There may be times when an examiner should consider reopening a tax year
that was previously examined and closed. IRC 7605(b) provides that “No
taxpayer shall be subjected to unnecessary examination or investigation, and
only one inspection of a taxpayer’s books of account shall be made for each
taxable year unless the taxpayer requests otherwise or unless the Secretary,
after investigation, notifies the taxpayer in writing that an additional inspection
is necessary.”

Note: Reopening procedures do not apply when the taxpayer requests the
reopening, such as an audit reconsideration or claim for refund.
(2)

Rev. Proc. 2005-32 provides information on reopening closed cases. The
following sections provide information the examiner must consider prior to the
reopening of a closed case:
x
x
x

Rev. Proc. 2005-32, Section 4.01 - Closed Case - provides definitions of
a closed case.
Rev. Proc. 2005-32, Section 4.02 - Reopening - defines what constitutes
a “reopening.”
Rev. Proc. 2005-32, Section 4.03 - Taxpayer contacts and other actions
that are not examinations, inspections or reopenings - provides a list of
four categories of contacts the Service makes with taxpayers and
certain other actions taken by the Service that are not examinations,
inspections, or reopenings.

Note: A prior examination is indicated by a Transaction Code (TC) 300. A TC 290
is not a prior examination.
(3)

The Service will not reopen any case closed after examination by an area
office or campus to make an adjustment unfavorable to a taxpayer unless one
of the three following criteria is met (see Rev. Proc. 2005-32, Section 5.01 and
Policy Statement 4-3 (IRM 1.2.13.1.1 for additional guidance):
x
x

4.2.1.6

There is evidence of fraud, malfeasance, collusion, concealment or misrepresentation of a material fact,
The prior closing involved a clearly defined substantial error based on
an established Service position existing at the time of the previous examination, or

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x

4.2.1

page 9

Other circumstances exist which indicate failure to reopen would be a
serious administrative omission. See Rev. Proc. 2005-32, Section
section 5.02 - Other circumstances permitting reopening, for additional
information.

(4)

All Service initiated reopenings to make adjustments unfavorable to a taxpayer
must be approved by the territory manager. See IRM 1.2.43.8, Delegation
Order 4-7 (formerly DO-57, Rev. 9). Prior approval must be obtained using
Form 4505, Reopening Memorandum, before starting the examination.

(5)

When a reexamination of the taxpayer’s books and records is necessary,
Letter 939 (DO), Reopening Letter, must be prepared by the examiner and
sent with Form 4505 to the territory manager for signature. The examiner must
issue Letter 939 to the taxpayer at the time the reexamination is started.

Note: When a reopening does not require the reexamination of the books and
records, Letter 939 is not needed.

4.2.1.7
(10-01-2003)
Collateral Examinations

(6)

Once the approval has been obtained to reopen a closed case and Letter 939
issued (if required), the examiner should contact the taxpayer using the appropriate initial contact letter. See IRM 4.10.2.8.1, Making Initial Contact. For
guidance on report writing procedures, see IRM 4.10.8.8, Reports For Cases
Reopened By Examination.

(1)

A collateral examination is requested when an exchange of information
between areas is essential to resolve an issue of material consequence. Collateral examinations are used only when the information cannot be obtained
from the taxpayer, the taxpayer’s representative, or third parties. Every reasonable effort must be made to secure the information rather than to routinely
request a collateral examination.

(2)

Collateral activity is the performance of work of short duration, work that does
not require the examination of books and records, and work that calls for little
independent judgment or conclusions. For example, a collateral examination
would be justified where:
a.
b.
c.
d.

An interview is required to get specific information for the examiner;
A document is to be obtained;
A transcript of an account or a listing f invoices is needed; or
A summons needs to be served.

(3)

All collateral requests must receive priority treatment. If the collateral examination results in a finding of nationwide interest, the receiving area will furnish the
information to Technical Services who will share it with Headquarters using
Technical Coordination Report procedures. See IRM 4.8.8.12.3, Technical Coordination Report, for additional information.

(4)

Collateral examination requests involving tax shelter cases will be identified as
such on the top of Form 6229, Collateral Examination. The receiving area will
acknowledge receipt of the collateral request and provide a status report to the
requesting office within 45 days and provide status reports to the initiating area
every 30 days.

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4.2.1.7.1
(10-01-2003)
Collateral Examination
Procedures: Initiating
Area

4.2

General Examining Procedures

(1)

Form 6229, Collateral Examination, is used by all areas to request or
exchange information between areas to resolve an issue(s) of material consequence. Form 6229 is prepared as early as possible in each examination when
a collateral examination is needed from another area.

(2)

The examiner assigned the return will prepare the original Form 6229. Part 2
of the form is retained in the case file. The original Form 6229 and three
copies are forwarded.
a.

b.
c.

d.

The narrative section of Form 6229 must include sufficient background
information to clearly state the issue(s). Additional schedules and attachments are included as needed. A copy of the out-of-area return is also
included, if available.
Information requested must be specific to the issue(s).
The examiner’s name and telephone number must be included so the
receiving area has the correct examiner to contact for clarification of the
issue, if needed.
The completed Form 6229 is submitted to the group manager for review.
After approval, the group manager will forward Form 6229. If Campus
action is required (i.e., the return), Form 6229 is forwarded to the
Campus servicing the receiving area. If no Campus action is required,
the initiating area will submit the request to the applicable territory
manager of the receiving area. The initiating area will photocopy the
retained Part 2 and put an “X” next to the “Follow-up” line when furnishing information to the receiving area.

4.2.1.7.2
(1) The receiving area must acknowledge receipt of the request by completing
(10-01-2003)
Part 3 of Form 6229 and return it to the initiating area.
Collateral Examinations:
a. The receiving examiner must include his/her name, address, telephone
Receiving Area
number and date received. If the case is reassigned, the new examiner
must notify the initiating area of the change.
b. Photocopies of Part 4 of Form 6229 are used for subsequent communication with the initiating area.
c. The receiving examiner must provide a clear, concise response to each
question raised.

4.2.1.8
(04-23-2014)
General Appeals
Guidelines

4.2.1.7.1

(2)

If the receiving area believes the results of the collateral examination would not
justify the time and cost involved, a memorandum explaining that decision is
attached to Form 6229 and forwarded to the initiating area. The territory
manager will approve any declination memorandum. The group manager will
forward a copy of the Form 6229 with a copy of the declination memorandum
attached to the respective Planning and Special Programs (PSP) section for
information purposes. Territory managers should resolve disagreements
between the initiating and receiving areas concerning the need for a collateral
examination. Area Directors will resolve any disagreement between the respective territory managers.

(1)

This section provides general information related to how Appeals works an examination case and the formal procedures for Examination staff to voice
concerns about a case settled by Appeals.

Internal Revenue Manual

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General Examination Information
4.2.1.8.1
(04-23-2014)
Cases Not Fully
Developed

(1)

4.2.1

page 11

Appeals will not return cases to Examination when the case is not fully
developed and the taxpayer has not presented new information or evidence.
Instead, Appeals will attempt to settle the case on factual hazards.

4.2.1.8.2
(1) The appeal process is not a continuation or an extension of the examination
(04-23-2014)
process. Appeals will not raise new issues and will focus dispute resolution
New or Reopened Issues
efforts on resolving the points of disagreement identified by the parties.
a.
b.

c.

d.
(2)

A new issue is a matter not raised during an examination.
In resolving disputes, Appeals may consider new theories and or alternative legal arguments that support the parties’ positions when evaluating
the hazards of litigation in a case. However, the appeals officer will not
develop evidence that is not in the case file to support the new theory or
argument.
The discussion of new or additional cases or other authorities (e.g.,
revenue rulings or revenue procedures) that supports a theory or
argument previously presented does not constitute consideration of a
new issue.
A change in computation is not a new issue.

Appeals will not reopen an issue on which the taxpayer and the IRS are in
agreement.

Exception: See IRC 7121.

4.2.1.8.3
(04-23-2014)
Disagreements With
Appeals Determinations

(3)

The restrictions on raising a new issue do not apply to new issues raised by
taxpayers. For this purpose, the term “new issue” means issues identified by
Appeals in non-docketed cases.

(4)

Appeals will not raise a new issue in a docketed case. A new issue in a
docketed case is any adjustment to or change to an item that affects the petitioner’s tax liability that was not included in the notice of deficiency and is
raised or discussed during consideration of the case. However, Appeals will
consider any new issue the government raises in its pleadings and may
consider any new evidence developed by Examination or Counsel to support
the government’s position.

(1)

This section provides formal procedures for Examination to voice concerns
about a case settled in Appeals. These procedures are not intended to replace
any informal procedures currently in use at the area level. Management in Examination and Appeals can continue to address and resolve disagreements
over case resolution at the lowest possible level. These formal procedures are
used when the informal process results in Examination still having unresolved
significant concerns about the disposition by Appeals of an issue.

(2)

Formal disagreement is expressed by written dissent. The written dissent must
clearly state the reason(s) for dissent, the rationale supporting the reason(s)
for the dissent, and whether Examination requests a conference with the appropriate Appeals executive (Director, Examination Appeals; Director, Collection
Appeals or Director, Specialized Examination Programs and Referrals). The
rationale for the dissent should include the following:

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Internal Revenue Manual

4.2.1.8.3

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page 12

4.2
a.

b.

General Examining Procedures

Citation of the specific facts that were not considered, or given enough
weight, if Examination believes Appeals did not properly consider the
facts.
Citation of the applicable law (e.g., IRCs, Treas. Regs., Rev. Ruls., court
cases, etc.) that was not considered and or accorded different weight if
Examination believes there was unsound application of the law by
Appeals.

Note: Formal dissents by Examination are not appropriate in a case settled by
Appeals where “hazards of litigation” were considered in the settlement of
the case. Appeals clearly identifies within the Appeals Case Memorandum
(ACM) those cases resolved by considering the “hazards of litigation.”
Note: The decision to hold a conference is at the discretion of the appropriate
Appeals executive. If a conference is held, the parties must follow the ex
parte communication guidelines set forth in Rev. Proc. 2012-18, Section
2.03(11).

4.2.1.8.4
(11-23-2016)
Docketed Case
Examination Assistance

(3)

Dissents should be forwarded to the appropriate Appeals Director (Examination
Appeals, Collection Appeals, or Specialized Examination Programs and
Referrals) via the *AP Formal Dissents centralized mailbox within 90 days (extensions may be mutually agreed upon) of receipt of an ACM by Examination.
The appropriate Director will retrieve the formal dissent from the centralized
mailbox and send Examination an acknowledgment of receipt.

(4)

Upon receipt of the dissent, the Appeals Director will determine whether a
reply to the dissent is appropriate, and guided by IRM 1.2.17.4, Policy
Statement 8-3 (Formerly P-8-50), and existing regulations and statutes,
whether the case should be reopened.

(5)

The above procedures do not preclude the exchange of non-case specific information that occurs through advisory boards or between analysts in
Examination and Appeals.

(1)

Rev. Proc. 2016-22 describes the practices for the administrative appeals
process in cases docketed in the United States Tax Court (Tax Court). See
IRM 8.4.1, Procedures for Processing and Settling Docketed Cases, for additional information. These procedures do not apply to cases docketed in United
States District Court or the United States Court of Federal Claims.

(2)

Jurisdiction of a docketed case must remain with the Office of Chief Counsel
(Counsel) or the Office of Appeals (Appeals). Therefore, when Appeals
receives “new information” (see IRM 4.2.1.8.4.1) from a taxpayer, representative or counsel of record for a docketed case that merits analysis by
Examination, Appeals can request examination assistance (EA). Appeals
retains jurisdiction of the case while the new information is under review by
Examination.

Note: When Appeals receives new information in a non-docketed case, Appeals
generally releases jurisdiction of the case and returns it to the originating
function to examine the new information and make an audit determination.
See IRM 8.2.1.7.2, Verification of New Material or Request for Further Development - ATE.

4.2.1.8.4

Internal Revenue Manual

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General Examination Information

4.2.1

page 13

Note: In docketed Tax Court cases, a power of attorney is not required from the
counsel of record. An attorney who is admitted to practice before the court
becomes the counsel of record by filing a petition or entering an appearance
in the case. A counsel of record is authorized to act on behalf of the taxpayer
in the court proceedings, access the tax information of the person they
represent and represent the taxpayer before the Internal Revenue Service. In
a case docketed in the Tax Court, anyone other than the counsel of record
must be eligible to practice before the IRS and, in order to be recognized,
must present a Form 2848, Power of Attorney and Declaration of Representative, or other power of attorney.
(3)

Standardized docketed case EA procedures ensure:
a.
b.

Examination is able to provide EA to Appeals by analyzing new information provided by petitioning taxpayers, consistent with its mission, and
All petitioning taxpayers receive consistent treatment when they provide
new information not previously made available to Examination.

(4) Examination Assistance Exception. If the docketed case is IRS Campussourced and meets the exception in paragraph (2) of IRM 8.6.1.6.5, Taxpayer
Provides New Information, Appeals will review the new information and
proceed with normal consideration. If the case does not meet the exception,
Appeals will generally request EA.
4.2.1.8.4.1
(11-23-2016)
New Information
Received in Appeals

(1) “New information” is information received in Appeals from the taxpayer, representative or counsel of record not previously made available to Examination
for consideration prior to issuance of the IRS Notice, relating to issues:
x
x
x

Previously examined,
Raised in the petition, or
Raised by the Government in its pleadings.

Note: For this purpose, an IRS Notice includes a Notice of Deficiency, a Notice of
Final Determination, Final Partnership Administrative Adjustment (FPAA), a
Notice of Determination of Worker Classification or any similar document that
outlines the Service’s position on the particular tax matter and provides Tax
Court rights.
(2)

New information includes:
x
x
x

New information, evidence or documentation.
A relevant new issue for which Counsel has provided advice indicating
that the issue does not require a formal amendment to the Tax Court
petition.
A new theory or alternative legal argument presented by the taxpayer
that warrants analysis by Examination before Appeals can fully evaluate
the hazards of litigation.

Note: Appeals must physically secure the new information and review it to
determine if it merits analysis by Examination. Analysis may include categorizing, sorting or reviewing taxpayer records, or requiring additional steps or
reasoning to reach a conclusion.

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Internal Revenue Manual

4.2.1.8.4.1

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page 14
4.2.1.8.4.2
(11-23-2016)
Examination Assistance
Request Package

4.2
(1)

General Examining Procedures

Appeals will prepare an EA request package and forward it via encrypted email
to the EA Point of Contact (EA POC) within the appropriate originating function.
The EA request package will include the following electronic files:
a.
b.

c.

Form 14361, Docketed Examination Assistance Request – Jurisdiction
Not Released, completed by Appeals.
Form 14362, Docketed Examination Assistance Issues and Results,
partially completed by Appeals and used by Examination to approve or
deny the EA request, and provide EA results to Appeals.
IRS Notice and relevant attachments to the IRS Notice, if available.

Note: There must be at least 60 calendar days remaining before the Tax Court
calendar date on the date Appeals sends the EA request package.
(2)

Appeals will use the EA_Routing_Instructions posted on the Appeals website
to determine the correct EA POC based on guidance in IRM 4.2.1.8.4.5.

(1) Generally, within five (5) business days of receiving the EA request package
4.2.1.8.4.3
from Appeals, the EA POC will review Form 14361 and Form 14362 to ensure:
(11-23-2016)
Examination Assistance
a. There are at least 45 calendar days from the date Appeals sent the
Point of Contact Actions
request to the due date shown on Form 14361, Part F, Explanation.
b. There are at least 60 calendar days from the date Appeals sent the
request to the Tax Court calendar date shown on Form 14361, Part F.
c. The issues to consider are identified on Form 14362, Part C, Issues and
Results.
(2)

The EA POC must communicate the decision to approve or deny the EA
request to the Appeals Team Manager (ATM) within 30 calendar days or less.
x

x

If the EA request is approved, the EA POC completes Form 14362,
Part B, Examination Assistance Approved/Denied, indicating approval
and sends the digitally signed form to the ATM via encrypted email. The
EA POC will personally provide the EA or assign and forward the EA
request package to the examiner, via encrypted email. See IRM
4.2.1.8.4.5.
If the EA request is denied, the EA POC completes Form 14362, Part
B, by using the drop-down menu to indicate the reason the request was
denied, and sends the digitally signed form to the ATM via encrypted
email.

Note: If the EA POC denies an EA request, Appeals (concerned that a significant
risk to taxpayer compliance exists) can elevate the EA request to the
Appeals Area Director for discussion with the EA POC’s manager.

4.2.1.8.4.4
(11-23-2016)
Examiner Secures New
Information and Related
Case File

4.2.1.8.4.2

(1)

After the Appeals Technical Employee (ATE) is notified of the examiner assignment, they will promptly contact the examiner using available means (e.g.,
phone, email, Skype, etc.) to arrange for timely and efficient delivery of the
new information and relevant administrative file information.

(2)

The ATE and examiner will coordinate and agree upon a method of delivery of
the new information and related administrative file information. The method of
delivery may include, but is not limited to:

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General Examination Information
x
x
x

4.2.1

page 15

Providing workspace in the Appeals office for the examiner to perform
EA.
Mailing/shipping using standard procedures, including Form 3210,
Document Transmittal.
Using available electronic means of transmitting information, such as
encrypted email, Enterprise e-Fax (EEFax), etc.

Note: The ATE will maintain physical possession of original tax returns, executed
statute extensions, and required Tax Court-related documents. If the
examiner needs any of these documents to perform the requested EA, the
ATE will provide copies. If the examiner is providing EA in Appeals
workspace, the ATE may provide the entire original administrative file to the
examiner and secure the file from the examiner at the end of the business
day.

4.2.1.8.4.4.1
(11-23-2016)
Examiner
Responsibilities

(1)

The examiner will:
a.

b.

Appropriately charge time for EA activities. LB&I and SB/SE field
examiners will charge time to activity code 822, Details out of Industry or
Area to: Appeals Division. Campus correspondence examiners will
charge time and volume to Organization Function Program (OFP) code
91969. Campus AUR examiners will charge time to the applicable OFP
code.
Complete the assigned EA by the due date specified on Form 14361,
Part F.
Note: Examiners can request additional time to complete the EA, but
Appeals can deny the request and require the immediate return of
the EA package based on the needs of the case (e.g., Tax Court
calendar date, Counsel requests return of case for trial preparation,
etc.)

c.

Review and analyze the EA issues using the information received from
Appeals.
Caution: The examiner must not contact the taxpayer, representative or
counsel of record without the written concurrence (i.e., email) of
the assigned Counsel attorney; see IRM 4.2.1.8.4.4.1 (3).
Note: If the new information affects a related FBAR case, consult with an
Operating Division FBAR Coordinator.

d.
e.

Prepare workpapers to support the EA findings (as applicable).
Record the findings and EA time charged on Form 14362, Part C.
Note: The ATE will have entered the issues to be addressed on Part C of
Form 14362, including the issue name, year/period, and per return
amount. The examiner will enter the corrected amount, adjustment
and explanation.

f.
g.
h.

i.
Cat. No. 34440Q (05-29-2019)

Complete Form 14362, Part D, Examiner’s Information.
Obtain manager’s approval, if required, on Form 14362, Part E,
Manager’s Approval.
Send the approved Form 14362 and any related electronic workpapers to
the ATE via encrypted email or other electronic method agreed upon by
the ATE and examiner.
Return applicable items to the ATE. See IRM 4.2.1.8.4.4.2.
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4.2.1.8.4.4.1

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4.2

General Examining Procedures

j. Conduct any communications with Appeals in accordance with the ex parte
rules. Appeals will invite the taxpayer, representative or counsel of record to
participate in any substantive discussion of the disputed issues between
Exam and Appeals. See IRM 4.2.7, Ex Parte Communication Procedures.
Note: Appeals will issue Letter 4642, Docketed Case Examination Assistance, to inform the taxpayer, representative or counsel of record
that Appeals requested EA from Examination and will share any
information provided by Examination with the taxpayer, representative or counsel of record for review and comment.
(2)

The examiner will not:
a.
b.
c.
d.

e.

Prepare tax computations or create an examination report.
Issue an IDR. See IRM 4.2.1.8.4.4.1 (3).
Provide a summary of the results to the taxpayer, representative or
counsel of record.
Provide any assurances as to the final tax impact of the EA to the
taxpayer, representative or counsel of record, as Appeals may base final
settlement on additional factors, such as the hazards of litigation.
Pursue the development of any issues not currently before the Tax Court
for the specific case without written concurrence (i.e., email) of the
assigned Counsel attorney.

(3) Although not required, the examiner has the discretion to:
a.

Contact the assigned Counsel attorney at any time during the EA
process.
Note: Appeals will identify the assigned Counsel attorney on Form 14361
Part E, Area Counsel Contact Information. If the assigned Counsel
attorney is not identified on Form 14361, the examiner should
contact the ATE for the identity of the assigned Counsel attorney.

b.

Verbally ask questions or request additional information from the
taxpayer, representative or counsel of record to clarify the new information received from Appeals but only after receiving the written
concurrence (i.e., email) of the assigned Counsel attorney. To avoid
potential Tax Court discovery issues, the examiner must not issue an
information document request (IDR). The examiner must document the
conversation as well as information requested, date requested, date due,
and requested method of delivery on Form 9984, Examining Officer’s
Activity Record, or a workpaper.
Caution: If the examiner opts to interact with the taxpayer, representative
or counsel of record as outlined above, the examiner must first
contact the assigned Counsel attorney to secure the name of
the appropriate party for such interaction in writing (i.e., email).
Note: Prior to requesting EA, the ATE will inform the taxpayer, representative or counsel of record of the critical importance of providing all
information in support of their position to the ATE at the beginning
of the Appeals process. Appeals will only request EA once on a
case; therefore, the taxpayer, representative or counsel of record
should have provided all necessary information to the ATE prior to
the examiner receiving the EA request.

4.2.1.8.4.4.1

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General Examination Information
4.2.1.8.4.4.2
(11-23-2016)
Examiner Returns New
Information and Related
Case File

4.2.1.8.4.5
(11-23-2016)
Examination Assistance
Point of Contact

(1)

4.2.1

page 17

All administrative case file information including original documents and electronic files (e.g., CD-ROM, flash drive, etc.) provided by the taxpayer,
representative or counsel of record through the ATE to the examiner will be
returned to the ATE in the manner they were received.

Note: Information provided to the examiner electronically (e.g., email, Skype, etc.)
does not need to be returned to the ATE since the ATE has the original
documents.
(2)

The examiner will provide Appeals with any new information received and
retained by the examiner from the taxpayer, representative or counsel of
record during the EA.

(3)

The examiner will use Form 3210 to track and acknowledge receipt of information returned to the ATE.

(1)

Appeals will use the EA_Routing_Instructions posted on the Appeals website
to determine the correct EA POC. The following table provides the general
business rules for determining the EA POC by Primary Business Code (PBC).

Primary
Business
Code

Originating Function and EA POC Information

190—195

W&I Campus Cases—Forward EA requests to the appropriate, designated Campus
Liaison (CL). Depending on the specific Campus (by PBC) there may be different CL
EA POCs for the following programs:
x
ASFR—Automated Substitute for Return
x
CORR—Campus Correspondence Examination
x
EITC—Earned Income Tax Credit
The CL will review and approve/deny the initial request. If approved, the CL may personally provide the EA or assign the EA work to another examiner.

201—207

SB/SE Field Examination Cases—Forward to the appropriate, designated EA POC as
follows (based upon information in the case file and AIMS/IDRS):
x
If the Exam group is known, the EA POC will be the current Exam group
manager. If approved, the EA POC may assign the EA to the original examiner or
another examiner.
x
If the Exam group no longer exists or cannot be determined, the EA POC will be
the Territory Manager.
x
If the Territory no longer exists or cannot be determined, Appeals will contact the
Area PSP office for assistance in determining where to route the EA request. The
Area PSP will not decide whether to approve or deny the EA request.

212

SB/SE Field Employment Tax Cases—Forward to the appropriate, designated EA
POC as follows (based upon information in the case file and AIMS/IDRS):
x
If the Exam group is known, the EA POC will be the current Exam group
manager.
x
If the Exam group no longer exists or cannot be determined, the EA POC will be
the Territory Manager.
x
If the Territory no longer exists or cannot be determined, the EA POC will be the
Chief Employment Tax.

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4.2.1.8.4.5

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page 18

4.2

General Examining Procedures

Primary
Business
Code

Originating Function and EA POC Information

213

SB/SE Field Estate & Gift Tax Cases—Forward to the appropriate, designated EA
POC as follows (based upon information in the case file and AIMS/IDRS):
x
If the Exam group is known, the EA POC will be the current Exam group
manager.
x
If the Exam group no longer exists or cannot be determined, the EA POC will be
the Territory Manager.
x
If the Territory no longer exists or cannot be determined, the EA POC will be the
Chief, Estate and Gift.

214

SB/SE Field Excise Tax Cases—Forward EA requests to the appropriate, designated
PBC 214 (Excise Tax) EA POC.
x
If the Exam group is known, the EA POC will be the current Exam group
manager.
x
If the Exam group no longer exists or cannot be determined, the EA POC will be
the Territory Manager.
x
If the Territory no longer exists or cannot be determined, the EA POC will be the
Chief Excise Tax.

295—299

SB/SE Campus Cases —Forward EA requests to the appropriate, designated CL.
Depending on the specific Campus (by PBC) there may be different CL EA POCs for
the following programs:
x
ASFR—Automated Substitute for Return
x
AUR—Automated Underreporter
x
CORR—Campus Correspondence Examination
x
EITC—Earned Income Tax Credit
The CL will review and approve/deny the initial request. If approved, the CL may personally provide the EA or assign the EA work to another examiner.

3XX

LB&I Examination Cases—Forward EA requests to the appropriate, designated EA
POC as follows (based upon the PBC):
x
If the Examination Group Code is known, the EA POC point will be the current
Examination/Compliance Manager (Group/Team Manager).
x
If the Examination group no longer exists or cannot be determined, the EA POC
will be the Compliance Territory Manager.
x
If the Territory no longer exists or cannot be determined, Appeals will contact the
Compliance Function Director Field Operations (DFO) for assistance in determining where to route the EA request. The DFO will not decide whether to approve
or deny the EA request.

4.2.1.9
(04-23-2014)
New Issues Raised by
Counsel

(1)

In general, Counsel will not raise new issues, unless the grounds are substantial and the potential effect on tax liability is material. See Chief Counsel Directives Manual (CCDM) 35.4.1.2, Raising New Issues in Tax Court Cases.

4.2.1.10
(04-23-2014)
Litigation Affecting the
IRS

(1)

The legal work of the IRS is performed by the Office of Chief Counsel.
Referrals to the Associate Area Counsel office should be considered in
unrelated tax issue matters.

4.2.1.9

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General Examination Information
4.2.1.10.1
(04-23-2014)
Notification to Area
Counsel in State Court
Suits

4.2.1.10.2
(04-23-2014)
Suits for Recovery of
Erroneous Refunds

4.2.1

page 19

(1)

The IRS ordinarily will not intervene in litigation in state courts between private
litigants even though the purpose of the parties is to obtain a decree or
judgment affecting the federal tax liability of one or the other of the parties to
the litigation. In those cases arising in state courts between private litigants, to
which officials of the IRS have not been made a party but which may have a
direct bearing upon the construction of an internal revenue code, or upon the
government’s title or right to possession to property which has been seized,
the IRS may intervene or take other appropriate steps in connection with the
proceeding. See IRM 1.2.13.1.8, Policy Statement 4–10 and CCDM 34.6.2.6,
Intervention.

(2)

When pending proceedings come to the attention of examiners, a memorandum report of the proceeding should be made to the Associate Area Counsel
office. Area Counsel will determine whether the IRS should intervene or take
any steps in connection with the proceeding.

(1)

Examiners may determine a taxpayer erroneously received a payment of
money in the form of a tax refund. IRC 7405 provides that any portion of tax
which has been erroneously refunded may be recovered by civil action. IRC
6532(b) provides that a general suit under IRC 7405 may be brought within
two years. Begin computing the two-year period from the day after issuance of
the refund check or the date the direct deposit cleared. Examiners should
contact Chief Counsel, Procedure and Administration, if there is a potential
statute problem. If any part of the refund was induced by fraud or misrepresentation of a material fact, suit may be brought at any time within five years from
the day after issuance of the refund check or the date the direct deposit
cleared. See IRM 5.1.8.7.1.1.2, Unassessable Erroneous Refunds, and IRM
21.4.5.15, Collection Methods for Category D Erroneous Refunds, for additional information.

(2)

Assessable erroneous refunds may also be recovered by administrative action
within the applicable period of limitation upon assessment and collection. The
type of tax involved is determinative of the type of administrative action
available. Ordinarily, recovery by suit is utilized because administrative
recovery is barred by the statute of limitations on assessment. Any contemplated collection activity based on administrative recovery should be
coordinated with Counsel.

(3)

The erroneous refund suit is limited to erroneously refunded amounts that
exceed the litigating threshold established by the Department of Justice (DOJ).

(4)

A recommendation for an erroneous refund suit to the Associate Area Counsel
should be accompanied by the administrative file, a copy of any request made
to the taxpayer for voluntary payment, a copy of the taxpayer’s refusal to make
voluntary payment, transcript of account, and a narrative report containing the
following information:
a.
b.
c.

d.

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The type of tax involved and the amount of money expected to be
recovered.
The date the period of limitations on collection will expire.
A brief statement that administrative remedies are impractical or have
been exhausted, including the reasons that administrative actions have
not been effective.
Facts, evidence, and other matters necessary for development of the
case.
Internal Revenue Manual

4.2.1.10.2

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page 20

4.2
e.
f.

g.
(5)

General Examining Procedures

Brief personal history of the taxpayer or other facts that might have a
bearing on the suit.
Location of the principal executive office, date of incorporation, state of
incorporation, and the name and address of the statutory agent for
service if the taxpayer is a corporation.
A statement of the exact legal premise for recovery of the erroneous
refund.

After the narrative report and other related documents are prepared, the
examiner will submit the entire case file to the group manager for review. If the
manager agrees, the case will be referred to Area Counsel using locally established procedures. For example, the manager may request Technical Services
(TS) conduct a further technical review and prepare the advisory request, or an
area may have an agreement with its Area Counsel and TS to send requests
for technical assistance directly to Area Counsel (TS should receive a copy of
the request if bypassed).

(1) When examiners are needed to assist Area Counsel or the Office of the United
4.2.1.11
States Attorney, the Area Director will honor requests and assign an examiner
(08-24-2017)
Assistance to Chief
to provide the services needed in the litigation of cases.
Counsel or U.S. Attorney
(2) Examiners will not discuss the merits of the case with the taxpayer or the taxpayer’s attorney when consulting with them or examining pertinent books and
records.

4.2.1.11.1
(04-23-2014)
Chief Counsel or U.S.
Attorney Requests for
Civil Suit Data

4.2.1.11

(3)

Every effort will be made to comply with a request by the date specified. If is
not possible to comply with the request for assistance, the party who initiated
the request will be notified.

(1)

In suits initiated by or against the IRS, the Disclosure Office or Field CollectionAdvisory receives and processes requests from U.S. Attorneys or Chief
Counsel for data or documents. Basic data in refund suits, other than suits
involving Trust Fund Recovery Penalty assessments, is requested directly from
the campus. For additional information, see IRM 25.3.6.1, Types of Litigation
Controlled by Advisory.

(2)

A DOJ attorney may request assistance prior to or during a trial resulting in
Counsel requesting a supplemental investigation by an examiner. See CCDM
34.7.1.2.2, When Supplemental Investigation Is Warranted. The request may
be formal or informal. If formal, Counsel will request a supplemental investigation by preparing a memorandum to the Area Director (or comparable level of
management) for the area in which the case arose. See CCDM 34.7.1.2.3,
Procedure for Supplemental Investigation.

(3)

Electronically stored information (ESI) is subject to discovery in litigation if it is
relevant to the case. ESI includes, but is not limited to, email and other electronic communications, word processing documents, spreadsheets, electronic
calendars, telephone logs, Internet usage files, metadata, voice mail, text
messages, and network access information. For additional information
regarding ESI, see IRM 25.3.1.7, Preserving Electronically Stored Information
in Litigation Cases.

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4.2.1

page 21

(1) IRC 7430 provides for the award of costs, attorneys’ fees and other expenses
4.2.1.12
to a “prevailing party” in any civil tax action brought in a federal court of the
(04-23-2014)
United States, if the taxpayer has met the requirements of IRC 7430(b) and
Awards of Litigation and
the IRS does not establish that its position was “substantially justified”. The
Administrative Costs in
Tax Cases
position of the IRS will be “substantially justified” if it had a reasonable basis
both in law and in fact. A party who meets the requirements of IRC 7430(b)
may also qualify as a “prevailing party” if the liability of the taxpayer as determined by a judgment in the proceeding is equal to or less than the liability of
the taxpayer which would have been determined if the United States had
accepted a qualified offer of the party under IRC 7430(g) and none of the exceptions of IRC 7430(c)(4)(E)(ii) apply. If the qualified offer rule applies, a
showing of substantial justification by the United States does not preclude the
taxpayer from receiving an award under IRC 7430. This paragraph is not applicable to litigation in state courts.
(2)

The law also applies to taxpayer suits for refunds as well as a wide variety of
litigation such as suits to reduce a tax claim to judgment, to enforce a levy, to
foreclose a tax lien, to recover an erroneous refund, to establish transferee
liability, or to enforce a summons.

(3)

The law provides that an award may be made only if the taxpayer has
exhausted all available administrative remedies within the IRS, did not unreasonably protract the proceeding, has substantially prevailed with respect to the
amount in controversy or has substantially prevailed with respect to the most
significant issue or set of issues presented, and satisfies the net worth requirements. Even if the taxpayer satisfies all of the above requirements, the
taxpayer will not be treated as the prevailing party if the United States establishes that the position of the United States in the proceeding was substantially
justified, unless the qualified offer rule of IRC 7430(c)(4)(E) applies.

(4)

IRC 7430 also allows a taxpayer who prevails before the IRS in an administrative proceeding to request reimbursement of reasonable administrative costs
incurred in defending the taxpayer’s position.
a.

b.

c.

d.

(5)

Cat. No. 34440Q (05-29-2019)

Taxpayers must file their requests with the IRS personnel who have jurisdiction over the tax matter underlying the claim for costs. If the taxpayer
does not know who has jurisdiction over the tax matter, the taxpayer may
send the request to the IRS office that considered the underlying matter.
See Treas. Reg. 301.7430-2(c)(2).
Administrative cost awards under IRC 7430 are considered by Appeals in
non-docketed cases. Therefore, requests for IRC 7430 administrative
cost awards in non-docketed cases should be routed to the Appeals
office personnel who considered the taxpayer’s matter.
Administrative cost awards under IRC 7430 are considered by Counsel in
docketed cases. Therefore, requests for IRC 7430 administrative cost
awards in docketed cases should be routed to Counsel.
Regardless of whether the case is docketed or non-docketed, all
requests for IRC 7430 administrative cost awards with respect to an administrative proceeding related to requests for damages for Bankruptcy
Code violations should be routed pursuant to the instructions in Treas.
Reg. 301.7430-2(c)(2).

There is no IRS form for requesting an IRC 7430 administrative cost award.
Taxpayers and their representatives may file a request for an IRC 7430 administrative cost award by mailing a letter or Form 843, Claim for Refund and
Internal Revenue Manual

4.2.1.12

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page 22

4.2

General Examining Procedures

Request for Abatement, to the IRS. If the examiner is unsure if a Form 843 is
requesting an IRC 7430 administrative cost award, they should consult with the
lead or group manager.
Note: Taxpayers must file a motion with the Tax Court consistent with Tax Court
Rule 231 for reimbursement of litigation costs.

4.2.1.13
(04-23-2014)
Statute Expiration
Reports

(1)

A statute expiration report is required when the period for assessment or the
assessment period that was extended by consent has expired. See IRM
25.6.1.13, Barred Assessments/Barred Statute Cases, for guidance and a list
of exceptions to the reporting requirement.

(2)

SB/SE area office employees should refer to IRM 25.6.1.13.2.8, Statute Expiration Reporting Responsibilities and Procedures for SB/SE Area Office Involved
Directly With or Providing Support for Tax Return Examinations, for guidance.

(3)

LB&I field operations and campus employees should refer to IRM
25.6.1.13.2.9, Statute Expiration Reporting Responsibilities and Procedures for
LB&I Field Operations and LB&I Campus Employees, for guidance.

(4)

W&I campus examination employees should refer to IRM 25.6.1.13.2.7.2, Responsibilities of W&I Examination Operations at Campuses, for guidance.

(1) IRM 1.2.13.1.20, Policy Statement 4-65, provides that the IRS shall not make
4.2.1.14
any effort, real or implied, to solicit voluntary payments of a deficiency or
(04-23-2014)
taxpayer delinquent account barred by statute. However, payments made by
Taxpayer Notification of
the taxpayer completely of their free will shall be accepted.
Assessment Statute
Expiration and
Acceptance of Voluntary (2) Taxpayers must be notified in writing of assessment statute expiration if they
were contacted for examination. The appropriate notification letter depends on
Payments on Expired
whether a deficiency can be determined. See IRM 4.2.1.14.1 and IRM
Statute Returns When
4.2.1.14.2 for additional guidance. The responsibilities for preparing the notifiTaxpayer Was Contacted
cation letter, mailing and routing are the following:
for Examination
a.

b.

c.
d.

(3)

4.2.1.13

The undated notification letter is prepared and signed by the immediate
manager of the party responsible for the statute expiration. The notification letter, along with the completed Form 3999, Statute Expiration
Report, are forwarded to the Area Director (or comparable level of management) via second-level management.
The Area Director (or comparable level of management) signs the Form
3999 and the letter is date-stamped and mailed by his or her secretary or
staff assistant. The date of taxpayer notification is entered in Box 7 of
Form 3999.
A copy of the notification letter and the Form 3999 are forwarded back to
the manager via second-level management.
The Area Director (or comparable level of management) retains a copy of
the Form 3999 and the applicable taxpayer notification letter. The final
Form 3999 and a copy of the taxpayer notification letter are sent forward
to the Examination Director (or comparable level of management).

In multi-year and related examinations, it is not necessary to separately
process the year in which the statute expired. The return can follow the case
file through the normal examination process. However, a copy of the final
approved Form 3999 must be in the case file.
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4.2.1

page 23

4.2.1.14.1
(04-23-2014)
Guidelines for Cases
with Expired Statutes
Where the Deficiency
Cannot Be Determined

(1)

If the examination has not reached the point where the deficiency can be determined, prepare Letter 5318, Deficiency Case Discontinued Due to Statute
Expiration-Deficiency Undetermined. Letter 5318 explains that the examination
has been discontinued because the statutory period in which the IRS can
legally issue a refund or assess a deficiency has expired.

4.2.1.14.2
(04-23-2014)
Guidelines for Cases
with Expired Statutes
Where the Deficiency
Can Be Determined or
there is No Change to
Tax

(1)

If the deficiency can be determined or the case is a no-change, prepare Letter
5321, Deficiency Case Discontinued Due to Statute Expiration-Deficiency Determined, and an unagreed or no-change examination report.
a.

The report can be a copy of a report previously furnished to the taxpayer,
a revision of that report or an initial report prepared after statute expiration. However, adjustments that give the taxpayer a beneficial “double
deduction” are prohibited as discussed in 26 CFR 1.161-1, e.g., capitalizing an item previously expensed and allowing a depreciation deduction in
subsequent years. IRC 6401(a) provides that the term overpayment
includes any payment of any internal revenue tax which is assessed or
collected after the expiration of the period of limitation applicable. It will
generally be possible for the taxpayer to file a timely claim within two
years and have any payment refunded. This permits a double deduction
if a report includes issues that involve subsequent returns. See IRM
4.10.8.9.6, Unagreed Cases: Reports, for guidance on unagreed reports.
b.
The report should reflect the deficiency or no change to tax resulting from
issues that have been developed to a point where the IRS’s position is
reasonably sound. Letter 5321 advises the taxpayer “... you have no
legal obligation to pay the amount shown on the enclosed report.”
Note: In order to show the statute has expired and the taxpayer is under no legal
obligation to pay the deficiency, include the following statement in the “Other
Information” section of the report: “You will not be assessed a deficiency for
(year) and are under no obligation to pay the deficiency shown on this examination report.”
c.

4.2.1.14.3
(04-23-2014)
Guidelines for Cases
with Expired Statutes
Where the Taxpayer
Makes a Voluntary
Payment

(1)

If the taxpayer inquires about making a voluntary payment, they should be
informed the payment will be accepted and can be mailed to the office
contacted. The subject of voluntary payments should not be discussed unless
the taxpayer inquires about voluntary payments. If the taxpayer makes a
voluntary payment:
a.

b.

c.

Cat. No. 34440Q (05-29-2019)

The purpose of the report is to help the taxpayer in filing subsequent
returns and to furnish the amount of the deficiency if the taxpayer elects
to make a voluntary payment.

Prepare and process Form 3244-A, Payment Posting VoucherExamination, treating the payment as an advance payment. See IRM
4.4.24.2, Form 3244-A, and IRM 4.4.24.6.4, Completion of Form 3244-A
for IRC 6603 Deposits.
Prepare Form 3198, Special Handling Notice for Examination Case Processing, following the instructions in IRM 25.6.1.13.2.8.3 (1), Closing
Cases Involving Expired Statute Returns, and submit the case for normal
processing. Voluntary payments are sent to Excess Collection File.
Prepare and issue Letter 5319, Deficiency Case-Voluntary Payment
Received After Statute Expiration, acknowledging receipt of the payment.

