Werfel: 'See something, say something'
Republicans say they have notched a win in their effort to spotlight whistleblower protections at the IRS.
Amid the GOP investigation of IRS whistleblower allegations that Biden administration officials meddled in the investigation of Hunter Biden’s taxes, Ways and Means Chair Jason Smith (R-Mo.) complained that internal agency communications didn’t make it clear that employees had a legal right to make protected disclosures to Congress.
But over the weekend, Smith said that IRS Commissioner Danny Werfel sent a memo to employees on Friday informing them of that right.
“As employees, you are the first line of defense to call out issues that raise concerns, and I want it to be clear that we will always encourage a ‘see something, say something’ philosophy,” Werfel said in the memo, a copy of which was posted by Tax Notes.
“And in the event that you believe that the best course of action is not to raise issues up your IRS chain of command, but to raise the issue with an independent authority, there are a number of different options for raising concerns,” the memo went on, “including but not limited to” the Treasury Inspector General for Tax Administration, congressional oversight committees, the U.S. Office of Special Counsel and the Justice Department inspector general.
Smith responded in a written statement from his office: “The importance of informing whistleblowers about their rights under the law is vital.”
“The Ways and Means Committee has been conducting rigorous oversight of the extremely troubling allegations of retaliation against the IRS whistleblowers who made disclosures to the Committee, which includes inquiries about communications to IRS employees that neglected to tell employees about their rights to make such disclosures.”
More on the IRS below, but first....
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ICYMI: The Biden administration isn’t the only one facing allegations of political interference with the IRS.
The New York Times reported on Friday that John Kelly, who was a chief of staff to former President Donald Trump, “said in a sworn statement that Mr. Trump had discussed having the Internal Revenue Service and other federal agencies investigate two F.B.I. officials involved in the investigation into his campaign’s ties to Russia.”
The statement was filed as part of a suit against the Justice Department by former FBI officials Peter Strzok and Lisa Page. Strzok, who led the FBI’s Russia probe, and Page, who was a bureau attorney, allege the department violated their privacy by publicly disclosing text messages they exchanged that were critical of Trump.
“The sworn statements from Mr. Kelly are similar to ones he made to The New York Times in November, in which he said that Mr. Trump had told him that he wanted a number of his perceived political enemies to be investigated by the I.R.S.,” including former FBI Director James Comey, former Deputy Director Andrew McCabe, Strzok and Page.
Comey and McCabe were indeed chosen for a type of rare, rigorous audit of their 2017 and 2019 returns, respectively. The IRS’s inspector general said last year that his office “did not identify misconduct” in the audit selections.
ADEYEMO CROSSES THE POND: Treasury Deputy Secretary Wally Adeyemo is in Europe this week with at least one tax-related issue on his agenda: the Inflation Reduction Act.
“In Brussels, Deputy Secretary Adeyemo will meet with officials at the European Commission to discuss partnership with allies and partners to build reliable clean energy supply chains to support green economic transitions,” Treasury said in a statement.
The Biden administration has been in talks with EU officials over a possible deal to allow minerals mined and processed in Europe to count toward sourcing requirements for U.S. tax incentives in the Inflation Reduction Act’s green energy and critical minerals provisions.
But that might not be the only tax topic that comes up. While not mentioned in the Treasury release, the global minimum tax deal that the U.S. has signed on to along with more than 140 other countries is looming in the background.
European officials are antsy about the lack of progress in the U.S. on implementing the agreement. Republicans are standing in the way of any congressional approval of its two central provisions — imposing a 15 percent minimum tax on multinational corporations and allowing countries to tax companies where they make sales, not just where they’re headquartered.
With the deal sidelined in Congress, some European officials have made noises about revisiting digital services taxes — which would mostly hit U.S. companies — that were meant to be replaced by the global deal.
Another option, of course, is for governments that ratify the agreement to wield a club it includes allowing them to tax corporations that don’t pay a minimum tax rate of 15 percent in their home countries.
That threat seems to be what the Biden administration is counting on to eventually get things off the dime in Congress.
“I think that over time as other countries adopt this minimum tax, and put in place penalties designed to encourage countries that are not part of it to adopt it, that the United States and members of Congress will see that it is sensible and appropriate for us to put it in place as well,” Treasury Secretary Janet Yellen said on CNBC in June.
Financial Times: OECD pressed Australia to drop plan to reveal where multinationals pay tax
The Korea Herald: Tax Revenue to Plunge On Real Estate Slump
The Sun: Tory MPs launch fresh push for tax cuts after Jeremy Hunt suggested they were unlikely before election
Forbes: Staffers Find $352 Million Mistake In Minnesota’s New Tax Law
Channel3000: For the Record: Evers reverses stance, says he’s open to negotiating on middle-class tax cuts
Before he became the musician known as Sting, Gordon Matthew Thomas Sumner taught English and music — as well as coaching soccer — at St Paul’s First School in Cramlington, Northumberland, UK.
Source: https://www.politico.com/