WASHINGTON — More than a dozen Senate Democrats are asking a federal watchdog to look into why a top IRS legal official recently stepped down from his post after reportedly pushing back against the White House over concerns about improper influence on taxpayer audits.
Kenneth Kies, who held the dual roles of assistant Treasury Department secretary and acting chief counsel of the IRS, left both positions earlier this month. According to reporting by The Wall Street Journal, Kies had cautioned that political officials were potentially running afoul of a federal law that prohibits the executive branch from directing or halting tax audits and investigations.
Kies is a veteran Washington tax lobbyist who was confirmed to head the Office of Tax Policy in June 2025. He also held the acting chief counsel position at the IRS.
In a letter addressed to Heather M. Hill, the Treasury Department’s acting inspector general for tax administration, the Democratic senators argued that Kies was pushed out of the Republican administration after he voiced those legal concerns.
“If recent reporting is accurate and Mr. Kies did in fact advise White House officials of such risks, it is gravely concerning that this administration chose not only to ignore the IRS’ top legal adviser, but to fire him for attempting to follow the law and protect taxpayers,” the senators wrote.
The White House, while confirming Kies had left, told The Associated Press in a written statement that he was not a team player and was difficult to work with. Neither Kies nor the IRS responded to AP requests for comment.
The law prohibiting executive branch interference in tax audits traces its roots back to the Watergate scandal, when President Richard Nixon, a Republican, was found to have discussed weaponizing the IRS against political opponents and individuals on his administration’s so-called “enemies list.”
It remains unclear which specific taxpayer audits triggered Kies’ concerns about White House involvement. Notably, Kies had previously removed himself from any tax matters connected to President Trump, citing his earlier work as Trump’s private attorney.
In a separate but related matter, lawmakers have also raised questions about a settlement agreement reached in May between Trump and his own administration to resolve a $10 billion lawsuit stemming from the 2018 leak of his tax returns to The New York Times. That deal includes a provision in which the IRS agreed to drop all pending investigations into whether Trump paid the appropriate amount in taxes.
According to a one-page addendum to the agreement, the U.S. government is “forever barred and precluded” from reviewing or pursuing legal action against Trump, his sons, and the Trump Organization regarding current tax filings.
