Trump Nominates Lawyer from Firm That Handled His Taxes as IRS Chief Counsel

President Trump has put forward a nominee for the chief counsel position at the Internal Revenue Service (IRS). The selected individual, James R. Gadwood, currently works at Miller & Chevalier. This firm has previously represented Trump in various tax-related matters.

The nomination comes at a time when the President’s tax matters are under increased scrutiny. Recently, the administration provided Trump with protection from tax audits. The nomination of Gadwood, a lawyer with experience in IRS audits, may draw additional attention to this decision.

Gadwood’s role at Miller & Chevalier includes representing large corporations and wealthy individuals in IRS audits. It remains unclear whether Gadwood directly participated in the firm’s work for Trump.

A significant focus during Gadwood’s confirmation process could be the Trump administration’s recent decision to halt IRS audits of Trump and his family. Todd Blanche, the acting attorney general, issued an order providing this protection, which also extends to previously filed tax returns. This was part of a resolution to a lawsuit Trump filed against the IRS earlier this year.

Blanche’s directive to cease audits raises several legal questions. There are concerns about potential criminal penalties IRS agents might face if they comply with this order. One ongoing tax dispute could have potentially cost Trump over $100 million.

Simultaneously, the administration has decided not to move forward with a proposed $1.8 billion fund. This fund was originally intended to compensate individuals claiming federal overreach. Shrinking away from this agreement could add another layer of complexity to this situation.