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page 24

4.2

General Examining Procedures

(1) The individual income tax returns for the President and Vice President are
4.2.1.15
subject to mandatory examinations and cannot be surveyed. See IRM
(04-23-2014)
3.28.3.4.3, Mandatory Examination.
Processing Returns and
Accounts of the
(2) Copies of the returns to be examined will be transmitted by the Office of the
President and Vice
Deputy Commissioner for Services and Enforcement to the SB/SE, Director,
President
Examination.
(3)

The area responsible for the examination will be determined by the SB/SE,
Director, Examination or their designee. After a determination is made as to the
area having jurisdiction, copies of the returns will be transmitted to the area
planning and special programs (PSP) territory manager for control and assignment to the appropriate field group. The transmittal memorandum will contain
the following instructions:
a.
b.
c.

d.
(4)

Upon receipt, the group should ensure Project Code 0207, Treasury Mandates,
and Source Code 46, have been input for the primary and any prior or subsequent year returns.

(5)

The returns must be assigned within 10 business days of receipt in the group.
The returns require expeditious handling at all levels to ensure prompt completion of the examinations.

(6)

Related returns, including estate and gift tax returns, will be handled in accordance with procedures relating to all taxpayers.

(7)

The location of the returns of the President and Vice President will be
monitored at all times throughout the examination process.
a.
b.
c.

(8)

The returns should be kept in an orange folder at all times.
The returns should not be exposed to viewing by other employees.
The returns should be locked in a secure drawer or cabinet when the
examiner is away from the work area.

The returns should be processed similar to the examination of an employee
return per IRM 4.2.6, Examination of Employee Returns, with the exception of
the following:
a.
b.

4.2.1.15

Regardless of discriminant index function (DIF) score, the returns will be
examined.
IRS personnel, including specialists, will be assigned to the examination
as appropriate.
The Examination Area Director, or their designee, will arrange for contact
with the authorized representative of the President and or Vice President
for the examination.
All relevant IRM procedures will apply to these returns.

The returns of the President and Vice President are mandatory examinations and cannot be surveyed.
The returns are subject to mandatory review and must be closed directly
to the Employee Audit Reviewer in Baltimore Technical Services. The
“Other” box in the “Forward to Technical Services” section of Form 3198
must be checked and the examiner should notate “President (or Vice
President) Examination; Forward to Baltimore Technical Services.” The
examining area will notify Baltimore Technical Services when the return is
being forwarded.
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General Examination Information
c.

4.2.1.16
(04-23-2014)
Blind Trust Income Tax
Returns Filed by
Presidential Appointees

4.2.1

page 25

Baltimore Technical Services will provide Centralized Case Processing
(CCP) with advance notice when the return is being closed.

(1)

Taxpayers who are presidential appointees are permitted to file their individual
income tax returns through a trustee of a blind trust. IRM 4.11.55.1.6, Terms,
defines a blind trust as a device used to give management of one’s investments to an outside person over whom the beneficiary has no control.

(2)

Extreme caution should be exercised not to violate a blind trust. All correspondence, inquiries, etc., should be directed to the authorized trustee unless the
power of attorney indicates otherwise. No information regarding the source or
nature of a blind trust can be disclosed. See IRM 3.28.3.4.1, General Information and Instructions, and Rev. Proc. 2010-11, for additional information.

(1) Allegations of income tax evasion or allegations concerning the willful failure to
4.2.1.17
file any tax return by a senior Treasury official where prosecution is recom(04-23-2014)
mended, where the fraud penalty under IRC 6663 is asserted, or the fraudulent
Reporting Allegations of
failure to file penalty under IRC 6651(f) is asserted when prosecution is not
Tax Violations Involving
recommended, will be reported to the Commissioner of Internal Revenue. The
Senior Treasury Officials
Commissioner of Internal Revenue will immediately report the allegations to
the Deputy Secretary of Treasury or to the Secretary of Treasury.
Note: For a definition of “Treasury Department” or “Senior Treasury Official” see
IRM 4.2.1.1.4.

4.2.1.17.1
(1) Upon recommending the assertion of the fraud penalty under IRC 6663 or the
(04-23-2014)
fraudulent failure to file penalty under IRC 6651(f) (for a “senior Treasury
Compliance Examination
official”) where prosecution has not been recommended by the CI function, the
Procedures
territory manager will provide the Area Director (or comparable level of management) with a memorandum, for forwarding through channels, to the
Commissioner of Internal Revenue. The memorandum will contain the
following information:
a.
b.
c.
d.

Taxpayer name, residence address, and social security number.
Taxpayer position, now held, which qualifies him or her as a “senior
Treasury official.”
Brief summary of the findings and the tax years involved.
Additional civil taxes and penalties.

(1) All information received concerning misconduct of IRS employees or officials
4.2.1.18
will be reported to TIGTA via the local TIGTA office or by a report to the TIGTA
(04-23-2014)
hotline using one of the following methods:
Reporting Misconduct of
IRS Employees or
x
Online—complete and submit the online form on TIGTA’s web page at:
Officials
http://www.treasury.gov/tigta/contact_report.shtml
x
Email—send a secure email message to the TIGTA Hotline Complaints
Unit at Complaints@tigta.treas.gov
x
Telephone—1-800-366-4484
x
Fax—202-927-7018
x
Mail—
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4.2.1.18

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page 26

4.2

General Examining Procedures

Treasury Inspector General for Tax Administration
Hotline
PO Box 589
Ben Franklin Station
Washington, DC 20044-0589

4.2.1.19
(04-23-2014)
Income Tax Bonds
Under IRC 332(b) and
IRC 905(c)

(1)

A bond for the purpose of securing payment of internal revenue taxes is collateral security offered by the taxpayer, representative or a third party, which
satisfies the provisions of IRC 7101 and 26 CFR 301.7101–1.

(2)

If an IRC 332(b) liquidation is not completed within a single year, the recipient
corporation must sign a waiver of the statute of limitations on assessment and
may be required to file a bond.
a.

b.

(3)

Under IRC 905(c), in the case of any credit sought for a foreign tax accrued
but not paid, the Area Director or Director of Field Operations, as a condition
precedent to the allowance of a credit, may require a bond from the taxpayer.
a.

b.

(4)

4.2.1.19

The recipient corporation must waive the statute of limitations on assessment for each year that falls wholly or partly in the liquidation period.
Form 952, Consent to Fix Period of Limitation on Assessment of Income
Taxes, is used to extend the period of assessment of all income taxes of
the receiving corporation on the complete liquidation of a subsidiary
under IRC 332. See 26 CFR 1.332-4.
Under a three year corporate liquidation plan, the recipient corporation
may be required to file a bond in case nonrecognition treatment is later
lost. See 26 CFR 1.332-4(a)(3).

A bond under IRC 905(c) is filed using Form 1117, Income Tax Surety
Bond. Form 1117 will be executed by the taxpayer or representative and
approved by the Area Director (or comparable level of management) on
behalf of the Commissioner of Internal Revenue.
No period of limitations is established under either IRC 905(c) or IRC
6501(a) for the furnishing of a bond requested pursuant to IRC 905(c) for
a foreign tax credit based on an accrual of a foreign tax. Such bond may
be required from a taxpayer at any time and the foreign tax credit may be
disallowed without regard to any period of limitations if a taxpayer refuses
to furnish the bond. See Rev. Rul. 73-573.

If IRC 332(b) or IRC 905(c) issues are present, examiners should contact their
Area Counsel for help in determining whether to secure a bond and what the
terms should be. Any bonds secured will be held by Collection Advisory. See
IRM 5.6.1, Collateral Agreements and Security Type Collateral, and IRM 5.6.2,
Maintenance, for additional information.

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General Examination Information
4.2.1.20
(04-23-2014)
Property Blocked by
Foreign Funds Control
or Vested by Office of
Foreign Assets Control

4.2.1

page 27

(1)

The Office of Foreign Assets Control (OFAC) of the Department of Treasury
administers and enforces economic and trade sanctions based on U.S. foreign
policy and national security goals against targeted foreign countries and
regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other
threats to the national security, foreign policy, or economy of the United States.
OFAC acts under Presidential national emergency powers, as well as authority
granted by specific legislation, to impose controls on transactions and freeze
foreign assets under U.S. jurisdiction.

(2)

On September 24, 2001, the President of the United States issued an
executive order that immediately froze U.S. financial assets of and prohibited
U.S. transactions with 27 different entities. These entities include terrorist organizations, individual terrorist leaders, a corporation that serves as a front for
terrorism, and several nonprofit organizations.

(3)

Treasury Directive (TD) 15-43 (May 3, 2007, reaffirmed September 8, 2011)
delegates to the Commissioner of Internal Revenue the authority of the OFAC
to investigate and review for compliance with economic sanctions programs
persons that the IRS has the authority to examine for compliance with the
Bank Secrecy Act provisions in Title 31 (31 U.S.C. 5311 et seq.). The authority
to investigate and review includes, but is not limited to, the authority to compel
the production of documents and information and otherwise to examine a
person’s compliance with OFAC-administered economic sanctions. IRM
1.2.43.37, Delegation Order 4-47 (New), addresses the Commissioner of
Internal Revenue’s authorization under TD 15-43 with respect to conducting
reviews for compliance with economic sanctions programs.

(4)

Information regarding blocked property of aliens and foreign corporations may
be obtained from records located in OFAC. When such information is
requested by area offices, a request detailing the desired information will be
forwarded to the SB/SE Area Director.

(5)

Requests should contain clear instructions on what is requested and why.
OFAC collects the information for bank regulatory purposes and needs to know
who will be the end user of the information and how the information will be
used; e.g., by a revenue agent to conduct an examination. Make the request in
a letter sent to the address listed on the contacts page of the Office of Foreign
Assets Control website and include the subject line “Records Request from
Federal Agency”.

(1) Information obtained from the records of OFAC with respect to blocked
4.2.1.20.1
accounts will be considered to be of a confidential nature and the source
(04-23-2014)
thereof will not be disclosed to taxpayers or their representatives, nor will such
Office of Foreign Assets
information be used in any legal proceeding without written authorization from
Control (OFAC)
headquarters.
Information
(2)

Cat. No. 34440Q (05-29-2019)

OFAC will pay all taxes legally assessed against a former owner whose
property has been vested by that office if the tax is attributable to taxable
income accruing prior to the date of vesting. This is conditional upon a proper
determination of the taxes, where there is no non-vested property from which
the taxes may be realized, and there are vested funds available for payment of
the taxes.

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4.2.1.20.1

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page 28

4.2

General Examining Procedures

(1)

Investigation of returns will be made under the general procedure prescribed
for investigation of income tax returns. If the owner has property vested by
OFAC, any deficiency in tax liability arising from income realized prior to
vesting or from income earned on non-vested property will be asserted under
the general prescribed procedures. Preliminary (30-day) letters or statutory
notices of deficiency in cases where communication cannot be had with the
owner or representative, should be addressed in care of the party or agency
having custody of the property. Under war conditions, such address may be
treated as the taxpayer’s last known address.

(2)

If all the property of the owner has been vested, the preliminary (30-day) letter,
as well as the statutory notice of deficiency, should be addressed to the owner,
in care of Justice Dept., Civil Division, Office of Foreign Assets Control. Visit
the Office of Foreign Assets Control website for additional information on the
OFAC.

(3)

If the owner of the property or the party having custody of the property (in situations in which the property has not been vested by OFAC) does not agree to
any proposed deficiencies, the parties will have the right to a protest. Any reasonable request for an extension to the 30-day letter should be given favorable
consideration, provided the interests of the government are adequately
protected.

(4)

If Appeals consideration is not requested, the case file will be forwarded to the
LB&I, International, PSP program manager. The file will include the audit report
and a statement of reasons why an agreement was not reached. In cases
where agreements were concluded in vested cases, the file will be noted to
assess in the name of the OFAC, for the former owner. Likewise, agreed assessments in non-vested cases will be made in the name of the owner in care
of the person, party, or agency having custody of the property.

4.2.1.20.3
(04-23-2014)
Payor Failure to
Withhold Tax at Source

(1)

In cases of blocked or vested property, where it is determined the payor failed
to withhold tax at the source on income, the amount required by statute to be
withheld will be asserted against the payor agent. In cases where it is determined that income arising, but not paid, prior to blocking or vesting was turned
over to OFAC without withholding, the liability of the payor agent for withholding will be promptly reported to the LB&I, International, PSP program manager
for adjustment.

4.2.1.21
(04-23-2014)
Witness Security
Program

(1)

Federal agencies have always recognized a duty to protect informants and
witnesses from threats or possible danger resulting from their assistance to the
government by furnishing information or by testifying on behalf of the government in the prosecution of individuals. See IRM 9.5.11.11, Protection and
Maintenance of Informants and Witnesses.

(2)

The IRS has the authority to temporarily protect an informant or witness until a
determination is made by the DOJ that the person qualifies for protection
under its Witness Security Program.

(3)

The IRS has the authority to approve all confidential expenditures for other
protective arrangements undertaken by the IRS for an informant or witness
who does not qualify for or is refused protection under the DOJ’s Witness
Security Program, in an investigation which is not under jurisdiction of the U.S.
Attorney’s Office.

4.2.1.20.2
(04-23-2014)
Investigation and
Disposition

4.2.1.20.2

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General Examination Information
(4)

page 29

Examination personnel who become aware of or have indications that the
taxpayer assigned may be a person in the Witness Security Program will immediately suspend the examination. No subsequent attempts by examination
employees will be made to contact a protected witness. Any necessary contact
will be coordinated through the special agent in charge (SAC) to the Deputy
Chief, CI, Attn: Witness Security Coordinator (WSC). A memorandum will be
prepared for signature of the area director (or comparable level of management) containing the following:
a.
b.
c.

4.2.1.22
(05-29-2019)
Taxpayer Advocate
Program

4.2.1

Any examination action taken to date.
Facts indicating that the taxpayer is enrolled in the Witness Security
Program.
Relevant facts involved in the tax matter, e.g., year under examination,
information needed, etc.

(5)

Upon receipt by an IRS employee of information alleging a threat or possible
danger to a past or present government informant or witness or family
member, as a result of furnishing information or otherwise cooperating with the
government, the employee will forward the information immediately to the SAC.

(1)

The Taxpayer Advocate Service (TAS) helps taxpayers resolve problems with
the IRS and recommends changes to prevent problems through two types of
advocacy—case-related and systemic. See IRM 13.1.1.2(5), Philosophy of
Advocacy. TAS has identified criteria that qualify taxpayers for TAS assistance.
TAS Criteria 1-9 reflect situations requiring acceptance of taxpayer cases to be
worked by TAS.

(2)

TAS refers to Criteria 1-4 as “Economic Burden” cases, Criteria 5-7 as
“Systemic Burden” cases, Criteria 8 as “Best Interest of the Taxpayer” cases,
and Criteria 9 as “Public Policy” cases. See IRM 13.1.7.2, TAS Case Criteria.

(3)

All inquiries meeting TAS criteria should be documented on Form 911, Request
for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), and forwarded to TAS by the most expeditious method available.

Note: If the taxpayer specifically requests TAS assistance, the case should be
referred to the Local Taxpayer Advocate (LTA).
(4)

Problems that meet TAS criteria do not necessarily need to be sent to TAS if
they can be immediately resolved by the function. All IRS employees should
handle potential TAS cases with the taxpayer’s best interest in mind. For other
taxpayer problem resolutions, see IRM 4.10.1.4.6, Problem Solving.

Note: If the taxpayer’s problem involves an Appeals agreed resolution not being
implemented or there was an error involving the implementation, refer the
taxpayer to the Appeals customer service number, see IRM 8.1.9.2, AARS
Closed Case Referrals, for additional information. An Appeals Account Resolution Specialist (AARS) will be able to provide assistance (AARS will not
change case decisions or determinations).
(5)

Cat. No. 34440Q (05-29-2019)

If TAS accepts a Form 911 that is related to a taxpayer under examination, it
will be forwarded to Examination for review by the responsible group. The

Internal Revenue Manual

4.2.1.22

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 346 of 413
page 30

4.2

General Examining Procedures

group manager will refer to the Service Level Agreement between the National
Taxpayer Advocate and the Commissioner of their respective division for procedural guidance.
a.

b.

4.2.1.23
(05-29-2019)
Extensions of the
Replacement Period of
Involuntarily Converted
Property

(1)

Examiners should charge time expended on TAS activities to miscellaneous examination Activity Code 671, Taxpayer Advocate, per IRM 4.9,
Examination Technical Time Reporting System. Time charged to this
code should only include actual time spent on TAS activities. Examination
time should be charged to the case in the usual manner.
The statute of limitations on assessment may be extended by IRC
7811(d) and should be confirmed in writing with TAS.

The provisions of IRC 1033, Involuntary Conversions, allow for the deferral of
gains realized on the disposition of compulsorily or involuntarily converted
property when a taxpayer purchases similar property within the specified replacement period. When the taxpayer is unable to replace the property within
the normal replacement period, they can request an extension of the replacement period by writing to the Area Director. The Area Director will forward the
taxpayer’s request for an extension of time to Technical Services (TS) for consideration. TS will take final action to approve or deny the request as
delegated by IRM 1.2.65.4.11, Delegation Order SBSE 1-23-33, Authority to
Grant Extensions of Time to Replace Involuntarily Converted Property Under
Section 1033 of the Internal Revenue Code. See IRM 4.8.8.6, Involuntarily
Converted Property, for additional information.

Note: The request is most likely to be received by the Commissioner’s Representative in miscellaneous mail forwarded by the Campus.

4.2.1.24
(05-29-2019)
Identification of Bad
Payer Information

(2)

If the converted property is owned by several taxpayers under the jurisdiction
of different Area Directors’ offices, the TS national coordinator will conduct the
investigation to determine whether reasonable cause exists for not replacing
the converted property within the required time period.

(1)

During the preliminary review of IRP data, examiners may determine that information provided by the payer is incorrect.

(2)

Bad payer data is defined as any situation where the payer made an error on
the information return of a type that could occur on other information returns.
When errors have occurred on ten or more of these documents filed by one
payer or transmitter, bad payer data exists. Examples of bad payer data
include but are not limited to:
x
x
x
x
x
x

(3)

4.2.1.23

Duplicate filing of Forms W-2 or 1099;
Corrected Forms W-2 or 1099 not identified as a corrected, thus
appearing to duplicate the original filing;
Misplaced decimals;
Additional digits added to amounts;
Nontaxable income reported as taxable; and
Income reported on the wrong form.

When examiners determine that bad payer data exists, they will briefly explain
the identified error on a copy of the IRP and email it to the AUR HQ Payer
Agent Coordinator, by selecting the coordinator from the AUR Coordinator Site
- “Ogden”.
Internal Revenue Manual

Cat. No. 34440Q (05-29-2019)

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 347 of 413

General Examination Information
4.2.1.25
(05-29-2019)
Awards Received by
Informants

page 31

(1)

Informant awards for confidential services are often received from the Bureau
of Customs, Federal Bureau of Investigation, Central Intelligence Agency,
Secret Service, local Police Departments, Whistleblower program, and other
similar sources. It is imperative that the source of income not be revealed in
the examiner’s report and that the identify of the informant be protected. See
IRM 25.2.2.9, Confidentiality of the Whistleblower, for additional guidance on
confidentiality.

(2)

If during the examination, unidentified income reported on the return or unreported income is discovered, the taxpayer may explain that the income was
received for services of a confidential nature.
x
x

(3)

x

(1)

b.

c.

Cat. No. 34440Q (05-29-2019)

In the case file, the description of the income will state “miscellaneous
income -source verified.”
Correspondence used to verify the source of income will not remain in
the case file but will be maintained in special file, confidential in nature,
under the personal control of the Area Director.

All employees should be familiar with the provisions of the Restructuring and
Reform Act of 1998 (RRA 98), including the following:
a.

(2)

If verification of the source of income is necessary, then verification
should be secured through inquiry of the official in charge of making the
payment
If the official is in the same locality as the examiner, then the official will
be interviewed personally without any written communication or other
report. If a personal interview is not possible, the examiner will prepare
for the personal signature of the Area Director, a letter to the official
marked “Confidential - To be opened by addressee only” requesting
verification of the payment for confidential services.

If the taxpayer states that the unidentified or unreported income was received
for services of a confidential nature, the case will be processed in the usual
manner without disclosing the source of the payment.
x

4.2.1.26
(04-23-2014)
Restructuring and
Reform Act of 1998

4.2.1

Section 1105, Prohibition on Executive Branch Influence Over Taxpayer
Audits and Other Investigations, superseded by IRC 7217.
Section 1203, Termination of Employment for Misconduct. See Document
11043, RRA ’98 Section 1203 All Employee Guide, for additional
information.
Section 3466, Application of Certain Fair Debt Collection Procedures, superseded by IRC 6304.

In addition, the Service has a long-standing commitment to the fair and
equitable treatment of all taxpayers set forth in Rev. Proc. 64-22. The pertinent
part of Rev. Proc. 64-22 states the law will be administered in a reasonable,
practical manner. Issues should be raised by examiners when they have merit
and never arbitrarily or for trading purposes.

Internal Revenue Manual

4.2.1.26

 Case Document 44-3 Filed 09/06/19 Page 348 of 413

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 349 of 413
Department of the Treasury
Internal Revenue Service
[Operating Division / Program Name]

Date:

06/05/2019
Taxpayer ID number (last 4 digits):
Form:
Tax periods:
Person to contact:
Contact telephone number:
Contact fax number:
Employee ID number:

Dear [enter Name]:
Your federal return for the period(s) shown above was selected for examination.
What you need to do
Please call me on or before [date]
telephone number provided above.

. You may contact me from [time]

to [time]

at the

During our telephone conversation, we'll talk about the items I'll be examining on your return, the types of
documents I'll ask you to provide, the examination process, and any concerns or questions you may have. We'll
also set the date, time, and agenda for our first meeting.
Someone may represent you
You may have someone represent you during any part of this examination. If you decide you want
representation, the representative you authorize will need a completed Form(s) 2848, Power of Attorney and
Declaration of Representative, before we can discuss any of your tax matters.
If you choose to have someone represent you, please provide a completed Form 2848 by our first appointment.
You can mail or fax the form to me or have your representative provide it at the first appointment, if you won't
be present. You can obtain Form 2848 from our office, from our web site, www.irs.gov or by calling
(800) 829-3676.
If you filed a joint return, you and your spouse may attend the examination. If you and/or your spouse choose
not to attend with your representative, you must provide completed Form(s) 2848. You should provide a
separate Form 2848 for each spouse if you filed jointly even if you use the same representative.
Your rights as a taxpayer
We have enclosed Publication 1, Your Rights as a Taxpayer and Notice 609, Privacy Act Notice. The
Declaration of Taxpayer Rights found in Publication 1 discusses general rules and procedures we follow in
examinations. It explains what happens before, during, and after an examination, and provides additional
sources of information.

Letter 2205 (Rev. 1-2017)
Catalog Number 63744P

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 350 of 413
A video presentation, "Your Guide to an IRS Audit," is available at http://www.irsvideos.gov/audit. The video
explains the examination process and will assist you in preparing for your audit.
Thank you for your cooperation and I look forward to hearing from you by [date]

.

Sincerely,
[Name]
Internal Revenue Agent
Enclosures:
Publication 1
Notice 609

Letter 2205 (Rev. 1-2017)
Catalog Number 63744P

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 351 of 413

Your Rights
as a Taxpayer

Publication 1

This publication explains your rights as a taxpayer and the processes for examination, appeal, collection, and refunds.
Also available in Spanish.

The Taxpayer Bill of Rights
1. The Right to Be Informed

6. The Right to Finality

Taxpayers have the right to know what they need to do to
comply with the tax laws. They are entitled to clear
explanations of the laws and IRS procedures in all tax forms,
instructions, publications, notices, and correspondence. They
have the right to be informed of IRS decisions about their tax
accounts and to receive clear explanations of the outcomes.

Taxpayers have the right to know the maximum amount of
time they have to challenge the IRS’s position as well as the
maximum amount of time the IRS has to audit a particular tax
year or collect a tax debt. Taxpayers have the right to know
when the IRS has finished an audit.

2. The Right to Quality Service
Taxpayers have the right to receive prompt, courteous, and
professional assistance in their dealings with the IRS, to be
spoken to in a way they can easily understand, to receive clear
and easily understandable communications from the IRS, and
to speak to a supervisor about inadequate service.

3. The Right to Pay No More than the
Correct Amount of Tax
Taxpayers have the right to pay only the amount of tax legally
due, including interest and penalties, and to have the IRS
apply all tax payments properly.

4. The Right to Challenge the IRS’s Position
and Be Heard

7. The Right to Privacy
Taxpayers have the right to expect that any IRS inquiry,
examination, or enforcement action will comply with the law
and be no more intrusive than necessary, and will respect all
due process rights, including search and seizure protections,
and will provide, where applicable, a collection due process
hearing.

8. The Right to Confidentiality
Taxpayers have the right to expect that any information they
provide to the IRS will not be disclosed unless authorized by
the taxpayer or by law. Taxpayers have the right to expect
appropriate action will be taken against employees, return
preparers, and others who wrongfully use or disclose taxpayer
return information.

9. The Right to Retain Representation

Taxpayers have the right to raise objections and provide
additional documentation in response to formal IRS actions or
proposed actions, to expect that the IRS will consider their
timely objections and documentation promptly and fairly, and
to receive a response if the IRS does not agree with their
position.

Taxpayers have the right to retain an authorized representative
of their choice to represent them in their dealings with the
IRS. Taxpayers have the right to seek assistance from a Low
Income Taxpayer Clinic if they cannot afford representation.

5. The Right to Appeal an IRS Decision in an
Independent Forum

Taxpayers have the right to expect the tax system to consider
facts and circumstances that might affect their underlying
liabilities, ability to pay, or ability to provide information timely.
Taxpayers have the right to receive assistance from the
Taxpayer Advocate Service if they are experiencing financial
difficulty or if the IRS has not resolved their tax issues properly
and timely through its normal channels.

Taxpayers are entitled to a fair and impartial administrative
appeal of most IRS decisions, including many penalties, and
have the right to receive a written response regarding the
Office of Appeals’ decision. Taxpayers generally have the right
to take their cases to court.

The IRS Mission

10. The Right to a Fair and Just Tax System

Provide America’s taxpayers top-quality service by helping them understand and meet
their tax responsibilities and enforce the law with integrity and fairness to all.

Publication 1 (Rev. 9-2017) Catalog Number 64731W Department of the Treasury Internal Revenue Service www.irs.gov

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 352 of 413

Examinations, Appeals, Collections, and Refunds
Examinations (Audits)
We accept most taxpayers’ returns as filed.
If we inquire about your return or select it
for examination, it does not suggest that
you are dishonest. The inquiry or
examination may or may not result in more
tax. We may close your case without
change; or, you may receive a refund.
The process of selecting a return for
examination usually begins in one of two
ways. First, we use computer programs to
identify returns that may have incorrect
amounts. These programs may be based
on information returns, such as Forms
1099 and W-2, on studies of past
examinations, or on certain issues
identified by compliance projects. Second,
we use information from outside sources
that indicates that a return may have
incorrect amounts. These sources may
include newspapers, public records, and
individuals. If we determine that the
information is accurate and reliable, we
may use it to select a return for
examination.
Publication 556, Examination of Returns,
Appeal Rights, and Claims for Refund,
explains the rules and procedures that we
follow in examinations. The following
sections give an overview of how we
conduct examinations.

By Mail
We handle many examinations and
inquiries by mail. We will send you a letter
with either a request for more information
or a reason why we believe a change to
your return may be needed. You can
respond by mail or you can request a
personal interview with an examiner. If you
mail us the requested information or
provide an explanation, we may or may not
agree with you, and we will explain the
reasons for any changes. Please do not
hesitate to write to us about anything you
do not understand.

By Interview
If we notify you that we will conduct your
examination through a personal interview,
or you request such an interview, you have
the right to ask that the examination take
place at a reasonable time and place that is
convenient for both you and the IRS. If our
examiner proposes any changes to your
return, he or she will explain the reasons for
the changes. If you do not agree with these
changes, you can meet with the examiner’s
supervisor.

the Appeals Office of the IRS. Most
differences can be settled without
expensive and time-consuming court trials.
Your appeal rights are explained in detail in
both Publication 5, Your Appeal Rights and
How To Prepare a Protest If You Don’t
Agree, and Publication 556, Examination of
Returns, Appeal Rights, and Claims for
Refund.
If you do not wish to use the Appeals
Office or disagree with its findings, you
may be able to take your case to the U.S.
Tax Court, U.S. Court of Federal Claims, or
the U.S. District Court where you live. If
you take your case to court, the IRS will
have the burden of proving certain facts if
you kept adequate records to show your
tax liability, cooperated with the IRS, and
meet certain other conditions. If the court
agrees with you on most issues in your
case and finds that our position was largely
unjustified, you may be able to recover
some of your administrative and litigation
costs. You will not be eligible to recover
these costs unless you tried to resolve your
case administratively, including going
through the appeals system, and you gave
us the information necessary to resolve the
case.

Collections
Publication 594, The IRS Collection
Process, explains your rights and
responsibilities regarding payment of
federal taxes. It describes:
• What to do when you owe taxes. It
describes what to do if you get a tax bill
and what to do if you think your bill is
wrong. It also covers making installment
payments, delaying collection action,
and submitting an offer in compromise.
• IRS collection actions. It covers liens,
releasing a lien, levies, releasing a levy,
seizures and sales, and release of
property.
• IRS certification to the State Department
of a seriously delinquent tax debt, which
will generally result in denial of a
passport application and may lead to
revocation of a passport.
Your collection appeal rights are explained
in detail in Publication 1660, Collection
Appeal Rights.

Innocent Spouse Relief

If we examined your return for the same
items in either of the 2 previous years and
proposed no change to your tax liability,
please contact us as soon as possible so
we can see if we should discontinue the
examination.

Generally, both you and your spouse are
each responsible for paying the full
amount of tax, interest, and penalties due
on your joint return. However, if you
qualify for innocent spouse relief, you may
be relieved of part or all of the joint
liability. To request relief, you must file
Form 8857, Request for Innocent Spouse
Relief. For more information on innocent
spouse relief, see Publication 971, Innocent
Spouse Relief, and Form 8857.

Appeals

Potential Third Party Contacts

If you do not agree with the examiner’s
proposed changes, you can appeal them to

Generally, the IRS will deal directly with you
or your duly authorized representative.

Repeat Examinations

However, we sometimes talk with other
persons if we need information that you
have been unable to provide, or to verify
information we have received. If we do
contact other persons, such as a neighbor,
bank, employer, or employees, we will
generally need to tell them limited
information, such as your name. The law
prohibits us from disclosing any more
information than is necessary to obtain or
verify the information we are seeking. Our
need to contact other persons may
continue as long as there is activity in your
case. If we do contact other persons, you
have a right to request a list of those
contacted. Your request can be made by
telephone, in writing, or during a personal
interview.

Refunds
You may file a claim for refund if you think
you paid too much tax. You must generally
file the claim within 3 years from the date
you filed your original return or 2 years from
the date you paid the tax, whichever is
later. The law generally provides for interest
on your refund if it is not paid within 45
days of the date you filed your return or
claim for refund. Publication 556,
Examination of Returns, Appeal Rights,
and Claims for Refund, has more
information on refunds.
If you were due a refund but you did not
file a return, you generally must file your
return within 3 years from the date the
return was due (including extensions) to get
that refund.

Taxpayer Advocate Service
TAS is an independent organization within
the IRS that can help protect your taxpayer
rights. We can offer you help if your tax
problem is causing a hardship, or you’ve
tried but haven’t been able to resolve your
problem with the IRS. If you qualify for our
assistance, which is always free, we will do
everything possible to help you. Visit
www.taxpayeradvocate.irs.gov or call
1-877-777-4778.

Tax Information
The IRS provides the following sources for
forms, publications, and additional
information.
• Tax Questions: 1-800-829-1040
(1-800-829-4059 for TTY/TDD)
• Forms and Publications:
1-800-829-3676 (1-800-829-4059 for
TTY/TDD)
• Internet: www.irs.gov
• Small Business Ombudsman: A small
business entity can participate in the
regulatory process and comment on
enforcement actions of the IRS by
calling 1-888-REG-FAIR.
• Treasury Inspector General for Tax
Administration: You can confidentially
report misconduct, waste, fraud, or
abuse by an IRS employee by calling
1-800-366-4484 (1-800-877-8339 for
TTY/TDD). You can remain anonymous.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 353 of 413
Request Number

Department of the Treasury — Internal Revenue Service

4564

Form
(Rev. September 2006)

Information Document Request

To: (Name of Taxpayer and Company Division or Branch)

Subject
SAIN number

Submitted to:

Dates of Previous Requests (mmddyyyy)
Please return Part 2 with listed documents to requester identified below

Description of documents requested

Information Due By

At Next Appointment
Name and Title of Requester

From:

Office Location

Mail in
Employee ID number Date (mmddyyyy)

Telephone Number

(
Catalog Number 23145K

www.irs.gov

Part 1 - Taxpayer's File Copy

)

Form 4564 (Rev. 9-2006)

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 354 of 413
Request Number

Department of the Treasury — Internal Revenue Service

4564

Form
(Rev. September 2006)

Information Document Request

To: (Name of Taxpayer and Company Division or Branch)

Subject
SAIN number

Submitted to:

Dates of Previous Requests (mmddyyyy)
Please return Part 2 with listed documents to requester identified below

Description of documents requested

Information Due By

At Next Appointment
Name and Title of Requester

From:

Mail in
Employee ID number Date (mmddyyyy)

Office Location

Telephone Number

(
Catalog Number 23145K

www.irs.gov

Part 2 - To be Returned by Taxpayer with Reply

)

Form 4564 (Rev. 9-2006)

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 355 of 413
Request Number

Department of the Treasury — Internal Revenue Service

4564

Form
(Rev. September 2006)

Information Document Request

To: (Name of Taxpayer and Company Division or Branch)

Subject
SAIN number

Submitted to:

Dates of Previous Requests (mmddyyyy)
Please return Part 2 with listed documents to requester identified below

Description of documents requested

Information Due By

At Next Appointment
Name and Title of Requester

From:

Mail in
Employee ID number Date (mmddyyyy)

Office Location

Telephone Number

(
Catalog Number 23145K

www.irs.gov

Part 3 - Requester's File Copy

)

Form 4564 (Rev. 9-2006)

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 356 of 413

872

Form
(Rev. July 2014)

Department of the Treasury-Internal Revenue Service

In reply refer to:

Consent to Extend the Time to Assess Tax

TIN

(Name(s))

taxpayer(s) of
(Address)

and the Commissioner of Internal Revenue consent and agree to the following:
(1) The amount of any Federal

tax due on any return(s) made by or
(Kind of tax)

for the above taxpayer(s) for the period(s) ended

may be assessed at any time on or before

. If a provision
(Expiration date)

of the Internal Revenue Code suspends the running of the period of limitations to assess such tax, then, when, under the Internal
Revenue Code, the running of the period resumes, the extended period to assess will include the number of days remaining in the
extended period immediately before the suspension began.
(2) The taxpayer(s) may file a claim for credit or refund and the Service may credit or refund the tax within 6 months after this
agreement ends, except with respect to the items in paragraph (4).
(3) Paragraph (4) applies only to any taxpayer who holds an interest, either directly or indirectly, in any partnership subject to
subchapter C of chapter 63 of the Internal Revenue Code.
(4) Without otherwise limiting the applicability of this agreement, this agreement also extends the period of limitations for assessing any
tax (including penalties, additions to tax and interest) attributable to any partnership items (see section 6231 (a)(3)), affected items (see
section 6231(a)(5)), computational adjustments (see section 6231(a)(6)), and partnership items converted to nonpartnership items (see
section 6231(b)). Additionally, this agreement extends the period of limitations for assessing any tax (including penalties, additions to
tax, and interest) relating to any amounts carried over from the taxable year specified in paragraph (1) to any other taxable year(s). This
agreement extends the period for filing a petition for adjustment under section 6228(b) but only if a timely request for administrative
adjustment is filed under section 6227. For partnership items which have converted to nonpartnership items, this agreement extends
the period for filing a suit for refund or credit under section 6532, but only if a timely claim for refund is filed for such items.
(5) This Form contains the entire terms of the Consent to Extend the Time to Assess Tax. There are no representations, promises, or
agreements between the parties except those found or referenced on this Form.

Your Rights as a Taxpayer
You have the right to refuse to extend the period of limitations or limit this extension to a mutually agreed-upon issue(s) or mutually
agreed-upon period of time. Publication 1035, Extending the Tax Assessment Period, provides a more detailed explanation of your
rights and the consequences of the choices you may make. If you have not already received a Publication 1035, the publication can be
obtained, free of charge, from the IRS official who requested that you sign this consent or from the IRS' web site at www.irs.gov or by
calling toll free at 1-800-TAX-FORM (1-800-829-3676). Signing this consent will not deprive you of any appeal rights to which you would
otherwise be entitled.
(Space for signature is on the back of this form and signature instructions are attached)
Catalog Number 20755I

www.irs.gov

Form 872 (Rev. 7-2014)

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 357 of 413
TIN

Period Ending

Expiration Date

SIGNING THIS CONSENT WILL NOT DEPRIVE THE TAXPAYER(S) OF ANY APPEAL
RIGHTS TO WHICH THEY WOULD OTHERWISE BE ENTITLED.
YOUR SIGNATURE HERE

—Ź

(Date signed)
(Type or Print Name)

I am aware that I have the right to refuse to sign this consent or to limit the extension to mutually agreed-upon issues and/or period of time as set forth in
I.R.C. § 6501(c)(4)(B).
SPOUSE'S SIGNATURE

—Ź

(Date signed)
(Type or Print Name)

I am aware that I have the right to refuse to sign this consent or to limit the extension to mutually agreed-upon issues and/or period of time as set forth in
I.R.C. § 6501(c)(4)(B).
TAXPAYER'S REPRESENTATIVE
SIGN HERE
(Only needed if signing on
behalf of the taxpayer.)

—Ź

(Date signed)
(Type or Print Name)

I am aware that I have the right to refuse to sign this consent or to limit the extension to mutually agreed-upon issues and/or period of time as set forth in
I.R.C. § 6501(c)(4)(B). In addition, the taxpayer(s) has been made aware of these rights.
If this document is signed by a taxpayer's representative, the Form 2848, Power of Attorney and Declaration of Representative, or other power of
attorney document must state that the acts authorized by the power of attorney include representation for the purposes of Subchapter C of Chapter 63 of
the Internal Revenue Code in order to cover items in paragraph (4).
CORPORATE
NAME

—Ź
—Ź

(Title)

(Date signed)

(Title)

(Date signed)

(Type or Print Name)

CORPORATE
OFFICER(S)
SIGN HERE

—Ź

(Type or Print Name)

I (we) am aware that I (we) have the right to refuse to sign this consent or to limit the extension to mutually agreed-upon issues and/or period of time as
set forth in I.R.C. § 6501 (c)(4)(B).

INTERNAL REVENUE SERVICE SIGNATURE AND TITLE

(IRS Official's Name - see instructions)

(IRS Official's Title - see instructions)

(IRS Official's Signature - see instructions)

Catalog Number 20755I

www.irs.gov

(Date signed)

Form 872 (Rev. 7-2014)

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 358 of 413
Instructions
If this consent is for:
•

Income tax, self-employment tax, or FICA tax on tips and is made for any year(s) for which a joint return was filed, both husband and
wife must sign the original and copy of this form unless one, acting under a power of attorney, signs as agent for the other. The
signatures must match the names as they appear on the front of this form.

•

Gift tax and the donor and the donor's spouse elected to have gifts to third persons considered as made one-half by each, both
husband and wife must sign the original and copy of this form unless one, acting under a power of attorney, signs as agent for the
other. The signatures must match the names as they appear on the front of this form.

•

Chapter 41, 42, or 43 taxes involving a partnership or is for a partnership return, only one authorized partner need sign.

•

Chapter 42 taxes, a separate Form 872 should be completed for each potential disqualified person, entity, or foundation manager
that may be involved in a taxable transaction during the related tax year. See Revenue Ruling 75-391, 1975-2C.B 446.

If you are an attorney or agent of the taxpayer(s), you may sign the consent provided the action is specifically authorized by a power of
attorney. If the power of attorney was not previously filed, you must include it with this form.
If you are acting as a fiduciary (such as executor, administrator, trustee, etc.) and you sign this consent, attach Form 56, Notice
Concerning Fiduciary Relationship, unless it was previously filed.
If the taxpayer is a corporation, sign this consent with the corporate name followed by the signature and title of the officer(s) authorized
to sign.

