What's Happening?
The Treasury Department is reportedly planning to revise IRS procedures, reducing the role of attorneys at the IRS's Office of Chief Counsel in vetting criminal tax prosecutions. This change could affect the independence and thoroughness of legal advice
provided to the IRS's Criminal Investigation division (IRS-CI), which is the only federal law enforcement agency with jurisdiction over tax crimes. Historically, the IRS's Criminal Tax Counsel has played a crucial role in analyzing cases and providing recommendations, although it cannot change or reject proposed charges. The Department of Justice's Tax Division also plays a gatekeeping role, approving tax charges before indictments are sought. The potential sidelining of these roles raises concerns about the protection of taxpayers and the integrity of tax enforcement.
Why It's Important?
The proposed changes could have significant implications for the integrity of tax enforcement in the U.S. By reducing the role of the IRS's Criminal Tax Counsel, there is a risk that taxpayers could be charged irresponsibly, with cases proceeding on tenuous evidentiary bases. This could lead to an increase in wrongful prosecutions and undermine public trust in the tax system. The independence of the Criminal Tax Counsel is designed to ensure candid legal advice and protect taxpayers from overzealous prosecutions. If the Tax Division's role is also diminished, it could result in a lack of uniformity in tax enforcement across the country, potentially leading to disparities in how tax laws are applied.
