Ken Kies, one of the administration’s most senior tax officials, is expected to leave his position after resisting White House pressure over taxpayer audits, according to people familiar with the matter.
Kies, who serves as acting chief counsel of the Internal Revenue Service and as an assistant secretary at the Treasury Department, reportedly told administration officials that certain audit requests would breach federal law. The statute bars the president, vice president and other White House officials from directing the IRS to begin or end an audit or investigation involving a specific taxpayer.
The provision is regarded by tax officials as a key barrier against political interference in the tax system.
Kies also reportedly clashed with administration officials over several major tax policy issues, including incentives available to landowners who agree to limit development on their property.
While some officials cited disagreements over his approach and temperament, others criticized his work habits and technical skills. Kies did not comment on the matter, while the Treasury Department did not immediately respond to requests for comment.
Departure Expected Next Month
Kies is expected to leave the administration around mid-August. Before joining the government, he worked as a tax attorney for President Donald Trump and had recused himself from matters involving Trump’s personal taxes.
As IRS chief counsel, Kies oversees the agency’s legal interpretation of tax laws, the preparation of regulations and its representation in court.
His office also reportedly resisted involvement in matters linked to a Justice Department agreement that sought to provide broad protection from tax scrutiny to Trump, members of his family and related businesses. A federal judge recently invalidated that agreement, along with a related $1.8 billion fund, ruling that the arrangement stemmed from an improper legal dispute designed to give it legitimacy.
The administration has nominated Jim Gadwood, another tax attorney from a firm that has represented Trump in tax matters, to succeed Kies as the IRS’s top lawyer. Kies had initially been expected to remain at the Treasury Department.
Despite the controversy surrounding his departure, Kies played an important role in advancing the administration’s economic agenda. His team has been working on tax guidance covering measures aimed at removing taxes on tips and overtime pay, along with incentives tied to energy production.