Instructions for Internal Revenue Service Employees
Complete the delegated IRS official's name and title of the employee who is signing the form on behalf of the IRS.
An IRS official delegated authority under Delegation Order 25-2 must sign and date the consent. (IRM 1.2.52.3)

Catalog Number 20755I

www.irs.gov

Form 872 (Rev. 7-2014)

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 359
of 413
Page
Form

4549

of

Department of the Treasury - Internal Revenue Service

Report of Income Tax Examination Changes

(January 2019)

Name and address of taxpayer

Taxpayer identification number

Person with whom
examination
changes were
discussed.
Period Ended

Return form number

Name and title

Period Ended

Period Ended

1. Adjustments to income
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
p.
2. Total adjustments
3. Taxable income per return or as previously adjusted
4. Corrected taxable income
Tax method
Filing status
5. Tax
6. Additional taxes/Alternative minimum tax
7. Corrected tax liability
8. Less
credits

a.
b.

c.
d.
9. Balance (line 7 less lines 8a through 8d)
10. Plus

a.

other

b.

taxes

c.
d.

11. Total corrected tax liability (line 9 plus lines 10a through 10d)
12. Total tax shown on return or as previously adjusted
13. Adjustments to: a.
b.
c.
14. Deficiency-Increase in tax or (overassessment-decrease in tax) (line 11 less
line 12 adjusted by lines 13a through 13c)
15. Adjustments to prepayment credits - increase (decrease)
16. Balance due or (overpayment) - (line 14 adjusted by line 15) (excluding
interest and penalties)
The Internal Revenue Service has agreements with state tax agencies under which information about federal tax, including increases or decreases, is
exchanged with the states. If this change affects the amount of your state income tax, you should amend your state return by filing the necessary
forms.
You may be subject to backup withholding if you underreport your interest, dividend, or patronage dividend income you earned and do not pay the
required tax. The IRS may order backup withholding (withholding of a percentage of your dividend and/or interest payments) if the tax remains unpaid
after it has been assessed and four notices have been issued to you over a 120-day period.
Catalog Number 23105A

www.irs.gov

Form 4549 (Rev. 1-2019)

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 360
of 413
Page
Name of taxpayer

Taxpayer identification number
Period Ended

of

Return form number

Period Ended

Period Ended

17. Penalties, additions to tax, and additional amounts -- IRC sections
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
18. Total penalties, additions to tax, and additional amounts
19. Summary of taxes, penalties and interest
a. Balance due or (overpayment) taxes - (line 16, page 1)
b. Penalties and additions (line 18) - computed to
c. Interest* (IRC § 6601) - estimated and computed to
d. Amount due or (refund) - (sum of lines a, b, and c)
*Interest, as provided by law, will be charged on any unpaid amount until it is paid in full.
Other information

Examiner's name

Employee ID

Office

Examiner's signature

Date

Consent to Assessment and Collection- I do not wish to exercise my appeal rights with the Internal Revenue Service or to contest in the United States
Tax Court the findings in this report. Therefore, I give my consent to the immediate assessment and collection of any increase in tax and penalties, and
accept any decrease in tax and penalties shown above, plus additional interest as provided by law. It is understood that this report is subject to
acceptance by the Area Director, Area Manager, Specialty Tax Program Chief, or Director of Field Operations.

Note: If a joint return was filed, BOTH taxpayers must sign
Signature of taxpayer

By

Catalog Number 23105A

Date

Signature of taxpayer

Title

Date

Date

www.irs.gov

Form 4549 (Rev. 1-2019)

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 361 of 413
Form

5701

Department of the Treasury - Internal Revenue Service

Notice of Proposed Adjustment

(April 2019)

Name of taxpayer

Issue number

Name and title of person to whom delivered

Date

Entity for this proposed adjustment

Response due

Based on the information we now have available and our discussions with you, we believe the proposed adjustment listed below should
be included in the revenue agent's report. However, if you have additional information that would alter or reverse this proposal, please
furnish this information as soon as possible.
Years

Amount

Account or Return Line

SAIN Number

UIL Code

Reasons for proposed adjustment (If the explanation of the adjustment will be longer than the space provided below, the entire
explanation should begin on Form 886-A (explanation of items)

Taxpayer's/Representative's action
Agreed
Agreed in part

Disagreed

Have additional information; will submit by

Taxpayer's/Representative's signature

Date

If disagreed in part or in full - check here for consideration of Fast Track Settlement
Taxpayer
IRS
Team Manager
Catalog Number 42770J

Date
www.irs.gov

Form 5701 (Rev. 4-2019)

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 362 of 413
Department of the Treasury
Internal Revenue Service

Date:
Taxpayer ID number:
PC

EGC

Tax periods ended:

Person to contact:
Contact telephone number:
Contact hours:
Contact fax number:

We're auditing your
Proposed changes to your

Form

, and need a response from you.

Form

Dear
We reviewed your
federal income tax return, any information you gave us, and made proposed changes
to your tax. As a result, we found that you:
are due a refund of $
owe a balance of $
. This amount may include tax, penalties, and estimated interest due. You
should pay the balance due immediately to avoid additional penalties and interest charges.
What you need to do
Review the enclosed Form 4549, Income Tax Examination Changes, and attached Form 886 and let us know by
if you agree or disagree with our proposed changes. If your address has changed, please
provide your current address and contact information when you respond.
If you agree with our changes
• Sign, date and mail the enclosed Form 4549 to us in the envelope we provided.
• If you are due a refund, you should receive a refund check within 8 weeks if you don't owe other taxes or
debts we're required to collect.
• If you owe additional taxes, make your check or money order payable to the United States Treasury. Write
your taxpayer ID number, tax year and form number on the check.
• If you can't pay the total amount due, pay as much as you can and make payment arrangements to pay the
rest over time. Payment options are described in the enclosed Publication 3498-A, The Examination
Process (Audits by Mail). You can also search “tax payment options” at www.irs.gov.

Letter 525 (Rev. 9-2014)
Catalog Number 40216W

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 363 of 413
If you don't agree with our changes
Return a copy of this letter along with your explanation and any supporting documents. Form 886 attached to
the Form 4549 explains documentation you need to give us. Publication 3498-A describes the audit process and
explains other options, including your appeal rights, if you disagree with our proposed changes.
If we don't hear from you
If we don’t receive a response from you, we’ll send you a Notice of Deficiency, which will state the amount you
owe with penalties and explain your right to file a petition in the United States Tax Court. Once a Notice of
Deficiency is sent to you, you cannot appeal disagreements to the IRS. We will still consider new information
you may provide to us, but you will need to file a petition with the United States Tax Court to challenge the
deficiency.
If you need assistance, please don’t hesitate to contact us. If you want to authorize someone, in addition to you,
to contact the IRS about this letter, please complete and send us Form 2848, Power of Attorney and Declaration
of Representative. You can download this form at www.irs.gov or request a copy by calling 1-800-TAX-FORM
(1-800-829-3676).
Please provide a telephone number, including area code and the best time for us to call you if we need more
information.
Telephone number: (

) _________ - ___________________ Hours: ___________________________
Sincerely,

Enclosures:
Form 4549
Publication 3498-A
Form 886
Copy of this letter
Envelope

Letter 525 (Rev. 9-2014)
Catalog Number 40216W

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 364 of 413

The IRS Mission
Provide America’s
taxpayers top
quality service by
helping them
understand and
meet their tax
responsibilities
and by applying
the tax law with
integrity and
fairness to all.

The Examination Process

Introduction
The Internal Revenue Service (IRS) accepts most federal
returns as filed. Some returns, however, are examined, or
audited, to determine if income, expenses, and credits are
reported accurately.
This publication discusses general rules and procedures
we follow in examinations. It explains what happens before,
during, and after an examination. It also explains appeal and
payment procedures.
As a taxpayer, you have the right to fair, professional,
prompt, and courteous service from IRS employees, as
outlined in the Declaration of Taxpayer Rights found on
page 3.
We must follow the tax rules set forth by Congress in the
Internal Revenue Code. We also follow Treasury
Regulations, court decisions, and other rules and
procedures written to administer the tax laws.
If the examination results in a change to your tax liability,
you may ask us to reconsider your case. Some reasons why
we may reconsider your case include:
You are submitting additional information that could
result in a change to the additional amount we have
determined that you owe;
You are filing an original delinquent return after we have
determined that you owe an additional amount, or;
You are identifying a mathematical or processing error
we made.
You must request reconsideration in writing and submit it to
your local IRS office.

www.irs.gov
Publication 3498 (Rev. 11-2004)
Catalog Number 73074S

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 365 of 413

What’s Inside . . .

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Introduction
Declaration of Taxpayer Rights

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Your Return Is Going To Be Examined
Before the Examination

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During the Examination
Examinations by Mail

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Examinations in Person

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For General Information:

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For information about a specific examination please
contact the person named on the appointment letter.

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For tax information and help:

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Call the number on the bill you
received or call us toll free at:

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1-800-829-1040 (for 1040 filers)

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1-800-829-4933 (for business filers)
1-800-829-4059 /TDD
For tax forms and publications:

What to Do When You Receive a Bill
from the IRS
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Results of the Examination

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Consents to Extend the Statute of
Limitations
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How to Stop Interest from Accumulating

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Do you have questions or need help
right away? Call us. We are here to
help you.

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1-800-829-3676
1-800-829-4059 /TDD

What To Do if You Agree or Disagree
with the Examination Results
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If You Agree

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If You Do Not Agree

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Fast Track Mediation Services

The Appeal System

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Appeal Within the IRS

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Filing a Formal Protest
After the Examination

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Making a Small Case Request

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How Do You Appeal a Decision?

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You Must Contact Us

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What If You Believe Your Bill Is Wrong

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Innocent Spouse Relief

Privacy Act Statement

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TELENET-iris.irs.gov

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Internet: www.irs.gov
FTP - ftp.fedworld.gov/pub/

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1-703-368-9694-Forms by Fax

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Temporarily Delay the
Collection Process

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Payment Options

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You’ll find answers to frequently asked
tax questions, tax forms on-line,
searchable publications, hot tax
issues, news, and help through e-mail.
If you prefer to write to us . .
Enclose a copy of your tax bill. Print
your name, social security number or
taxpayer identification number, and the
tax form and period shown on your bill.
Write to us at the address shown on
your tax bill.
You may also visit your nearest IRS Office.
You’ll find the exact address in your local
phone book under U.S. Government

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 366 of 413

Your Return Is Going To Be
Examined.

Declaration of Taxpayer Rights
I. Protection of Your Rights
IRS employees will explain and protect your rights as a taxpayer
throughout your contact with us.

Before the Examination

II. Privacy and Confidentiality
The IRS will not disclose to anyone the information you give us,
except as authorized by law. You have the right to know why we are
asking you for information, how we will use it, and what happens if
you do not provide requested information.

III. Professional and Courteous Service
If you believe that an IRS employee has not treated you in a
professional, fair, and courteous manner, you should tell that
employee’s supervisor. If the supervisor’s response is not
satisfactory, you should write to the IRS Director for your Area or
the Center where you file your return.

We accept most taxpayers’ returns as filed. If we inquire about your return
or select it for examination, it does not suggest that you are dishonest. The
inquiry or examination may or may not result in more tax. We may close
your case without change or you may receive a refund.
The process of selecting a return for examination usually begins in one of
two ways. One way is to use computer programs to identify returns that
may have incorrect amounts. The programs may be based on information
returns, such as Forms 1099 or W-2, on studies of past examinations, or
on certain issues identified by other special projects. Another way is to use
information from compliance projects that indicates a return may have
incorrect amounts. These sources may include newspapers, public
records, and individuals. If we determine the information is accurate and
reliable, we may use it to select a return for examination.
Publication 556, Examination of Returns, Appeal Rights, and Claims for
Refund, explains the rules and procedures that we follow in examinations.
The following sections give an overview of how we conduct examinations.

IV. Representation
You may either represent yourself or, with proper written authorization, have someone else represent you. Your representative must
be a person allowed to practice before the IRS, such as an attorney,
certified public accountant, or enrolled agent (a person enrolled to
practice before the IRS). If you are in an interview and ask to
consult such a person, then we must stop and reschedule the
interview in most cases.

During the Examination
Examinations by Mail
Some examinations are conducted entirely by mail. If the examination
is conducted by mail, you’ll receive a letter from us asking for
additional information about certain items shown on your return, such
as income, expenses, and itemized deductions.

You can have someone accompany you at an interview. You may
make sound recordings of any meetings with our examination,
appeal, or collection personnel, provided you tell us in writing 10
days before the meeting.

If the examination is conducted by mail, you can:

V. Payment of Only the Correct Amount of Tax

1.

You are responsible for paying only the correct amount of tax due
under the law—no more, no less. If you cannot pay all of your tax
when it is due, you may be able to make monthly payments.

Act on your own behalf. (In the case of a jointly filed return,
either spouse can respond or both spouses can send a
joint response.)

2.

Have someone represent you in correspondence with us. This
person must be an attorney, accountant, enrolled agent, an
enrolled actuary, or the person who prepared the return and
signed it as the preparer. If you choose to have someone
represent you, you must furnish us with written authorization.
Make this authorization on Form 2848, Power of Attorney and
Declaration of Representative.

VI. Help with Unresolved Tax Problems
The Taxpayer Advocate Service can help you if you have tried
unsuccessfully to resolve a problem with the IRS. Your local
Taxpayer Advocate can offer you special help if you have a
significant hardship as a result of a tax problem. For more
information, call toll-free, 1-877-777-4778 (1-800-829-4059 for
TTY/TDD) or write to the Taxpayer Advocate at the IRS office
that last contacted you.

Note: You may obtain any of the forms and publications
referenced in this publication by calling 1-800-829-3676.

Examinations in Person

VII. Appeals and Judicial Review
If you disagree with us about the amount of your tax
liability or certain collection actions, you have the right to
ask the Appeals Office to review your case. You may also
ask a court to review your case.

An examination conducted in person begins when we notify you that
your return has been selected. We will tell you what information you
need to provide at that time. If you gather the information before the
examination, we may be able to complete it more easily and in a
shorter time.

VIII. Relief from Certain Penalties and Interest

If the examination is conducted in person, it can take place in
your home, your place of business, an IRS office, or the office of
your attorney, accountant, or enrolled agent (a person enrolled to
practice before the IRS). If the time or place is not convenient for
you, the examiner will try to work out something more suitable.

The IRS will waive penalties when allowed by law if you can show
you acted reasonably and in good faith or relied on the incorrect
advice of an IRS employee. We will waive interest that is the
result of certain errors or delays caused by an IRS employee.

3

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 367 of 413

Your Return Is Going To Be Examined. (cont.)
If the examination is conducted in person, you can:
1.

2.

Have someone accompany you, either to support your position
or to witness to the proceedings.

3.

Accompany someone who will represent you. This person
must be an attorney, accountant, enrolled agent, an enrolled
actuary, or the person who prepared the return and signed it as
the preparer.

4.

If the statute of limitations for your tax return is approaching, you
may be asked to sign a consent. You may:

Act on your own behalf. (In the case of a jointly filed return,
either spouse or both can attend the interview.) If you are
acting on your own behalf, you may leave to consult with your
representative. We will suspend the interview and reschedule
the examination. We cannot suspend the interview if we are
conducting it as a result of your receiving an administrative
summons.

1. Refuse to extend the statute of limitations;
2. Limit or restrict the consent to particular issues, or
3. Limit the extension to a particular period of time.
The consent will be sent or presented to you with a letter
explaining this process and Publication 1035, Extending the
Tax Assessment Period. For further information, refer to this
publication.

Results of the Examination
If we accept your return as filed, you will receive a letter
stating that the examiner proposed no changes to your return.
You should keep this letter with your tax records.

Have your representative act for you and not be present at the
audit yourself. If you choose to have someone represent you
in your absence, you must furnish us with written authorization.
Make this authorization on Form 2848, Power of Attorney and
Declaration of Representative.

If we don’t accept your return as filed, we will explain any
proposed changes to you and your authorized representative.
It is important that you understand the reasons for any
proposed changes; don’t hesitate to ask about anything that is
unclear to you.

How to Stop Interest from Accumulating
During your examination, if you think you will owe additional tax at
the end of the examination, you can stop interest from accumulating
by paying all or part of the amount you think you will owe. Interest
will stop accumulating on the part you pay when the IRS receives
your money. Interest will only be charged on the tax, penalties, and
interest that are unpaid on the date they are assessed.

What to Do When You Receive a Bill from
the IRS

Consents to Extend the Statute of
Limitations

You receive a tax
bill in the mail.

We try to examine tax returns as soon as possible after they are filed, but
occasionally we may request that you extend the statute of limitations of
your tax return.

If it is correct . . . .
Pay the full
amount now . . .
or . . . .

A return’s statute of limitation generally limits the time we have to
examine it and assess tax. Assessments of tax must be made within
3 years after a return is due or filed, whichever is later. We can’t
assess additional tax or make a refund or credit (unless you filed a
timely claim) after the statute of limitations has expired. Also, if you
disagree with the results of the examination, you can’t appeal the
items you disagree with unless sufficient time remains on the statute.
Because of these restrictions, if there isn’t much time remaining to
examine your return, assess additional taxes, and/or exercise your
appeal rights, you have the opportunity to extend the statute of
limitations. This will allow you additional time to provide further
documentation to support your position, request an appeal if you do
not agree with our findings, or to claim a tax refund or credit. It also
allows the Service time to complete the examination, make any
additional assessment, if necessary, and provide sufficient time for
processing.

If it is not correct . . .
Gather copies of :
the bill
any records
tax returns, and
canceled checks

Contact us right away . . .

Call...
1-800-829-1040 (for 1040 filers)

1-800-829-4933 (for business filers)
1-800-829-4059 /TDD

Write to us at
the address on
your bill.

Visit your local
IRS Office

You have several payment options . . .

A written agreement between you and the Service to extend the
statutory period of a tax return is called a “consent.” Consents can be
used for all types of tax except estate tax.

CREDIT
Pay the full
amount now
See page 4.

There are two basic kinds of consent forms. One sets a specific
expiration date for the extension, and the other for an indefinite period
of time. Either type of consent may be limited by restrictive conditions.
The use of a restricted consent is to allow the statute to expire with
regard to all items on the return except those covered by the restrictive
language.

Pay by Credit Card
See page 7.

Apply for an
Offer-in-Compromise
See page 7.

4

Pay in
monthly installments
See page 7.
Seek a
temporary delay.
See page 7.

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 368 of 413

What To Do If You Agree or Disagree with the
Examination Results
If You Agree

If you do not respond to the 30-day letter,
or if you respond but do not reach an
agreement with an appeals officer, we will
send you a 90-day letter, also known as a
Notice of Deficiency. This is a legal
document that explains the proposed
changes and the amount of the proposed
tax increase. You will have 90 days (150
days if it is addressed to you outside the
United States) from the date of this notice
to file a petition with the Tax Court. If you
do not petition the Tax Court you will
receive a bill for the amount due.

If you agree with a proposed increase to tax, you can sign an
agreement form and pay any additional tax you may owe. You
must pay interest and applicable penalties on any additional
balance due. If you pay when you sign the agreement, interest
is generally figured from the due date of your return to the date
of your payment.
If you do not pay the additional tax and interest, you will
receive a bill (See “What To do When You Receive a Bill from
the IRS” on page 4.) If the amount due (including interest and
applicable penalties) is less than $100,000 and you pay it
within 21 business days, we will not charge more interest or
penalties. If the amount is $100,000 or more, the period is
reduced to 10 calendar days. If you can’t pay the tax due at
the end of the examination, you may pay whatever amount you
can and request an installment agreement for the balance.
(See “Setting up an Installment Agreement” on page 7.)

Fast Track Mediation Services

If you are entitled to a refund, you will receive it sooner if you
sign the agreement form at the end of the examination. You
will also be paid interest on the refund.

If you do not agree with any or all of the IRS findings, you may
request Fast Track Mediation services to help you resolve
disputes resulting from the examination (audits). Fast Track
Mediation offers an expedited process with a trained mediator,
who will help facilitate communication, in a neutral setting.
The mediator will work with you and the IRS to understand the
nature of the dispute. The purpose is to help the two of you
reach a mutually satisfactory resolution that is consistent with
the applicable law. The mediator has no authority to require
either party to accept any resolution. You may withdraw from
the mediation process anytime. If any issues remain unresolved
you will retain all of your usual appeal rights.

If You Do Not Agree
If you do not agree with the proposed changes, the examiner
will explain your appeal rights. If your examination takes place
in an IRS office, you may request an immediate meeting with
the examiner’s supervisor to explain your situation. You may
also enter into an Agreement to Mediate to help resolve
disputes through Fast Track Mediation services. (See next column.)
Mediation can take place at this meeting or afterwards. If an
agreement is reached, your case will be closed.

Most cases qualify for Fast Track Mediation. To begin the
process, you may request the examiner or IRS representative
to arrange a mediation meeting. Both you and the IRS
representative must sign a simple Agreement to Mediate form.
A mediator will then be assigned. Generally, within a week,
the mediator will contact you and the IRS representative to
schedule a meeting. After a brief explanation of the process,
the mediator will discuss with you when and where to hold the
mediation session.

If you cannot reach an agreement with the supervisor at this
meeting, or if the examination took place outside an IRS office
or was conducted through correspondence with an IRS Campus
employee, the examiner will prepare a report explaining your
position and ours. The examiner will forward your case to the
Area office for processing .
You will receive:
y

A letter (known as a 30-day letter) notifying you of your
rights to appeal the proposed changes within 30 days,

y

A copy of the examiner’s report explaining the proposed
changes, and

y

An agreement or a waiver form.

For additional information, refer to Publication 3605, Fast Track
Mediation-A Process for Prompt Resolution of Tax Issues.

You generally have 30 days from the date of the 30-day letter
to tell us whether you will accept the proposed changes or
appeal them. The letter will explain what steps you should
take, depending on what action you choose. Be sure to follow
the instructions carefully. Appeal rights are explained following
this section.

5

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 369 of 413

How Do You Appeal a Decision?
The Appeal System

Be sure to send the protest within the time
limit specified in the letter you received.

Because people sometimes disagree on tax matters, the
Service has an appeal system. Most differences can be
settled within this system without going to court.

You must file a formal written protest
y If the total amount of tax, penalties, and interest for any tax
period is more than $25,000;

Your reasons for disagreeing must come within the scope of
tax laws, however. For example, you cannot appeal your
case based only on moral, religious, political, constitutional,
conscientious, or similar grounds.
If you do not want to appeal your case within the IRS, you
may take your case directly to tax court.

y

In all partnership and S corporation cases, regardless of the
dollar amount;

y

In all employee plan and exempt organization cases,
regardless of the dollar amount;

y

In all other cases, unless you qualify for other special
appeal procedures, such as requesting appeals consideration
of liens, levies, seizures, or installment agreements.

Appeal Within the IRS

(See Publication 1660, Collection Appeal Rights, for more information
on special collection appeals procedures.)

You may appeal our tax decision to a local appeals office,
which is separate and independent of the IRS Office taking
the action you disagree with. An appeals office is the only
level of appeal within the IRS. Conferences with Appeals
Office personnel may be conducted in person, through
correspondence, or by telephone with you or your authorized
representative

Filing a Formal Protest

y

Your name and address, and a daytime telephone number.

If you want to have a conference with an appeals officer,
follow the instructions in the letter you received. We will send
your conference request letter to the appeals office to
arrange for a conference at a convenient time and place.
You or your qualified representative should be prepared to
discuss all disputed issues at the conference. Most
differences are settled at this level. Only attorneys, certified
public accountants or enrolled agents are allowed to
represent a taxpayer before Appeals. An unenrolled
preparer may be a witness at the conference, but not a
representative.

y

A statement that you want to appeal the IRS findings to the
Appeals Office.

y

A copy of the letter showing the proposed changes and
findings you do not agree with (or the date and symbols from
the letter.)

y

The tax periods or years involved.

y

A list of the charges that you do not agree with, and why
you do not agree.

y

The facts supporting your position on any issue that you do
not agree with.

y

The law or authority, if any, on which you are relying.

y

You must sign the written protest, stating that it is true, under
the penalties of perjury as follows:

When a formal protest is required, send it within the time limit
specified in the letter you received. Include in your protest:

If you want to have a conference with an appeals
officer, you may also need to file either a small case
request or a formal written protest with the contact
person named in the letter you receive.
Whether you file a small case request or a formal written
protest depends on several factors.

“Under the penalties of perjury, I declare that I examined the
facts stated in this protest, including any accompanying
documents, and, to the best of my knowledge and belief,
they are true, correct, and complete.”

Making a Small Case Request

If your representative prepares and signs the protest for you, he
or she must substitute a declaration stating:

You may make a small case request if the total amount of
tax, penalties, and interest for each tax period involved is
$25,000 or less, and you do not meet one of the exceptions
below for which a formal protest is required. If more than one
tax period is involved and any tax period exceeds the $25,000
threshold, you must file a formal written protest for all periods
involved. The total amount includes the proposed increase or
decrease in tax and penalties or claimed refund. For an
Offer-in-Compromise, include total unpaid tax, penalty, and
interest due.

y

That he or she submitted the protest and accompanying
documents and;

y

Whether he or she knows personally that the facts stated in
the protest and accompanying documents are true and
correct.

We urge you to provide as much information as you can, as this
will help us speed up your appeal. This will save you both time
and money.

To make a small case request, follow the instructions in our
letter to you by sending a brief written statement requesting an
appeals conference. Indicate the changes you do not agree
with and the reasons you do not agree with them.

Additional information about the Appeals process may be found
in Publication 5, Your Appeals Rights and How to Prepare a
Protest if you Don’t Agree.

6

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 370 of 413

After the Examination
Payment Options

You should be aware, however, that an installment agreement
is more costly than paying all the taxes you owe now. Like
revolving credit arrangements, we charge interest on the
unpaid portion of the debt. Penalties also continue to
accumulate on installment agreements.

You cannot pay all that you owe now
If you cannot pay all your taxes now, pay as much as you can. By
paying now, you reduce the amount of interest and penalty you
owe. Then immediately call, write, or visit the nearest IRS office to
explain your situation. After you explain your situation, we may ask
you to fill out a Collection Information Statement. If you are
contacting us by mail or by telephone, we will mail the statement to
you to complete and return to us. This will help us compare your
monthly income with your expenses so we can figure the amount
you can pay. We can then help you work out a payment plan that
fits your situation. This is known as an installment agreement.

If you want to pay off your tax debt through an installment
agreement, call the number shown on your bill. If you owe:
y

$25,000 or less in tax, we will tell you what you need to do
to set up the agreement;

y

More than $25,000, we may still be able to set up an
installment agreement for you, but we may also ask for
financial information to help us determine your ability to
pay.

Payment by credit card

Even if you set up an installment agreement, we may still file a
Notice of Federal Tax Lien to secure the government’s interest
until you make your final payment.

Individual taxpayers may make credit (and debit) card payments on
tax liabilities (including installment agreement payments) by phone
or Internet. Payments may be made to the United States Treasury
through authorized credit card service providers.

Note: We cannot take any collection actions affecting your
property while we consider your request for an installment
agreement, while your agreement is in effect, for 30 days after
we reject your request for an agreement, or for any period while
you appeal the rejection.

The service providers charge a convenience fee based on the
payment amount. You will be informed of the convenience fee
amount before the credit card payment is authorized. This fee is in
addition to any charges, such as interest, that may be assessed by
the credit card issuer. Visit www.irs.gov to obtain a list of authorized service providers and to obtain updated information on credit
card payment options.

If you arrange for an installment agreement, you may pay with:

Note: You can use debit cards issued by VISA and MasterCard
when making tax payments through the participating service
providers. However, the service providers and card issuers treat
debit cards and credit cards equally for the purpose of processing
electronic tax payments. Therefore, debit card users are charged
the same fee traditionally associated with credit card transactions

y

Personal or business checks, money orders, or certified
funds (all made payable to the U.S. Treasury),

y

Credit and debit cards,

y

Payroll deductions your employer takes from your salary
and regularly sends to IRS, or

y

Electronic transfers from your bank account or other similar
means.

Payment by Electronic Federal Tax
Payment System (EFTPS)

Apply for an Offer-in-Compromise

EFTPS is an Electronic Federal Tax Payment System developed
by the Internal Revenue Service and Financial Management
Service (FMS).

In some cases, we may accept an Offer-in-Compromise to
settle an unpaid tax account, including any penalties and
interest. With this kind of arrangement, we can accept less
than the full amount you owe when it is doubtful we will be able
to collect the entire amount due.

The system allows federal taxes to be paid electronically. The
system allows the use of the Internet at www.eftps.gov or
telephone to initiate tax payments directly. EFTPS payments may
also be made through your local financial institution. The service
is convenient, secure and saves time.

Offers in compromise are also possible if collection action
would create an economic hardship. You may want to discuss
these options with your examiner.

Temporarily Delay the Collection
Process

You may enroll in EFTPS through the website at www.eftps.gov or
by completing a form available from EFTPS customer service at
(800) 555-4477 or (800) 945-8400.

If we determine that you can’t pay any of your tax debt, we
may temporarily delay collection until your financial condition
improves. You should know that if we delay collecting from
you, your debt will increase because penalties and interest are
charged until you pay the full amount. During a temporary
delay, we will again review your ability to pay. We may also file
a Notice of Federal Tax Lien, to protect the government’s
interest in your assets. See Publication 594, The IRS
Collection Process.

Setting up an installment agreement
Installment agreements allow you to pay your full debt in smaller, more
manageable amounts. Installment agreements generally require equal
monthly payments. The amount and number of your installment
payments will be based on the amount you owe and your ability to pay
that amount within the time we can legally collect payment from you.

7

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 371 of 413

After the Examination (cont.)
Innocent Spouse Relief

Privacy Act Statement

If you filed a joint tax return, you are jointly and individually responsible
for the tax and any interest or penalty due on the joint return, even if
you later divorce. In some cases, a spouse may be relieved of the
tax, interest, and penalties on a joint return.

The Privacy Act of 1974 says that when we ask you for
information, we must first tell you our legal right to ask for the
information, why we are asking for it, and how it will be used.
We must also tell you what could happen if you do not provide it
and whether or not you must respond under the law.

You can ask for relief no matter how small the liability.
Three types of relief are available.
y

Innocent spouse relief - may apply to all joint filers;

y

Separation of liability - may apply to joint filers who
are divorced, widowed, legally separated, or have not
lived together for the past 12 months;

y

Equitable relief - applies to all joint filers.

This notice applies to tax returns and any papers filed with
them. It also applies to any questions we need to ask you so we
can complete, correct, or process your return; figure your tax;
and collect tax, interest, or penalties.

Innocent spouse relief and separation of liability apply only
to items incorrectly reported on the return. If a spouse does
not qualify for innocent spouse relief or separation of liability,
the IRS may grant equitable relief.

Our legal right to ask for information is found in Internal
Revenue Code sections 6001, 6011, and 6012(a), and their
regulations. They say that you must file a return or statement
with us for any tax you are liable for. Your response is mandatory under these sections.

Each type of relief is different and each has different
requirements. You must file Form 8857, Request for
Innocent Spouse Relief, to request any of these methods of
relief. Publication 971, Innocent Spouse Relief, explains
each type of relief, who may qualify, and how to request
relief.

Code section 6109 and its regulations say that you must show
your social security number or individual taxpayer identification number on what you file. You must also fill in all parts of
the tax form that apply to you. This is so we know who you are,
and can process your return and papers. You do not have to
check the boxes for the Presidential Election Campaign Fund.

You Must Contact Us

We ask for tax return information to carry out the U.S. tax laws.
We need it to figure and collect the right amount of tax.

It is important that you contact us regarding any correspondence you receive from us. If you do not pay your bill or
work out a payment plan, we are required by law to take
further collection actions.

We may give the information to the Department of Justice and
to other Federal agencies, as provided by law. We may also
give it to cities, states, the District of Columbia, and U.S.
Commonwealths or possessions to carry out their tax laws.
And we may give it to certain foreign governments under tax
treaties they have with the United States.

What If You Believe Your Bill is
Wrong

We may also disclose this information to Federal, state, or
local agencies that investigate or respond to acts or threats of
terrorism or participate in intelligence or counterintelligence
activities concerning terrorism.

If you believe your bill is wrong, let us know as
soon as possible. Call the number on your
bill, write to the IRS office that sent you the
bill, call 1-800-829-1040 (for 1040 filers),
1-800-829-4933 (for business filers),
1-800-829-4059 /TDD, or visit your local IRS
office.

If you do not file a return, do not give us the information we
ask for, or provide fraudulent information, the law says that we
may have to charge you penalties and, in certain cases, subject
you to criminal prosecution. We may also have to disallow the
exemptions, exclusions, credits, deductions, or adjustments
shown on your tax return. This could make your tax higher or
delay any refund. Interest may also be charged.

To help us correct the problem, gather a copy of the bill along with
copies of any records, tax returns, and canceled checks, etc., that
will help us understand why you believe your bill is wrong.

Please keep this notice with your records. You may want to refer
to it if we ask you for other information. If you have questions
about the rules for filing and giving information, please call or
visit any Internal Revenue Service office.

If you write to us, tell us why you believe your bill is wrong. With
your letter, include copies of all the documents you gathered to
explain your case. Please do not send original documents. If we
find you are correct, we will adjust your account and, if necessary,
send you a corrected bill.

8

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 372 of 413
Department of the Treasury
Internal Revenue Service
[Operating Division / Program Name]

Date:

09/05/2019
Taxpayer ID number:
Form:
Person to contact:
Employee ID number:
Contact telephone number:
Contact fax number:

Certified Mail

[Certified Mailing Number]

Last day to file petition with US tax court:

Dear [Name]:
Notice of Deficiency
Tax Year Ended:
Deficiency:
Increase in tax

Why we are sending you this letter
We determined that you owe additional tax or other amounts, or both, for the tax years above. This letter is your
Notice of Deficiency as we're required by law to send you. The enclosed Form 4549-A, Income Tax
Examination Changes (Unagreed and Excepted Agreed), or Form 5278, Statement - Income Tax Changes,
shows how we figured the deficiency.
If you agree with the Notice of Deficiency
If you agree with our determination, sign the enclosed Form 4089-B, Notice of Deficiency - Waiver, and return
it to us at the address on the top of the first page of this letter. Sending this now can help limit the accumulation
of interest.
If you disagree with the Notice of Deficiency
If you want to contest our final determination, you have 90 days from the date of this letter (150 days if
addressed to you outside of the United States) to file a petition with the United States Tax Court.
Letter 531 (Rev. 1-2019)
Catalog Number 40223L

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 373 of 413
How to file your petition
You can get a petition form and the rules for filing from the Tax Court's website at www.ustaxcourt.gov, by
contacting the Office of the Clerk at the address below, or by calling 202-521-0700. Send your completed
petition form, a copy of this letter, and copies of all statements and schedules you received with this letter to the
address below.
United States Tax Court
400 Second Street, NW
Washington, DC 20217
If this notice shows more than one tax year, you can file one petition form showing all of the years you
disagree with.
The Tax Court has a simplified procedure for small tax cases. If you plan to file a petition for multiple tax years
and the amount in dispute for any one or more of the tax years exceeds $50,000 (including penalties), you can't
use this simplified procedure. If you use this simplified procedure, you can't appeal the Tax Court's decision.
You can get information about the simplified procedure from www.ustaxcourt.gov or by writing to the court at
the address above.
If you recently sought bankruptcy relief by filing a petition in bankruptcy court, see enclosed Notice 1421,
How Bankruptcy Affects Your Right to File a Petition in Tax Court in Response to a Notice of Deficiency.
You can represent yourself before the Tax Court, or anyone allowed to practice before the Tax Court can
represent you.
Time limits on filing a petition
The court can't consider your case if you file the petition late.
• A petition is considered timely filed if the Tax Court receives it within
- 90 days from the date this letter was mailed to you, or
- 150 days from the date this letter was mailed to you if this letter is addressed to you outside of the
United States.
• A petition is also generally considered timely if the United States Postal Service postmark date is within
the 90 or 150-day period and the envelope containing the petition is properly addressed with the correct
postage. The postmark rule doesn't apply if mailed from a foreign country.
• A petition is also generally considered timely if the date marked by a designated private delivery service is
within the 90 or 150-day period. Not all services offered by private delivery companies are designated
delivery services. For a list of designated delivery services available for domestic and international
mailings, see Notice 2016-30, which is available on the IRS website at www.irs.gov/irb/2016-18_IRB/ar07.html.
Please note that the list of approved delivery companies may be subject to change.
• The time you have to file a petition with the Tax Court is set by law and can't be extended or suspended,
even for reasonable cause. We can't change the allowable time for filing a petition with the Tax Court.
If you are married
We're required to send a notice to each spouse. If both want to petition the Tax Court, both must sign and file
the petition or each must file a separate, signed petition. If only one spouse timely petitions the Tax Court, the
deficiency may be assessed against the non-petitioning spouse. If only one spouse is in bankruptcy at the time
we issued this letter or files a bankruptcy petition after the date of this letter, the bankruptcy automatic stay does
not prevent the spouse who is not in bankruptcy from filing a petition with the Tax Court. The bankruptcy
automatic stay of the spouse seeking bankruptcy relief doesn't extend the time for filing a petition in Tax Court
for the spouse who is not in bankruptcy.
Letter 531 (Rev. 1-2019)
Catalog Number 40223L

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 374 of 413
If we don’t hear from you
If you decide not to sign and return Form 4089-B, and you don't file a timely petition with the Tax Court, we'll
assess and bill you for the deficiency (and applicable penalties and interest) after 90 days from the date of this
letter (150 days if this letter is addressed to you outside the United States).
Note: If you are a C corporation, we're required by Internal Revenue Code Section 6621(c) to charge an interest
rate two percent higher than the normal rate on corporate underpayments in excess of $100,000.
If you need more assistance
If you have questions, you can contact the person at the top of this letter. If you write, include a copy of this
letter, your telephone number, and the best hours to reach you. Keep the original letter for your records.
Information about the IRS Taxpayer Advocate Service
The IRS office whose phone number appears at the top of the notice can best address and access your tax
information and help get you answers. However, you may be eligible for free help from the Taxpayer Advocate
Service (TAS) if you can't resolve your tax problem with the IRS, or you believe an IRS procedure just isn't
working as it should. TAS is an independent organization within the IRS that helps taxpayers and protects
taxpayer rights. Contact your local Taxpayer Advocate Office at:
Or call TAS at 877-777-4778. For more information about TAS and your rights under the Taxpayer Bill of Rights,
go to taxpayeradvocate.irs.gov. Do not send your Tax Court petition to the TAS address listed above. Use the
Tax Court address provided earlier in the letter. Contacting TAS does not extend the time to file a petition.
Information about Low Income Taxpayer Clinics and other resources
Assistance can be obtained from individuals and organizations that are independent from the IRS. The
Directory of Federal Tax Return Preparers with credentials recognized by the IRS can be found at
http://irs.treasury.gov/rpo/rpo.jsf. IRS Publication 4134 provides a listing of Low Income Taxpayer Clinics
(LITCs) and is available at www.irs.gov. Also, see the LITC page at www.taxpayeradvocate.irs.gov/litcmap.
Assistance may also be available from a referral system operated by a state bar association, a state or local
society of accountants or enrolled agents or another nonprofit tax professional organization. The decision to
obtain assistance from any of these individuals and organizations will not result in the IRS giving preferential
treatment in the handling of the issue, dispute or problem. You don't need to seek assistance to contact us.
We will be pleased to deal with you directly and help you resolve your situation.
Sincerely,
[Name]
Commissioner
By
[Name]
[Title]
Enclosures:
[Form 4549-A or Form 5278]
Form 4089-B
Notice 1421
Letter 531 (Rev. 1-2019)
Catalog Number 40223L

 Case Document 44-3 Filed 09/06/19 Page 375 of 413

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 376 of 413
Vaughan, Frederick
From:
Sent:
To:
Cc:
Subject:
Attachments:

McAfee, Karen <Karen.McAfee@mail.house.gov>
Thursday, June 13, 2019 6:39 PM
Vaughan, Frederick
Casey, Brandon; Andres, Gary; Kaldahl, Rachel; Sok, Justin; Oursler Leonard T
FW: Today's Briefing on Mandatory Audit Process
Treasury IRS Briefing Prepared Questions.pdf

Fritz, 
 
Thank you for the follow‐up letter and electronic materials.  Yes, the briefing was three hours, with nearly one hour 
spent walking through the IRM materials you provided and with a long, and necessary, break to accommodate 
staff.  Despite its length, I would not classify it as thorough.   
 
I also do not agree that the briefing answered most of our questions.  Although some questions were addressed, IRS and 
Treasury attendees declined to answer the majority of questions for a range of reasons, including (1) lack of 
authorization under section 6103 despite Republican and Democratic Committee staff having 6103 authorization from 
the Chairman and your knowledge of the limitations placed on return information when only a few taxpayers are 
involved, (2) objections raising various privileges, (3) inability to evaluate tax policy considerations, and (4) lack of 
awareness of specific internal policies and practices.  Notably, of the eight IRS and Treasury attendees present at the 
briefing, there was not one person who was or is involved in, or was or is an examiner for, a mandatory presidential 
audit.  We also found various, important instances where IRS practice did not conform to procedures outlined in the 
Internal Revenue Manual.  The briefing reinforced our concerns about the substantial discretion a single IRS revenue 
agent possesses in conducting the audit of presidential returns and the absence of guardrails to ensure that such 
employee is not subject to undue influence by a president or his representatives.  The absence of direction on the scope 
of an audit and handling of a grantor trust, among other things, reinforce the need for oversight and codification of 
procedures related to the mandatory examination of a president’s return.   
 
