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New Whistleblower Comes Out on Trump Income Tax Returns

According to a brief filed by the House Ways & Means Committee in August, the committee was approached by a federal employee with “evidence of possible misconduct” and “inappropriate efforts” to influence the IRS’ audit of the president.

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This is a tale of two whistleblowers. The first, who has accused the President Trump of corrupting his power to defeat a potential political opponent, has much of the country riveted as hearings take place in our nation’s capital. But the other whistleblower incident involving the president’s past tax returns has largely flown under the radar.

The first whistleblower informed the Intelligence Community Inspector General about alleged improprieties, but didn‘t turn over the report to Congress. In contrast, the second went straight to the legislative branch with the goods. In this case, the information was handed directly to the House Ways & Means Committee, which is investigating the president’s tax returns pursuant to a formal request by Democrats.

Complaints concerning Trump’s tax returns have persisted since his run for the presidency and eventual election. Although there’s no formal law requiring candidates to provide their returns for public inspection, it’s been standard operating procedure to voluntarily do so since the days of the Nixon administration. However, the president has remained steadfast in his refusal to follow suit.

Certain media sources, including the New York Times, have asserted that Trump has evaded taxes on past returns or that his failure to produce the returns indicates a cover-up. But there has been no “smoking gun” to this point. The president continues to maintain that he should not be required to provide the returns while the IRS is auditing him.

As the first whistleblower case proceeds at breakneck speed, the House Ways & Means Committee is taking its time in the tax return case. Notably, Chairperson Richard Neal (Dem.-MA) is being cautious in his approach to the proceedings.  

According to a brief filed by the House Ways & Means Committee in August, the committee was approached by a federal employee with “evidence of possible misconduct” and “inappropriate efforts” to influence the IRS’ audit of the president. The brief, however, didn’t provide any detail about the whistleblower.

Thus far, U.S. District Court Judge Trevor McFadden, who is presiding over the case, hasn’t asked to hear more about the whistleblower’s identity. However, Neal is on record as offering to tell McFadden about the evidence in a private meeting

McFadden was nominated by the president, whom he supported during Trump’s 2016 presidential campaign. He has denied a motion by Democrats to speed up the case.

Citing guidance from counsel, Neal has declined to discuss the whistleblower case any further, at least for the time being. Other House Ways & Means Committee members haven’t shed any more light on the proceedings either.

Nevertheless, committee Democrats have previously claimed that whistleblower’s evidence suggests that the IRS audit process isn’t functioning effectively due, at least partially, to improper influence exerted by the Trump administration. The White House hasn’t commented on this allegation and Republican Congressional leaders are saying they have no knowledge of it. 

The fall-out from this second whistleblower case may provide extra ammunition for House Speaker Nancy Pelosi as she builds a case for impeachment. Meanwhile, both cases are moving forward at their own separate pace. Stay tuned to more developments.