WASHINGTON—Republicans are urging the IRS to prioritize revoking the tax-exempt status of eight organizations with alleged &#8220;links to designated foreign terrorist groups,&#8221; and others &#8220;linked to violence and unrest&#8221; across the nation.
The <a href="https://waysandmeans.house.gov/wp-content/uploads/2025/10/10.6.25-Letter-to-IRS.pdf" target="_blank" rel="noopener">letter</a>, from Ways and Means Committee Chairman Jason Smith (R-MO) to Treasury Secretary Scott Bessent and IRS CEO Frank Bisignano, comes on the second anniversary of Hamas&#8217;s October 7, 2023, attack on Israel.
“From the international funding sources and activities of tax-exempt entities in the U.S., and the role of certain organizations in fostering antisemitism on college campuses, the Committee has remained steadfast in ensuring that all tax-exempt organizations are abiding by their exempt status,” the letter reads.
Smith referred some of the groups named in Tuesday&#8217;s letter to the IRS for revocation during the 118th Congress. In his letter, the chairman noted that shortly after the committee sent revocation letters, the Treasury Department designated Samidoun as a terrorist organization &#8220;that serves as an international fundraiser for the Popular Front for the Liberation of Palestine, a Foreign Terrorist Organization.&#8221;
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However, Smith said that due to recent “political violence and the continued concerning actions by the previously referred organizations with ties to official foreign terrorist organizations,” he said it is important that the IRS takes action.
“These organizations have failed to operate for their tax exempt purpose. Tax-exempt status is a privilege, not a right, and in exchange, organizations must operate for stated exempt purposes,” Smith said.
Smith notes that the Americans for Justice in Palestine Educational Foundation, American Muslims for Palestine, and Islamic Relief USA, are “suspected of having terrorist ties to groups like Hamas,” and claims they use ties to “actively support and funnel resources in support of terrorism.”
The letter names the following organizations: Americans for Justice in Palestine Educational Foundation, American Muslims for Palestine, Islamic Relief USA, Alliance for Global Justice, WESPAC Foundation, Tides Foundation, Peoples Media Project (The Palestine Chronicle), and The People’s Forum.
It includes other groups: Alliance for Global Justice, WESPAC Foundation, and the Tides Foundation, which they say “disrupt college campuses, incite violence and intimidation, and illegal riot across the United States.”
Students for Justice in Palestine and Samidoun were cited as one of the notable projects, according to the letter.
Late last month, President Donald Trump issued a <a href="https://www.whitehouse.gov/presidential-actions/2025/09/countering-domestic-terrorism-and-organized-political-violence/#:~:text=(j)%20The%20Commissioner%20of%20the,for%20investigation%20and%20possible%20prosecution." target="_blank" rel="noopener">National Security Presidential Memorandum</a> directing the IRS to make sure no tax-exempt entities are &#8220;directly or indirectly financing political violence or domestic terrorism.&#8221;
The letter applauded the move and said Committee Republicans are &#8220;glad that the Trump Administration is taking the threat of tax-exempt entities with ties to political violence and terrorism seriously.&#8221;
Smith encouraged the IRS to prioritize examinations and vowed to continue their oversight work on tax-exempt organizations.

Treasury Secretary Scott Bessent

Republicans Mark Oct. 7 With Calls For IRS To Revoke Tax-Exempt Status Of Terrorist-Linked Groups