As requested by you during the briefing, I am enclosing a copy of the written questions that Committee staff prepared in 
advance for our use at the briefing.  We also discussed possibly having a follow‐up briefing.  However, it seemed to be 
your position and that of Chief Counsel Mike Desmond and Counselor to the Commissioner Tom Cullinan that there was 
a hard and fast rule not to discuss any 6103 information related to the mandatory audit process despite Committee staff 
having authorization.  This rule seemed to be in place when we asked questions about current and former Democratic 
and Republican presidents.  Given the small universe of President‐taxpayers, substantial discretion during the audit, and 
audit practices that do not match IRM procedures, the Committee needs access to returns and return information in 
order for it to fulfill its legislative and oversight activities.  Please confirm whether any follow‐up briefings will provide 
return and return information. 
 
Thanks, again, for the briefing.  Please let me know if you need anything further. 
 
Best, 
Karen  
 
 
From: Frederick.Vaughan@treasury.gov <Frederick.Vaughan@treasury.gov>  
Sent: Monday, June 10, 2019 2:12 PM 
To: Casey, Brandon <Brandon.Casey@mail.house.gov>; McAfee, Karen <Karen.McAfee@mail.house.gov> 
Cc: Andres, Gary <Gary.Andres@mail.house.gov>; Kaldahl, Rachel <Rachel.Kaldahl@mail.house.gov>; 
1

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 377 of 413
Justin.Sok@treasury.gov; Leonard.T.Oursler@irs.gov; LegAffairs@treasury.gov 
Subject: Today's Briefing on Mandatory Audit Process 
 
Brandon and Karen 
 
Attached is a letter from me, as well as copies of the slide deck and tabbed materials from the briefing. Please let us 
know if you need additional copies of the other historical materials we provided in binders. 
 
Best, Fritz 
 
-Frederick W. Vaughan
Deputy Assistant Secretary
Legislative Affairs
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
202-622-2678

 

2

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 378 of 413
 

 

6/07/2019

Questions Prepared in Advance by Democratic Staff for Use at the
Treasury/IRS Briefing on Mandatory Audit Process
Opening/Introductions
I will note at the outset that all Democratic and Republican Committee staff in the room have
been authorized by the Chairman pursuant to 6103(f)(4) to receive and discuss returns and return
information related to IRS audits of a President and enforcement of the Federal tax laws against a
President, including the mandatory audit process and the auditing of Presidential tax returns and
any related individuals and entities.
1.

I would like for each person present to state his or her name, title, and, to the extent that
you are not an employee of the Internal Revenue Service, whether you are authorized to
receive and discuss section 6103 taxpayer information?

2.

Will each person please state whether they are authorized to approve or disapprove of the
disclosure of 6103 information? If you have authority, please identify the relevant
delegation. If no one has authority, why isn’t someone present today at this briefing who
has this authority?

3.

Commissioner Rettig’s letter dated May 17, 2019, states that Chairman Neal’s concerns
that IRS employees could be subject to undue influence when conducting mandatory
audits of a President’s tax returns is “unfounded.” I would like to go around the room
and have individuals identify whether they were confirmed by the Senate. If so, please
also identify who nominated you for the position. If you are not Senate confirmed, please
identify when you started at either Treasury or IRS and who hired you for your position.

4.

Who prepared the written materials you intend to speak from today?

5.

Did anyone at Treasury request to see your materials in advance of this meeting? If so,
who?

6.

Did anyone at the Department of Justice or the White House request to see your materials
in advance of this meeting? If so, who?

7.

Did any of those at Treasury, the Department of Justice, or the White House actually see
the documents?

8.

I would like each Treasury official in the room to answer this question: Did you ask to
see or review the written materials being discussed today in advance of this meeting?
Did you ask that someone else be allowed to see or review the written materials? If so,
who?

9.

Did anyone at IRS or Treasury ask you to rehearse or run-through your presentation in
advance of this meeting? If so, who?
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10.

Did anyone at IRS or Treasury ask you to revise, modify, or delete portions of your
presentation today in advance of this meeting? If so, what revisions, modifications, or
deletions were you asked to make?

11.

Would each person present please state whether he or she has first-hand experience with
the mandatory audit process? If so, please briefly describe your experience.

Experience with mandatory audit process
We are considering codification of the mandatory audit procedures.
12.

How would you suggest that be done and would you support this?

13.

How can we ensure resources that are needed are available?

14.

What are you views on whether the issues and determination of the audit be publicly
disclosed?

We are interested in what actually happens in practice during the mandatory audit process.
15.

Have you ever seen a President’s tax return?

16.

If so, what President and what tax years?

17.

Have you ever participated in the audit of a President’s tax return?

18.

If so, what President and what tax years?

19.

Do Presidential audits have to be closed within a certain amount of time?

20.

What is the maximum number of Presidential audits that could be pending in a particular
year?

21.

How long do Presidential audits generally take?

22.

How many IRS employee hours are spent each year on Presidential audits?

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23.

How many IRS employee hours were spent in 2013, 2014, 2015, 2016, 2017, 2018, and
2019?

24.

What is your most recent experience with the audit of a President’s tax return?

25.

What was your role?

26.

When did the audit start and when did it conclude?

27.

Do you or does anyone else notify the IRS Commissioner when the audit starts?

28.

Do you or does anyone else notify the Secretary, Treasury General Counsel, or other
Treasury senior leadership when the audit starts? If so, who?

29.

Do you or does anyone else notify the Department of Justice, the Office of Legal
Counsel, or the White House when the audit starts? If so, who?

30.

Do you or does anyone else report to the IRS Commissioner periodically on the issues
being examined during the audit? If so, who? How often does this occur?

31.

Do you or does anyone else periodically report to the Secretary, Treasury General
Counsel, or other Treasury senior leadership on issues being examined during the audit?
If so, who?

32.

Do you or does anyone else report to the Department of Justice, the Office of Legal
Counsel, or the White House on issues being examined during the audit? If so, who?

33.

Do you or does anyone else notify the IRS Commissioner prior to closing the audit?

34.

Do you or does anyone else notify the Secretary, Treasury General Counsel, or other
Treasury senior leadership prior to closing the audit?

35.

Do you or does anyone else notify the Department of Justice, the Office of Legal
Counsel, or the White House prior to closing the audit?

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36.

Do mandatory audits always include all related business activities of a President?

37.

If business activities are included on a Schedule C attached to the return, are these
business activities also audited?

38.

Do mandatory audits always include ongoing audits or all open tax years?

39.

Does the IRS examine beyond the numbers showing on the face of the return?

40.

Does the IRS ever look at related businesses of a President? If so, under what
circumstances does the IRS do so?

41.

How many IRS employees were involved in each of the mandatory presidential audits
that you were involved in?

42.

Which divisions of the IRS were involved in the audit?

43.

Are the examiners set up as a team?

44.

Who on the team makes decisions with respect to the audit?

45.

How many layers of separation are there between the team and the individuals in this
room today?

46.

Who has to approve decisions made by the team?

47.

Do these decisions ultimately need approval from the IRS Commissioner or Chief
Counsel?

48.

Do these decisions ultimately need approval from the Secretary, Treasury General
Counsel, or senior leadership at Treasury?

49.

Do these decisions ultimately need approval from the Department of Justice, the Office of
Legal Counsel, or the White House?

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50.

What happens when the President does not agree with the results of the examination?

51.

To your knowledge, has a President ever disagreed with the results of an examination of
his returns?

52.

What is the process that is followed?

53.

Is this in the IRM?

54.

Who is notified that the President does not agree?

55.

Who makes the final decision to assess the deficiency?

56.

What happens if the President fails to remit the taxes owed?

57.

To your knowledge, has a President ever failed to remit taxes owed?

58.

Who is notified?

59.

Who makes the final decision on whether to pursue collection?

60.

Has the IRS ever sued a President for back taxes?

61.

Was this ever done while a President is in office?

62.

Can this be done while the President is in office?

Historical practice
63.

How many examinations under the presidential mandatory audit process have been
closed during the current year (2019)?

64.

How many examinations under the mandatory audit process were closed during the
preceding two years (calendar years 2017 and 2018)?
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65.

How many examinations were closed within the preceding two years (2015 and 2016)?

66.

How many examinations were closed during 2013 and 2014?

67.

How many examinations were closed during 2007 and 2008?

68.

For each examination closed within each of the above periods, how many examiners were
assigned?

69.

For each examination closed within each of the above periods, how many taxable years
were under examination?

70.

For each examination closed within each of the above periods, what is the grade or
management level of each person who worked each case?

71.

For each examination closed within each of the above periods, how many hours were or
have been worked by each person through the today?

72.

For each examination closed within each of the above periods, what issues were under
examination?

73.

For each examination closed within each of the above periods, what is the highest level of
any employee who has worked, reviewed, discussed, seen, or otherwise been involved
with any issue or return under examination or any workpaper in such examination?

74.

For each examination closed within each of the above periods, has the Treasury Secretary
been involved in, aware of, briefed, or otherwise involved in any aspect of the
examination?

75.

For each examination closed within each of the above periods, has the Commissioner
been involved in, aware of, briefed, or otherwise involved in any aspect of the
examination?

76.

For each examination closed within each of the above periods, has the Chief Counsel
been involved in, aware of, briefed, or otherwise involved in any aspect of the
examination?

77.

For each examination closed within each of the above periods, has any member of the
General Counsel’s office been involved in, aware of, briefed, or otherwise involved in
any aspect of the examination?

78.

For each examination closed within each of the above periods, has the Treasury
Secretary, Commissioner, Chief Counsel, or any member of the General Counsel’s office
been involved in any change in policy or practice regarding the examination of
Presidential returns?
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79.

Was the Clinton Foundation audited as part of the review of President Clinton’s tax
returns?

80.

Have there been assessments issued against Presidents in the past year? Two years? Ten
years? Eighteen years?

81.

What are the sources of income for Presidents over the past year? Two years? Ten years?
Eighteen years?

82.

Did President and Mrs. Obama file jointly or separately? If separately, was Mrs.
Obama’s return also examined?

83.

For President Obama’s first return filed while in office (for taxable year 2007), when was
the return filed?

84.

For President Obama’s first return filed while in office (for taxable year 2007), when was
it sent to Baltimore?

85.

For President Obama’s first return filed while in office (for taxable year 2007), when was
first contact made with the President or his representative?

86.

For President Obama’s first return filed while in office (for taxable year 2007), how
many meetings or contacts were made? With whom? With the President?

87.

For President Obama’s first return filed while in office (for taxable year 2007), how did
the IRS verify wages/salary?

88.

For President Obama’s first return filed while in office (for taxable year 2007), how did
the IRS verify royalties?

89.

For President Obama’s first return filed while in office (for taxable year 2007), how did
the IRS verify other income?

90.

For President Obama’s first return filed while in office (for taxable year 2007), were any
income issues examined? If so, how many examiners/agents were involved and how
many hours of work?

91.

For President Obama’s first return filed while in office (for taxable year 2007), what
deductions were examined? If so, how many examiners/agents were involved and how
many hours of work?

92.

For George W. Bush, we have the same questions. Did President and Mrs. Bush file
jointly or separately? If separately, was Mrs. Bush’s return also examined?

93.

For President Bush’s first return filed while in office (for taxable year 2001), when was
the return filed?
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94.

For President Bush’s first return filed while in office (for taxable year 2001), how did the
IRS verify wages/salary?

95.

For President Bush’s first return filed while in office (for taxable year 2001), how did the
IRS verify other income?

96.

For President Bush’s first return filed while in office (for taxable year 2001), were any
income issues examined? If so, how many examiners/agents were involved and how
many hours of work?

97.

For President Bush’s first return filed while in office (for taxable year 2001), what
deductions were examined? If so, how many examiners/agents were involved and how
many hours of work?

98.

Did President Trump and Mrs. Trump file jointly or separately? If separately, are Mrs.
Trump’s returns also being examined?

99.

For President Trump’s first return filed while in office (for taxable year 2016), when was
the return filed? What about the second return (for taxable year 2017)?

100.

For President Trump’s first return filed while in office (for taxable year 2016), when was
it sent to Baltimore? What about the second return?

101.

For President Trump’s first return filed while in office (for taxable year 2016), when was
first contact made with the President or his representative? What about for the second
return?

102.

For President Trump’s first return filed while in office (for taxable year 2016), how many
meetings or contacts were made? With whom? With the President? What about for the
second return?

103.

For President Trump’s first return filed while in office (for taxable year 2016), how did
the IRS verify wages/salary? What about for the second return?

104.

For President Trump’s first return filed while in office (for taxable year 2016), how did
the IRS verify royalties? What about for the second return?

105.

For President Trump’s first return filed while in office (for taxable year 2016), how did
the IRS verify other income? What about for the second return?

106.

For President Trump’s first return filed while in office (for taxable year 2016), were any
income issues examined? If so, how many examiners/agents were involved and how
many hours of work? What about for the second return?

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107.

For President Trump’s first return filed while in office (for taxable year 2016), what
deductions were examined? If so, how many examiners/agents were involved and how
many hours of work? What about for the second return?

108.

Are any of President Trump’s businesses under audit? Have any of President Trump’s
businesses been under audit since he took office? If so, which entities?

109.

Is President Trump’s revocable trust under audit? Has it been under audit since he took
office?

110.

How many years of President Trump’s tax returns are currently under audit?

Current practice
111.

How many examinations of Presidential returns are currently open and ongoing?

112.

For each examination, how many examiners are assigned?

113.

For each examination, how many taxable years are under examination?

114.

For each examination, what is the grade or management level of each person who worked
each case?

115.

For each examination, how many hours have been worked by each such person through
today?

116.

For each examination, what are the issues under examination?

117.

For each examination, what is the highest level of any employee who has worked,
reviewed, discussed, seen, or otherwise been involved in any return or issue under
examination or any workpaper in such examination?

118.

For each examination, has the Treasury Secretary been involved in, aware of, briefed on,
or otherwise involved in any aspect of the examination?

119.

For each examination, has the Chief Counsel been involved in, aware of, briefed, or
otherwise involved in any aspect of the examination?

120.

For each examination, has any member of the General Counsel’s office been involved in,
aware of, briefed, or otherwise involved in any aspect of the examination?

121.

For each examination, has the Treasury Secretary, Commissioner, Chief Counsel, or any
member of the General Counsel’s office been involved in any change in policy or
practice regarding the examination of Presidential returns?

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Orange Folders
We would like to understand more about where the presidential tax returns are kept and the
contents of the orange folders that hold them.
122.

Are the returns kept in your office?

123.

If not, where are the located?

124.

Are there copies of the returns kept in other locations—DC, Baltimore, Ogden?

125.

How many returns are kept in the office?

126.

How many tax years do they cover?

127.

Is each return kept in an orange folder?

128.

How big is the folder?

129.

What about when the returns are large—is there more than one folder?

130.

Does each tax year for each President have a separate orange folder?

131.

What is on the outside of the folder?

132.

What is on the inside of the folder?

133.

Is there a routing slip or other checklist attached to or inside the folder?

134.

Please describe the general contents of an orange folder.

135.

To your knowledge during your tenure at the IRS, has the return of each President for
each tax year been audited?

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136.

What documents in the orange folder would show that the return has been audited?

137.

What is the depth and scope of each audit?

138.

Is the depth and scope the same as for employee compliance audits?

139.

What documents are in the orange folder that show the depth and scope of a Presidential
audit?

140.

Is there a form, checklist, or spreadsheet or other internal document in the orange folder
that describes the scope and depth of a Presidential audit? If so, what is the form
number?

141.

Is the return transcribed and loaded on the Master File?

142.

Who has access to the Master File?

143.

Do IRS examiners have access to the paper copy of the return?

144.

How do you keep track of who has accessed the returns (including any copies thereof)?

145.

Is there a sign out sheet, routing slip, or other documentation that shows who has
accessed the return?

146.

How do the examiners access the return being audited?

147.

Do the examiners have other cases or audits while they are working on the President’s
return?

Undue political influence
The Commissioner’s letter dated May 17, 2019, states that the mandatory audit procedures were
implemented to insulate the IRS examination process from any bias or appearance of bias. The
letter further states that procedures are in place to notify TIGTA if any IRS or Treasury officials
other than a career employee attempts to influence the outcome or direction of the examination.
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The Secretary and Commissioner have both testified that the IRS is “under the
supervision” of the Treasury Department. Is the mandatory examination of the
President’s tax return under the supervision of the Treasury Department?

149.

What are the procedures referred to in the May 17 letter?

150.

Are they written?

151.

Are they located in the IRM? If so, what section?

152.

How are these procedures communicated to the employees working on the mandatory
audit?

153.

Do the procedures only apply to IRS and Treasury officials?

154.

What positions and titles are considered to be IRS and Treasury officials for purposes of
the procedures described in the May 17 letter?

155.

Do the procedures cover improper influence by the President?

156.

Do the procedures cover improper influence by White House employees?

157.

Do the procedures cover improper influences by Department of Justice or Office of Legal
Counsel employees?

158.

Who is Brian Callanan? Is he considered an IRS or Treasury official?

159.

How, as the Deputy Commissioner, have you satisfied yourself that there is no
inappropriate communication, either direct or indirect, between political appointees and
the examination team?

160.

How, as the Deputy Commissioner, have you satisfied yourself that the issues examined
are the proper issues to be examined?

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161.

How, as the Deputy Commissioner, have you satisfied yourself that the scope and depth
of the examination are proper?

162.

How, as the Chief Counsel, have you satisfied yourself that there is no inappropriate
communication, either direct or indirect, between political appointees and the
examination team?

163.

How, as the Chief Counsel, have you satisfied yourself that the issues examined are the
proper issues to be examined?

164.

How, as the Chief Counsel, have you satisfied yourself that the scope and depth of the
examination are proper?

165.

On October 17, 2018, White House Press Secretary Sarah Sanders stated, “The President
and First Lady filed their taxes on time and as always are they are automatically under
audit, which the President thinks is extremely unfair.” Is this the type of statement for
which there are procedures in place to notify TIGTA?

166.

Deputy Commissioner, can you confirm the statement of White House spokesperson
Sanders that the President filed his 2017 tax return on or about October 17, 2018?

167.

Deputy Commissioner, do you share the view, expressed by the President according to
White House spokesperson Sanders, that a mandatory audit of the President’s 2017 tax
return is “extremely unfair”?

168.

Senior Advisor, do you share the President’s view that a mandatory audit is “extremely
unfair”?

169.

Chief Counsel, do you share the President’s view that a mandatory audit is “extremely
unfair”?

170.

I would like to have each Treasury official present answer separately whether he or she
shares the President’s view that a mandatory audit is “extremely unfair”?

171.

I would like each person present to state whether they know if the Commissioner or
Treasury Secretary share the President’s view that a mandatory audit is “extremely
unfair”?
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172.

Has the Treasury Secretary or Commissioner ever made any statement publicly or to
employees affirming that the mandatory audit is fair?

173.

To your knowledge, have the examiners working on the audit ever been instructed to
disregard the President’s statement that the examiners’ fulfilling their mandatory
obligations is extremely unfair?

174.

Has any statement been made to assure the examiners that fulfilling their duties will not
result in any kind of retaliation or any adverse personnel action? If so, what statement?

175.

Has the Treasury Secretary, Commissioner, Treasury General Counsel or anyone else
made any statement, directly or indirectly, to confirm or contradict the President at this
point? If so, what statement? When and where?

176.

Chief Counsel, do you consider White House Spokesperson Sanders’ statement to be an
attempt to influence the conduct of the examination? Is it a section 7214 violation? Has
TIGTA been notified?

177.

What steps has the IRS taken to ensure that the judgment of auditors on the scope and
depth of the examination is not influenced by statements of the White House?

178.

What statements, publicly or privately, have been made by the White House, Treasury
Secretary, DOJ, Treasury General Counsel, etc. about the President’s examination?

179.

Does TIGTA report to anyone in the IRS that an IRS employee has notified TIGTA that
they are feeling political pressure?

180.

What do you tell employees who come to you with concerns about political pressure?

181.

Deputy Commissioner, did you see the IRS draft memorandum titled “Congressional
Access to Return and Return Information” before it was published in the Washington
Post on May 21, 2019? If so, when?

182.

Senior Advisor, did you see the IRS draft memorandum titled “Congressional Access to
Return and Return Information” before it was published in the Washington Post on May
21, 2019? If so, when?

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183.

Chief Counsel, did you see the IRS draft memorandum titled “Congressional Access to
Return and Return Information” before it was published in the Washington Post on May
21, 2019? If so, when?

184.

Chief Counsel, did the Commissioner ask you for legal advice on Chairman Neal’s
request prior to April 9, 2019? If so, when did he ask you for advice?

185.

Each Treasury employee and official in the room, did you see the IRS draft memorandum
titled “Congressional Access to Return and Return Information” before it was published
in the Washington Post on May 21, 2019? If so, when?

186.

Please answer separately starting with the Deputy Commissioner, who wrote the memo?
Who approved the memo?

187.

Please answer separately starting with the Deputy Commissioner, did the Commissioner
or the Secretary see, review, have a discussion about, or receive a briefing on the memo
before May 21, 2019?

188.

Please answer separately starting with the Deputy Commissioner, whose decision was it
not to finalize the memo?

189.

Please answer separately starting with the Deputy Commissioner, whose decision was it
not to give the memo to the Treasury Secretary or the Commissioner?

190.

Please answer separately starting with the Deputy Commissioner, are there any other
analyses that were prepared within the IRS or Chief Counsel on the question of 6103(f)?

191.

Please answer separately starting with the Deputy Commissioner, whose decision was it
not to give the memo to the Treasury Secretary or the Commissioner?

The Commissioner’s May 17th letter states that “from start to finish, all aspects of the processing
and examination of a President or a Vice President’s returns are conducted by experienced,
career employees.”
192.

What is the general composition of the employees who conduct the audit?

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193.

What are the grade levels and titles of the employees who conducted the examination of
the returns filed for tax years 2013, 2014, 2015, 2016, 2017, and 2018?

194.

Who do these individuals report to with respect to returns under audit?

195.

From start to finish, who provides final approval on all aspects of the mandatory audit
process? The audit plan? Changes to the audit plan? Deletions from the audit plan?
Ending the audit? Assessments? Staffing levels?

Return processing
We would like to see some actual examples and illustrations of how the audit process has worked
on presidential returns. For now, we would like to walk through the mechanics of how the return
travels through the IRS and is processed.
196.

I would like to confirm that Presidents file by paper. Correct?

197.

The return is mailed to Austin with markings on the envelope. Who opens the envelope?

198.

What grade is this person?

199.

Do they sign a checklist or routing slip that states that they have the tax return?

200.

Does that routing slip or checklist become a part of the orange folder?

201.

Does this person notify anyone upon receipt of the tax return? If so, who?

202.

What happens to the return next?

203.

What about when the returns are large—is there more than one envelope?

204.

Do Presidents file their business returns by paper as well?

205.

Are those returns mailed to Austin? If not, how are those returns associated with the
individual returns that are mailed to Austin?
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206.

 

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Is there a separate routing slip or checklist for each of the business returns?

Department of Justice
207.

When will the Committee be receiving the guidance Treasury and IRS relied upon to
deny Chairman Neal’s request under section 6103 and related subpoenas? The letter from
Treasury stated “as soon as practicable.”

Internal Revenue Manual [sections below are cited in the Commissioner’s May 17 letter]
IRM section 3.28.3.2 specifies:
(3) The returns of the Pres are mailed to the Field Director, to the Field Director, Austin
Submission Processing Campus
208.

The return arrives and then what steps are taken, when and by whom?

209.

What about a return in the case of a grantor trust? Form 1041? Form 1099?

210.

Which returns are mailed to the Field Director?

211.

How are entities controlled by a grantor trust processed—employment tax returns, for
example?
(4) The Field Director of Austin can designate the walk-through processing of the
President and Vice-President’s returns
(6) President who has assets in a blind trust must request permission for the trustee to
prepare and file their individual tax return, in writing with a Form 2848 (power of
attorney or representative)

212.

Have Forms 2848 been filed for a President and when were they filed?

213.

What return(s) are covered by the Form 2848?

IRM section 3.28.3.4 Processing Returns and Accounts of the President and Vice-President
IRM section 3.28.3.4.1 Individual and Gift Tax Return Processing
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(3) Photocopy the return and stamp “COPY” in the top. Route the copy to Files.
214.

Where are Files?
(4) Forward the original processed individual return to Deputy Commissioner for
Services and Enforcement, 1111 Constitution Avenue, Washington DC 20224
(5) Returns are under the Records Control Schedules Document 1229 since permanent
Records of the National Archives

215.

Where do the returns go under Document 1229 and when?

IRM Section 3.28.3.4.2 Account Data
(1) Carry the account data of the President on the appropriate Master File
216.

What is an appropriate Master File? Is it the same Master File as all taxpayers?
(2) Do not subject the accounts to restricted access procedures

217.

Is this the same as prior to 2019? If not, what changes were made and why?

IRM Section 3.28.3.4.3 Mandatory Examination
(1) President subject to mandatory examinations
(2) SB/SE Director of Exam determined who is responsible
218.

Who is responsible for the President’s exams?

219.

How many examiners and what division?

220.

What about those doing the ongoing examinations or prior examinations?

221.

Does the IRS Chief Counsel need to recuse himself from all decisions related to these
examinations if he previously provided legal counsel to the President?
(a)

222.

Regardless of the discriminate index function (DIF) conduct exam

Do they have a DIF score for prior years? Is DIF done and not used?
(b)

Employees assigned “as appropriate”
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223.

What does “as appropriate” mean?

224.

Who defines or where is this defined in the IRM?

6/07/2019

225. How many employees were assigned in 2013, 2014, 2015, 2016, 2017, 2018 and this
year?
226. How many employees were assigned to the “ongoing” examinations of the President?
Are they included as appropriate assigned employees, what happens to the ongoing examination
employees?
(c)
Exam Area Director arranges for contact with the authorized
representative of President
227.

Who is the authorized representative for the President?

228.

Is it the Form 2848 party?

229.

When were they contacted?

230. Does a former IRS Chief Counsel need to recuse himself from serving as an authorized
representative of the President?
(d)

All relevant IRM procedures will apply to these returns?

231. What are each and all IRM procedures that apply to President’s examination in addition
to those listed in Commissioner Rettig’s May 17 letter? Please list them.
(e)
The examination papers of the President are subject to regular retention
procedures Document 12990
232.

What has been done with the papers and what is included in the “examination papers”?

IRM section 3.28.3.5.1 Blind Trust Form 1040 Returns
(1) The President will be considered to have good cause for receiving permission and
automatically be granted permission to have their return filed by a trustee when
(a) Interest in a blind trust meeting section 102(f)(3) of the Appendix 4 to Title 5, and
(b) Submits with the tax return a letter requesting permission for trustee to prepare and
file and a power of attorney. Separate request must be made of each tax year.
19
 

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 397 of 413
 

 

233.

Why was this added in 2019?

234.

Is a Blind Trust the same as a Grantor Trust for IRM purposes?

235.

If so, where is that stated?

236.

If not, how does the IRM treat grantor trusts?

237.

Is this procedure new this year?

238.

What was done last year by the President?

239.

What was done this year by the President?

240.

Isn’t this what is in IRM section 3.28.3.2(6)?

241.

Is the letter and power of attorney signed by the President and spouse?

6/07/2019

(2) The trustee must attach both the letter and power of attorney
242.

Were both attached to each year’s returns?

(3) IRS must use extreme caution not to violate a blind trust.
(a) address all correspondence and refunds to the trustee and
(b) not disclose to the taxpayer.
Remainder of 3.28.3.5.1 through 5.2 Are Blind Trust processing rules
243.

Are these blind trust procedures applicable here?

IRM Section 4.2.1.11
(1) Individual returns of President are subject to Mandatory Examination and cannot be
surveyed
244.

What does it mean to be “surveyed”?

245.

Are there any examples?
(2) Copies of returns are “transmitted” by the Office of the Deputy Commissioner for
SB/SE, Director, Examination
20

 

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 398 of 413
 

 

246.

To whom are these “transmitted”?

247.

How were these “transmitted” and when for each year?

6/07/2019

248. What about the ongoing examinations — what IRM rules apply to those examinations at
this point?
249.

What about open years not under examination?

(3) The area responsible for the Exam is determined by the SB/SE director
250.

Who is responsible for these exams?

251.

How many examiners and what division?

252.

What about those doing the ongoing examinations or prior examinations?
(a)

Regardless of the discriminate index function (DIF) conduct exam

253.

Do they have a DIF score for prior years?

254.

Is DIF done and not used?
(b)

Employees assigned “as appropriate”

255.

What does that mean?

256.

Who defines “as appropriate” and where in the IRM is that stated or defined?

257.

What has been “appropriate” in 2015, 2016, 2017 and 2018?
(c)

Exam Area Director arranges for contact with the authorized representative of
President

258.

Who is the authorized representative for the President?

259.

Is it the Form 2848 party?

260.

When were they contacted?

21
 

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 399 of 413
 

 

6/07/2019

261. Does former IRS Chief Counsel need to recuse himself from serving as an authorized
representative of the President?
(d)

All relevant IRM procedures will apply to these returns

262. What are each and all of the IRM procedures that apply to President’s examination in
addition to those listed in Commissioner’s May 17 letter? Please list them.
(4) Use “Employee Returns” Source Code 46 for the primary and any prior and subsequent
years.
263.

What years have the Code 46 in this case and what returns?

264.

What are “subsequent” returns, after they leave office?

(5) the returns must be assigned in 10 days after receipt and ensure “prompt” completion of the
examination.
265. When were these returns assigned and what is “prompt” completion—when were they
completed?
266. Commissioner’s letter says within 10 days of receiving a copy of the return, a manager in
one of IRS’s operating divisions assigns the examination to a revenue agent. Where is the
manager requirement in the IRM; is it sent to the manager by the SB/SE Deputy Commissioner
or whom? What manager was assigned these returns?
(6) Related returns, including estate and gift tax returns, will be handled in accordance with
procedures relating to all taxpayers
267.

What related returns are included? Is this the same for all taxpayers?

(7) Location of the returns of the President and Vice President will be monitored at all times
throughout the examination process
268.

Have the returns been in an orange folder? Not exposed to viewing by other employees?

269.

What is the secure area?

270.

Where are workpapers kept?

271.

Who has access to the cabinet?

22
 

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 400 of 413
 

 

6/07/2019

272. What does an orange folder look like? We would like to see an example of an orange
folder.
(8) Returns of President. Should be processed similar to examinations of an employee return
with the exception of:
(a) The returns are mandatory examinations and cannot be surveyed.
273.

What is the survey?

274.

Would the prohibition on surveys include open years not under exam?
(b) The returns are subject to mandatory review and must be closed directly to Employee
Audit Reviewer in Baltimore Technical Services. The examining area will notify
Baltimore when the return is being forwarded.

275.

How long before this occurs after the start of the examination?

276. What must occur before the case is closed – report anything to supervisors of employees
assigned?
277.

Is this reported to anyone at IRS National Office?

278.

Is this reported to anyone at all?

279.

What happens if amounts are assessed?

280.

What happens if not complete and the President’s term ends?

281.

Are any of the President’s returns done and already sent to Baltimore?

282. Do the procedures set forth in IRM 4.8.4.2.5 apply upon closing the case only: “closed
directly to the employee audit review in Baltimore” and examiner notates President or VicePresident’s return and Forwards to Baltimore Technical services”?
283. Can you describe how Examination of Employee Returns IRM section 42.6 differs from
Mandatory Examination of the President?
IRM section 4.10.3.2 Risk Analysis
284.

Please explain the risk analysis associated with a Presidential return?

285.

What issues might be included and what issues were in this exam?
23

 

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 401 of 413
 

286.

 

6/07/2019

What about prior exam issues?
(a)
During the pre-contact phase, examiners determine the scope of the examination
See IRM 4.10.2.3 [pre-contact analysis- review of the case file to identify large and
questionable items (a) review the complete tax return; (b) review internal and external
date from IDRS, IRP, e-file, CDE etc. (c) perform preliminary research, (d) Document all
actions on Lead Sheet 110, TCO Audit Plan (managerial approval if pre-contact is more
than 1 hour on a non-business return.) *See IRM 4.10.2.3.1 Large unusual or
questionable items definition—all of these must be examined unless no adjustment likely
and then must explain this.] See also examination of income section IRM 4.10.2.3.2

287.

How is the pre-contact phase done with the Presidential exam?

288. What is the TCO audit plan on a Presidential exam and is there a need for managerial
approval for over one hour (how long did this take here)?
289.

What are the Large, Unusual or Questionable items on a President’s return?
(b)
At the mid-point of the examination, the examiner will re-evaluate and adjust the
scope of the examination if necessary. See IRM 4.10.3.2.2- Mid-Audit Decision Point
(505 Rule): whether the remaining issues should be examined based on facts and
judgement on whether the government’s best interest to continue the examination. If it is
not in the government’s best interest to continue the examination, the examiner must
document this determination See IRM 4.10.3.2.1. for additional guidance.

290.

Is there ever a mandatory exam stopped at mid-point in the examination?

291.

Describe when it is in the government’s best interest to continue an examination.

24
 

 Case Document 44-3 Filed 09/06/19 Page 402 of 413

EXHIBIT C)

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 403 of 413
Vaughan, Frederick
From:
Sent:
To:
Cc:
Subject:

Vaughan, Frederick
Friday, June 21, 2019 1:13 PM
'McAfee, Karen'
Casey, Brandon; Andres, Gary; Kaldahl, Rachel; Sok, Justin; Oursler Leonard T
RE: Today's Briefing on Mandatory Audit Process

Karen 
 
To clarify, IRS attendees spent an hour providing the prepared briefing and two hours answering questions—the 
approximately 40 total minutes of break time you referenced was in addition to this. 
 
Regarding follow up, thank you for sharing the questions that Committee staff prepared in advance of the briefing. We 
answered many of those questions at the briefing. Please let us know which of the questions you would like us to 
prioritize. Some of the information may take time to track down, but we will do our best to locate what we can as 
expeditiously as possible. 
 
With respect to 6103 information, the “agent” letters that you sent us over the weekend before the Monday briefing 
(though they were dated earlier) were insufficient to authorize the disclosure of any 6103 information. While those 
letters designated staff to receive returns and return information pursuant to section 6103(f)(4), they did not specify 
what information was requested by the Chairman, as required by section 6103(f)(1). Because section 6103(f)(1) requires 
a written request from the Chairman specifying the information sought, staff questions seeking to elicit 6103 
information at the briefing could not be answered. 
 
Best, Fritz 
 
From: McAfee, Karen <Karen.McAfee@mail.house.gov>  
Sent: Thursday, June 13, 2019 6:39 PM 
To: Vaughan, Frederick <Frederick.Vaughan@treasury.gov> 
Cc: Casey, Brandon <Brandon.Casey@mail.house.gov>; Andres, Gary <Gary.Andres@mail.house.gov>; Kaldahl, Rachel 
<Rachel.Kaldahl@mail.house.gov>; Sok, Justin <Justin.Sok@treasury.gov>; Oursler Leonard T 
<Leonard.T.Oursler@irs.gov> 
Subject: FW: Today's Briefing on Mandatory Audit Process 
 
Fritz, 
 
Thank you for the follow‐up letter and electronic materials.  Yes, the briefing was three hours, with nearly one hour 
spent walking through the IRM materials you provided and with a long, and necessary, break to accommodate 
staff.  Despite its length, I would not classify it as thorough.   
 
I also do not agree that the briefing answered most of our questions.  Although some questions were addressed, IRS and 
Treasury attendees declined to answer the majority of questions for a range of reasons, including (1) lack of 
authorization under section 6103 despite Republican and Democratic Committee staff having 6103 authorization from 
the Chairman and your knowledge of the limitations placed on return information when only a few taxpayers are 
involved, (2) objections raising various privileges, (3) inability to evaluate tax policy considerations, and (4) lack of 
awareness of specific internal policies and practices.  Notably, of the eight IRS and Treasury attendees present at the 
briefing, there was not one person who was or is involved in, or was or is an examiner for, a mandatory presidential 
audit.  We also found various, important instances where IRS practice did not conform to procedures outlined in the 
Internal Revenue Manual.  The briefing reinforced our concerns about the substantial discretion a single IRS revenue 
1

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 404 of 413
agent possesses in conducting the audit of presidential returns and the absence of guardrails to ensure that such 
employee is not subject to undue influence by a president or his representatives.  The absence of direction on the scope 
of an audit and handling of a grantor trust, among other things, reinforce the need for oversight and codification of 
procedures related to the mandatory examination of a president’s return.   
 
As requested by you during the briefing, I am enclosing a copy of the written questions that Committee staff prepared in 
advance for our use at the briefing.  We also discussed possibly having a follow‐up briefing.  However, it seemed to be 
your position and that of Chief Counsel Mike Desmond and Counselor to the Commissioner Tom Cullinan that there was 
a hard and fast rule not to discuss any 6103 information related to the mandatory audit process despite Committee staff 
having authorization.  This rule seemed to be in place when we asked questions about current and former Democratic 
and Republican presidents.  Given the small universe of President‐taxpayers, substantial discretion during the audit, and 
audit practices that do not match IRM procedures, the Committee needs access to returns and return information in 
order for it to fulfill its legislative and oversight activities.  Please confirm whether any follow‐up briefings will provide 
return and return information. 
 
Thanks, again, for the briefing.  Please let me know if you need anything further. 
 
Best, 
Karen  
 
 
From: Frederick.Vaughan@treasury.gov <Frederick.Vaughan@treasury.gov>  
Sent: Monday, June 10, 2019 2:12 PM 
To: Casey, Brandon <Brandon.Casey@mail.house.gov>; McAfee, Karen <Karen.McAfee@mail.house.gov> 
Cc: Andres, Gary <Gary.Andres@mail.house.gov>; Kaldahl, Rachel <Rachel.Kaldahl@mail.house.gov>; 
Justin.Sok@treasury.gov; Leonard.T.Oursler@irs.gov; LegAffairs@treasury.gov 
Subject: Today's Briefing on Mandatory Audit Process 
 
Brandon and Karen 
 
Attached is a letter from me, as well as copies of the slide deck and tabbed materials from the briefing. Please let us 
know if you need additional copies of the other historical materials we provided in binders. 
 
Best, Fritz 
 
-Frederick W. Vaughan
Deputy Assistant Secretary
Legislative Affairs
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
202-622-2678

 

2

 Case Document 44-3 Filed 09/06/19 Page 405 of 413

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 406 of 413
Vaughan, Frederick
From:
Sent:
To:
Cc:
Subject:

McAfee, Karen <Karen.McAfee@mail.house.gov>
Tuesday, June 25, 2019 3:39 PM
Vaughan, Frederick
Casey, Brandon; Andres, Gary; Kaldahl, Rachel; Sok, Justin; Leonard.T.Oursler@irs.gov
RE: Today's Briefing on Mandatory Audit Process

Hi Fritz, 
 
You are welcome.  The authorization letters are sufficient.  Please feel free to provide the answers on a rolling basis.     
 
Best, 
Karen 
 
 
Karen B. McAfee 
Staff Director, Subcommittee on Oversight 
Committee on Ways & Means, Democratic Staff 
1102 Longworth House Office Building 
Washington, DC 20515 
(202) 225‐3625 
This document and any related communications or documents generated by the Committee on Ways and Means are confidential congressional records, remain 
subject to congressional control, and are entrusted to you only for use in handling this matter.  Any related documents communicated to us in response to this 
document or to any related House communications are also confidential congressional records and remain subject to congressional control.  Accordingly, the 
aforementioned materials are not "agency records" for purposes of the Freedom of Information Act or other law.   

 
 
From: Frederick.Vaughan@treasury.gov <Frederick.Vaughan@treasury.gov>  
Sent: Friday, June 21, 2019 1:13 PM 
To: McAfee, Karen <Karen.McAfee@mail.house.gov> 
Cc: Casey, Brandon <Brandon.Casey@mail.house.gov>; Andres, Gary <Gary.Andres@mail.house.gov>; Kaldahl, Rachel 
<Rachel.Kaldahl@mail.house.gov>; Justin.Sok@treasury.gov; Leonard.T.Oursler@irs.gov 
Subject: RE: Today's Briefing on Mandatory Audit Process 
 
Karen 
 
To clarify, IRS attendees spent an hour providing the prepared briefing and two hours answering questions—the 
approximately 40 total minutes of break time you referenced was in addition to this. 
 
Regarding follow up, thank you for sharing the questions that Committee staff prepared in advance of the briefing. We 
answered many of those questions at the briefing. Please let us know which of the questions you would like us to 
prioritize. Some of the information may take time to track down, but we will do our best to locate what we can as 
expeditiously as possible. 
 
With respect to 6103 information, the “agent” letters that you sent us over the weekend before the Monday briefing 
(though they were dated earlier) were insufficient to authorize the disclosure of any 6103 information. While those 
letters designated staff to receive returns and return information pursuant to section 6103(f)(4), they did not specify 
what information was requested by the Chairman, as required by section 6103(f)(1). Because section 6103(f)(1) requires 
a written request from the Chairman specifying the information sought, staff questions seeking to elicit 6103 
information at the briefing could not be answered. 
 
