The Internal Revenue Service has taken decisive action against a key figure from the Obama-era Tea Party targeting controversy.
According to Fox News, Holly Paz, who served as a top aide to former IRS official Lois Lerner, received a notice of proposed removal on Monday after being placed on administrative leave. The termination notice comes following an internal review of her recent activities at the agency.
Paz, who held the position of IRS Commissioner of the Large Business and International Division, has 30 days to respond to the notice while remaining on administrative leave. Her proposed dismissal marks a significant development in the ongoing scrutiny of IRS practices regarding conservative organizations.
The controversy originally erupted in 2013 when the IRS admitted to inappropriately scrutinizing conservative groups seeking tax-exempt status. The targeting specifically focused on organizations with phrases like "Tea Party," "9/12," and "Constitution" in their names.
During this period, Paz played a crucial role as Lerner's deputy, serving as a key connection between the Cincinnati IRS office and headquarters. The Treasury's inspector general later confirmed the use of inappropriate criteria in targeting conservative groups.
The scandal resulted in extensive litigation, culminating in a 2017 settlement where the IRS formally apologized for its discriminatory practices. The agency acknowledged subjecting conservative groups to heightened scrutiny and unnecessary delays.
Paz's current troubles stem from her involvement in a new work unit focused on auditing pass-through businesses. The unit, created under Biden-era Commissioner Danny Werfel, raised concerns among lawmakers about potential targeting.
Treasury Secretary Scott Bessent has been actively working with IRS whistleblowers Gary Shapley and Joseph Ziegler to address these concerns. The collaboration aims to prevent any repeat of past discriminatory practices.
Sources indicate that Bessent's efforts are part of a broader initiative to "de-weaponize" the IRS and improve taxpayer services. These changes reflect a significant shift in agency priorities.
The proposed removal of Paz represents a crucial step in the agency's reform process. The decision signals a commitment to addressing concerns about potential political bias within the organization.
Bessent's leadership has emphasized streamlining technical improvements and reducing excessive hiring from the Biden administration. These changes align with broader efforts to restore public trust in the agency.
The current developments echo the consequences of the previous targeting scandal, where both Lerner and Paz sought to keep their testimonies sealed permanently. Their request was driven by concerns over potential threats following public disclosure.
The IRS continues to undergo significant changes under Bessent's direction, focusing on improving customer service and operational efficiency. This transformation includes regular meetings between leadership and whistleblowers to ensure transparency.
The agency's current priorities reflect a departure from previous practices that led to controversy. Leadership is implementing measures to prevent discriminatory targeting while maintaining effective tax administration.
These developments signal a potentially new chapter in IRS operations, with increased emphasis on fairness and accountability in tax administration. The final decision regarding Paz's employment status remains pending, as the review process continues to unfold.