October 7

Scott Bessent

Taxes

Terrorism

A top IRS lawyer who once advocated for action to “resist” President Donald Trump has been placed on administrative leave as officials probe whether he has put his words into action at the powerful tax-collecting agency, The Daily Wire has learned.
The inquiry was launched after The Daily Wire <a href="https://www.dailywire.com/news/top-irs-lawyer-under-trump-pledged-to-resist-president-is-former-dem-aide?author=Leif+Le+Mahieu&amp;category=News&amp;elementPosition=3&amp;row=0&amp;rowType=Vertical+List&amp;title=Top+IRS+Lawyer+Under+Trump+Pledged+To+%E2%80%98Resist%E2%80%99+President%2C+Is+Former+Dem+Aide">reported</a> on Wednesday that Anthony Sacco, a lawyer for the IRS Chief Counsel’s office, has a history of advocating for far-left positions, including fighting back against Trump, whom he now serves under. Sacco holds a key role at the IRS, where he interprets how convoluted federal tax law is applied in specific situations. 
Sacco was brought on by the Biden administration as a career employee in September 2022. The vast majority of positions at the IRS are considered career roles, with only the commissioner and chief counsel being politically appointed. Before joining the IRS, Sacco <a href="https://www.linkedin.com/in/anthony-sacco-5a4319a4/" target="_blank" rel="noopener">worked</a> under Oregon Democratic Senator Ron Wyden for the Senate Finance Committee, according to his LinkedIn. 
READ MORE: <a href="https://www.dailywire.com/news/top-irs-lawyer-under-trump-pledged-to-resist-president-is-former-dem-aide">Top IRS Lawyer Under Trump Pledged To ‘Resist’ President, Is Former Dem Aide</a>
In his role at the IRS, Sacco has co-authored multiple revenue rulings under both Biden and Trump, including as recently as April 17, 2025. Revenue rulings are authoritative IRS interpretations of how tax laws are applied by agency officials. 
Sacco locked his X account shortly after The Daily Wire reached out to him for comment, but not before his posts were archived. His posts included calls for Democrats to “pack” the Supreme Court as a way to &#8220;resist&#8221; Trump.
“The Republican Party has completely obliterated principles, integrity, and norms. Screw ‘going high.’ Pack the Court.<a href="https://archive.ph/o/UtXC5/https://x.com/hashtag/resist?src=hashtag_click"> #resist</a><a href="https://archive.ph/o/UtXC5/https://x.com/hashtag/gop?src=hashtag_click"> #gop</a><a href="https://archive.ph/o/UtXC5/https://x.com/hashtag/election?src=hashtag_click"> #election</a><a href="https://archive.ph/o/UtXC5/https://x.com/hashtag/vote?src=hashtag_click">#vote</a><a href="https://archive.ph/o/UtXC5/https://x.com/hashtag/packthecourt?src=hashtag_click"> #packthecourt</a>,” he posted to X in September 2020 ahead of the vote to confirm Amy Coney Barrett to the Supreme Court. 
<div id="attachment_963727" style="width: 1166px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-963727" class="size-full wp-image-963727" src="https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-4.02.18-PM.png" alt="" width="1156" height="969" srcset="https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-4.02.18-PM.png 1156w, https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-4.02.18-PM-300x251.png 300w, https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-4.02.18-PM-687x576.png 687w, https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-4.02.18-PM-768x644.png 768w" sizes=" (max-width: 1156px) 100vw, 1156px" />Sacco X post.</div>
The disciplinary action came as the Trump administration works to root out government bureaucrats who may attempt to stymie the president&#8217;s agenda.
On Thursday, Treasury Secretary and Acting IRS Commissioner Scott Bessent received a briefing from IRS officials that included a discussion of the Trump administration&#8217;s push to de-weaponize the federal government, the department told The Daily Wire. They discussed Bessent&#8217;s desire to make the IRS a non-political agency after years of accusations that it was targeting Christian groups and conservative advocacy organizations. 
Present at the meeting were IRS whistleblowers Gary Shapley and Joseph Ziegler, who investigated Hunter Biden over his shady tax practices. Both Shapley and Ziegler said the Biden administration retaliated against them based on their investigation into Hunter. 
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When made aware of the posts, Senator Tom Cotton (R-AR) called for Sacco to be fired. 
“With deep state leftists in its leadership, it is no wonder the IRS has repeatedly targeted conservatives and conservative organizations,” Cotton told The Daily Wire on Wednesday. “This individual should be fired immediately.”
In another post, he shared a call from anthem-kneeler Colin Kaepernick to “abolish” the “white supremacist institution of policing” and another post that claimed “policing is based on race” and that the job itself was “racist.” 
<div id="attachment_963731" style="width: 1164px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-963731" class="size-full wp-image-963731" src="https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-10.20.53-AM-1.png" alt="" width="1154" height="509" srcset="https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-10.20.53-AM-1.png 1154w, https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-10.20.53-AM-1-300x132.png 300w, https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-10.20.53-AM-1-1024x452.png 1024w, https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-10.20.53-AM-1-768x339.png 768w" sizes=" (max-width: 1154px) 100vw, 1154px" />Sacco retweet.</div>
Outside of social media, Sacco helped prepare a lengthy <a href="https://harvardlawreview.org/print/vol-133/abolition-constitutionalism/">academic article </a>published by the Harvard Law Review that argued that prisons should be abolished. In the article, the primary author argued “that white supremacy is deeply woven into the fabric of every legal institution in the United States.”