1

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 407 of 413
Best, Fritz 
 
From: McAfee, Karen <Karen.McAfee@mail.house.gov>  
Sent: Thursday, June 13, 2019 6:39 PM 
To: Vaughan, Frederick <Frederick.Vaughan@treasury.gov> 
Cc: Casey, Brandon <Brandon.Casey@mail.house.gov>; Andres, Gary <Gary.Andres@mail.house.gov>; Kaldahl, Rachel 
<Rachel.Kaldahl@mail.house.gov>; Sok, Justin <Justin.Sok@treasury.gov>; Oursler Leonard T 
<Leonard.T.Oursler@irs.gov> 
Subject: FW: Today's Briefing on Mandatory Audit Process 
 
Fritz, 
 
Thank you for the follow‐up letter and electronic materials.  Yes, the briefing was three hours, with nearly one hour 
spent walking through the IRM materials you provided and with a long, and necessary, break to accommodate 
staff.  Despite its length, I would not classify it as thorough.   
 
I also do not agree that the briefing answered most of our questions.  Although some questions were addressed, IRS and 
Treasury attendees declined to answer the majority of questions for a range of reasons, including (1) lack of 
authorization under section 6103 despite Republican and Democratic Committee staff having 6103 authorization from 
the Chairman and your knowledge of the limitations placed on return information when only a few taxpayers are 
involved, (2) objections raising various privileges, (3) inability to evaluate tax policy considerations, and (4) lack of 
awareness of specific internal policies and practices.  Notably, of the eight IRS and Treasury attendees present at the 
briefing, there was not one person who was or is involved in, or was or is an examiner for, a mandatory presidential 
audit.  We also found various, important instances where IRS practice did not conform to procedures outlined in the 
Internal Revenue Manual.  The briefing reinforced our concerns about the substantial discretion a single IRS revenue 
agent possesses in conducting the audit of presidential returns and the absence of guardrails to ensure that such 
employee is not subject to undue influence by a president or his representatives.  The absence of direction on the scope 
of an audit and handling of a grantor trust, among other things, reinforce the need for oversight and codification of 
procedures related to the mandatory examination of a president’s return.   
 
As requested by you during the briefing, I am enclosing a copy of the written questions that Committee staff prepared in 
advance for our use at the briefing.  We also discussed possibly having a follow‐up briefing.  However, it seemed to be 
your position and that of Chief Counsel Mike Desmond and Counselor to the Commissioner Tom Cullinan that there was 
a hard and fast rule not to discuss any 6103 information related to the mandatory audit process despite Committee staff 
having authorization.  This rule seemed to be in place when we asked questions about current and former Democratic 
and Republican presidents.  Given the small universe of President‐taxpayers, substantial discretion during the audit, and 
audit practices that do not match IRM procedures, the Committee needs access to returns and return information in 
order for it to fulfill its legislative and oversight activities.  Please confirm whether any follow‐up briefings will provide 
return and return information. 
 
Thanks, again, for the briefing.  Please let me know if you need anything further. 
 
Best, 
Karen  
 
 
From: Frederick.Vaughan@treasury.gov <Frederick.Vaughan@treasury.gov>  
Sent: Monday, June 10, 2019 2:12 PM 
To: Casey, Brandon <Brandon.Casey@mail.house.gov>; McAfee, Karen <Karen.McAfee@mail.house.gov> 
Cc: Andres, Gary <Gary.Andres@mail.house.gov>; Kaldahl, Rachel <Rachel.Kaldahl@mail.house.gov>; 
Justin.Sok@treasury.gov; Leonard.T.Oursler@irs.gov; LegAffairs@treasury.gov 
Subject: Today's Briefing on Mandatory Audit Process 
2

 Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 408 of 413
 
Brandon and Karen 
 
Attached is a letter from me, as well as copies of the slide deck and tabbed materials from the briefing. Please let us 
know if you need additional copies of the other historical materials we provided in binders. 
 
Best, Fritz 
 
-Frederick W. Vaughan
Deputy Assistant Secretary
Legislative Affairs
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
202-622-2678

 

3

 Case Document 44-3 Filed 09/06/19 Page 409 of 413

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-3 Filed 09/06/19 Page 410 of 413
Vaughan, Frederick
From:
Sent:
To:
Cc:
Subject:
Attachments:

McAfee, Karen <Karen.McAfee@mail.house.gov>
Friday, June 28, 2019 5:10 PM
Oursler Leonard T; Vaughan, Frederick
Sok, Justin; Robert.B.Chapman@irs.gov
WM Letter to IRS/Treasury
WM Letter to Treasury 6.28.19.pdf; ATT00001.htm

Hi Lenny and Fritz,
I hope all is well. Please find attached a letter from Chairman Neal to the Commissioner and Secretary. Please
confirm receipt. Have a great weekend!
Best,
Karen

Karen B. McAfee
Staff Director, Subcommittee on Oversight
Committee on Ways & Means, Democratic Staff
1102 Longworth House Office Building
Washington, DC 20515
(202) 225-3625
This document and any related communications or documents generated by the Committee on Ways and Means
are confidential congressional records, remain subject to congressional control, and are entrusted to you only for use in handling this
matter. Any related documents communicated to us in response to this document or to any related House communications are
also confidential congressional records and remain subject to congressional control. Accordingly, the aforementioned materials are not
"agency records" for purposes of the Freedom of Information Act or other law.

1

 Case Document 44-3 Filed 09/06/19

RICHARD E. NEAL.
MASSACH USE ITS.
CHAIRMAN

JOHN LEWIS. GEORGIA

LLOYD TEXAS

MIKE THOMPSON. CALIFORNIA
JOHN B. LARSON, CONNECTICUT
EARL BLUMENAUER, OREGON
RON KIND. WISCONSIN

BILL PASCREI.L JR.. NEW JERSEY
DANNY K. DAVIS, ILLINOIS
LINDA T. SANCHEZ. CALIFORNIA
BRIAN HIGGINS. NEW YORK
TERRI A. SEWELL. ALABAMA
SUZAN DELBENE, WASHINGTON
JUDY CHU, CALIFORNIA

GWEN MOORE. WISCONSIN

DAN KILDEE, MICHIGAN
BRENDAN BOYLE. 
DON BEYER. VIRGINIA

DWIGHT EVANS, 
BRAD SCHNEIDER, ILLINOIS

TOM SUOZZI, NEW YORK

JIMMY CALIFORNIA
STEPHANIE MURPHY. FLORIDA
GOMEZ. CALIFORNIA
STEVEN HORSFORD. NEVADA

BRANDON 
MAJORITY STAFF DIRECTOR

The Honorable Steven T. Mnuchin

Secretary

Department of the Treasury
1500 Avenue, NW
Washington, DC. 20220

@nngreas at the Snitch States
23131.9. 31301152 of Representatives

COMMITTEE ON WAYS AND MEANS

1102 LONGWOFITH HOUSE OFFICE BUILDING
(202) 225?3625

??llasbingtun, EDIE 20515?0348

http:ffwaysandmeanshousegov

June 28, 2019

Commissioner

Dear Secretary Mnuchin and Commissioner Rettig,

Page 411 of 413

KEVIN BRADY.
TEXAS.
RANKING MEMBER

DEVIN NUNES. CALIFORNIA
VERN BUCHANAN, FLORIDA
ADRIAN SMITH, NEBRASKA
KENNY MARCHANT, TEXAS
TOM REED, NEW YORK

MIKE KELLY. 
GEORGE HOLDING, NORTH CAROLINA
JASON SMITH. MISSOURI
TOM RICE. SOUTH CAROLINA
DAVID SCHWEIKERT. ARIZONA
JACKIE WALORSKI, INDIANA
DARIN LAHOOD. ILLINOIS
BRAD R. WENSTRUP. OHIO
JODEY ARRINGTON, TEXAS
DREW FERGUSON, GEORGIA
RON ESTES, KANSAS

GARY ANDRES,
MINORITY STAFF DIRECTOR

The Honorable Charles P. Rettig

Internal Revenue Service
11 1 1 Constitution Avenue, NW
Washington, DC. 20224

The Committee on Ways and Means (?Committee?) has oversight and legislative

authority over the Internal Revenue Service and the Federal tax laws. Consistent
with this authority and the Committee?s longstanding practice under section 6103(f) of the
Internal Revenue Code I requested six years of President Trump?s individual tax
returns and certain related returns and return information. Upon the denial of that section
6103(f) request, I issued subpoenas for the information. To date, you have not complied
with those subpoenas.

As you are aware, on June 10, 2019?in response to your offers to provide the
Committee with additional information on the mandatory Presidential audit
process outlined in the Internal Revenue Manual brie?ng was provided by
of?cials from the IRS and the Department of the Treasury (?Treasury?). It included a
walk-through of the applicable IRM provisions and a high-level description of some ways
in which current audit practices diverge from the IRM because, as Treasury and IRS
of?cials noted, the provisions are four decades old and are now ?outdated? in numerous
respects.

Regrettably, of the eight Treasury and IRS of?cials sent to the brie?ng, none had
ever been involved in a mandatory Presidential audit. Further, despite letters I sent
speci?cally authorizing Majority and Minority Committee staff to receive return and return
information in connection with the brie?ng, the IRS and Treasury declined to answer any
questions asked by Committee staff related to the actual audits of multiple prior Presidents

Case Document 44-3 Filed 09/06/19 Page 412 of 413

Secretary Mnuchin
Commissioner Rettig
Page 2

across both political parties, including basic questions about whether Presidential returns
have ever been ?led electronically, how long Presidential audits generally take, whether
there ever have been any assessments made to Presidential returns, or whether any
President-taxpayers have ever gone to IRS Appeals from a mandatory audit. In total,
Majority and Minority Committee staff raised a few hundred questions, most of which
Treasury and IRS declined to answer.

The June 10 brie?ng only reinforced the Committee?s need to review the actual
return information as part of our oversight duties. For example, the brie?ng highlighted
the substantial discretion a single IRS revenue agent possesses in conducting an audit of a
President?s tax returns, raising serious concerns about the absence of safeguards protecting
both the individual auditor as well as the entire audit process from improper in?uence. The
brie?ng also raised concerns uniquely and directly relevant to the thoroughness of the
Presidential audit process as applied to this President, including how related-entity returns
and returns previously under audit have been considered and how highly complex returns
are examined. The of?cials at the brie?ng reported that there are no speci?c mandatory
audit procedures for a President?s grantor trusts. This Committee is charged with
conducting oversight of precisely these types of questions, and the answers can only be
determined by reviewing the returns and audit ?le information that the IRS and Treasury
have thus far refused to provide.

The limited information conveyed at the brie?ng is not a replacement for the actual
return and return information that the Committee requested under section 6103(f) and now
has subpoenaed. As I have explained in our prior correspondence, the Committee is
conducting oversight of the handling of Presidential tax returns and enforcement of
tax laws involving the President. As part of that investigation, the Committee is examining
the administration of the mandatory Presidential audit process and the application of
that audit process to the tax returns of President Trump and certain related entities. Indeed,
the President himself repeatedly has called into question the integrity of the audit
system, including by criticizing the mandatory audit process as ?extremely unfair.? The
Committee is also considering the adequacy of the review of particular provisions of
the Code that testimony before the Oversight Subcommittee has indicated may be relevant
to President Trump?s returns.

Without studying the returns and the documentation of the agent?s decisions that
were requested, the Committee cannot evaluate the accuracy of the President?s claims
about the audit system, assess the fairness and effectiveness of the audit program and the
scope of the audits being performed on the President?s returns, or understand how
particular provisions of the Code are being enforced as part of the review. Each of
these will inform the Committee?s legislative judgment of whether and how to amend the
Code to respond to issues concerning the audit process or that are otherwise implicated by
the President?s returns.

Case Document 44-3 Filed 09/06/19 Page 413 of 413

Secretary Mnuchin
Rettig
Page 3

The subpoenas issued to the IRS and Treasury on May 10 remain pending, and you
remain under a legal obligation to provide this information to the Committee. Thank you

for your prompt attention to this matter.

Sincerely,

Vial/342%

TWnorable Richard E. Neal, Chairman

Case Document 44-4 Filed 09/06/19 Page 1 of 82

DECLARATION OF SUNITA LOUGH

I, Sunita Lough, under penalty of perjury under the laws of the United States of America, I
including 28 U.S.C. 1746, declare as follows:

BACKGROUND

1. I am employed by the Internal Revenue Service (IRS) as a Senior Advisor in the
Office of the Deputy Commissioner for Services and Enforcement. in Washington, DC.

2. The statements made herein are based on information made available to me in the
course of carrying wit my duties and responsibilities for the IRS.

I have worked for the IRS for more than 24 years, previously serving as the
Commissioner of the Tax Exempt and Government Entities (TEGE) Division, the executive 
project lead for the Tax Reform Implementation Of?ce, the Director of Pre??ling and Technical
Guidance (PFTG) and Deputy Director of PFTG in the Large Business and International

. Division, the Director of Exempt Organizations Examinations, and the Director of Federal, State
and Local Governments in TEGE.

4. Effective October 1, 2019,.1 have been appointed the Deputy Commissioner for
Services and Enforcement (DCSE) for the IRS.

5. The DCSE is a career-executive position that oversees the four taxpayer-focused
IRS operating divisions (Wage Investment, Large Business International, Small
Business/Se1f~Employed and Tax Exempt and Government Entities) The DCSE also oversees
the IRS Criminal Investigation Division, the Of?ce of Professional Responsibility, Online
Services, the Return Preparer Of?ce and the IRS Whistleblower Of?ce.

6. I Submit this declaration in support of the Defendants? motion to dismiss the
above?captioned case.

OVERVIEW OF MANDATORY AUDIT PROCESS
FOR SITTING PRESIDENTS AND VICE PRESIDENTS

7. Since 1977, the IRS has conducted mandatory examinations of the federal 1ncome
tax returns filed by sitting Presidents and Vice Presidents of the United States (hereinafter,
I Of?ceholders).

8. The mandatory examinations are conducted by experienced, career IRS revenue
agents. 

Case Document 44-4 Filed 09/06/19 Page 2 of 82

9. Revenue agents are required to apply IRS examination procedures and applicable
provisions of tax law objectively. See IRM 1.2.1.5.5, Policy Statement 4-7, Impartial
Determination of Tax Liability. 

10. Efforts by certain Executive Branch employees to in?uence the examination
process are prohibited-by law and subject to mandatory disclosure to the Treasury Inspector
General for Tax Administration (hereinafter, TIGTA), which was established in 1999 in
accordance with the IRS Restructuring and Reform Act of 1998 (RRA 98) to provide
independent oversight of IRS activities.

11. In the remainder of this declaration, I describe the history and operation of the
mandatory audit process.

FORMATION OF THE MANDATORY AUDIT PROCESS

12. In a memorandum dated June 6, 1977 (Exhibit A), the IRS set forth special
procedures for processing the income tax returns of the sitting President and Vice President and
for mandatory examinations of Officeholder returns.

13. The special processing and mandatory examination procedures were incorporated
into the Internal Revenue Manual (hereinafter, IRM) and are now set forth in IRM 3.28.3
(Special Processing Procedures) (Exhibit B) and IRM 4.2.1 (General Examination Procedures)
(Exhibit C). .

IMPARTIALITY IN THE AUDIT PROCESS

14. As noted above, the mandatory audit process for Of?ceholders is handled by I
career IRS employees and managers. . 

15. Revenue agents are IRS employees with substantial accounting skills who are
knowledgeable about?tax issues, amounting systems, and tax compliance programs relevant to
conducting federal tax examinations. 

16. If a revenue agent has any reason to believe that her impartiality and
independence may be questioned, the agent is instructed to discuss the matter with her immediate
supervisor for reassignment consideration. See IRM 1.2.13.1.4, Policy Statement 4?6; IRM 
4.10.223; IRM IRS Ethics Handbook, Chapter 5. I

17. External attempts to corrupt or threaten IRS employees in the performance of
their duties, including examining returns, are required to be reported to and inveStigated by
TIGTA, which is charged with providing independent oversight of IRS activities. See IRM
4.2.1.26; IRM IRM 4.75.5.2; IRM 4.90.6.8; IRM 95.11.24; and IRM 11.3.1.9.3.

2

Case Document 44-4 Filed 09/06/19 Page 3 of 82

18. Under IRS Policy Statement 4-7, it is the assigned revenue agent?s ?duty to
determine the correct amount of the tax, with strict impartiality as between the taxpayer and the
Government, and without favoritism or discrimination as between taxpayers.?

19. By statute, efforts by senior Executive Branch employees to influence the
examination process are prohibited and subject to mandatory TIGTA disclosure requirements.
See IRC 7217;

20.. More speci?cally, with narrow exceptions inapplicable to mandatory Of?ceholder
examinations, the President, Vice President, members of the Cabinet, members of the Executive
Of?ce of the President, and other senior Executive Branch of?cials are forbidden from
requesting ?directly or indirectly, any of?cer or employee of the Internal Revenue Service to
conduct or terminate any audit or other investigation of any particular taxpayerwith respect to
the tax liability of such taxpayer.? See IRC 7217. I

21. All relevant IRM provisions, including those related to orderly and impartial
administration of the audit process, apply to mandatory Of?ceholder examinations. See IRM


INITIAL PROCESSING OF RETURNS UNDER THE PROGRAM

22. The mandatory audit process for Of?ceholders begins with the ?ling of the
Of?ceholder?s tax return.

23. Tax returns?led in paper form:

a. If the Of?ceholder submits a paper income tax return, it is filed with the
AuStin SubmlissiOn Processing Campus, located in Austin, Texas.
See IRM 

b. Once received, the Of?ceholder?s return is initially processed by the
Austin Campus. See IRM 

c. After the original return is processed, it is delivered to the Of?ce of the
Deputy Commissioner for Services and Enforcement, which is staffed
entirely by career civil servants. See IRM 

d. The original return is secured and maintained by the Of?ce of the
Deputy CommissiOner as a permanent record of the United States. See
IRM 

Case Document 44-4 Filed 09/06/19 Page 4 of 82

24. Tax returns filed electronically:

a. If the Of?ceholder submits his income tax return electronically, the
return is processed in the same manner as all other electronically-?led .
individual income tax returns, including processing of payment or
refund and capturing information from the return for the account
records.

b. After the electronically-?led return is processed, a hard copy is printed
from the electronic record and delivered to the Of?ce of the Deputy
Commissioner for Services and Enforcement.

0. The paper copy of the original return is secured and maintained by the
Of?ce of the Deputy Commissioner as a permanent record of the United
States. I

25. Upon receipt, the Office Of the Deputy Commissioner for Services and
Enforcement, which acts on behalf of the Commissioner in establishing and tax
administration policy, provides a copy of the Of?ceholder?s return to the appropriate IRS
business division either Small Business/ Self Employed (SBSE) or Large Business 
International for examination, based on the complexity of the return and Whether the
Of?ceholder?s return (or a related return) is already under examination by one of the divisions
for prior years. See IRM 4.2.1.15.

26. Because they are subject to a mandatory examination, Of?ceholder returns are
excluded [from the normal Discriminant Index Function (DIF) selection procedures, which
govern the selection of other taxpayer returns for examination. See IRM IRM


IMMEDIATE POST-FILING ACTIVITIES

27. The head of the examinatiOn function or equivalent executive within the business
division to which the return is assigned determines the appropriate revenue agent group to
conduct the mandatory examination. See IRM 

28. Generally, the determination of the appropriate revenue agent group is determined
by the location of the Officeholder?s representative or the group that has a prior year or related
return under examination.

Case Document 44-4 Filed 09/06/19 Page 5 of 82

29. Once transmitted to a revenue agent group, the group manager must assign the
Of?ceholder?s return to a speci?c revenue agent for examination within 10 business days. See


COMPONENTS AND SCOPE OF PROCESS

30. There are four general components to the mandatory Officeholder examination
process: (1) audit planning (including scope determinations, preliminary research, and whether
special expertise may be required); (2) contact with the Of?ceholder?s representative to begin the
examination; (3) information gathering; and (4) exam determinations and response. -

Audit Planning

31. The scope and depth of the mandatory Of?ceholder examination is determined by
reference to established risk protocols, which are the same as are used in the examination of any
taxpayer.

32. A risk analysis of the return is undertaken by the examiner and issues are
prioritized based on their potential for audit adjustment. See IRM 4.10.2.7. .1.

33. In analyzing the return, examiners must use their professional judgment to set the
scope of the examination. Examiners should only work ?issues of merit and conclude the
examination when the issues no longer warrant examination.? See 4. 10.2.7. 

34. ?Examiners are expected to prioritize the issues with higher audit potential over
those with lower potential. Issues with little or no audit potential should not be selected for
examination.? IRM 

35. The goal of any examination is to determine the ?substantially Correct? tax
liability. See IRM 

36. . The initial examination scope determinations are revisited throughout the course
ofrthe mandatory examination and, at a minimum, must be considered the midpoint of the
examination? and ?[w]hen a signi?cant 'eVent occurs.? See IRM IRM


37. . When revisiting the initial scope determinations, ?[t]he examiner must consider
the facts and circumstances, evaluation of internal controls (in business examinations), and use
professional judgment to determine whether the scope should be expanded or contracted.? IRM
4.1 0.3 .2. .

Case Document 44-4 Filed 09/06/19 Page 6 of 82

38. Examiners must document the reasons for expanding or contracting the scope of
the examination. IRM 

39. Based on risk protocols, the scope of the mandatory examination can be expanded
to inelude prior year and related returns as well as other types of tax liabilities, such as gift tax
liabilities and employment tax liabilities with respect to household employees. See IRM
IRM 4.10.2.7.1.5. 

40. After the Of?ceholder?s return is assigned but prior to initial contact with the
Of?ceholder?s representative, the reVenue agent will risk assess the return and review any large,
unusual, or questionable items (hereinafter, LUQ items). IRM 4.10.2.3.

41. The IRM contains a checklist of issues that the revenue agent should consider in
the pre-contact analysis to determine whether an item on a return is an LUQ item. IRM


42. These issues include: the comparative size of the item; the absolute size of the
item; the inherent character of the item; evidence of intent to mislead; the bene?cial effect of the
manner in which an item is reported; the relationship to other items; whipsaw issues when
there is a transaction between two parties and characteristics of the transaction will benefit one
party and harm the other); and missing items. IRM 

43. The revenue agent will conduct ?preliminary research of the applicable IRC
sections, treasury regulations, rulings, and court cases concerning the proper tax treatment of a
particular issue? identi?ed in the preliminary analysis of the Of?ceholder?s return. IRM
4. 1 0.2.7.4.

44. This research assists the revenue agent in the development of speci?c interview
questions, determining poSsible audit procedures, and determining what information'should be
requested from the Of?ceholder. IRM 4.10.2.7.4. I

Contact with the Officeholder?s Representative

45. After completion of the planning phase, the Examination Area Director, or other
appropriate manager, then arranges for preliminary contact with the Of?ceholder?s authorized
representative. IRM IRM 

46. Following this initial manager contact, the assigned revenue agent separately
contacts the representative to initiate the mandatory examination, sending an initial contact letter.
IRM 4.10.2.8.1.2. A copy of a sample initial contact letter is provided as Exhibit D.

Case Document 44-4 Filled 09/06/19 Page 7 of 82

47. The initial contact letter must include IRS Publication _1 (Exhibit E), Your Rights
as a Taxpayer, and Notice 609, Privacy Act and Paperwork Reduction Act. IRM 

48. The letter will also provide contact information for the revenue agent?s manager
in the event that an issue needs to be elevated. IRM 

49. Separate initial contact letters are sent to the Of?ceholder and the Of?ceholder?s
spouse in the case of a joint return ?led under IRC 6013. Section 3201(d) of RRA 98.

50. The Of?ceholder, like any individual taxpayer, will have 14 days from the date of
the initial contact letter to respond to the revenue agent and schedule an initial meeting. IRM


51. After sending the initial contact letter, the revenue agent will schedule an initial
meeting with the Of?ceholder?s representative ?at an appropriate time that is agreeable to the
taxpayer? and generally ?within 28-35 calendar days of the mailing of the initial contact letter.?
IRM 4.10.2.8.12; IRM IRM 4.10.2.9.

Information Gathering

52. As part of the mandatory audit review process, the revenue agent will request
information books and records) from the Of?ceholder?s representative by issuing a Form
4564, Information Document Request. IRM 4.102.102. A sample Information Document

Request is provided as Exhibit F. 

53. i The Information Document Request ?will list the speci?c records, information,
and documents the Of?ceholder should have available at the initial interview.? IRM


54. If all information necessary to resolve the examination is not provided by the
Of?ceholder in response to Information Document Requests, the revenue agent may issue an
administrative summons, including a summons to a third party, such as a bank or other ?nancial
institution or the counterparty to a transaction involving the Of?ceholder. IRM 25.5.1.4.

55. In addition to document requests, the information-gathering process may include
interviews of the Of?ceholder, the person preparing the Of?ceholder?s return, or third parties
with knowledge of items reported on the return. See IRM 4.10.3.3; IRM 4.10.3.3.l.

Exam Determinations and Response

56. In conducting the examination, the revenue agent ?must exercise judgment in
determining the depth required for the examination,? ?the degree of intensity and

7

Case Document 44-4 Filed 09/06/19 Page 8 of 82

thoroughness applied in order to make a determination as to the accuracy of a reported item.?
IRM 4.10.213.

57. Factors that the revenue agent should consider in making the depth determination
include the ?type of evidence available or expected for the issue, complexity of the isSue,
materiality of issue, and internal Controls.? IRM 

58. ThroughOut the process, the revenue agent may request advice or guidance from
career attorneys in the Of?ce of Chief Counsel on any technical or procedural matter related to
the tax liability of the Of?ceholder. IRM 4.2.3.3.1; see also Chief Counsel Directives System
(CCDM) Part 33.1, Legal Advice. -

59. Area Counsel, the career ?eld attorney assigned to advise the requesting revenue
agent on an examination, may provide advice through consultation or by memorandum. IRM
4.2.3.3.1. 

60. Area Counsel may provide advice on, for example: the meaning, enforceability,
and effect of legal terms in a contract; the application of State laws to the elements of a contract;
information regarding applicable State statutes that relate to corporate existence and the status of
transferee assets; review of a case to ascertain favorable points, factual weaknesses, and/or
adverse circun?istances to the government?s case; evaluation of primary or secondary evidence in
a case, which would be useful in litigation and documentation of evidence; review of proposed
statutory notices of de?ciency; and advice related to the issuance and enforcement of a
summons. IRM 4.2.3.3.1.1.

61. The revenue agent may also seek assistance from a specialist in developing and
resolving complex issues. IRM 4.10.2.7.5.1.

62. Depending on the needs of a particular case, specialist assistance may take the
form of a referral (in which a specialist is formally assigned to the case), or informal advice by
the specialist to the revenue agent. IRM 

63. Specialists in this context include computer audit specialists, economists,
engineers, and actuaries, among others. ?When a specialist is involved in a case, the examiner
maintains control of the income tax return and its management.? IRM 4.10.2.7.5.4.

64. When a specialist provides assistance for a case, the specialist meets with the
revenue agent and the Of?ceholder?s representative (if apprOpriate) to discuss the issue on which
the specialist is providing assistance, the information the specialist needs, when the specialist

Case Document 44-4 Filed 09/06/19 Page 9 of 82

needs that information, and an estimated completion date of the specialist?s report. IRM


CONCLUSION OF THE EXAMINATION

. 65. After all the facts have been gathered through examination of the books, records
and supporting documents, and interviews, and the revenue agent has all the information to be
considered in resolving the issues, the revenue agent applies her professional judgment to arrive

at a conclusion regarding all items that were identi?ed for examination. IRM 

66. Revenue agents ?are expected to arrive at a de?nite conclusion by a balanced and
impartial evaluation of all of the evidence.? IRM 

67. The revenue agent is required to ?employ independent and objective judgment in
reaching conclusions on issues being examined and in all aspects of their duties,? and to ?decide
all matters on their merits, free from bias and con?icts of interest.? IRM 

68. IRM 4.1014(4) instructs that the fairness of the revenue agent?s conclusions will
be demonstrated by: making decisions impartially and objectively based on consistent
application of procedures and the applicable tax law; treating individuals equitably; being open-
minded and willing to seek out and consider all relevant information, including opposing
perspectives; voluntarily correcting mistakes and improprieties made by the revenue agent or
other IRS employees and refusing to take unfair advantage of mistakes or ignorance of
taxpayers; and employing open, equitable, and impartial processes for gathering and evaluating
information necessary to decisions. 

69. When the mandatory examination is complete, any proposed adjustments to the

Of?ceholder?s return are summarized and explained on IRS Form 4549, Income Tax
Examination Changes, or IRS Form 5701, Notice of Preposed Adjustment. Copies of the Form 
4549 and Form 5701 are providedas Exhibits and H. The revenue agent should solicit
agreement from the Of?ceholder (through the Of?ceholder?s representative) to any proposed
adjustments and attempt to secure agreement to the proposed tax liability. IRM 4.10.7.5.l(7)

APPEALS

70. The revenue agent must inform her group manager when the agent believes she
will be unable to reach agreement with the Officeholder on any aspect of the examination. IRM


71. I If there are unagreed issues, the revenue agent must issue a letter (see Exhibit 1)
Which transmits the examination report to the Of?ceholder?s representative and advises the
Of?ceholder of the Of?ceholder?s right to request consideration by the IRS Of?ce of Appeals

9

Case Document 44-4 Filed 09/06/19 Page .10 of 82

(hereinafter, Appeals), a right which must be exercised within 30 days following receipt of the
letter. IRM IRM 4.10.8.11; IRM 4.10.8.1 1.1.

72. Appeals is an independent organization within the IRS that helps taxpayers,
including OfficehOlders, resolve their tax disputes through an informal, administrative process.
See generally IRM 8.1.

73. Appeals?s mission is to resolve tax controversies, without litigation, on a basis
which is fair and impartial to both the Government and the taxpayer and in a manner that will
enhance voluntary compliance and public con?dence in the integrity and ef?ciency of the IRS.
IRM 

74. ?Appeals holds conferences to provide a meaningful opportunity for taxpayers to
present their position and to consider settlement proposals to resolve tax disputes.? IRM
Like any taxpayer, Officeholders, through their representatives, can present their
position to Appeals on an issue and have Appeals consider settlement proposals.

75. If a basis for settlement is not reached, Appeals will issue a statutory notice of
de?ciency (90?day letter) (see Exhibit 1) to the Of?ceholder. IRM 

76. The Officeholder may thereafter petition the United States-Tax Court for
independent judicial review. See IRC 6212 and 6213.

77. Of?ceholders may also pay the amount due, ?le a claim for refund, wait for the.
claim to be acted on, or passage of time (six months after the ?ling of a claim for refund), and
file suit in United States District Court or the United States Court of Federal Claims. See IRC 
7422. 

78. The foregoing facts are known by me to be true to the best of my knowledge and
belief based on information made available to me in the course of carrying out my duties and
responsibilities for the IRS. I am competent to testify to such facts, and would so testify if I
appeared in court as a witness on this matter.

I declare under penalty of perjury that the foregoing is true and correct.
C.)
Date Sunita Lough
Senior Advisor
Of?ce of the Deputy Commissioner for

Services and Enforcement
Internal Revenue Service

10

Case Document 44-4 Filed 09/06/19 Page 11 of 82

EXHIBIT A



. Document 44-

- 


_lntemal Revenue Service

memorandum

. 

I.

toe-All Regional Coumiseicners

from: Deputy Cmeessm

subject: Processing Returns and Accomts of

 



the Presidmt and Vice Presidmt:

es be
discontinue then.

For you: Morale-Aden, the procees' guidelines
re lace the former special procedures. mg

All prior mrmde on this
ject no longer have effect.

1. All tax returns for the President and Vice President will
receive nonnal pipeline processing through the service center. In
the case of individual income tax reams, however, the 1t-a'hereebouts
of the reth-n will bemnitored at: all times during processing. -
After cmpletion of processmg. the income tax re

Will be foam-deed
(in double sealed mvelc1pes) to the Deputy Comnissimer.

3. Individual incane tee; realms for the Presidcmt- and Vice
Presidmt will ory audit excunhmtion. The district 

. by tlge Deputy

Any line marked wi th -
- is for Official Use 05111;:



 

 

 

I-.






. 7t



eC'as? Document 44-4 Filed 09/06/19 Page 13 of 82

. . 1.327; I

All Regional ioners



a. Regardless of DIF score, the return will be
entwined. I. .

b. Personnel should be assigned to the eneminatim'

as necessary, including specialists, to oonductthe audiemk 

. e. District Director. or ckeeignee;__should arrange
?zz-awe: with the authorized representative fort-he beginning
0 audit. - 

d. All current prescribed Internal Revenue I-iznual 
procedures. requesting technical assistance, information
from other agencies, etc., will'apply in these: as-in all other
cases. 

e. The return copies and any related returns examined 
concurrentl . as well as the relevant workpapers and emanation

reports, 1 be subject to regular filing and retention procedures.

.4. Gift (and/or Estate) tax returns will be examined in
accordance with relating to all taaqxayers.


W. E.- William
(6?6-77) 

I.

These instructions will be reissued in the lR,Menual and . - A

Law Enforcement Manual in accordance with IBM 1254.

Any line marked with a q?
is for Official Use Only

?.In

 

 

 

Case Document 44-4 Filed 09/06/19 Page 14 of 82

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 15 of 82

MANUAL
TRANSMITTAL

3.28.3

Department of the Treasury

OCTOBER 31, 2018

Internal Revenue Service

EFFECTIVE DATE
(01-01-2019)
PURPOSE
(1)
This transmits revised IRM 3.28.3, Special Processing Procedures - Individual Income Tax Returns.
MATERIAL CHANGES
(1)
Minor editorial changes throughout.
(2)

IRM 3.28.3.1 Added new Program Scope and Objectives

(3)

IRM 3.28.3.2 Updated Introduction to place the President and Vice President returns are placed as
permanent records by the National Archives.

(4)

IRM 3.28.3 Added new Acronyms Chart

(5)

IRM 3.28.3.4.1 Updated to forward the original income tax return in double sealed envelopes

(6)

IRM 3.28.3.5.1 Corrected from Appendix to Title 5 to Appendix 4 to Title 5 in several sections

(7)

IRM 3.28.3.5.2.1 Deleted alpha list and created numeric listing

(8)

IRM 3.28.3.5.2.2 Added Code and Edit should review Form 2848 for completeness

EFFECT ON OTHER DOCUMENTS
IRM 3.28.3, dated November 02, 2017 effective January 1, 2018 is superseded.
AUDIENCE
Wage and Investment Submission Processing Campus personnel

Linda J. Brown
Director, Submission Processing
Wage and Investment Division

Cat. No. 34521K (10-31-2018)

Internal Revenue Manual

3.28.3

 Case Document 44-4 Filed 09/06/19 Page 16 of 82

Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 17 of 82
Part 3
Chapter 28 Special Processing Procedures

IRM 3.28.3

Manual
3.28.3 Transmittal
Individual Income Tax Returns

Table of Contents

Table of Contents

3.28.3.1

Program Scope and Objectives

3.28.3.2

Introduction

3.28.3.3

Deviations From This Internal Revenue Manual (IRM)

3.28.3.3.1
3.28.3.4

Acronyms

Processing Returns and Accounts of the President and Vice President

3.28.3.4.1

Individual and Gift Tax Return Processing

3.28.3.4.2

Account Data Storage and Access

3.28.3.4.3

Mandatory Examination

3.28.3.5

Blind Trust Form 1040 Returns

3.28.3.5.1

General Information and Instructions

3.28.3.5.2

Blind Trust Tax Return Processing

3.28.3.5.2.1

Document Perfection Procedures

3.28.3.5.2.2

Accounts Management Centralized Authorization File (CAF) Procedures - Processing the
Power of Attorney (POA)

Cat. No. 34521K (10-31-2018)

Internal Revenue Manual

3.28.3

 Case Document 44-4 Filed 09/06/19 Page 18 of 82

Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 19 of 82

Individual Income Tax Returns
3.28.3.1
(01-01-2019)
Program Scope and
Objectives

3.28.3

page 1

(1) Purpose: This Internal Revenue Manual (IRM) provides instructions for processing returns and the accounts of the President and Vice President of the
United States of America.
(2) Audience: This IRM is used by tax examiners and clerks in Austin Submission
Processing site.
(3) Policy Owner: The Director of Submission Processing (SP)
(4) Program Owner: Wage and Investment (W&I)
(5) Primary Stakeholders: Other areas that may be affected by these procedures
include (but not limited to):
•
•
•

Information Technology (IT) Programmers
Chief Counsel
Submission Processing

(6) Program Goals: The goal of this IRM is to provide instructions to process the
tax returns and accounts of the President and Vice President of the United
States of America.
(7) Annual Clearance of IRM: This IRM is updated and published annually after
review and concurrence by affected offices according to the clearance process
established in IRM 1.11.9 Internal Management Documents, Clearing and
Approving Internal Management Documents
3.28.3.2
(01-01-2019)
Introduction

(1)

This section of the Internal Revenue Manual (IRM) provides instructions for
processing:
•
•

The tax returns and accounts of the President and Vice President of the
United States of America.
The tax returns of political appointees who have their assets placed in a
qualified blind trust as defined by section 102(f)(3) of the Appendix to
Title 5 of the United States Code (or any successor provision of the
United States Code).

(2)

These procedures apply to all functions within the campuses.

(3)

The tax returns of the President and Vice President will be mailed to the Field
Director, Austin Submission Processing Campus.

(4)

The Field Director of Austin can designate the walk- through processing of
the President and Vice President’s returns to a subordinate. This person must
make sure that the original returns are not unnecessarily folded or bent, and
the edit marks and stamps are neatly placed on the returns, since they are
deemed permanent records by the National Archives.

(5)

When filing a political appointee’s tax return, the trustees of to a qualified blind
trust as defined by section 102(f)(3) of the Appendix 4 to Title 5 of the United
States Code (“blind trust”) are to follow the “Where to File” Instructions for
Form 1040 and file the tax return at the appropriate campus based on the appointee’s address.

(6)

The President, Vice President, or any political appointee who has placed his/
her assets in a blind trust must request permission for the trustee to prepare
and file their individual tax return. The request for permission must be in

Cat. No. 34521K (10-31-2018)

Internal Revenue Manual

3.28.3.2

 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 20 of 82
page 2

3.28

Special Processing Procedures

writing and be submitted with the tax return and a properly executed Form
2848, Power of Attorney and Declaration of Representative. Permission for the
trustee to prepare and file the return will be granted automatically on receipt of
the required documents. The IRS does not send an approval letter to the
President, Vice President, political appointee or trustee.
3.28.3.3
(1) Service Center Directors, Headquarter Branch Chiefs, and Headquarter
(01-01-2019)
Analysts do not have the authority to approve deviations from IRM procedures.
Any request for an exception or deviation to an IRM procedure must be
Deviations From This
Internal Revenue Manual
elevated through appropriate channels for executive approval. This will ensure
(IRM)
that other functional areas are not adversely affected by the changes and that
it does not result in disparate treatment of taxpayers.

3.28.3.3.1
(01-01-2019)
Acronyms

(2)

See guidelines in IRM 1.11.2, Internal Management Documents System,
Internal Revenue Manual(IRM) Process. Request for an IRM deviation must
be submitted in writing and signed by the Field Director, following instructions
from IRM 1.11.2.2.4.

(3)

Any disclosure issues will be coordinated by the Program Owner. No deviations can begin until they are reviewed by the Program Owner and approved at
the Executive Level. All requests must be submitted to the Submission Processing Headquarters IRM Coordinator.

(1)

An acronym is an abbreviated word formed from the initial letter or letters of
each major part of a compound term, such as IDRS for Integrated Data
Retrieval System.

(2)

A list of some of the acronyms and definitions used in this IRM are listed in the
chart below.
ACRONYM

3.28.3.3

DEFINITION

CAF

Centralized Authorization File

DIF

Discriminant Index Function

IDRS

Integrated Data Retrieval System

IRM

Internal Revenue Manual

IT

Information Technology

POA

Power of Attorney

SB/SE

Small Business/Self-Employed

SP

Submission Processing

W&I

Wage & Investment

Internal Revenue Manual

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 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 21 of 82

Individual Income Tax Returns

3.28.3

page 3

3.28.3.4
(1) Follow the instructions in this subsection of the manual when processing the
(01-01-2019)
individual tax returns and accounts of the President and Vice President of the
Processing Returns and
United States in office at the time of filing.
Accounts of the
(2) This IRM provides procedures for:
President and Vice
President
•
Individual and Gift Tax Returns Processing
•
Account Data Storage and Access
•
Mandatory Examination
3.28.3.4.1
(01-01-2019)
Individual and Gift Tax
Return Processing

(1)

Follow the normal return-processing procedures for all tax returns of the
President and Vice President of the United States.

(2)

Maintain the privacy of the tax return of the President and Vice-President at all
times during processing.
•
•

Ensure that other employees in the immediate area cannot view the
returns.
Keep the returns locked in a secure drawer or cabinet while you are
away from your work area and the returns are still under your control.

(3)

Once the individual income tax return has posted, make a photocopy of the
return and stamp “COPY” in the top margin of the copy. Route the copy to
Files.

(4)

Forward the original processed individual income tax return in double-sealed
envelopes to prevent any damage to the return to:
Internal Revenue Service
Deputy Commissioner for Services and Enforcement
1111 Constitution Ave NW, Room 3000 IR
Washington, DC 20224

(5)

The tax returns of both the President and Vice President are permanent
records under the Records Control Schedules Document 12990, RCS 8, Item
12, since they are deemed permanent records by the National Archives.

