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Home » IRS Official from Obama-Era Tea Party Scandal Now Leading Major Tax Division

IRS Official from Obama-Era Tea Party Scandal Now Leading Major Tax Division

By Kevin ParkerMarch 28, 2025Updated:March 28, 2025 Daily News Cycle 1 Comment4 Mins Read
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A watchdog group with a keen eye on government integrity has raised concerns about the role of an IRS official entangled in a past scandal. Holly Paz, who once served as Lois Lerner’s deputy during the controversial Obama-era IRS targeting scandal, now holds a prominent position within the agency. The American Accountability Foundation (AAF), a conservative watchdog group, is calling for her removal due to her involvement in this prior controversy.

In a letter to Treasury Secretary Scott Bessent, the AAF expressed concerns about Paz’s current role. The group is investigating the IRS for perceived partisanship and its alleged targeting of conservative entities. They argue that Paz’s reinstatement during the Biden administration is troubling, given her history with the agency.

Paz was previously placed on leave amid allegations that the IRS targeted conservative groups seeking tax-exempt status. Her return to a high-ranking position has raised eyebrows among conservative circles. The AAF insists that individuals like Paz should not hold positions of power if they have demonstrated political bias.

The IRS division that Paz now oversees is responsible for handling tax matters for large domestic and international businesses. This includes companies with assets exceeding $10 million and involves compliance programs for high-wealth individuals. Given the scale of this division, the AAF stresses the importance of impartiality in its leadership.

The Tea Party scandal, which cast a long shadow over the IRS, involved claims that the agency unfairly scrutinized conservative organizations. While the IRS later apologized for its actions in 2017, the controversy remains a sore point for many. Paz’s role in this chapter of IRS history continues to invite scrutiny.

During her earlier tenure at the IRS, Paz reviewed numerous applications from Tea Party groups, many of which were delayed. Her actions during this period have been a focal point of criticism. Despite her testimony to Congress, which downplayed the IRS’s political targeting, internal communications suggest otherwise.

Paz’s past political contributions have also come under the microscope. She donated substantially to the Obama campaign in 2008, which raises questions about her impartiality. Her testimony to congressional investigators conflicted with internal IRS emails, leading to further doubts about her credibility.

In her testimony, Paz likened the term “Tea Party” to a catch-all phrase for political organizations, similar to how “Kleenex” is used for tissues. However, this characterization was disputed by other IRS employees. They claimed that left-leaning groups did not face the same level of scrutiny.

Republican investigators have pointed out inconsistencies in Paz’s accounts. They question the timeline she provided about when IRS personnel were aware of the targeting practices. Such discrepancies have fueled ongoing debates about the IRS’s conduct during that period.

Requests for comment from the Treasury Department and Paz have gone unanswered. The silence only adds to the concerns raised by the AAF and other conservative watchdogs. For many, transparency and accountability remain paramount in government agencies.

The Daily Caller News Foundation, a nonpartisan news service, has covered these developments extensively. Their reporting sheds light on the complexities of the IRS scandal and its lasting implications. The story continues to resonate with those who value fairness in tax administration.

As the AAF presses forward with its investigation, the spotlight remains on the IRS and its leadership. The call for Paz’s removal underscores the broader issue of political bias within government institutions. For watchdog groups, ensuring impartiality is crucial to maintaining public trust.

While the IRS has made strides to address past mistakes, controversies like these highlight the need for vigilance. Conservatives argue that political bias within federal agencies undermines democratic principles. They advocate for reforms that ensure equal treatment for all taxpayers.

The IRS’s handling of tax-exempt applications continues to be a contentious topic. Critics argue that any perceived bias damages the agency’s credibility. The AAF’s efforts reflect a broader movement to hold government accountable.

As debates over the IRS’s role persist, the focus remains on ensuring that all citizens are treated fairly. Watchdog groups like the AAF play a crucial role in this process. Their work highlights the importance of transparency and accountability in government agencies.

The controversy surrounding Holly Paz is a reminder of the challenges facing federal institutions. Ensuring that leadership is free from bias is essential for public confidence. The ongoing discussions underscore the delicate balance between governance and accountability.

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1 Comment

  1. mike on March 28, 2025 10:27 AM

    The government is corrupt no matter who is in charge. The more things change, the more they stay the same. The old judges that attacked Trump are still blocking him-preventing the deportation–the cleanup of the government agencies, the deletion of SSA’s of people over 120 years old. The old school anti-trumpers are managing about two lawsuits a day-every day to stop Trump. He must be doing something right for the Democrats to stay so mad. Meanwhile, Mad Maxine, the way out whacko who is almost as dumb as AOC, wants to deport Melania Trump–claims she is in the country illegally. Then there’s Rosie O’Donnell who just stated that Trump rigged the 2024 election to win the presidency. The media gives every one of these idiots the national spotlight as long as they are attacking Trump.

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