The Biden administration’s nominee told senators he would look into alleged politically motivated audits and unfair targeting of small businesses.
David Johnson, the Biden administration’s nominee for Inspector General for Tax Administration (TIGTA), vowed Thursday to rigorously investigate allegations of IRS misconduct, including politically motivated audits and unfair targeting of small businesses with tax audits.
During a Nov. 14 confirmation hearing before the U.S. Senate Committee on Finance, Johnson fielded questions from Democratic and Republican senators on safeguarding taxpayers from IRS abuse and overreach.
Finance Committee Chairman Sen. Ron Wyden (D-Ore.) asked Johnson how he would prevent politically driven misuse of IRS authority.
“If you’re confirmed as Inspector General, what actions will you lead at TIGTA to ensure that Americans are not being targeted for audit or investigation based on their political affiliation?” Wyden asked.
Johnson assured the committee that tackling such abuses would be a top priority. He pledged to swiftly investigate any allegations of politically motivated tax audits and report his findings to Congress and other stakeholders.
“I believe that one of the core responsibilities of any Inspector General, by statute, is to prevent fraud, waste, and abuse, and targeting of any American based on their political affiliation, to me, would be an extreme level of abuse,” Johnson said. “Anybody ordering the IRS or asking the IRS to target political opponents or take action based on political identity would be an abuse of power and would be something that TIGTA would play a role in preventing.”
Sen. Marsha Blackburn (R-Tenn.) raised concerns about the IRS’s audit practices, particularly their impact on small businesses earning less than $400,000 annually. She referenced a 2022 directive from Treasury Secretary Janet Yellen, which promised that small businesses and lower-income taxpayers would not face increased audit rates. Despite this, Blackburn said her constituents remain worried about IRS compliance with the directive.
“Several times on this committee, I’ve talked about the concerns that I hear from small businesses in Tennessee, and a lot of times this has to do with being wrongfully targeted by the IRS,” Blackburn said. She pointed to a recent TIGTA report, which found that the IRS has not developed a clear plan to prevent raising audit rates of small businesses.
By Tom Ozimek
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