(6)

Process gift tax returns in accordance with the same procedures relating to all
taxpayers.

3.28.3.4.2
(01-01-2019)
Account Data Storage
and Access

(1)

Carry the account data of the President and Vice President on the appropriate
Master File.

(2)

Do not subject the accounts to restricted access procedures.

3.28.3.4.3
(01-01-2019)
Mandatory Examination

(1)

Individual income tax returns for the President and Vice President are subject
to mandatory examinations. See IRM 4.2.1.11, Processing Returns and
Accounts of the President and Vice President.

(2)

The Small Business/Self-Employed (SB/SE) Director of Examination will
determine the area office responsible for the examination of the return.

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Internal Revenue Manual

3.28.3.4.3

 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 22 of 82
page 4

3.28
(3)

Copies of the returns to be examined will be transmitted after the examining
office with jurisdiction is selected. Copies of returns must bear the word Copy
in the top right margin. The transmittal memorandum will contain the following
directions:
a.
b.
c.

d.
e.

3.28.3.5
(01-01-2019)
Blind Trust Form 1040
Returns

Special Processing Procedures

Regardless of the Discriminant Index Function (DIF) score, the returns
will be examined.
IRS personnel, including specialists, will be assigned to the examination
as appropriate.
The Examination Area Director, or his/her designee, will arrange for
contact with the authorized representatives of the President and Vice
President for the beginning of the examination.
All relevant IRM procedures will apply to these return examinations.
The examination papers of the President and Vice President are subject
to regular retention procedures Document 12990, RCS 23, Item 43a.

(1)

Follow the instructions in this subsection of the IRM when processing blind
trust individual income tax returns.

(2)

The instructions include the following procedures:
•
•
•
•

General Information and Instructions
Blind Trust Tax Return Processing
Document Perfection Procedures
Accounts Management Centralized Authorization File (CAF) Procedures
- Processing the Form 2848

3.28.3.5.1
(1) The President, Vice President, or a political appointee will be considered to
(01-01-2019)
have shown good cause for receiving permission and will automatically be
General Information and
granted permission to have their return filed by a trustee when both of the
Instructions
following conditions are met:
a.

b.

The President, Vice President, or political appointee has an interest in a
blind trust that meets the requirements of Section 102(f)(3) of the
Appendix 4 to Title 5 of the United States Code (USC) or any successor
provision of the USC.
The President, Vice President, or political appointee in accordance with
Rev. Proc. 2010–11 submits with the income tax return both a letter requesting permission for the trustee to prepare and file the income tax
return on behalf of the eligible individual and a power of attorney.

Note: A separate request must be made for each tax year (tax period).
(2)

The trustee must attach both of the following to their filed return:
•
•

(3)

3.28.3.5

A letter requesting permission for the trustee to prepare and file the
President’s, Vice President’s, or political appointee’s return.
A valid power of attorney authorizing the trustee to represent the
taxpayer that includes a statement specifically authorizing the trustee to
prepare and file the taxpayer’s return on behalf of the taxpayer.

The IRS must use extreme caution not to violate a blind trust.

Internal Revenue Manual

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 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 23 of 82

Individual Income Tax Returns
a.
b.
(4)

3.28.3

page 5

Address all correspondence and refunds concerning the blind trust tax
return to the authorized trustee.
Do not disclose any information regarding the source(s) or nature of the
blind trust income to the taxpayer.

Generally, the taxpayer’s name will be in the Entity, but the address will belong
to the trustee to ensure that any correspondence and/or refund is mailed only
to the trustee. Any attached Power of Attorney (POA) should be reviewed for
completeness using the criteria in IRM 3.28.3.5.2.1, Document Perfection Procedures by the Code and Edit tax examiner, then faxed to the Ogden CAF Unit
to be posted.

(5) Do not disclose information regarding the source of the blind trust income if
contact with the taxpayer is ever required.
3.28.3.5.2
(01-01-2019)
Blind Trust Tax Return
Processing

(1)

Blind Trust returns can generally be identified by the presence of any of the
following:
•
•
•
•
•

(2)

The letter requesting permission and the POA must be attached to the return.
It is the responsibility of the Code and Edit tax examiner to determine that the
POA is complete before routing it to the Ogden CAF Unit. If the POA is already
posted, the Code and Edit tax examiner should ensure that the Blind Trust Authorization Indicator is posted on the account. See IRM 3.28.3.5.2.1, Document
Perfection Procedures.

(3)

If the Form 2848 is an original, or the CAF needs to be updated with the Blind
Trust Authorization Indicator, the Code and Edit tax examiner will:
a.
b.
c.
d.
e.

3.28.3.5.2.1
(01-01-2019)
Document Perfection
Procedures

The notation “Blind Trust” in the signature area
An income statement or schedule indicating “Income from Blind Trust”
A trust agreement which specifies “Blind Trust”
A POA attached indicating “Blind Trust,” or posted to the CAF with a
Blind Trust Authorization Indicator or
A letter requesting permission for the trustee to prepare and file the
President’s, Vice President’s or political appointee’s return

Perfect the Form 2848. See IRM 3.28.3.5.2.1(3) for specific procedures
Call the Ogden CAF Unit Manager to alert him/her that they are faxing a
POA for a “Blind Trust” to the unit
Edit “Blind Trust” in the top margin of the Form 2848
Fax the original Form 2848 to the Ogden CAF Unit
Staple the Form 2848 to the back of the return

(4)

If the request letter is attached and the POA is posted correctly, continue processing the return. Leave the request letter (and any POA) attached to the
return.

(5)

If the POA is posted to the CAF, but the Blind Trust Authorization Indicator
needs updating, refer to IRM 3.28.3.5.2.1(6) for instructions on how to contact
the Ogden CAF Unit to update that field.

(1)

Determine that the letter requesting permission for the trustee to prepare and
file the President’s, Vice President’s, or political appointee’s return is present
and the POA is attached when “blind trust” is indicated on the return.

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Internal Revenue Manual

3.28.3.5.2.1

 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 24 of 82
page 6

3.28

Special Processing Procedures

Note: The POA authorization may be contained in the trust agreement when a
blind trust agreement is attached. If all of the items required to be included
in a valid POA authorization, including the specific acts, are listed in the blind
trust agreement, then it is acceptable. Edit the taxpayer’s name and social
security number (SSN), and “See Attached” on a Form 2848. Then, fax the
“Form 2848” package to the Ogden CAF Unit for processing.
(2)

If a Form 2848 is attached, check Command Code (CC) CFINK to determine if
it is an original or copy of the POA. If the CAF is up to date (including the
blind trust Authorization Indicator), then continue processing the return and
leave the copy of the Form 2848 attached to the return.

(3)

If an original Form 2848 is attached to the return, the Code and Edit tax
examiner will edit “BLIND TRUST” in the top-center margin of the Form 2848
and ensure that the following applicable parts of the Form 2848 are completed.
a.
b.
c.
d.
e.

•
•
•
•
f.
g.

h.
i.

(4)

Waiver of restriction on assessment or collection
Waiver of notice of disallowance
Consent to extend the period for assessment or collection
Closing agreement
Line 5b - Specific acts not authorized - Should be blank.
Line 6 - Retention/revocation of prior power(s) of attorney: If the box
is checked, research CC CFINK to determine if it should have been
checked.
Line 7 - Signature of taxpayer(s) and date: The signature of the
taxpayer(s) and the date is required.
Part II - Declaration of Representative: Designation, jurisdiction,
signature, and date of agent is required. Correspond with the agent if this
is missing.

If the Form 2848 is complete:
1.

2.
3.

3.28.3.5.2.1

Line 1 - Taxpayer information: Taxpayer name(s) and address, SSN(s).
Line 2 - Representative(s): Representative(s) name(s) and address,
CAF number, telephone number.
Line 3 - Acts authorized: Description of matter (type of tax form number
(e.g., Form 1040), tax period (must be only ONE tax period)
Line 4 - Specific use not recorded on Centralized Authorization File
(CAF): Box should be checked.
Line 5a - Additional acts authorized - Sign a return box should be
checked. A statement should be included granting the trustee permission
to sign the tax return. “This power of attorney is being filed pursuant to
Treasury Regulation section 1.6012-1(a)(5), which requires a power of
attorney to be attached to a return if a return is signed by an agent by
reason of specific permission granted by IRS” Line 5a may also
include the following authorizations:

Detach the Form 2848 from the return and call the Ogden CAF Unit
Manager to notify him/her that you are faxing a blind trust POA for
expedite processing
Fax the original Form 2848 to the Ogden CAF unit.
Upon acknowledgement of receipt from the Ogden CAF Unit Manager
that the POA was input correctly to the CAF, staple the Form 2848 to the
back of the return and continue processing.
Internal Revenue Manual

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Individual Income Tax Returns

3.28.3

page 7

(5)

Correspond with the political appointee for the missing items or authorizations
when the POA does not grant the trustee authority to perform all of the specific
acts (Line 5 on Form 2848) on behalf of the political appointee, or any other
required items are missing, except Part II. If Part II is incomplete, correspond
with the trustee.

(6)

The request letter and POA must be present. If either one is missing or incomplete, use the table below to determine the proper action:

If a POA is:

and request letter is:

Then:

1) Attached, or already correctly
posted on the CAF with the
Blind Trust Authorization
Indicator

Attached

Continue processing.

2) On the CAF, but the Blind
Trust Authorization Indicator is
not present

Attached

Contact the Ogden CAF Unit
Manager. Fax the request letter to
them for verification to allow the
update to the CAF with the Blind
Trust Authorization Indicator.

3) Not found on the CAF, or
attached to the return

Attached

Correspond with the trustee for
the missing POA.
Suspend the return while corresponding for the missing POA.

4) Attached, or already posted
on the CAF

Not attached

Correspond with the trustee for a
copy of the request letter.
Suspend the return while corresponding for the missing request
letter.

5) Not found on the CAF, or
attached to the return

Not attached

There is an indication of a ″blind
trust.″ Code and Edit should correspond with the ″trustee″ for the
missing documents. Suspend the
return while corresponding for the
missing documents.

(7)

If the request letter is attached, a valid POA has posted, and other correspondence conditions are present on the return, suspend the return and
correspond with the trustee.

3.28.3.5.2.2
(1) The Form 2848 (POA) for the “blind trust” can be mailed or faxed directly to
(01-01-2019)
any CAF unit by the agent or taxpayer. If any CAF Unit, other than Ogden,
Accounts Management
receives a Form 2848 (POA) with indication of “blind trust”, they should contact
Centralized
the Ogden CAF Unit Manager, and fax the Form 2848 directly to him/her for
Authorization File (CAF)
processing.
Procedures - Processing
the Power of Attorney
(POA)

Cat. No. 34521K (10-31-2018)

Internal Revenue Manual

3.28.3.5.2.2

 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 26 of 82
page 8

3.28
(2)

Special Processing Procedures

When the Form 2848 (POA) is attached to a blind trust tax return, the Code
and Edit tax examiner should review the Form 2848 for completeness, then
phone the Ogden CAF Unit Manager and immediately fax the Form 2848 to
him/her for input to the CAF. The CAF Unit Manager will acknowledge receipt
and input the Form 2848. After input to the CAF, the Code and Edit tax
examiner will continue processing the return.

(3) Ogden CAF Unit Only – Process the blind trust POA according to instructions.
in IRM 21.3.7.8.10, Blind Trust Authorizations.

3.28.3.5.2.2

Internal Revenue Manual

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EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 28 of 82

MANUAL
TRANSMITTAL

4.2.1

Department of the Treasury

MAY 29, 2019

Internal Revenue Service

EFFECTIVE DATE
(05-29-2019)
PURPOSE
(1)

This transmits revised IRM 4.2.1, General Examining Procedures, General Examination Information.

MATERIAL CHANGES
(1)

Significant changes to this IRM are listed in the table below.

Prior Reference

New Reference

Description of Change

N/A

IRM 4.2.1.1 through IRM
4.2.1.1.6

Added and moved content to
provide background information,
legal authorities that govern the
actions covered in this IRM, roles
and responsibilities, terms,
acronyms, and related resources
available to assist examiners
when conducting examinations. In
addition, content from IRM
4.2.1.13.1, Definitions, has been
moved to IRM 4.2.1.1.4, Terms.

N/A

IRM 4.2.1.6

Guidance for “reopening of closed
cases” has been added as it was
not moved to another section
when IRM 4023 was obsoleted.

IRM 4.2.2.1 through IRM
4.2.2.1.2

IRM 4.2.1.7 through IRM
4.2.1.7.2

Content from IRM 4.2.2.1, Collateral Examinations, was moved
from IRM 4.2.2.1 through IRM
4.2.2.1.2 to IRM 4.2.1.7 through
IRM 4.2.1.7.2.

N/A

IRM 4.2.1.11

Moved guidance on “Assistance
to Chief Counsel” from IRM
4.10.1.4.8 to IRM 4.2.1.11.

IRM 4.2.1.16

N/A

Content has been removed. See
IRM 25.24.5, Return Preparer
Misconduct Field Examination.

IRM 4.2.1.19

IRM 4.2.1.22

Renumbered and added a “Note”
providing guidance for when the
taxpayer’s problem involves an
Appeals’ agreed resolution not
being implemented or there was
an error involving the implementation.

Cat. No. 34440Q (05-29-2019)

Internal Revenue Manual

4.2.1

 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 29 of 82

Manual Transmittal Cont. (1)

Prior Reference

New Reference

Description of Change

IRM 4.2.2.3 through IRM
4.2.2.3.1

IRM 4.2.1.23

Moved and revised content from
IRM 4.2.2.3, Extensions of the
Replacement Period of Involuntary Converted Property. IRM
4.2.2.3.1, Involuntary Converted
Property Extension Procedures,
has been replaced by a reference
to IRM 4.8.8.6, Involuntary
Converted Property.

IRM 4.2.2.4

IRM 4.2.1.24

Moved and revised content from
IRM 4.2.2.4, Identification of Bad
Payer Information.

IRM 4.2.2.5

IRM 4.2.1.25

Moved and revised content from
IRM 4.2.2.5, Awards Received by
Informants.

Throughout IRM 4.2.1

Minor editorial changes have
been made throughout this IRM.
Website addresses, legal references, and IRM references were
reviewed and updated as
necessary.

EFFECT ON OTHER DOCUMENTS
This material supersedes IRM 4.2.1, dated November 23, 2016 and incorporates content from IRM 4.2.2,
General Examining Procedures.
AUDIENCE
Small Business and Self-Employed (SB/SE), Large Business and International (LB&I), and Wage and Investment (W&I) examiners.

Maha H. Williams
Director, Examination-Field and Campus Policy
Small Business/Self-Employed

4.2.1

Internal Revenue Manual

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 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 30 of 82
Part 4
Chapter 2 General Examining Procedures

IRM 4.2.1

Manual
4.2.1 Transmittal
General Examination Information

Table of Contents
4.2.1.1

Table of Contents

Program Scope and Objectives

4.2.1.1.1

Background

4.2.1.1.2

Authority

4.2.1.1.3

Responsibilities

4.2.1.1.4

Terms

4.2.1.1.5

Acronym

4.2.1.1.6

Related Resources

4.2.1.2

Identification and Control Numbers

4.2.1.3

Potentially Dangerous Taxpayer (PDT) and Caution Upon Contact (CAU) Indicators

4.2.1.4

Request for Armed Escort

4.2.1.5

1254 Suspense

4.2.1.6

Reopening of Closed Cases

4.2.1.7

Collateral Examinations

4.2.1.7.1

Collateral Examination Procedures: Initiating Area

4.2.1.7.2

Collateral Examinations: Receiving Area

4.2.1.8

General Appeals Guidelines

4.2.1.8.1

Cases Not Fully Developed

4.2.1.8.2

New or Reopened Issues

4.2.1.8.3

Disagreements With Appeals Determinations

4.2.1.8.4

Docketed Case Examination Assistance

4.2.1.8.4.1

New Information Received in Appeals

4.2.1.8.4.2

Examination Assistance Request Package

4.2.1.8.4.3

Examination Assistance Point of Contact Actions

4.2.1.8.4.4

Examiner Secures New Information and Related Case File

4.2.1.8.4.4.1

Examiner Responsibilities

4.2.1.8.4.4.2

Examiner Returns New Information and Related Case File

4.2.1.8.4.5
4.2.1.9
4.2.1.10

Examination Assistance Point of Contact

New Issues Raised by Counsel
Litigation Affecting the IRS

4.2.1.10.1

Notification to Area Counsel in State Court Suits

4.2.1.10.2

Suits for Recovery of Erroneous Refunds

4.2.1.11

Assistance to Chief Counsel or U.S. Attorney

4.2.1.11.1

Chief Counsel or U.S. Attorney Requests for Civil Suit Data

4.2.1.12

Awards of Litigation and Administrative Costs in Tax Cases

4.2.1.13

Statute Expiration Reports

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Chapter 2 General Examining Procedures
4.2.1.14

IRM 4.2.1

Taxpayer Notification of Assessment Statute Expiration and Acceptance of Voluntary Payments on
Expired Statute Returns When Taxpayer Was Contacted for Examination

4.2.1.14.1

Guidelines for Cases with Expired Statutes Where the Deficiency Cannot Be Determined

4.2.1.14.2

Guidelines for Cases with Expired Statutes Where the Deficiency Can Be Determined or there is
No Change to Tax

4.2.1.14.3

Guidelines for Cases with Expired Statutes Where the Taxpayer Makes a Voluntary Payment

4.2.1.15

Processing Returns and Accounts of the President and Vice President

4.2.1.16

Blind Trust Income Tax Returns Filed by Presidential Appointees

4.2.1.17

Reporting Allegations of Tax Violations Involving Senior Treasury Officials

4.2.1.17.1

Compliance Examination Procedures

4.2.1.18

Reporting Misconduct of IRS Employees or Officials

4.2.1.19

Income Tax Bonds Under IRC 332(b) and IRC 905(c)

4.2.1.20

Property Blocked by Foreign Funds Control or Vested by Office of Foreign Assets Control

4.2.1.20.1

Office of Foreign Assets Control (OFAC) Information

4.2.1.20.2

Investigation and Disposition

4.2.1.20.3

Payor Failure to Withhold Tax at Source

4.2.1.21

Witness Security Program

4.2.1.22

Taxpayer Advocate Program

4.2.1.23

Extensions of the Replacement Period of Involuntarily Converted Property

4.2.1.24

Identification of Bad Payer Information

4.2.1.25

Awards Received by Informants

4.2.1.26

Restructuring and Reform Act of 1998

4.2.1

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General Examination Information
4.2.1.1
(05-29-2019)
Program Scope and
Objectives

4.2.1

page 1

(1)

Purpose. This IRM section provides information on various topics as shown in
the table of contents. References to other resources, such as related IRMs and
websites are included when applicable and provide additional guidance as
needed to ensure a thorough understanding of the topic.

(2)

Audience. These procedures apply to examiners in Small Business and SelfEmployed (SB/SE) Field Examination, SB/SE Speciality Examination, Large
Business and International (LB&I), and W&I.

(3)

Policy Owner. The Director, Examination - Field and Campus Policy, who is
under the Director, Headquarters Examination, owns the policy in this IRM.

(4)

Contact Information. To recommend changes or make any other suggestions
related to this IRM section, see IRM 1.11.6.6, Providing Feedback About an
IRM Section - Outside of Clearance.

4.2.1.1.1
(05-29-2019)
Background

(1)

This IRM provides information for general examination procedures that
examiners should understand and apply in the performance of their duties.

4.2.1.1.2
(05-29-2019)
Authority

(1)

By law, the Service has the authority to conduct examinations under Title 26,
Internal Revenue Code, Subtitle F – Procedure and Administration, Chapter
78, Discovery of Liability and Enforcement of Title, Subchapter A, Examination
and Inspection.

(2)

The following IRC sections, Rev. Procs, and Delegation Orders provide the
authority for various topics as referenced within this IRM:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Cat. No. 34440Q (05-29-2019)

IRC 332(b) - Complete liquidations of subsidiaries
IRC 905(c) - Applicable rules
IRC 6501(a) - Limitations on assessment and collection
IRC 6532(b) - Periods of limitation on suits
IRC 7121 - Closing agreements
IRC 7405 - Action for recovery of erroneous refunds
IRC 7430 - Awarding of costs and certain fees
IRC 7605(b) -Time and place of examination
Rev. Proc. 64-22, Statement of some principles of Internal Revenue tax
administration.
Rev. Proc. 2005-32, Examination of returns and claims for refund, credit,
or abatement; determination of correct tax liability.
Rev. Proc. 2010-11, Forms and Instructions.
Rev. Proc. 2012-18, Ex Parte communications between appeals and
other Internal Revenue Service employees.
Rev. Proc. 2016-22, Appeals Functions.
Delegation Order 4-7(formerly DO-57, Rev. 9) - IRM 1.2.43.8, Delegation Order 4-7 (formerly DO-57, Rev. 9).
Delegation Order 4-47(New) - IRM 1.2.43.37, Delegation Order 4-47
(New).
SBSE Delegation Order 1-23-33, Authority to Grant Extensions of Time
to Replace Involuntarily Converted Property Under Section 1033 of the
Internal Revenue Code - IRM 1.2.65.4.11.

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page 2
4.2.1.1.3
(05-29-2019)
Responsibilities

4.2.1.1.4
(04-23-2014)
Terms

4.2

General Examining Procedures

(1)

The Director, Headquarters Examination, is the executive responsible for
providing policy and guidance for SB/SE Examination employees and ensuring
consistent application of policy, procedures and tax law to effect tax administration while protecting taxpayers’ rights. See IRM 1.1.16.3.5, Headquarters
Examination, for additional information.

(2)

The Director, Examination - Field and Campus Policy, reports to the Director,
Headquarters Examination, and is responsible for the delivery of policy and
guidance that impacts the field examination process. See IRM 1.1.16.3.5.1,
Field and Campus Policy, for additional information.

(3)

Field Examination General Processes (FEGP), which is under the Director, Examination - Field and Campus Policy, is the group responsible for providing
policy and procedural guidance on standard examination processes to field
employees. See IRM 1.1.16.3.5.1.1, Field Exam General Processes, for additional information.

(4)

All examiners must perform their professional responsibilities in a way that
supports the IRS Mission. This requires examiners to provide top quality service and to apply the law with integrity and fairness to all.

(5)

Income tax examiners and their managers should thoroughly acquaint themselves with the examination procedures and information contained in this IRM,
as well as other resources, such as those listed in IRM 4.2.1.1.6, Related
Resources, below.

(1)

The following table lists terms and their definitions that are used in this IRM:

Term

Definition

Senior Treasury Official

For purposes of this IRM is defined as:
•
All individuals within the Treasury Department serving in Executive Levels I through
V.
•
All individuals within the Treasury Department serving in the Senior Executive
Service or positions classified above grade
general schedule (GS)-15 (or comparable
pay band).
•
All individuals within the IRS in grade GS-15
(or comparable pay band) serving in
positions centralized in the IRS Executive
Resources Board.
•
All individuals within the Treasury Department (other than IRS) in grade GS-15 (or
comparable pay band), which the Deputy
Secretary may designate.

Treasury Department

The Office of the Secretary and all agencies,
bureaus, and other organizational elements within
the Department of the Treasury.

4.2.1.1.3

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4.2.1.1.5
(05-29-2019)
Acronym

(1)

4.2.1

page 3

The following table lists commonly used acronyms and their definitions used
throughout this IRM:

Acronym

Definition

AARS

Appeals Account Resolution Specialists

ADP

Automated Data Processing

ATE

Appeals Technical Employee

AUR

Automated Underreporter

CAU

Caution Upon Contact

CI

Criminal Investigation

DOJ

Department of Justice

EA

Examination Assistance

IRP

Information Reporting Program

LB&I

Large Business & International

LTA

Local Taxpayer Advocate

OEP

Office of Employee Protection

PDT

Potentially Dangerous Taxpayer

RRA

Restructuring and Reform Act

SAC

Special Agent in Charge

TAS

Taxpayer Advocate Service

TC

Transaction Code

TIGTA

Treasury Inspector General for Tax Administration

TS

Technical Services

WSC

Witness Security Coordinator

4.2.1.1.6
(05-29-2019)
Related Resources

(1)

4.2.1.2
(04-23-2014)
Identification and
Control Numbers

(1)

Helpful information can be found on websites, including, but not limited to the
following:
•
•
•
•
•

Cat. No. 34440Q (05-29-2019)

AUR HQ Payer Agent Coordinator
EA Routing Instructions
Office of Employee Protection
Office of Foreign Assets Control
http://www.treasury.gov/tigta/contact_report.shtml

The similarity of taxpayers’ names and the voluminous flow of documents
require the use of permanent identifying numbers coupled with taxpayers’
names. These numbers are necessary for automated data processing (ADP)
purposes to ensure positive control of each tax account and all related transactions. Some standard titles and abbreviations used are as follows:
Internal Revenue Manual

4.2.1.2

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4.2
a.
b.

c.

d.

e.

4.2.1.3
(04-23-2014)
Potentially Dangerous
Taxpayer (PDT) and
Caution Upon Contact
(CAU) Indicators

Social security number (SSN)—the number assigned to an individual for
social security purposes, tax account purposes, or both.
Employer identification number (EIN)—the number assigned for any tax
purpose to a person other than an individual. Also means the identification number which is assigned to an individual who is required to file a
return with respect to their liability for any tax other than income, estate,
or gift taxes.
Document locator number (DLN)—the number assigned to each return or
other document introduced into processing for control and file reference
purposes.
Individual taxpayer identification number (ITIN)—the number assigned to
individuals who are required for U.S. tax purposes to have a U.S.
taxpayer identification number but who do not have, and are not eligible
to obtain a SSN issued by the Social Security Administration.
Internal revenue service number (IRSN)—the number used in place of a
required TIN during processing.

(2)

The spacing of the digits in identifying numbers is an integral part of the
number. The proper spacing must be observed in all instances. The spaces
may be indicated by using hyphens, blank spaces, etc. For example, EIN as
00-0000000; and, SSN as 000-00-0000.

(3)

The foregoing identification and control numbers do not preclude the use of
reference or control numbers such as Tax Court docket numbers, Criminal Investigation (CI) case numbers, reference numbers used in connection with the
collection of delinquent accounts, or other numbers or codes used for control
or reference purposes.

(1)

The IRS has two servicewide employee safety programs designed to warn
employees of taxpayers who have been designated as potentially dangerous
and or should be approached with caution:
•
•

(2)

(3)

Potentially Dangerous Taxpayer (PDT) Program
Caution Upon Contact (CAU) Taxpayer Program

The Office of Employee Protection (OEP) has sole responsibility for administering the PDT and CAU programs. The OEP enhances the safety of IRS
employees by taking the following actions:
a.
b.
c.

Making PDT and CAU determinations.
Maintaining the PDT and CAU indicator databases.
Providing information and feedback to employees, managers, and executives.

OEP maintains two IRMs that provide guidance and information:
a.

b.

4.2.1.3

General Examining Procedures

IRM 25.4.1, Potentially Dangerous Taxpayer, provides procedures and
guidelines for referring and designating taxpayers under the PDT
program. See IRM Exhibit 25.4.1-1, Display of PDT Indicator, for a listing
of documents and systems that display the PDT indicator.
IRM 25.4.2, Caution Upon Contact Taxpayer, provides procedures and
guidelines for referring and designating taxpayers under the CAU
program. See IRM Exhibit 25.4.2-1, Display of CAU Indicator, for a listing
of documents and systems that display the CAU indicator.

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page 5

(4)

The OEP performs PDT and CAU five-year reviews, which consist of reviewing
the taxpayer against established five-year renewal criteria. See IRM 25.4.1.8,
Five-Year Review of PDT Records and IRM 25.4.2.7, Five-Year Review of CAU
Records, for additional information.

(5)

The OEP Office of Employee Protection website provides additional guidance
and information such as the following:
•
•
•
•
•
•
•
•
•

4.2.1.4
(04-23-2014)
Request for Armed
Escort

4.2.1

(1)

Definition of assaults, threats, and intimidation
Process of reporting assaults, threats, and intimidation
Criteria for PDT
Criteria for CAU
Explanation of relationship between the TIGTA and the OEP
“A Guide to the Office of Employee Protection Programs” desk guide
Spotlight on Safety brochure
Spotlight on Safety newsletter
Frequently asked questions

The TIGTA Office of Investigations (OI) has primary responsibility to provide
armed escorts for IRS personnel who in the course of their official duties have
been threatened with bodily harm indicating the need for such protection. See
IRM 9.5.11.10, Armed Escort Assignment.

Exception: CI has primary responsibility for the protection of the Commissioner of
Internal Revenue.
(2)

When an examiner feels they need an armed escort, they will immediately
report the facts causing the need to their group manager. Armed escorts may
be requested by IRS employees when they intend to meet with taxpayers who
have been designated by the OEP as PDT or CAU, or in other circumstances
where the examiner and the group manager believe any interaction during the
performance of duties may pose a risk of injury to the employee.

(3)

If the group manager determines that an armed escort is necessary, they will
request such protection in writing via a memorandum, not to exceed two
pages, to the TIGTA-OI special agent in charge (SAC) of the appropriate
TIGTA-OI field division. To ensure the safety of IRS and TIGTA-OI personnel,
as well as guarantee the operational integrity of the armed escort, a request
must be submitted at a minimum one week prior to the scheduled appointment
date. If a request is submitted with less than a one week notification, it may
require a postponement of the appointment or an alternate meeting location.

(4)

All armed escort requests will be reviewed by the respective TIGTA-OI SAC.
Armed escorts will be provided on a case-by-case basis. If the TIGTA-OI SAC
determines that an armed escort is not warranted, IRS management may seek
a reconsideration of the denied request by contacting the TIGTA-OI SAC who
rendered the decision. If a resolution cannot be reached and the requesting
IRS management official still believes an armed escort is warranted, the IRS
management official can request a final reconsideration from the TIGTA-OI,
Deputy Assistant Inspector General for Investigations (DAIGI)-Field Operations.

(5)

Since TIGTA-OI has primary responsibility for providing armed escorts, IRS
management may not request and or alternatively seek assistance from CI if
the request for an armed escort has been denied. If CI receives a request for

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4.2.1.4

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4.2

General Examining Procedures

an armed escort from an IRS employee or management official, CI will refer
the IRS employee or management official to the nearest TIGTA-OI office.
Note: Unless specifically asked for assistance by TIGTA-OI, CI will no longer be
responsible for providing armed escorts to IRS employees except as noted in
paragraph (1) above. If CI assistance is needed, the TIGTA SAC will forward
the request in writing to the appropriate CI Director, Field Operations, for
concurrence.
(6)

If an armed escort is being considered for a taxpayer designated a PDT,
contact TIGTA-OI directly. The memorandum should contain the following information:
a.
Taxpayer name.
b.
Taxpayer social security number.
c.
Taxpayer contact number(s).
d.
Taxpayer home address.
e.
Assigned IRS employee name, position, and contact information.
f. Supervisor name, position, and contact information.
g.
Description of the tax issue.
h.
Description of activity to take place.
i.
Phone number of IRS employees or others who will attend.
j. Location of activity.
k. Any contacts or statements related to the taxpayer that caused concern.
l. Any other information related to the subject that would indicate an armed
escort is warranted.

(7)

If an armed escort is being considered for a taxpayer designated as CAU, the
requesting employee or management official must contact the OEP and obtain
the basis for the OEP’s designation. IRS management must evaluate this information and if it is decided an armed escort is still needed, proceed with the
memorandum. The memorandum should contain the following information:
a.
Taxpayer name.
b.
Taxpayer social security number.
c.
Taxpayer contact number(s).
d.
Taxpayer home address.
e.
Assigned IRS employee name, position, and contact information.
f. Supervisor name, position, and contact information.
g.
Basis for the OEP CAU designation.
h.
Description of the tax issue.
i.
Description of activity to take place.
j. Number of IRS employees or others who will attend.
k. Location of activity.
l. Any contacts or statements related to the taxpayer that caused concern.
m. Any other information related to the subject that would indicate an armed
escort is warranted.

(8)

If an employee is requesting an armed escort for reasons other than PDT and
CAU, IRS management must evaluate the situation. If IRS management
concurs with requesting an armed escort, prepare a memorandum. The memorandum should contain the following information:
a.
b.
c.

4.2.1.4

Taxpayer name.
Taxpayer social security number.
Taxpayer contact number(s).
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4.2.1

page 7

d.
e.

Taxpayer home address.
Position, grade, function, and POD information, if the taxpayer is an IRS
employee or contractor.
f. Assigned IRS employee name, position, and contact information.
g.
Supervisor name, position, and contact information.
h.
Background information concerning the taxpayer.
i.
Description of activity to take place.
j. Number of IRS employees, management officials, and or others who will
attend.
k. Location of activity.
l. Any contacts or statements related to the taxpayer that caused concern.
m. Any other information related to the subject that would indicate an armed
escort is warranted.

4.2.1.5
(04-23-2014)
1254 Suspense

(9)

When an actual threat or assault has been made, TIGTA has primary jurisdiction and must be contacted. For contact information, refer to the TIGTA-OI
website.

(1)

Examination Technical Services holds cases pending a court decision or
business unit guidance. Cases may be held in 1254 suspense under the
following circumstances:
a.
b.

c.

The facts in the case to be suspended are the same or similar to an
issue pending in a federal court.
The issue is similar to one that is under consideration in District Court in
another jurisdiction, but only if a Form 906, Closing Agreement on Final
Determination Covering Specific Matters, has been secured, usually by
Appeals.
Chief Counsel or another business unit has identified the issue as a
suspense issue.

(2)

For cases held in 1254 suspense pending a court decision, the facts in the
case to be suspended must be so similar to those in the pending case that a
decision in one will ultimately decide the other.

(3)

The examiner must discuss any case being considered for 1254 suspense with
the group manager. The group manager must contact the area Examination
Technical Services function to determine whether the case meets the criteria
for 1254 suspense.

(4)

Prior to forwarding a case to Examination Technical Services for 1254
suspense, the examiner must:
a.
b.

Develop the case to the fullest extent possible.
Ensure a partial agreement is assessed if a case has other issue(s) that
do not meet 1254 suspense criteria. See instructions for preparing
partially agreed reports in IRM 4.10.8.5, Partially Agreed Cases. The only
issues that may be placed in 1254 suspense are unagreed issues
meeting the 1254 suspense criteria.
Note: If a partial agreement cannot be secured, the case should not be
sent to 1254 suspense. Prepare an unagreed report for all issues
pursuant to the instructions in IRM 4.10.8.11, Unagreed Case Procedures (SB/SE Field and Office Examiners only). If the taxpayer
fails to file a protest, close the case for issuance of a statutory
notice of deficiency.

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4.2
c.

d.

e.

f.

4.2.1.6
(05-29-2019)
Reopening of Closed
Cases

General Examining Procedures

Ensure an examination report addressing the unagreed issue(s) being
suspended is shared with the taxpayer and a copy is retained in the case
file, for purposes of IRC 6404(g).
Ensure a claim disallowance that addresses the unagreed issue(s) being
suspended is in the case file, if applicable. A claim allowance must also
be included in the case file should the taxpayer’s position prevail.
Ensure there are at least 24 months remaining on the statute of limitations. If not, secure an extension prior to sending the case to
Examination Technical Services for 1254 suspense.
Complete Form 1254, Examination Suspense Report, and ensure the key
case is identified.

(5)

See IRM 4.8.2.11, Suspense Cases, for additional guidance.

(1)

There may be times when an examiner should consider reopening a tax year
that was previously examined and closed. IRC 7605(b) provides that “No
taxpayer shall be subjected to unnecessary examination or investigation, and
only one inspection of a taxpayer’s books of account shall be made for each
taxable year unless the taxpayer requests otherwise or unless the Secretary,
after investigation, notifies the taxpayer in writing that an additional inspection
is necessary.”

Note: Reopening procedures do not apply when the taxpayer requests the
reopening, such as an audit reconsideration or claim for refund.
(2)

Rev. Proc. 2005-32 provides information on reopening closed cases. The
following sections provide information the examiner must consider prior to the
reopening of a closed case:
•
•
•

Rev. Proc. 2005-32, Section 4.01 - Closed Case - provides definitions of
a closed case.
Rev. Proc. 2005-32, Section 4.02 - Reopening - defines what constitutes
a “reopening.”
Rev. Proc. 2005-32, Section 4.03 - Taxpayer contacts and other actions
that are not examinations, inspections or reopenings - provides a list of
four categories of contacts the Service makes with taxpayers and
certain other actions taken by the Service that are not examinations,
inspections, or reopenings.

Note: A prior examination is indicated by a Transaction Code (TC) 300. A TC 290
is not a prior examination.
(3)

The Service will not reopen any case closed after examination by an area
office or campus to make an adjustment unfavorable to a taxpayer unless one
of the three following criteria is met (see Rev. Proc. 2005-32, Section 5.01 and
Policy Statement 4-3 (IRM 1.2.13.1.1 for additional guidance):
•
•

4.2.1.6

There is evidence of fraud, malfeasance, collusion, concealment or misrepresentation of a material fact,
The prior closing involved a clearly defined substantial error based on
an established Service position existing at the time of the previous examination, or

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•

4.2.1

page 9

Other circumstances exist which indicate failure to reopen would be a
serious administrative omission. See Rev. Proc. 2005-32, Section
section 5.02 - Other circumstances permitting reopening, for additional
information.

(4)

All Service initiated reopenings to make adjustments unfavorable to a taxpayer
must be approved by the territory manager. See IRM 1.2.43.8, Delegation
Order 4-7 (formerly DO-57, Rev. 9). Prior approval must be obtained using
Form 4505, Reopening Memorandum, before starting the examination.

(5)

When a reexamination of the taxpayer’s books and records is necessary,
Letter 939 (DO), Reopening Letter, must be prepared by the examiner and
sent with Form 4505 to the territory manager for signature. The examiner must
issue Letter 939 to the taxpayer at the time the reexamination is started.

Note: When a reopening does not require the reexamination of the books and
records, Letter 939 is not needed.

4.2.1.7
(10-01-2003)
Collateral Examinations

(6)

Once the approval has been obtained to reopen a closed case and Letter 939
issued (if required), the examiner should contact the taxpayer using the appropriate initial contact letter. See IRM 4.10.2.8.1, Making Initial Contact. For
guidance on report writing procedures, see IRM 4.10.8.8, Reports For Cases
Reopened By Examination.

(1)

A collateral examination is requested when an exchange of information
between areas is essential to resolve an issue of material consequence. Collateral examinations are used only when the information cannot be obtained
from the taxpayer, the taxpayer’s representative, or third parties. Every reasonable effort must be made to secure the information rather than to routinely
request a collateral examination.

(2)

Collateral activity is the performance of work of short duration, work that does
not require the examination of books and records, and work that calls for little
independent judgment or conclusions. For example, a collateral examination
would be justified where:
a.
b.
c.
d.

An interview is required to get specific information for the examiner;
A document is to be obtained;
A transcript of an account or a listing f invoices is needed; or
A summons needs to be served.

(3)

All collateral requests must receive priority treatment. If the collateral examination results in a finding of nationwide interest, the receiving area will furnish the
information to Technical Services who will share it with Headquarters using
Technical Coordination Report procedures. See IRM 4.8.8.12.3, Technical Coordination Report, for additional information.

(4)

Collateral examination requests involving tax shelter cases will be identified as
such on the top of Form 6229, Collateral Examination. The receiving area will
acknowledge receipt of the collateral request and provide a status report to the
requesting office within 45 days and provide status reports to the initiating area
every 30 days.

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4.2.1.7

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page 10
4.2.1.7.1
(10-01-2003)
Collateral Examination
Procedures: Initiating
Area

4.2

General Examining Procedures

(1)

Form 6229, Collateral Examination, is used by all areas to request or
exchange information between areas to resolve an issue(s) of material consequence. Form 6229 is prepared as early as possible in each examination when
a collateral examination is needed from another area.

(2)

The examiner assigned the return will prepare the original Form 6229. Part 2
of the form is retained in the case file. The original Form 6229 and three
copies are forwarded.
a.

b.
c.

d.

The narrative section of Form 6229 must include sufficient background
information to clearly state the issue(s). Additional schedules and attachments are included as needed. A copy of the out-of-area return is also
included, if available.
Information requested must be specific to the issue(s).
The examiner’s name and telephone number must be included so the
receiving area has the correct examiner to contact for clarification of the
issue, if needed.
The completed Form 6229 is submitted to the group manager for review.
After approval, the group manager will forward Form 6229. If Campus
action is required (i.e., the return), Form 6229 is forwarded to the
Campus servicing the receiving area. If no Campus action is required,
the initiating area will submit the request to the applicable territory
manager of the receiving area. The initiating area will photocopy the
retained Part 2 and put an “X” next to the “Follow-up” line when furnishing information to the receiving area.

4.2.1.7.2
(1) The receiving area must acknowledge receipt of the request by completing
(10-01-2003)
Part 3 of Form 6229 and return it to the initiating area.
Collateral Examinations:
a.
The receiving examiner must include his/her name, address, telephone
Receiving Area
number and date received. If the case is reassigned, the new examiner
must notify the initiating area of the change.
b.
Photocopies of Part 4 of Form 6229 are used for subsequent communication with the initiating area.
c.
The receiving examiner must provide a clear, concise response to each
question raised.

