IRS

RDP Senior Researcher Kenny Stancil joined Arnie Arnesen to discuss why Biden should pardon IRS whistleblower Charles Littlejohn.

We focus on the under the radar impacts of corporate control of the Fifth Circuit and Congressional Republicans.

Biden has yet to visit East Palestine but is expected to do so this month. When he does, he should denounce Norfolk Southern’s avarice from the site of the train wreck.

Learning about the federal government’s budget process can be daunting. Here are a few key terms to help better understand of the federal budget process as of late.

Earlier this month, The New York Times broke the story that former FBI director James Comey and his former deputy director Andrew McCabe, both loathed and eventually fired by President Trump, also both underwent rare and intensive tax audits under the National Research Program, which studies tax compliance and calculates the “tax gap” (the difference between legally owed tax and what is actually paid). Out of around 154 million annual tax returns, the National Research Program selected just 5,000 tax returns in 2017 and 8,000 in 2019 to audit. Neither man knew the other had undergone the same audit until a Times reporter told them.

In March, six months after the start of Fiscal Year 2022, Congress finally passed an omnibus funding agreement that brought agencies out from under the shadow of Trump-era austerity (although still fell far short of enacting the funding levels that most agencies require to meet their responsibilities to the public). Critically, in the case of at least one agency, the omnibus did not just grant the money to hire new staff, but the means to do so much more quickly. At the Internal Revenue Service (IRS), Congress greenlit the use of direct hiring authorities to empower the agency to temporarily forgo some of the more onerous aspects of the federal hiring process as well as to facilitate a quick rebuilding of the IRS’ notoriously depleted ranks. With this designation, Congress acknowledged that staff shortages at the IRS had reached a state of emergency and thus acted accordingly. 

enforcing the U.S. tax code. Much has been written regarding the IRS’ gutting over the years. The agency has been systematically defunded, deresourced, and attacked by political operatives for decades, at a grave cost to the basic functionality of our government, and to the benefit of only the richest Americans. These trends were only exacerbated under the Trump administration, which was hyper-focused on dismantling the tax system to benefit its corporate and billionaire cronies. Unfortunately, the Trump administration’s destructive influence remains pervasive throughout the IRS, with Trump’s Commissioner, Charles Rettig, still installed as the governing head of the agency while finishing a 5-year term (at the pleasure of the president) set to expire in 2022.

Last month, ProPublica, aided by a trove of tax information on the richest Americans delivered by an anonymous whistleblower, began a series of reports on the staggeringly low to nonexistent tax bills paid by specific billionaires and the tactics they use to achieve that end.

In its most recent release, ProPublica detailed PayPal co-founder Peter Thiel’s use of a Roth IRA, a specialized retirement account in which contributors pay taxes up front but not on distributions, to shelter billions in investment income gains. This involved questionable valuations and other strategies that are either explicitly or implicitly illegal.