4.2.1.8
(04-23-2014)
General Appeals
Guidelines

4.2.1.7.1

(2)

If the receiving area believes the results of the collateral examination would not
justify the time and cost involved, a memorandum explaining that decision is
attached to Form 6229 and forwarded to the initiating area. The territory
manager will approve any declination memorandum. The group manager will
forward a copy of the Form 6229 with a copy of the declination memorandum
attached to the respective Planning and Special Programs (PSP) section for
information purposes. Territory managers should resolve disagreements
between the initiating and receiving areas concerning the need for a collateral
examination. Area Directors will resolve any disagreement between the respective territory managers.

(1)

This section provides general information related to how Appeals works an examination case and the formal procedures for Examination staff to voice
concerns about a case settled by Appeals.

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General Examination Information
4.2.1.8.1
(04-23-2014)
Cases Not Fully
Developed

(1)

4.2.1

page 11

Appeals will not return cases to Examination when the case is not fully
developed and the taxpayer has not presented new information or evidence.
Instead, Appeals will attempt to settle the case on factual hazards.

4.2.1.8.2
(1) The appeal process is not a continuation or an extension of the examination
(04-23-2014)
process. Appeals will not raise new issues and will focus dispute resolution
New or Reopened Issues
efforts on resolving the points of disagreement identified by the parties.
a.
b.

c.

d.
(2)

A new issue is a matter not raised during an examination.
In resolving disputes, Appeals may consider new theories and or alternative legal arguments that support the parties’ positions when evaluating
the hazards of litigation in a case. However, the appeals officer will not
develop evidence that is not in the case file to support the new theory or
argument.
The discussion of new or additional cases or other authorities (e.g.,
revenue rulings or revenue procedures) that supports a theory or
argument previously presented does not constitute consideration of a
new issue.
A change in computation is not a new issue.

Appeals will not reopen an issue on which the taxpayer and the IRS are in
agreement.

Exception: See IRC 7121.

4.2.1.8.3
(04-23-2014)
Disagreements With
Appeals Determinations

(3)

The restrictions on raising a new issue do not apply to new issues raised by
taxpayers. For this purpose, the term “new issue” means issues identified by
Appeals in non-docketed cases.

(4)

Appeals will not raise a new issue in a docketed case. A new issue in a
docketed case is any adjustment to or change to an item that affects the petitioner’s tax liability that was not included in the notice of deficiency and is
raised or discussed during consideration of the case. However, Appeals will
consider any new issue the government raises in its pleadings and may
consider any new evidence developed by Examination or Counsel to support
the government’s position.

(1)

This section provides formal procedures for Examination to voice concerns
about a case settled in Appeals. These procedures are not intended to replace
any informal procedures currently in use at the area level. Management in Examination and Appeals can continue to address and resolve disagreements
over case resolution at the lowest possible level. These formal procedures are
used when the informal process results in Examination still having unresolved
significant concerns about the disposition by Appeals of an issue.

(2)

Formal disagreement is expressed by written dissent. The written dissent must
clearly state the reason(s) for dissent, the rationale supporting the reason(s)
for the dissent, and whether Examination requests a conference with the appropriate Appeals executive (Director, Examination Appeals; Director, Collection
Appeals or Director, Specialized Examination Programs and Referrals). The
rationale for the dissent should include the following:

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4.2.1.8.3

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page 12

4.2
a.

b.

General Examining Procedures

Citation of the specific facts that were not considered, or given enough
weight, if Examination believes Appeals did not properly consider the
facts.
Citation of the applicable law (e.g., IRCs, Treas. Regs., Rev. Ruls., court
cases, etc.) that was not considered and or accorded different weight if
Examination believes there was unsound application of the law by
Appeals.

Note: Formal dissents by Examination are not appropriate in a case settled by
Appeals where “hazards of litigation” were considered in the settlement of
the case. Appeals clearly identifies within the Appeals Case Memorandum
(ACM) those cases resolved by considering the “hazards of litigation.”
Note: The decision to hold a conference is at the discretion of the appropriate
Appeals executive. If a conference is held, the parties must follow the ex
parte communication guidelines set forth in Rev. Proc. 2012-18, Section
2.03(11).

4.2.1.8.4
(11-23-2016)
Docketed Case
Examination Assistance

(3)

Dissents should be forwarded to the appropriate Appeals Director (Examination
Appeals, Collection Appeals, or Specialized Examination Programs and
Referrals) via the *AP Formal Dissents centralized mailbox within 90 days (extensions may be mutually agreed upon) of receipt of an ACM by Examination.
The appropriate Director will retrieve the formal dissent from the centralized
mailbox and send Examination an acknowledgment of receipt.

(4)

Upon receipt of the dissent, the Appeals Director will determine whether a
reply to the dissent is appropriate, and guided by IRM 1.2.17.4, Policy
Statement 8-3 (Formerly P-8-50), and existing regulations and statutes,
whether the case should be reopened.

(5)

The above procedures do not preclude the exchange of non-case specific information that occurs through advisory boards or between analysts in
Examination and Appeals.

(1)

Rev. Proc. 2016-22 describes the practices for the administrative appeals
process in cases docketed in the United States Tax Court (Tax Court). See
IRM 8.4.1, Procedures for Processing and Settling Docketed Cases, for additional information. These procedures do not apply to cases docketed in United
States District Court or the United States Court of Federal Claims.

(2)

Jurisdiction of a docketed case must remain with the Office of Chief Counsel
(Counsel) or the Office of Appeals (Appeals). Therefore, when Appeals
receives “new information” (see IRM 4.2.1.8.4.1) from a taxpayer, representative or counsel of record for a docketed case that merits analysis by
Examination, Appeals can request examination assistance (EA). Appeals
retains jurisdiction of the case while the new information is under review by
Examination.

Note: When Appeals receives new information in a non-docketed case, Appeals
generally releases jurisdiction of the case and returns it to the originating
function to examine the new information and make an audit determination.
See IRM 8.2.1.7.2, Verification of New Material or Request for Further Development - ATE.

4.2.1.8.4

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General Examination Information

4.2.1

page 13

Note: In docketed Tax Court cases, a power of attorney is not required from the
counsel of record. An attorney who is admitted to practice before the court
becomes the counsel of record by filing a petition or entering an appearance
in the case. A counsel of record is authorized to act on behalf of the taxpayer
in the court proceedings, access the tax information of the person they
represent and represent the taxpayer before the Internal Revenue Service. In
a case docketed in the Tax Court, anyone other than the counsel of record
must be eligible to practice before the IRS and, in order to be recognized,
must present a Form 2848, Power of Attorney and Declaration of Representative, or other power of attorney.
(3)

Standardized docketed case EA procedures ensure:
a.
b.

Examination is able to provide EA to Appeals by analyzing new information provided by petitioning taxpayers, consistent with its mission, and
All petitioning taxpayers receive consistent treatment when they provide
new information not previously made available to Examination.

(4) Examination Assistance Exception. If the docketed case is IRS Campussourced and meets the exception in paragraph (2) of IRM 8.6.1.6.5, Taxpayer
Provides New Information, Appeals will review the new information and
proceed with normal consideration. If the case does not meet the exception,
Appeals will generally request EA.
4.2.1.8.4.1
(11-23-2016)
New Information
Received in Appeals

(1) “New information” is information received in Appeals from the taxpayer, representative or counsel of record not previously made available to Examination
for consideration prior to issuance of the IRS Notice, relating to issues:
•
•
•

Previously examined,
Raised in the petition, or
Raised by the Government in its pleadings.

Note: For this purpose, an IRS Notice includes a Notice of Deficiency, a Notice of
Final Determination, Final Partnership Administrative Adjustment (FPAA), a
Notice of Determination of Worker Classification or any similar document that
outlines the Service’s position on the particular tax matter and provides Tax
Court rights.
(2)

New information includes:
•
•
•

New information, evidence or documentation.
A relevant new issue for which Counsel has provided advice indicating
that the issue does not require a formal amendment to the Tax Court
petition.
A new theory or alternative legal argument presented by the taxpayer
that warrants analysis by Examination before Appeals can fully evaluate
the hazards of litigation.

Note: Appeals must physically secure the new information and review it to
determine if it merits analysis by Examination. Analysis may include categorizing, sorting or reviewing taxpayer records, or requiring additional steps or
reasoning to reach a conclusion.

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4.2.1.8.4.1

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page 14
4.2.1.8.4.2
(11-23-2016)
Examination Assistance
Request Package

4.2
(1)

General Examining Procedures

Appeals will prepare an EA request package and forward it via encrypted email
to the EA Point of Contact (EA POC) within the appropriate originating function.
The EA request package will include the following electronic files:
a.
b.

c.

Form 14361, Docketed Examination Assistance Request – Jurisdiction
Not Released, completed by Appeals.
Form 14362, Docketed Examination Assistance Issues and Results,
partially completed by Appeals and used by Examination to approve or
deny the EA request, and provide EA results to Appeals.
IRS Notice and relevant attachments to the IRS Notice, if available.

Note: There must be at least 60 calendar days remaining before the Tax Court
calendar date on the date Appeals sends the EA request package.
(2)

Appeals will use the EA_Routing_Instructions posted on the Appeals website
to determine the correct EA POC based on guidance in IRM 4.2.1.8.4.5.

4.2.1.8.4.3
(1) Generally, within five (5) business days of receiving the EA request package
from Appeals, the EA POC will review Form 14361 and Form 14362 to ensure:
(11-23-2016)
Examination Assistance
a.
There are at least 45 calendar days from the date Appeals sent the
Point of Contact Actions
request to the due date shown on Form 14361, Part F, Explanation.
b.
There are at least 60 calendar days from the date Appeals sent the
request to the Tax Court calendar date shown on Form 14361, Part F.
c.
The issues to consider are identified on Form 14362, Part C, Issues and
Results.
(2)

The EA POC must communicate the decision to approve or deny the EA
request to the Appeals Team Manager (ATM) within 30 calendar days or less.
•

•

If the EA request is approved, the EA POC completes Form 14362,
Part B, Examination Assistance Approved/Denied, indicating approval
and sends the digitally signed form to the ATM via encrypted email. The
EA POC will personally provide the EA or assign and forward the EA
request package to the examiner, via encrypted email. See IRM
4.2.1.8.4.5.
If the EA request is denied, the EA POC completes Form 14362, Part
B, by using the drop-down menu to indicate the reason the request was
denied, and sends the digitally signed form to the ATM via encrypted
email.

Note: If the EA POC denies an EA request, Appeals (concerned that a significant
risk to taxpayer compliance exists) can elevate the EA request to the
Appeals Area Director for discussion with the EA POC’s manager.

4.2.1.8.4.4
(11-23-2016)
Examiner Secures New
Information and Related
Case File

4.2.1.8.4.2

(1)

After the Appeals Technical Employee (ATE) is notified of the examiner assignment, they will promptly contact the examiner using available means (e.g.,
phone, email, Skype, etc.) to arrange for timely and efficient delivery of the
new information and relevant administrative file information.

(2)

The ATE and examiner will coordinate and agree upon a method of delivery of
the new information and related administrative file information. The method of
delivery may include, but is not limited to:

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General Examination Information
•
•
•

4.2.1

page 15

Providing workspace in the Appeals office for the examiner to perform
EA.
Mailing/shipping using standard procedures, including Form 3210,
Document Transmittal.
Using available electronic means of transmitting information, such as
encrypted email, Enterprise e-Fax (EEFax), etc.

Note: The ATE will maintain physical possession of original tax returns, executed
statute extensions, and required Tax Court-related documents. If the
examiner needs any of these documents to perform the requested EA, the
ATE will provide copies. If the examiner is providing EA in Appeals
workspace, the ATE may provide the entire original administrative file to the
examiner and secure the file from the examiner at the end of the business
day.

4.2.1.8.4.4.1
(11-23-2016)
Examiner
Responsibilities

(1)

The examiner will:
a.

b.

Appropriately charge time for EA activities. LB&I and SB/SE field
examiners will charge time to activity code 822, Details out of Industry or
Area to: Appeals Division. Campus correspondence examiners will
charge time and volume to Organization Function Program (OFP) code
91969. Campus AUR examiners will charge time to the applicable OFP
code.
Complete the assigned EA by the due date specified on Form 14361,
Part F.
Note: Examiners can request additional time to complete the EA, but
Appeals can deny the request and require the immediate return of
the EA package based on the needs of the case (e.g., Tax Court
calendar date, Counsel requests return of case for trial preparation,
etc.)

c.

Review and analyze the EA issues using the information received from
Appeals.
Caution: The examiner must not contact the taxpayer, representative or
counsel of record without the written concurrence (i.e., email) of
the assigned Counsel attorney; see IRM 4.2.1.8.4.4.1 (3).
Note: If the new information affects a related FBAR case, consult with an
Operating Division FBAR Coordinator.

d.
e.

Prepare workpapers to support the EA findings (as applicable).
Record the findings and EA time charged on Form 14362, Part C.
Note: The ATE will have entered the issues to be addressed on Part C of
Form 14362, including the issue name, year/period, and per return
amount. The examiner will enter the corrected amount, adjustment
and explanation.

f.
g.
h.

i.
Cat. No. 34440Q (05-29-2019)

Complete Form 14362, Part D, Examiner’s Information.
Obtain manager’s approval, if required, on Form 14362, Part E,
Manager’s Approval.
Send the approved Form 14362 and any related electronic workpapers to
the ATE via encrypted email or other electronic method agreed upon by
the ATE and examiner.
Return applicable items to the ATE. See IRM 4.2.1.8.4.4.2.
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4.2.1.8.4.4.1

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page 16

4.2

General Examining Procedures

j. Conduct any communications with Appeals in accordance with the ex parte
rules. Appeals will invite the taxpayer, representative or counsel of record to
participate in any substantive discussion of the disputed issues between
Exam and Appeals. See IRM 4.2.7, Ex Parte Communication Procedures.
Note: Appeals will issue Letter 4642, Docketed Case Examination Assistance, to inform the taxpayer, representative or counsel of record
that Appeals requested EA from Examination and will share any
information provided by Examination with the taxpayer, representative or counsel of record for review and comment.
(2)

The examiner will not:
a.
b.
c.
d.

e.

Prepare tax computations or create an examination report.
Issue an IDR. See IRM 4.2.1.8.4.4.1 (3).
Provide a summary of the results to the taxpayer, representative or
counsel of record.
Provide any assurances as to the final tax impact of the EA to the
taxpayer, representative or counsel of record, as Appeals may base final
settlement on additional factors, such as the hazards of litigation.
Pursue the development of any issues not currently before the Tax Court
for the specific case without written concurrence (i.e., email) of the
assigned Counsel attorney.

(3) Although not required, the examiner has the discretion to:
a.

Contact the assigned Counsel attorney at any time during the EA
process.
Note: Appeals will identify the assigned Counsel attorney on Form 14361
Part E, Area Counsel Contact Information. If the assigned Counsel
attorney is not identified on Form 14361, the examiner should
contact the ATE for the identity of the assigned Counsel attorney.

b.

Verbally ask questions or request additional information from the
taxpayer, representative or counsel of record to clarify the new information received from Appeals but only after receiving the written
concurrence (i.e., email) of the assigned Counsel attorney. To avoid
potential Tax Court discovery issues, the examiner must not issue an
information document request (IDR). The examiner must document the
conversation as well as information requested, date requested, date due,
and requested method of delivery on Form 9984, Examining Officer’s
Activity Record, or a workpaper.
Caution: If the examiner opts to interact with the taxpayer, representative
or counsel of record as outlined above, the examiner must first
contact the assigned Counsel attorney to secure the name of
the appropriate party for such interaction in writing (i.e., email).
Note: Prior to requesting EA, the ATE will inform the taxpayer, representative or counsel of record of the critical importance of providing all
information in support of their position to the ATE at the beginning
of the Appeals process. Appeals will only request EA once on a
case; therefore, the taxpayer, representative or counsel of record
should have provided all necessary information to the ATE prior to
the examiner receiving the EA request.

4.2.1.8.4.4.1

Internal Revenue Manual

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General Examination Information
4.2.1.8.4.4.2
(11-23-2016)
Examiner Returns New
Information and Related
Case File

4.2.1.8.4.5
(11-23-2016)
Examination Assistance
Point of Contact

(1)

4.2.1

page 17

All administrative case file information including original documents and electronic files (e.g., CD-ROM, flash drive, etc.) provided by the taxpayer,
representative or counsel of record through the ATE to the examiner will be
returned to the ATE in the manner they were received.

Note: Information provided to the examiner electronically (e.g., email, Skype, etc.)
does not need to be returned to the ATE since the ATE has the original
documents.
(2)

The examiner will provide Appeals with any new information received and
retained by the examiner from the taxpayer, representative or counsel of
record during the EA.

(3)

The examiner will use Form 3210 to track and acknowledge receipt of information returned to the ATE.

(1)

Appeals will use the EA_Routing_Instructions posted on the Appeals website
to determine the correct EA POC. The following table provides the general
business rules for determining the EA POC by Primary Business Code (PBC).

Primary
Business
Code

Originating Function and EA POC Information

190—195

W&I Campus Cases—Forward EA requests to the appropriate, designated Campus
Liaison (CL). Depending on the specific Campus (by PBC) there may be different CL
EA POCs for the following programs:
•
ASFR—Automated Substitute for Return
•
CORR—Campus Correspondence Examination
•
EITC—Earned Income Tax Credit
The CL will review and approve/deny the initial request. If approved, the CL may personally provide the EA or assign the EA work to another examiner.

201—207

SB/SE Field Examination Cases—Forward to the appropriate, designated EA POC as
follows (based upon information in the case file and AIMS/IDRS):
•
If the Exam group is known, the EA POC will be the current Exam group
manager. If approved, the EA POC may assign the EA to the original examiner or
another examiner.
•
If the Exam group no longer exists or cannot be determined, the EA POC will be
the Territory Manager.
•
If the Territory no longer exists or cannot be determined, Appeals will contact the
Area PSP office for assistance in determining where to route the EA request. The
Area PSP will not decide whether to approve or deny the EA request.

212

SB/SE Field Employment Tax Cases—Forward to the appropriate, designated EA
POC as follows (based upon information in the case file and AIMS/IDRS):
•
If the Exam group is known, the EA POC will be the current Exam group
manager.
•
If the Exam group no longer exists or cannot be determined, the EA POC will be
the Territory Manager.
•
If the Territory no longer exists or cannot be determined, the EA POC will be the
Chief Employment Tax.

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4.2.1.8.4.5

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page 18

4.2

General Examining Procedures

Primary
Business
Code

Originating Function and EA POC Information

213

SB/SE Field Estate & Gift Tax Cases—Forward to the appropriate, designated EA
POC as follows (based upon information in the case file and AIMS/IDRS):
•
If the Exam group is known, the EA POC will be the current Exam group
manager.
•
If the Exam group no longer exists or cannot be determined, the EA POC will be
the Territory Manager.
•
If the Territory no longer exists or cannot be determined, the EA POC will be the
Chief, Estate and Gift.

214

SB/SE Field Excise Tax Cases—Forward EA requests to the appropriate, designated
PBC 214 (Excise Tax) EA POC.
•
If the Exam group is known, the EA POC will be the current Exam group
manager.
•
If the Exam group no longer exists or cannot be determined, the EA POC will be
the Territory Manager.
•
If the Territory no longer exists or cannot be determined, the EA POC will be the
Chief Excise Tax.

295—299

SB/SE Campus Cases —Forward EA requests to the appropriate, designated CL.
Depending on the specific Campus (by PBC) there may be different CL EA POCs for
the following programs:
•
ASFR—Automated Substitute for Return
•
AUR—Automated Underreporter
•
CORR—Campus Correspondence Examination
•
EITC—Earned Income Tax Credit
The CL will review and approve/deny the initial request. If approved, the CL may personally provide the EA or assign the EA work to another examiner.

3XX

LB&I Examination Cases—Forward EA requests to the appropriate, designated EA
POC as follows (based upon the PBC):
•
If the Examination Group Code is known, the EA POC point will be the current
Examination/Compliance Manager (Group/Team Manager).
•
If the Examination group no longer exists or cannot be determined, the EA POC
will be the Compliance Territory Manager.
•
If the Territory no longer exists or cannot be determined, Appeals will contact the
Compliance Function Director Field Operations (DFO) for assistance in determining where to route the EA request. The DFO will not decide whether to approve
or deny the EA request.

4.2.1.9
(04-23-2014)
New Issues Raised by
Counsel

(1)

In general, Counsel will not raise new issues, unless the grounds are substantial and the potential effect on tax liability is material. See Chief Counsel Directives Manual (CCDM) 35.4.1.2, Raising New Issues in Tax Court Cases.

4.2.1.10
(04-23-2014)
Litigation Affecting the
IRS

(1)

The legal work of the IRS is performed by the Office of Chief Counsel.
Referrals to the Associate Area Counsel office should be considered in
unrelated tax issue matters.

4.2.1.9

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General Examination Information
4.2.1.10.1
(04-23-2014)
Notification to Area
Counsel in State Court
Suits

4.2.1.10.2
(04-23-2014)
Suits for Recovery of
Erroneous Refunds

4.2.1

page 19

(1)

The IRS ordinarily will not intervene in litigation in state courts between private
litigants even though the purpose of the parties is to obtain a decree or
judgment affecting the federal tax liability of one or the other of the parties to
the litigation. In those cases arising in state courts between private litigants, to
which officials of the IRS have not been made a party but which may have a
direct bearing upon the construction of an internal revenue code, or upon the
government’s title or right to possession to property which has been seized,
the IRS may intervene or take other appropriate steps in connection with the
proceeding. See IRM 1.2.13.1.8, Policy Statement 4–10 and CCDM 34.6.2.6,
Intervention.

(2)

When pending proceedings come to the attention of examiners, a memorandum report of the proceeding should be made to the Associate Area Counsel
office. Area Counsel will determine whether the IRS should intervene or take
any steps in connection with the proceeding.

(1)

Examiners may determine a taxpayer erroneously received a payment of
money in the form of a tax refund. IRC 7405 provides that any portion of tax
which has been erroneously refunded may be recovered by civil action. IRC
6532(b) provides that a general suit under IRC 7405 may be brought within
two years. Begin computing the two-year period from the day after issuance of
the refund check or the date the direct deposit cleared. Examiners should
contact Chief Counsel, Procedure and Administration, if there is a potential
statute problem. If any part of the refund was induced by fraud or misrepresentation of a material fact, suit may be brought at any time within five years from
the day after issuance of the refund check or the date the direct deposit
cleared. See IRM 5.1.8.7.1.1.2, Unassessable Erroneous Refunds, and IRM
21.4.5.15, Collection Methods for Category D Erroneous Refunds, for additional information.

(2)

Assessable erroneous refunds may also be recovered by administrative action
within the applicable period of limitation upon assessment and collection. The
type of tax involved is determinative of the type of administrative action
available. Ordinarily, recovery by suit is utilized because administrative
recovery is barred by the statute of limitations on assessment. Any contemplated collection activity based on administrative recovery should be
coordinated with Counsel.

(3)

The erroneous refund suit is limited to erroneously refunded amounts that
exceed the litigating threshold established by the Department of Justice (DOJ).

(4)

A recommendation for an erroneous refund suit to the Associate Area Counsel
should be accompanied by the administrative file, a copy of any request made
to the taxpayer for voluntary payment, a copy of the taxpayer’s refusal to make
voluntary payment, transcript of account, and a narrative report containing the
following information:
a.
b.
c.

d.

Cat. No. 34440Q (05-29-2019)

The type of tax involved and the amount of money expected to be
recovered.
The date the period of limitations on collection will expire.
A brief statement that administrative remedies are impractical or have
been exhausted, including the reasons that administrative actions have
not been effective.
Facts, evidence, and other matters necessary for development of the
case.
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4.2
e.
f.

g.
(5)

General Examining Procedures

Brief personal history of the taxpayer or other facts that might have a
bearing on the suit.
Location of the principal executive office, date of incorporation, state of
incorporation, and the name and address of the statutory agent for
service if the taxpayer is a corporation.
A statement of the exact legal premise for recovery of the erroneous
refund.

After the narrative report and other related documents are prepared, the
examiner will submit the entire case file to the group manager for review. If the
manager agrees, the case will be referred to Area Counsel using locally established procedures. For example, the manager may request Technical Services
(TS) conduct a further technical review and prepare the advisory request, or an
area may have an agreement with its Area Counsel and TS to send requests
for technical assistance directly to Area Counsel (TS should receive a copy of
the request if bypassed).

4.2.1.11
(1) When examiners are needed to assist Area Counsel or the Office of the United
States Attorney, the Area Director will honor requests and assign an examiner
(08-24-2017)
Assistance to Chief
to provide the services needed in the litigation of cases.
Counsel or U.S. Attorney
(2) Examiners will not discuss the merits of the case with the taxpayer or the taxpayer’s attorney when consulting with them or examining pertinent books and
records.

4.2.1.11.1
(04-23-2014)
Chief Counsel or U.S.
Attorney Requests for
Civil Suit Data

4.2.1.11

(3)

Every effort will be made to comply with a request by the date specified. If is
not possible to comply with the request for assistance, the party who initiated
the request will be notified.

(1)

In suits initiated by or against the IRS, the Disclosure Office or Field CollectionAdvisory receives and processes requests from U.S. Attorneys or Chief
Counsel for data or documents. Basic data in refund suits, other than suits
involving Trust Fund Recovery Penalty assessments, is requested directly from
the campus. For additional information, see IRM 25.3.6.1, Types of Litigation
Controlled by Advisory.

(2)

A DOJ attorney may request assistance prior to or during a trial resulting in
Counsel requesting a supplemental investigation by an examiner. See CCDM
34.7.1.2.2, When Supplemental Investigation Is Warranted. The request may
be formal or informal. If formal, Counsel will request a supplemental investigation by preparing a memorandum to the Area Director (or comparable level of
management) for the area in which the case arose. See CCDM 34.7.1.2.3,
Procedure for Supplemental Investigation.

(3)

Electronically stored information (ESI) is subject to discovery in litigation if it is
relevant to the case. ESI includes, but is not limited to, email and other electronic communications, word processing documents, spreadsheets, electronic
calendars, telephone logs, Internet usage files, metadata, voice mail, text
messages, and network access information. For additional information
regarding ESI, see IRM 25.3.1.7, Preserving Electronically Stored Information
in Litigation Cases.

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General Examination Information

4.2.1

page 21

4.2.1.12
(1) IRC 7430 provides for the award of costs, attorneys’ fees and other expenses
(04-23-2014)
to a “prevailing party” in any civil tax action brought in a federal court of the
Awards of Litigation and
United States, if the taxpayer has met the requirements of IRC 7430(b) and
Administrative Costs in
the IRS does not establish that its position was “substantially justified”. The
Tax Cases
position of the IRS will be “substantially justified” if it had a reasonable basis
both in law and in fact. A party who meets the requirements of IRC 7430(b)
may also qualify as a “prevailing party” if the liability of the taxpayer as determined by a judgment in the proceeding is equal to or less than the liability of
the taxpayer which would have been determined if the United States had
accepted a qualified offer of the party under IRC 7430(g) and none of the exceptions of IRC 7430(c)(4)(E)(ii) apply. If the qualified offer rule applies, a
showing of substantial justification by the United States does not preclude the
taxpayer from receiving an award under IRC 7430. This paragraph is not applicable to litigation in state courts.
(2)

The law also applies to taxpayer suits for refunds as well as a wide variety of
litigation such as suits to reduce a tax claim to judgment, to enforce a levy, to
foreclose a tax lien, to recover an erroneous refund, to establish transferee
liability, or to enforce a summons.

(3)

The law provides that an award may be made only if the taxpayer has
exhausted all available administrative remedies within the IRS, did not unreasonably protract the proceeding, has substantially prevailed with respect to the
amount in controversy or has substantially prevailed with respect to the most
significant issue or set of issues presented, and satisfies the net worth requirements. Even if the taxpayer satisfies all of the above requirements, the
taxpayer will not be treated as the prevailing party if the United States establishes that the position of the United States in the proceeding was substantially
justified, unless the qualified offer rule of IRC 7430(c)(4)(E) applies.

(4)

IRC 7430 also allows a taxpayer who prevails before the IRS in an administrative proceeding to request reimbursement of reasonable administrative costs
incurred in defending the taxpayer’s position.
a.

b.

c.

d.

(5)

Cat. No. 34440Q (05-29-2019)

Taxpayers must file their requests with the IRS personnel who have jurisdiction over the tax matter underlying the claim for costs. If the taxpayer
does not know who has jurisdiction over the tax matter, the taxpayer may
send the request to the IRS office that considered the underlying matter.
See Treas. Reg. 301.7430-2(c)(2).
Administrative cost awards under IRC 7430 are considered by Appeals in
non-docketed cases. Therefore, requests for IRC 7430 administrative
cost awards in non-docketed cases should be routed to the Appeals
office personnel who considered the taxpayer’s matter.
Administrative cost awards under IRC 7430 are considered by Counsel in
docketed cases. Therefore, requests for IRC 7430 administrative cost
awards in docketed cases should be routed to Counsel.
Regardless of whether the case is docketed or non-docketed, all
requests for IRC 7430 administrative cost awards with respect to an administrative proceeding related to requests for damages for Bankruptcy
Code violations should be routed pursuant to the instructions in Treas.
Reg. 301.7430-2(c)(2).

There is no IRS form for requesting an IRC 7430 administrative cost award.
Taxpayers and their representatives may file a request for an IRC 7430 administrative cost award by mailing a letter or Form 843, Claim for Refund and
Internal Revenue Manual

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4.2

General Examining Procedures

Request for Abatement, to the IRS. If the examiner is unsure if a Form 843 is
requesting an IRC 7430 administrative cost award, they should consult with the
lead or group manager.
Note: Taxpayers must file a motion with the Tax Court consistent with Tax Court
Rule 231 for reimbursement of litigation costs.

4.2.1.13
(04-23-2014)
Statute Expiration
Reports

(1)

A statute expiration report is required when the period for assessment or the
assessment period that was extended by consent has expired. See IRM
25.6.1.13, Barred Assessments/Barred Statute Cases, for guidance and a list
of exceptions to the reporting requirement.

(2)

SB/SE area office employees should refer to IRM 25.6.1.13.2.8, Statute Expiration Reporting Responsibilities and Procedures for SB/SE Area Office Involved
Directly With or Providing Support for Tax Return Examinations, for guidance.

(3)

LB&I field operations and campus employees should refer to IRM
25.6.1.13.2.9, Statute Expiration Reporting Responsibilities and Procedures for
LB&I Field Operations and LB&I Campus Employees, for guidance.

(4)

W&I campus examination employees should refer to IRM 25.6.1.13.2.7.2, Responsibilities of W&I Examination Operations at Campuses, for guidance.

4.2.1.14
(1) IRM 1.2.13.1.20, Policy Statement 4-65, provides that the IRS shall not make
(04-23-2014)
any effort, real or implied, to solicit voluntary payments of a deficiency or
Taxpayer Notification of
taxpayer delinquent account barred by statute. However, payments made by
Assessment Statute
the taxpayer completely of their free will shall be accepted.
Expiration and
Acceptance of Voluntary (2) Taxpayers must be notified in writing of assessment statute expiration if they
were contacted for examination. The appropriate notification letter depends on
Payments on Expired
whether a deficiency can be determined. See IRM 4.2.1.14.1 and IRM
Statute Returns When
4.2.1.14.2 for additional guidance. The responsibilities for preparing the notifiTaxpayer Was Contacted
cation letter, mailing and routing are the following:
for Examination
a.

b.

c.
d.

(3)

4.2.1.13

The undated notification letter is prepared and signed by the immediate
manager of the party responsible for the statute expiration. The notification letter, along with the completed Form 3999, Statute Expiration
Report, are forwarded to the Area Director (or comparable level of management) via second-level management.
The Area Director (or comparable level of management) signs the Form
3999 and the letter is date-stamped and mailed by his or her secretary or
staff assistant. The date of taxpayer notification is entered in Box 7 of
Form 3999.
A copy of the notification letter and the Form 3999 are forwarded back to
the manager via second-level management.
The Area Director (or comparable level of management) retains a copy of
the Form 3999 and the applicable taxpayer notification letter. The final
Form 3999 and a copy of the taxpayer notification letter are sent forward
to the Examination Director (or comparable level of management).

In multi-year and related examinations, it is not necessary to separately
process the year in which the statute expired. The return can follow the case
file through the normal examination process. However, a copy of the final
approved Form 3999 must be in the case file.
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General Examination Information

4.2.1

page 23

4.2.1.14.1
(04-23-2014)
Guidelines for Cases
with Expired Statutes
Where the Deficiency
Cannot Be Determined

(1)

If the examination has not reached the point where the deficiency can be determined, prepare Letter 5318, Deficiency Case Discontinued Due to Statute
Expiration-Deficiency Undetermined. Letter 5318 explains that the examination
has been discontinued because the statutory period in which the IRS can
legally issue a refund or assess a deficiency has expired.

4.2.1.14.2
(04-23-2014)
Guidelines for Cases
with Expired Statutes
Where the Deficiency
Can Be Determined or
there is No Change to
Tax

(1)

If the deficiency can be determined or the case is a no-change, prepare Letter
5321, Deficiency Case Discontinued Due to Statute Expiration-Deficiency Determined, and an unagreed or no-change examination report.
a.

b.

The report can be a copy of a report previously furnished to the taxpayer,
a revision of that report or an initial report prepared after statute expiration. However, adjustments that give the taxpayer a beneficial “double
deduction” are prohibited as discussed in 26 CFR 1.161-1, e.g., capitalizing an item previously expensed and allowing a depreciation deduction in
subsequent years. IRC 6401(a) provides that the term overpayment
includes any payment of any internal revenue tax which is assessed or
collected after the expiration of the period of limitation applicable. It will
generally be possible for the taxpayer to file a timely claim within two
years and have any payment refunded. This permits a double deduction
if a report includes issues that involve subsequent returns. See IRM
4.10.8.9.6, Unagreed Cases: Reports, for guidance on unagreed reports.
The report should reflect the deficiency or no change to tax resulting from
issues that have been developed to a point where the IRS’s position is
reasonably sound. Letter 5321 advises the taxpayer “... you have no
legal obligation to pay the amount shown on the enclosed report.”

Note: In order to show the statute has expired and the taxpayer is under no legal
obligation to pay the deficiency, include the following statement in the “Other
Information” section of the report: “You will not be assessed a deficiency for
(year) and are under no obligation to pay the deficiency shown on this examination report.”
c.

4.2.1.14.3
(04-23-2014)
Guidelines for Cases
with Expired Statutes
Where the Taxpayer
Makes a Voluntary
Payment

(1)

If the taxpayer inquires about making a voluntary payment, they should be
informed the payment will be accepted and can be mailed to the office
contacted. The subject of voluntary payments should not be discussed unless
the taxpayer inquires about voluntary payments. If the taxpayer makes a
voluntary payment:
a.

b.

c.

Cat. No. 34440Q (05-29-2019)

The purpose of the report is to help the taxpayer in filing subsequent
returns and to furnish the amount of the deficiency if the taxpayer elects
to make a voluntary payment.

Prepare and process Form 3244-A, Payment Posting VoucherExamination, treating the payment as an advance payment. See IRM
4.4.24.2, Form 3244-A, and IRM 4.4.24.6.4, Completion of Form 3244-A
for IRC 6603 Deposits.
Prepare Form 3198, Special Handling Notice for Examination Case Processing, following the instructions in IRM 25.6.1.13.2.8.3 (1), Closing
Cases Involving Expired Statute Returns, and submit the case for normal
processing. Voluntary payments are sent to Excess Collection File.
Prepare and issue Letter 5319, Deficiency Case-Voluntary Payment
Received After Statute Expiration, acknowledging receipt of the payment.

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4.2

General Examining Procedures

4.2.1.15
(1) The individual income tax returns for the President and Vice President are
(04-23-2014)
subject to mandatory examinations and cannot be surveyed. See IRM
Processing Returns and
3.28.3.4.3, Mandatory Examination.
Accounts of the
(2) Copies of the returns to be examined will be transmitted by the Office of the
President and Vice
Deputy Commissioner for Services and Enforcement to the SB/SE, Director,
President
Examination.
(3)

The area responsible for the examination will be determined by the SB/SE,
Director, Examination or their designee. After a determination is made as to the
area having jurisdiction, copies of the returns will be transmitted to the area
planning and special programs (PSP) territory manager for control and assignment to the appropriate field group. The transmittal memorandum will contain
the following instructions:
a.
b.
c.

d.
(4)

Upon receipt, the group should ensure Project Code 0207, Treasury Mandates,
and Source Code 46, have been input for the primary and any prior or subsequent year returns.

(5)

The returns must be assigned within 10 business days of receipt in the group.
The returns require expeditious handling at all levels to ensure prompt completion of the examinations.

(6)

Related returns, including estate and gift tax returns, will be handled in accordance with procedures relating to all taxpayers.

(7)

The location of the returns of the President and Vice President will be
monitored at all times throughout the examination process.
a.
b.
c.

(8)

The returns should be kept in an orange folder at all times.
The returns should not be exposed to viewing by other employees.
The returns should be locked in a secure drawer or cabinet when the
examiner is away from the work area.

The returns should be processed similar to the examination of an employee
return per IRM 4.2.6, Examination of Employee Returns, with the exception of
the following:
a.
b.

4.2.1.15

Regardless of discriminant index function (DIF) score, the returns will be
examined.
IRS personnel, including specialists, will be assigned to the examination
as appropriate.
The Examination Area Director, or their designee, will arrange for contact
with the authorized representative of the President and or Vice President
for the examination.
All relevant IRM procedures will apply to these returns.

The returns of the President and Vice President are mandatory examinations and cannot be surveyed.
The returns are subject to mandatory review and must be closed directly
to the Employee Audit Reviewer in Baltimore Technical Services. The
“Other” box in the “Forward to Technical Services” section of Form 3198
must be checked and the examiner should notate “President (or Vice
President) Examination; Forward to Baltimore Technical Services.” The
examining area will notify Baltimore Technical Services when the return is
being forwarded.
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General Examination Information
c.

4.2.1.16
(04-23-2014)
Blind Trust Income Tax
Returns Filed by
Presidential Appointees

4.2.1

page 25

Baltimore Technical Services will provide Centralized Case Processing
(CCP) with advance notice when the return is being closed.

(1)

Taxpayers who are presidential appointees are permitted to file their individual
income tax returns through a trustee of a blind trust. IRM 4.11.55.1.6, Terms,
defines a blind trust as a device used to give management of one’s investments to an outside person over whom the beneficiary has no control.

(2)

Extreme caution should be exercised not to violate a blind trust. All correspondence, inquiries, etc., should be directed to the authorized trustee unless the
power of attorney indicates otherwise. No information regarding the source or
nature of a blind trust can be disclosed. See IRM 3.28.3.4.1, General Information and Instructions, and Rev. Proc. 2010-11, for additional information.

(1) Allegations of income tax evasion or allegations concerning the willful failure to
4.2.1.17
(04-23-2014)
file any tax return by a senior Treasury official where prosecution is recommended, where the fraud penalty under IRC 6663 is asserted, or the fraudulent
Reporting Allegations of
Tax Violations Involving
failure to file penalty under IRC 6651(f) is asserted when prosecution is not
Senior Treasury Officials
recommended, will be reported to the Commissioner of Internal Revenue. The
Commissioner of Internal Revenue will immediately report the allegations to
the Deputy Secretary of Treasury or to the Secretary of Treasury.
Note: For a definition of “Treasury Department” or “Senior Treasury Official” see
IRM 4.2.1.1.4.

4.2.1.17.1
(1) Upon recommending the assertion of the fraud penalty under IRC 6663 or the
(04-23-2014)
fraudulent failure to file penalty under IRC 6651(f) (for a “senior Treasury
Compliance Examination
official”) where prosecution has not been recommended by the CI function, the
Procedures
territory manager will provide the Area Director (or comparable level of management) with a memorandum, for forwarding through channels, to the
Commissioner of Internal Revenue. The memorandum will contain the
following information:
a.
b.
c.
d.

Taxpayer name, residence address, and social security number.
Taxpayer position, now held, which qualifies him or her as a “senior
Treasury official.”
Brief summary of the findings and the tax years involved.
Additional civil taxes and penalties.

4.2.1.18
(1) All information received concerning misconduct of IRS employees or officials
(04-23-2014)
will be reported to TIGTA via the local TIGTA office or by a report to the TIGTA
Reporting Misconduct of
hotline using one of the following methods:
IRS Employees or
•
Online—complete and submit the online form on TIGTA’s web page at:
Officials
http://www.treasury.gov/tigta/contact_report.shtml
•
Email—send a secure email message to the TIGTA Hotline Complaints
Unit at Complaints@tigta.treas.gov
•
Telephone—1-800-366-4484
•
Fax—202-927-7018
•
Mail—
Cat. No. 34440Q (05-29-2019)

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4.2.1.18

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4.2

General Examining Procedures

Treasury Inspector General for Tax Administration
Hotline
PO Box 589
Ben Franklin Station
Washington, DC 20044-0589

4.2.1.19
(04-23-2014)
Income Tax Bonds
Under IRC 332(b) and
IRC 905(c)

(1)

A bond for the purpose of securing payment of internal revenue taxes is collateral security offered by the taxpayer, representative or a third party, which
satisfies the provisions of IRC 7101 and 26 CFR 301.7101–1.

(2)

If an IRC 332(b) liquidation is not completed within a single year, the recipient
corporation must sign a waiver of the statute of limitations on assessment and
may be required to file a bond.
a.

b.

(3)

Under IRC 905(c), in the case of any credit sought for a foreign tax accrued
but not paid, the Area Director or Director of Field Operations, as a condition
precedent to the allowance of a credit, may require a bond from the taxpayer.
a.

b.

(4)

4.2.1.19

The recipient corporation must waive the statute of limitations on assessment for each year that falls wholly or partly in the liquidation period.
Form 952, Consent to Fix Period of Limitation on Assessment of Income
Taxes, is used to extend the period of assessment of all income taxes of
the receiving corporation on the complete liquidation of a subsidiary
under IRC 332. See 26 CFR 1.332-4.
Under a three year corporate liquidation plan, the recipient corporation
may be required to file a bond in case nonrecognition treatment is later
lost. See 26 CFR 1.332-4(a)(3).

A bond under IRC 905(c) is filed using Form 1117, Income Tax Surety
Bond. Form 1117 will be executed by the taxpayer or representative and
approved by the Area Director (or comparable level of management) on
behalf of the Commissioner of Internal Revenue.
No period of limitations is established under either IRC 905(c) or IRC
6501(a) for the furnishing of a bond requested pursuant to IRC 905(c) for
a foreign tax credit based on an accrual of a foreign tax. Such bond may
be required from a taxpayer at any time and the foreign tax credit may be
disallowed without regard to any period of limitations if a taxpayer refuses
to furnish the bond. See Rev. Rul. 73-573.

If IRC 332(b) or IRC 905(c) issues are present, examiners should contact their
Area Counsel for help in determining whether to secure a bond and what the
terms should be. Any bonds secured will be held by Collection Advisory. See
IRM 5.6.1, Collateral Agreements and Security Type Collateral, and IRM 5.6.2,
Maintenance, for additional information.

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General Examination Information
4.2.1.20
(04-23-2014)
Property Blocked by
Foreign Funds Control
or Vested by Office of
Foreign Assets Control

4.2.1

page 27

(1)

The Office of Foreign Assets Control (OFAC) of the Department of Treasury
administers and enforces economic and trade sanctions based on U.S. foreign
policy and national security goals against targeted foreign countries and
regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other
threats to the national security, foreign policy, or economy of the United States.
OFAC acts under Presidential national emergency powers, as well as authority
granted by specific legislation, to impose controls on transactions and freeze
foreign assets under U.S. jurisdiction.

(2)

On September 24, 2001, the President of the United States issued an
executive order that immediately froze U.S. financial assets of and prohibited
U.S. transactions with 27 different entities. These entities include terrorist organizations, individual terrorist leaders, a corporation that serves as a front for
terrorism, and several nonprofit organizations.

(3)

Treasury Directive (TD) 15-43 (May 3, 2007, reaffirmed September 8, 2011)
delegates to the Commissioner of Internal Revenue the authority of the OFAC
to investigate and review for compliance with economic sanctions programs
persons that the IRS has the authority to examine for compliance with the
Bank Secrecy Act provisions in Title 31 (31 U.S.C. 5311 et seq.). The authority
to investigate and review includes, but is not limited to, the authority to compel
the production of documents and information and otherwise to examine a
person’s compliance with OFAC-administered economic sanctions. IRM
1.2.43.37, Delegation Order 4-47 (New), addresses the Commissioner of
Internal Revenue’s authorization under TD 15-43 with respect to conducting
reviews for compliance with economic sanctions programs.

(4)

Information regarding blocked property of aliens and foreign corporations may
be obtained from records located in OFAC. When such information is
requested by area offices, a request detailing the desired information will be
forwarded to the SB/SE Area Director.

(5)

Requests should contain clear instructions on what is requested and why.
OFAC collects the information for bank regulatory purposes and needs to know
who will be the end user of the information and how the information will be
used; e.g., by a revenue agent to conduct an examination. Make the request in
a letter sent to the address listed on the contacts page of the Office of Foreign
Assets Control website and include the subject line “Records Request from
Federal Agency”.

4.2.1.20.1
(1) Information obtained from the records of OFAC with respect to blocked
(04-23-2014)
accounts will be considered to be of a confidential nature and the source
Office of Foreign Assets
thereof will not be disclosed to taxpayers or their representatives, nor will such
Control (OFAC)
information be used in any legal proceeding without written authorization from
Information
headquarters.
(2)

Cat. No. 34440Q (05-29-2019)

OFAC will pay all taxes legally assessed against a former owner whose
property has been vested by that office if the tax is attributable to taxable
income accruing prior to the date of vesting. This is conditional upon a proper
determination of the taxes, where there is no non-vested property from which
the taxes may be realized, and there are vested funds available for payment of
the taxes.

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4.2.1.20.1

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page 28
4.2.1.20.2
(04-23-2014)
Investigation and
Disposition

4.2

General Examining Procedures

(1)

Investigation of returns will be made under the general procedure prescribed
for investigation of income tax returns. If the owner has property vested by
OFAC, any deficiency in tax liability arising from income realized prior to
vesting or from income earned on non-vested property will be asserted under
the general prescribed procedures. Preliminary (30-day) letters or statutory
notices of deficiency in cases where communication cannot be had with the
owner or representative, should be addressed in care of the party or agency
having custody of the property. Under war conditions, such address may be
treated as the taxpayer’s last known address.

(2)

If all the property of the owner has been vested, the preliminary (30-day) letter,
as well as the statutory notice of deficiency, should be addressed to the owner,
in care of Justice Dept., Civil Division, Office of Foreign Assets Control. Visit
the Office of Foreign Assets Control website for additional information on the
OFAC.

(3)

If the owner of the property or the party having custody of the property (in situations in which the property has not been vested by OFAC) does not agree to
any proposed deficiencies, the parties will have the right to a protest. Any reasonable request for an extension to the 30-day letter should be given favorable
consideration, provided the interests of the government are adequately
protected.

(4)

If Appeals consideration is not requested, the case file will be forwarded to the
LB&I, International, PSP program manager. The file will include the audit report
and a statement of reasons why an agreement was not reached. In cases
where agreements were concluded in vested cases, the file will be noted to
assess in the name of the OFAC, for the former owner. Likewise, agreed assessments in non-vested cases will be made in the name of the owner in care
of the person, party, or agency having custody of the property.

4.2.1.20.3
(04-23-2014)
Payor Failure to
Withhold Tax at Source

(1)

In cases of blocked or vested property, where it is determined the payor failed
to withhold tax at the source on income, the amount required by statute to be
withheld will be asserted against the payor agent. In cases where it is determined that income arising, but not paid, prior to blocking or vesting was turned
over to OFAC without withholding, the liability of the payor agent for withholding will be promptly reported to the LB&I, International, PSP program manager
for adjustment.

4.2.1.21
(04-23-2014)
Witness Security
Program

(1)

Federal agencies have always recognized a duty to protect informants and
witnesses from threats or possible danger resulting from their assistance to the
government by furnishing information or by testifying on behalf of the government in the prosecution of individuals. See IRM 9.5.11.11, Protection and
Maintenance of Informants and Witnesses.

(2)

The IRS has the authority to temporarily protect an informant or witness until a
determination is made by the DOJ that the person qualifies for protection
under its Witness Security Program.

(3)

The IRS has the authority to approve all confidential expenditures for other
protective arrangements undertaken by the IRS for an informant or witness
who does not qualify for or is refused protection under the DOJ’s Witness
Security Program, in an investigation which is not under jurisdiction of the U.S.
Attorney’s Office.

4.2.1.20.2

Internal Revenue Manual

Cat. No. 34440Q (05-29-2019)

 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 60 of 82

General Examination Information
(4)

page 29

Examination personnel who become aware of or have indications that the
taxpayer assigned may be a person in the Witness Security Program will immediately suspend the examination. No subsequent attempts by examination
employees will be made to contact a protected witness. Any necessary contact
will be coordinated through the special agent in charge (SAC) to the Deputy
Chief, CI, Attn: Witness Security Coordinator (WSC). A memorandum will be
prepared for signature of the area director (or comparable level of management) containing the following:
a.
b.
c.

4.2.1.22
(05-29-2019)
Taxpayer Advocate
Program

4.2.1

Any examination action taken to date.
Facts indicating that the taxpayer is enrolled in the Witness Security
Program.
Relevant facts involved in the tax matter, e.g., year under examination,
information needed, etc.

(5)

Upon receipt by an IRS employee of information alleging a threat or possible
danger to a past or present government informant or witness or family
member, as a result of furnishing information or otherwise cooperating with the
government, the employee will forward the information immediately to the SAC.

(1)

The Taxpayer Advocate Service (TAS) helps taxpayers resolve problems with
the IRS and recommends changes to prevent problems through two types of
advocacy—case-related and systemic. See IRM 13.1.1.2(5), Philosophy of
Advocacy. TAS has identified criteria that qualify taxpayers for TAS assistance.
TAS Criteria 1-9 reflect situations requiring acceptance of taxpayer cases to be
worked by TAS.

(2)

TAS refers to Criteria 1-4 as “Economic Burden” cases, Criteria 5-7 as
“Systemic Burden” cases, Criteria 8 as “Best Interest of the Taxpayer” cases,
and Criteria 9 as “Public Policy” cases. See IRM 13.1.7.2, TAS Case Criteria.

(3)

All inquiries meeting TAS criteria should be documented on Form 911, Request
for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), and forwarded to TAS by the most expeditious method available.

Note: If the taxpayer specifically requests TAS assistance, the case should be
referred to the Local Taxpayer Advocate (LTA).
(4)

Problems that meet TAS criteria do not necessarily need to be sent to TAS if
they can be immediately resolved by the function. All IRS employees should
handle potential TAS cases with the taxpayer’s best interest in mind. For other
taxpayer problem resolutions, see IRM 4.10.1.4.6, Problem Solving.

Note: If the taxpayer’s problem involves an Appeals agreed resolution not being
implemented or there was an error involving the implementation, refer the
taxpayer to the Appeals customer service number, see IRM 8.1.9.2, AARS
Closed Case Referrals, for additional information. An Appeals Account Resolution Specialist (AARS) will be able to provide assistance (AARS will not
change case decisions or determinations).
(5)

Cat. No. 34440Q (05-29-2019)

If TAS accepts a Form 911 that is related to a taxpayer under examination, it
will be forwarded to Examination for review by the responsible group. The

Internal Revenue Manual

4.2.1.22

 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 61 of 82
page 30

4.2

General Examining Procedures

group manager will refer to the Service Level Agreement between the National
Taxpayer Advocate and the Commissioner of their respective division for procedural guidance.
a.

b.

4.2.1.23
(05-29-2019)
Extensions of the
Replacement Period of
Involuntarily Converted
Property

(1)

Examiners should charge time expended on TAS activities to miscellaneous examination Activity Code 671, Taxpayer Advocate, per IRM 4.9,
Examination Technical Time Reporting System. Time charged to this
code should only include actual time spent on TAS activities. Examination
time should be charged to the case in the usual manner.
The statute of limitations on assessment may be extended by IRC
7811(d) and should be confirmed in writing with TAS.

The provisions of IRC 1033, Involuntary Conversions, allow for the deferral of
gains realized on the disposition of compulsorily or involuntarily converted
property when a taxpayer purchases similar property within the specified replacement period. When the taxpayer is unable to replace the property within
the normal replacement period, they can request an extension of the replacement period by writing to the Area Director. The Area Director will forward the
taxpayer’s request for an extension of time to Technical Services (TS) for consideration. TS will take final action to approve or deny the request as
delegated by IRM 1.2.65.4.11, Delegation Order SBSE 1-23-33, Authority to
Grant Extensions of Time to Replace Involuntarily Converted Property Under
Section 1033 of the Internal Revenue Code. See IRM 4.8.8.6, Involuntarily
Converted Property, for additional information.

Note: The request is most likely to be received by the Commissioner’s Representative in miscellaneous mail forwarded by the Campus.

4.2.1.24
(05-29-2019)
Identification of Bad
Payer Information

(2)

If the converted property is owned by several taxpayers under the jurisdiction
of different Area Directors’ offices, the TS national coordinator will conduct the
investigation to determine whether reasonable cause exists for not replacing
the converted property within the required time period.

(1)

During the preliminary review of IRP data, examiners may determine that information provided by the payer is incorrect.

(2)

Bad payer data is defined as any situation where the payer made an error on
the information return of a type that could occur on other information returns.
When errors have occurred on ten or more of these documents filed by one
payer or transmitter, bad payer data exists. Examples of bad payer data
include but are not limited to:
•
•
•
•
•
•

(3)

4.2.1.23

Duplicate filing of Forms W-2 or 1099;
Corrected Forms W-2 or 1099 not identified as a corrected, thus
appearing to duplicate the original filing;
Misplaced decimals;
Additional digits added to amounts;
Nontaxable income reported as taxable; and
Income reported on the wrong form.

When examiners determine that bad payer data exists, they will briefly explain
the identified error on a copy of the IRP and email it to the AUR HQ Payer
Agent Coordinator, by selecting the coordinator from the AUR Coordinator Site
- “Ogden”.
Internal Revenue Manual

Cat. No. 34440Q (05-29-2019)

 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 62 of 82

General Examination Information
4.2.1.25
(05-29-2019)
Awards Received by
Informants

page 31

(1)

Informant awards for confidential services are often received from the Bureau
of Customs, Federal Bureau of Investigation, Central Intelligence Agency,
Secret Service, local Police Departments, Whistleblower program, and other
similar sources. It is imperative that the source of income not be revealed in
the examiner’s report and that the identify of the informant be protected. See
IRM 25.2.2.9, Confidentiality of the Whistleblower, for additional guidance on
confidentiality.

(2)

If during the examination, unidentified income reported on the return or unreported income is discovered, the taxpayer may explain that the income was
received for services of a confidential nature.
•
•

(3)

•

(1)

b.

c.

Cat. No. 34440Q (05-29-2019)

In the case file, the description of the income will state “miscellaneous
income -source verified.”
Correspondence used to verify the source of income will not remain in
the case file but will be maintained in special file, confidential in nature,
under the personal control of the Area Director.

All employees should be familiar with the provisions of the Restructuring and
Reform Act of 1998 (RRA 98), including the following:
a.

(2)

If verification of the source of income is necessary, then verification
should be secured through inquiry of the official in charge of making the
payment
If the official is in the same locality as the examiner, then the official will
be interviewed personally without any written communication or other
report. If a personal interview is not possible, the examiner will prepare
for the personal signature of the Area Director, a letter to the official
marked “Confidential - To be opened by addressee only” requesting
verification of the payment for confidential services.

If the taxpayer states that the unidentified or unreported income was received
for services of a confidential nature, the case will be processed in the usual
manner without disclosing the source of the payment.
•

4.2.1.26
(04-23-2014)
Restructuring and
Reform Act of 1998

4.2.1

Section 1105, Prohibition on Executive Branch Influence Over Taxpayer
Audits and Other Investigations, superseded by IRC 7217.
Section 1203, Termination of Employment for Misconduct. See Document
11043, RRA ’98 Section 1203 All Employee Guide, for additional
information.
Section 3466, Application of Certain Fair Debt Collection Procedures, superseded by IRC 6304.

In addition, the Service has a long-standing commitment to the fair and
equitable treatment of all taxpayers set forth in Rev. Proc. 64-22. The pertinent
part of Rev. Proc. 64-22 states the law will be administered in a reasonable,
practical manner. Issues should be raised by examiners when they have merit
and never arbitrarily or for trading purposes.

Internal Revenue Manual

4.2.1.26

 Case Document 44-4 Filed 09/06/19 Page 63 of 82

Case Document 44-4 Filed 09/06/19 Page 64 of 82

EXHIBIT 

Case Document 44-4 Filed 09/06/19 Page 65 of 82

Department of the Treasury Date.
lnternal Revenue Service 06/05/2019
0 erating Division Pro ram Name]
IRS I: TaxpayerlD number (last4digits):
Form:
Tax periods:
Person to contact:
Contact telephone number:

Contact fax number:

Employee ID number:

Dear [enter Name]:
Your federal return for the period(s) shown above was selected for examination.

What you need to do
Please call me on or before [date] . You may contact me from [time] to [time] at the
telephone number provided above.

During our telephone conversation, we'll talk about the items I'll be examining on your return, the types of
documents I'll ask you to provide, the examination process, and any concerns or questions you may have. We'll
also set the date, time, and agenda for our first meeting.

Someone may represent you

You may have someone represent you during any part of this examination. If you decide you want
representation, the representative you authorize will need a completed Form(s) 2848, Power of Attorney and
Declaration of Representative, before we can discuss any of your tax matters.

If you choose to have someone represent you, please provide a completed Form 2848 by our first appointment.
You can mail or fax the form to me or have your representative provide it at the ?rst appointment, if you won't
be present. You can obtain Form 2848 from our office, from our web site, or by calling

(800) 829-3676.

If you ?led ajoint return, you and your spouse may attend the examination. If you and/or your spouse choose
not to attend with your representative, you must provide completed Form(s) 2848. You should provide a
separate Form 2848 for each spouse if you filed jointly even if you use the same representative.

Your rights as a taxpayer

We have enclosed Publication 1, Your Rights as a Taxpayer and Notice 609, Privacy Act Notice. The
Declaration of Taxpayer Rights found in Publication 1 discusses general rules and procedures we follow in
examinations. It explains what happens before, during, and after an examination, and provides additional
sources of information.

Letter 2205 (Rev. 1-2017)
Catalog Number 63744P

Case Document 44-4 Filed 09/06/19 Page 66 of 82

A video presentation, "Your Guide to an IRS Audit," is available at The video
explains the examination process and will assist you in preparing for your audit.

Thank you for your cooperation and I look forward to hearing from you by [date]

Sincerely,

[Name]

Internal Revenue Agent
Enclosures:
Publication 1
Notice 609

Letter 2205 (Rev. 1-2017)
Catalog Number 63744P

Case Document 44-4 Filed 09/06/19 Page 67 of 82

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 68 of 82

Your Rights
as a Taxpayer

Publication 1

This publication explains your rights as a taxpayer and the processes for examination, appeal, collection, and refunds.
Also available in Spanish.

The Taxpayer Bill of Rights
1. The Right to Be Informed

6. The Right to Finality

Taxpayers have the right to know what they need to do to
comply with the tax laws. They are entitled to clear
explanations of the laws and IRS procedures in all tax forms,
instructions, publications, notices, and correspondence. They
have the right to be informed of IRS decisions about their tax
accounts and to receive clear explanations of the outcomes.

Taxpayers have the right to know the maximum amount of
time they have to challenge the IRS’s position as well as the
maximum amount of time the IRS has to audit a particular tax
year or collect a tax debt. Taxpayers have the right to know
when the IRS has finished an audit.

2. The Right to Quality Service
Taxpayers have the right to receive prompt, courteous, and
professional assistance in their dealings with the IRS, to be
spoken to in a way they can easily understand, to receive clear
and easily understandable communications from the IRS, and
to speak to a supervisor about inadequate service.

3. The Right to Pay No More than the
Correct Amount of Tax
Taxpayers have the right to pay only the amount of tax legally
due, including interest and penalties, and to have the IRS
apply all tax payments properly.

4. The Right to Challenge the IRS’s Position
and Be Heard
Taxpayers have the right to raise objections and provide
additional documentation in response to formal IRS actions or
proposed actions, to expect that the IRS will consider their
timely objections and documentation promptly and fairly, and
to receive a response if the IRS does not agree with their
position.

5. The Right to Appeal an IRS Decision in an
Independent Forum
Taxpayers are entitled to a fair and impartial administrative
appeal of most IRS decisions, including many penalties, and
have the right to receive a written response regarding the
Office of Appeals’ decision. Taxpayers generally have the right
to take their cases to court.

The IRS Mission

7. The Right to Privacy
Taxpayers have the right to expect that any IRS inquiry,
examination, or enforcement action will comply with the law
and be no more intrusive than necessary, and will respect all
due process rights, including search and seizure protections,
and will provide, where applicable, a collection due process
hearing.

8. The Right to Confidentiality
Taxpayers have the right to expect that any information they
provide to the IRS will not be disclosed unless authorized by
the taxpayer or by law. Taxpayers have the right to expect
appropriate action will be taken against employees, return
preparers, and others who wrongfully use or disclose taxpayer
return information.

9. The Right to Retain Representation
Taxpayers have the right to retain an authorized representative
of their choice to represent them in their dealings with the
IRS. Taxpayers have the right to seek assistance from a Low
Income Taxpayer Clinic if they cannot afford representation.

10. The Right to a Fair and Just Tax System
Taxpayers have the right to expect the tax system to consider
facts and circumstances that might affect their underlying
liabilities, ability to pay, or ability to provide information timely.
Taxpayers have the right to receive assistance from the
Taxpayer Advocate Service if they are experiencing financial
difficulty or if the IRS has not resolved their tax issues properly
and timely through its normal channels.

Provide America’s taxpayers top-quality service by helping them understand and meet
their tax responsibilities and enforce the law with integrity and fairness to all.

Publication 1 (Rev. 9-2017) Catalog Number 64731W Department of the Treasury Internal Revenue Service www.irs.gov

 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 69 of 82

Examinations, Appeals, Collections, and Refunds
Examinations (Audits)
We accept most taxpayers’ returns as filed.
If we inquire about your return or select it
for examination, it does not suggest that
you are dishonest. The inquiry or
examination may or may not result in more
tax. We may close your case without
change; or, you may receive a refund.
The process of selecting a return for
examination usually begins in one of two
ways. First, we use computer programs to
identify returns that may have incorrect
amounts. These programs may be based
on information returns, such as Forms
1099 and W-2, on studies of past
examinations, or on certain issues
identified by compliance projects. Second,
we use information from outside sources
that indicates that a return may have
incorrect amounts. These sources may
include newspapers, public records, and
individuals. If we determine that the
information is accurate and reliable, we
may use it to select a return for
examination.
Publication 556, Examination of Returns,
Appeal Rights, and Claims for Refund,
explains the rules and procedures that we
follow in examinations. The following
sections give an overview of how we
conduct examinations.

By Mail
We handle many examinations and
inquiries by mail. We will send you a letter
with either a request for more information
or a reason why we believe a change to
your return may be needed. You can
respond by mail or you can request a
personal interview with an examiner. If you
mail us the requested information or
provide an explanation, we may or may not
agree with you, and we will explain the
reasons for any changes. Please do not
hesitate to write to us about anything you
do not understand.

By Interview
If we notify you that we will conduct your
examination through a personal interview,
or you request such an interview, you have
the right to ask that the examination take
place at a reasonable time and place that is
convenient for both you and the IRS. If our
examiner proposes any changes to your
return, he or she will explain the reasons for
the changes. If you do not agree with these
changes, you can meet with the examiner’s
supervisor.

the Appeals Office of the IRS. Most
differences can be settled without
expensive and time-consuming court trials.
Your appeal rights are explained in detail in
both Publication 5, Your Appeal Rights and
How To Prepare a Protest If You Don’t
Agree, and Publication 556, Examination of
Returns, Appeal Rights, and Claims for
Refund.
If you do not wish to use the Appeals
Office or disagree with its findings, you
may be able to take your case to the U.S.
Tax Court, U.S. Court of Federal Claims, or
the U.S. District Court where you live. If
you take your case to court, the IRS will
have the burden of proving certain facts if
you kept adequate records to show your
tax liability, cooperated with the IRS, and
meet certain other conditions. If the court
agrees with you on most issues in your
case and finds that our position was largely
unjustified, you may be able to recover
some of your administrative and litigation
costs. You will not be eligible to recover
these costs unless you tried to resolve your
case administratively, including going
through the appeals system, and you gave
us the information necessary to resolve the
case.

Collections
Publication 594, The IRS Collection
Process, explains your rights and
responsibilities regarding payment of
federal taxes. It describes:
• What to do when you owe taxes. It
describes what to do if you get a tax bill
and what to do if you think your bill is
wrong. It also covers making installment
payments, delaying collection action,
and submitting an offer in compromise.
• IRS collection actions. It covers liens,
releasing a lien, levies, releasing a levy,
seizures and sales, and release of
property.
• IRS certification to the State Department
of a seriously delinquent tax debt, which
will generally result in denial of a
passport application and may lead to
revocation of a passport.
Your collection appeal rights are explained
in detail in Publication 1660, Collection
Appeal Rights.

Innocent Spouse Relief

If we examined your return for the same
items in either of the 2 previous years and
proposed no change to your tax liability,
please contact us as soon as possible so
we can see if we should discontinue the
examination.

Generally, both you and your spouse are
each responsible for paying the full
amount of tax, interest, and penalties due
on your joint return. However, if you
qualify for innocent spouse relief, you may
be relieved of part or all of the joint
liability. To request relief, you must file
Form 8857, Request for Innocent Spouse
Relief. For more information on innocent
spouse relief, see Publication 971, Innocent
Spouse Relief, and Form 8857.

Appeals

Potential Third Party Contacts

If you do not agree with the examiner’s
proposed changes, you can appeal them to

Generally, the IRS will deal directly with you
or your duly authorized representative.

Repeat Examinations

However, we sometimes talk with other
persons if we need information that you
have been unable to provide, or to verify
information we have received. If we do
contact other persons, such as a neighbor,
bank, employer, or employees, we will
generally need to tell them limited
information, such as your name. The law
prohibits us from disclosing any more
information than is necessary to obtain or
verify the information we are seeking. Our
need to contact other persons may
continue as long as there is activity in your
case. If we do contact other persons, you
have a right to request a list of those
contacted. Your request can be made by
telephone, in writing, or during a personal
interview.

Refunds
You may file a claim for refund if you think
you paid too much tax. You must generally
file the claim within 3 years from the date
you filed your original return or 2 years from
the date you paid the tax, whichever is
later. The law generally provides for interest
on your refund if it is not paid within 45
days of the date you filed your return or
claim for refund. Publication 556,
Examination of Returns, Appeal Rights,
and Claims for Refund, has more
information on refunds.
If you were due a refund but you did not
file a return, you generally must file your
return within 3 years from the date the
return was due (including extensions) to get
that refund.

Taxpayer Advocate Service
TAS is an independent organization within
the IRS that can help protect your taxpayer
rights. We can offer you help if your tax
problem is causing a hardship, or you’ve
tried but haven’t been able to resolve your
problem with the IRS. If you qualify for our
assistance, which is always free, we will do
everything possible to help you. Visit
www.taxpayeradvocate.irs.gov or call
1-877-777-4778.

Tax Information
The IRS provides the following sources for
forms, publications, and additional
information.
• Tax Questions: 1-800-829-1040
(1-800-829-4059 for TTY/TDD)
• Forms and Publications:
1-800-829-3676 (1-800-829-4059 for
TTY/TDD)
• Internet: www.irs.gov
• Small Business Ombudsman: A small
business entity can participate in the
regulatory process and comment on
enforcement actions of the IRS by
calling 1-888-REG-FAIR.
• Treasury Inspector General for Tax
Administration: You can confidentially
report misconduct, waste, fraud, or
abuse by an IRS employee by calling
1-800-366-4484 (1-800-877-8339 for
TTY/TDD). You can remain anonymous.

 Case Document 44-4 Filed 09/06/19 Page 70 of 82

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 71 of 82
Request Number

Department of the Treasury — Internal Revenue Service

4564

Form
(Rev. September 2006)

Information Document Request

To: (Name of Taxpayer and Company Division or Branch)

Subject
SAIN number

Submitted to:

Dates of Previous Requests (mmddyyyy)
Please return Part 2 with listed documents to requester identified below

Description of documents requested

Information Due By

At Next Appointment
Name and Title of Requester

From:

Office Location

Mail in
Employee ID number Date (mmddyyyy)

Telephone Number

(
Catalog Number 23145K

www.irs.gov

Part 1 - Taxpayer's File Copy

)

Form 4564 (Rev. 9-2006)

 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 72 of 82
Request Number

Department of the Treasury — Internal Revenue Service

4564

Form
(Rev. September 2006)

Information Document Request

To: (Name of Taxpayer and Company Division or Branch)

Subject
SAIN number

Submitted to:

Dates of Previous Requests (mmddyyyy)
Please return Part 2 with listed documents to requester identified below

Description of documents requested

Information Due By

At Next Appointment
Name and Title of Requester

From:

Mail in
Employee ID number Date (mmddyyyy)

Office Location

Telephone Number

(
Catalog Number 23145K

www.irs.gov

Part 2 - To be Returned by Taxpayer with Reply

)

Form 4564 (Rev. 9-2006)

 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 73 of 82
Request Number

Department of the Treasury — Internal Revenue Service

4564

Form
(Rev. September 2006)

Information Document Request

To: (Name of Taxpayer and Company Division or Branch)

Subject
SAIN number

Submitted to:

Dates of Previous Requests (mmddyyyy)
Please return Part 2 with listed documents to requester identified below

Description of documents requested

Information Due By

At Next Appointment
Name and Title of Requester

From:

Mail in
Employee ID number Date (mmddyyyy)

Office Location

Telephone Number

(
Catalog Number 23145K

www.irs.gov

Part 3 - Requester's File Copy

)

Form 4564 (Rev. 9-2006)

 Case Document 44-4 Filed 09/06/19 Page 74 of 82

EXHIBIT 

Case Document 44-4 Filed 09/06/19 Page 75 of 82

Form 4549

Page of

Department of the Treasury - Internal Revenue Service

(January 2019) Report of Income Tax Examination Changes

 

 

Name and address of taxpayer

Taxpayer identi?cation number Return form number

 

 

Person with whom
examination
changes were
discussed.

Name and title

 

A

Adjustments to income

Period Ended

Period Ended Period Ended

 

 

 

 

 

 

 

 

 

 

 

Total adjustments
3. Taxable income per return or as previously adjusted
4. Corrected taxable income
Tax method
Filing status
5. Tax
6. Additional taxes/Alternative minimum tax
7. Corrected tax liability
8. Less a.
credits b.
c.
d.
9. Balance (line 7 less lines 8a through 8d)
10. Plus a.
other b.
taxes c.
d.
11. Total corrected tax liability (line 9 plus lines 10a through 10d)
12. Total tax shown on return or as previously adjusted
13. Adjustments to: a.
b.
c.
14. De?ciency-Increase in tax or (overassessment-decrease in tax) (line 11 less
line 12 adjusted by lines 13a through 13c)
15. Adjustments to prepayment credits - increase (decrease)
16. Balance due or (overpayment) - (line 14 adjusted by line 15) (excluding

interest and penalties)

 

 

 

 

The Internal Revenue Service has agreements with state tax agencies under which information about federal tax, including increases or decreases. is
exchanged with the states. If this change affects the amount of vour state income tax. vou should amend vour state return bv filingjneneqessam
forms.

You may be subject to backup withholding if you underreport your interest. dividend. or patronage dividend income you earned and do not pay the
required tax. The may order backup withholding (withholding of a percentage of your dividend and/or interest payments) if the tax remains unpaid
after it has been assessed and four notices have been issued to you over a 120-day period.

Catalog Number 23105A



Form 4549 (Rev. 1-2019)

Case Document 44-4 Filed 09/06/19 Page 76 of 82

Page of

 

Name of taxpayer Taxpayer identification number Return form number

 

 

Period Ended Period Ended Period Ended

 

17. Penalties, additions to tax, and additional amounts -- IRC sections

 



 

. Total penalties, additions to tax, and additional amounts

 

. Summary of taxes, penalties and interest

. Balance due or (overpayment) taxes - (line 16, page 1)
. Penalties and additions (line 18) - computed to
lnterest? (IRC 6601) - estimated and computed to



Q.

 

 

 

. Amount due or (refund) - (sum of lines a, b, and c)

 

*lnterest, as provided by law, will be charged on any unpaid amount until it is paid in full.

 

Other information

 

Examiner's name Employee ID Of?ce

 

 

 

Examiner's signature Date

 

 

Consent to Assessment and Collection- I do not wish to exercise my appeal rights with the Internal Revenue Service or to contest in the United States
Tax Court the ?ndings in this report. Therefore, I give my consent to the immediate assessment and collection of any increase in tax and penalties. and
accept any decrease in tax and penalties shown above, plus additional interest as provided by law. It is understood that this report is subject to
acceptance by the Area Director, Area Manager, Specialty Tax Program Chief, or Director of Field Operations.

     
 

  

Note: If a joint return was filed, BOTH taxpayers must sign

Signature of taxpayer Signature of taxpayer Date

 

By Title Date

 

 

 

Catalog Number 23105A Form 4549 (Rev. 1-2019)

Case Document 44-4 Filed 09/06/19 Page 77 of 82

EXHIBIT 

Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 78 of 82
Form

5701

Department of the Treasury - Internal Revenue Service

Notice of Proposed Adjustment

(April 2019)

Name of taxpayer

Issue number

Name and title of person to whom delivered

Date

Entity for this proposed adjustment

Response due

Based on the information we now have available and our discussions with you, we believe the proposed adjustment listed below should
be included in the revenue agent's report. However, if you have additional information that would alter or reverse this proposal, please
furnish this information as soon as possible.
Years

Amount

Account or Return Line

SAIN Number

UIL Code

Reasons for proposed adjustment (If the explanation of the adjustment will be longer than the space provided below, the entire
explanation should begin on Form 886-A (explanation of items)

Taxpayer's/Representative's action
Agreed
Agreed in part

Disagreed

Have additional information; will submit by

Taxpayer's/Representative's signature

Date

If disagreed in part or in full - check here for consideration of Fast Track Settlement
Taxpayer
IRS
Team Manager
Catalog Number 42770J

Date
www.irs.gov

Form 5701 (Rev. 4-2019)

 Case Document 44-4 Filed 09/06/19 Page 79 of 82

EXHIBIT I

Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 80 of 82
Department of the Treasury
Internal Revenue Service
[Operating Division / Program Name]

Date:

09/05/2019
Taxpayer ID number:
Form:
Person to contact:
Employee ID number:
Contact telephone number:
Contact fax number:

Certified Mail

[Certified Mailing Number]

Last day to file petition with US tax court:

Dear [Name]:
Notice of Deficiency
Tax Year Ended:
Deficiency:
Increase in tax

Why we are sending you this letter
We determined that you owe additional tax or other amounts, or both, for the tax years above. This letter is your
Notice of Deficiency as we're required by law to send you. The enclosed Form 4549-A, Income Tax
Examination Changes (Unagreed and Excepted Agreed), or Form 5278, Statement - Income Tax Changes,
shows how we figured the deficiency.
If you agree with the Notice of Deficiency
If you agree with our determination, sign the enclosed Form 4089-B, Notice of Deficiency - Waiver, and return
it to us at the address on the top of the first page of this letter. Sending this now can help limit the accumulation
of interest.
If you disagree with the Notice of Deficiency
If you want to contest our final determination, you have 90 days from the date of this letter (150 days if
addressed to you outside of the United States) to file a petition with the United States Tax Court.
Letter 531 (Rev. 1-2019)
Catalog Number 40223L

 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 81 of 82
How to file your petition
You can get a petition form and the rules for filing from the Tax Court's website at www.ustaxcourt.gov, by
contacting the Office of the Clerk at the address below, or by calling 202-521-0700. Send your completed
petition form, a copy of this letter, and copies of all statements and schedules you received with this letter to the
address below.
United States Tax Court
400 Second Street, NW
Washington, DC 20217
If this notice shows more than one tax year, you can file one petition form showing all of the years you
disagree with.
The Tax Court has a simplified procedure for small tax cases. If you plan to file a petition for multiple tax years
and the amount in dispute for any one or more of the tax years exceeds $50,000 (including penalties), you can't
use this simplified procedure. If you use this simplified procedure, you can't appeal the Tax Court's decision.
You can get information about the simplified procedure from www.ustaxcourt.gov or by writing to the court at
the address above.
If you recently sought bankruptcy relief by filing a petition in bankruptcy court, see enclosed Notice 1421,
How Bankruptcy Affects Your Right to File a Petition in Tax Court in Response to a Notice of Deficiency.
You can represent yourself before the Tax Court, or anyone allowed to practice before the Tax Court can
represent you.
Time limits on filing a petition
The court can't consider your case if you file the petition late.
• A petition is considered timely filed if the Tax Court receives it within
- 90 days from the date this letter was mailed to you, or
- 150 days from the date this letter was mailed to you if this letter is addressed to you outside of the
United States.
• A petition is also generally considered timely if the United States Postal Service postmark date is within
the 90 or 150-day period and the envelope containing the petition is properly addressed with the correct
postage. The postmark rule doesn't apply if mailed from a foreign country.
• A petition is also generally considered timely if the date marked by a designated private delivery service is
within the 90 or 150-day period. Not all services offered by private delivery companies are designated
delivery services. For a list of designated delivery services available for domestic and international
mailings, see Notice 2016-30, which is available on the IRS website at www.irs.gov/irb/2016-18_IRB/ar07.html.
Please note that the list of approved delivery companies may be subject to change.
• The time you have to file a petition with the Tax Court is set by law and can't be extended or suspended,
even for reasonable cause. We can't change the allowable time for filing a petition with the Tax Court.
If you are married
We're required to send a notice to each spouse. If both want to petition the Tax Court, both must sign and file
the petition or each must file a separate, signed petition. If only one spouse timely petitions the Tax Court, the
deficiency may be assessed against the non-petitioning spouse. If only one spouse is in bankruptcy at the time
we issued this letter or files a bankruptcy petition after the date of this letter, the bankruptcy automatic stay does
not prevent the spouse who is not in bankruptcy from filing a petition with the Tax Court. The bankruptcy
automatic stay of the spouse seeking bankruptcy relief doesn't extend the time for filing a petition in Tax Court
for the spouse who is not in bankruptcy.
Letter 531 (Rev. 1-2019)
Catalog Number 40223L

 Case 1:19-cv-01974-TNM Document 44-4 Filed 09/06/19 Page 82 of 82
If we don’t hear from you
If you decide not to sign and return Form 4089-B, and you don't file a timely petition with the Tax Court, we'll
assess and bill you for the deficiency (and applicable penalties and interest) after 90 days from the date of this
letter (150 days if this letter is addressed to you outside the United States).
Note: If you are a C corporation, we're required by Internal Revenue Code Section 6621(c) to charge an interest
rate two percent higher than the normal rate on corporate underpayments in excess of $100,000.
If you need more assistance
If you have questions, you can contact the person at the top of this letter. If you write, include a copy of this
letter, your telephone number, and the best hours to reach you. Keep the original letter for your records.
Information about the IRS Taxpayer Advocate Service
The IRS office whose phone number appears at the top of the notice can best address and access your tax
information and help get you answers. However, you may be eligible for free help from the Taxpayer Advocate
Service (TAS) if you can't resolve your tax problem with the IRS, or you believe an IRS procedure just isn't
working as it should. TAS is an independent organization within the IRS that helps taxpayers and protects
taxpayer rights. Contact your local Taxpayer Advocate Office at:
Or call TAS at 877-777-4778. For more information about TAS and your rights under the Taxpayer Bill of Rights,
go to taxpayeradvocate.irs.gov. Do not send your Tax Court petition to the TAS address listed above. Use the
Tax Court address provided earlier in the letter. Contacting TAS does not extend the time to file a petition.
Information about Low Income Taxpayer Clinics and other resources
Assistance can be obtained from individuals and organizations that are independent from the IRS. The
Directory of Federal Tax Return Preparers with credentials recognized by the IRS can be found at
http://irs.treasury.gov/rpo/rpo.jsf. IRS Publication 4134 provides a listing of Low Income Taxpayer Clinics
(LITCs) and is available at www.irs.gov. Also, see the LITC page at www.taxpayeradvocate.irs.gov/litcmap.
Assistance may also be available from a referral system operated by a state bar association, a state or local
society of accountants or enrolled agents or another nonprofit tax professional organization. The decision to
obtain assistance from any of these individuals and organizations will not result in the IRS giving preferential
treatment in the handling of the issue, dispute or problem. You don't need to seek assistance to contact us.
We will be pleased to deal with you directly and help you resolve your situation.
Sincerely,
[Name]
Commissioner
By
[Name]
[Title]
Enclosures:
[Form 4549-A or Form 5278]
Form 4089-B
Notice 1421
Letter 531 (Rev. 1-2019)
Catalog Number 40223L

 Case 1:19-cv-01974-TNM Document 44-5 Filed 09/06/19 Page 1 of 1

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
_______________________________________
)
COMMITTEE ON WAYS AND
)
MEANS, UNITED STATES HOUSE
)
OF REPRESENTATIVES,
)
)
Plaintiff,
)
)
v.
)
) No. 1:19-cv-1974 (TNM)
UNITED STATES DEPARTMENT
)
OF THE TREASURY, et al.
)
)
Defendants,
)
)
DONALD J. TRUMP, et al.,
)
)
Defendant-Intervenors.
)
)
[PROPOSED] ORDER
UPON CONSIDERATION of Defendants’ and Defendant-Intervenors’ Motion to
Dismiss, the memorandum in support, the opposition thereto, any reply in support of the Motion,
and the entire record herein, it is by the Court this _____ day of __________, 2019, ORDERED
That Defendants’ and Defendant-Intervenors’ Motion to Dismiss is GRANTED.
IT IS FURTHER ORDERED
That this case is dismissed.
IT IS SO ORDERED.
Date: ______________

___________________________
HON. TREVOR N. MCFADDEN
United States District Judge