MixCollage-21-Aug-2025-02-36-PM-7276

‘Resist’ IRS Lawyer Put On Leave After Daily Wire Report On Far-Left Advocacy

Donald Trump

Supreme Court

Treasury Department

A top IRS lawyer involved in high-level policy interpretations has advocated action to “resist” President Donald Trump and holds radical far-left policy positions, pushing for Democrats to abolish prisons and pack the court to defy Trump.
Anthony Sacco, an attorney for the powerful IRS Office of Chief Counsel, openly advocated for far-left positions for years prior to joining the agency, a Daily Wire review of his social media found. Sacco, who holds a key role in interpreting complicated federal tax law, has called for people to “resist” the GOP and attacked the police. 
Sacco has co-authored multiple <a href="https://www.irs.gov/newsroom/understanding-irs-guidance-a-brief-primer">revenue rulings</a>, including as recently as April 17, 2025, three months into the Trump administration. Revenue rulings are official IRS interpretations of how tax laws are applied in specific situations and impact how government officials, tax professionals, and taxpayers maintain compliance with federal law.
Before joining the IRS in September 2022 by the Biden administration, Sacco <a href="https://www.linkedin.com/in/anthony-sacco-5a4319a4/">worked</a> under Oregon Democratic senator Ron Wyden for the Senate Finance Committee, according to his LinkedIn. His social media activity demonstrated his strong opposition to the Trump administration. In 2020, for example, he attacked Republicans ahead of the Senate vote to confirm Amy Coney Barrett to the Supreme Court. 
“The Republican Party has completely obliterated principles, integrity, and norms. Screw ‘going high.’ Pack the Court.<a href="https://archive.ph/o/UtXC5/https://x.com/hashtag/resist?src=hashtag_click"> #resist</a><a href="https://archive.ph/o/UtXC5/https://x.com/hashtag/gop?src=hashtag_click"> #gop</a><a href="https://archive.ph/o/UtXC5/https://x.com/hashtag/election?src=hashtag_click"> #election</a><a href="https://archive.ph/o/UtXC5/https://x.com/hashtag/vote?src=hashtag_click"> #vote</a><a href="https://archive.ph/o/UtXC5/https://x.com/hashtag/packthecourt?src=hashtag_click"> #packthecourt</a>,” he posted to X.
Shortly after The Daily Wire reached out to Sacco for comment on his previous views, he <a href="https://x.com/APSacco">locked</a> his X account, restricting who can see his posts — but not before The Daily Wire archived and saved the posts. Sacco did not respond to the inquiry. Briefed on the posts by The Daily Wire, Arkansas Republican senator Tom Cotton said Sacco &#8220;should be fired immediately.&#8221;
“With deep state leftists in its leadership, it is no wonder the IRS has repeatedly targeted conservatives and conservative organizations,” Cotton told The Daily Wire. “This individual should be fired immediately.”
<div id="attachment_962657" style="width: 1175px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-962657" class="size-full wp-image-962657" src="https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-9.58.57-AM.png" alt="" width="1165" height="1063" srcset="https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-9.58.57-AM.png 1165w, https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-9.58.57-AM-300x274.png 300w, https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-9.58.57-AM-631x576.png 631w, https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-9.58.57-AM-768x701.png 768w" sizes=" (max-width: 1165px) 100vw, 1165px" />Sacco post on X.</div>
Sacco is currently one of the main attorneys for IRS’s Chief Counsel’s office who specializes in looking at pass-through businesses, a tax structure where owners are taxed at the individual rather than corporate level.
The revenue <a href="https://www.irs.gov/irb/2025-19_IRB">ruling</a> he drafted in April withdrew <a href="https://www.irs.gov/irb/2024-28_IRB">one</a> he had written under Biden, which increased regulations on certain business partnerships. It was based on an executive order from Trump ordering his administration to cut unnecessary regulations, meaning a advocate for resisting Trump was left responsible for putting his orders into effect.
According to one senior Republican aide who works on finance issues in the Senate, Sacco&#8217;s office was viewed as a politicized office in the financial policy world. It was, for example, behind plans that would supercharge the IRS beyond its current form. The aide pointed to the IRS’s push for a “direct file” program that was approved by the Chief Counsel’s Office during the Biden administration, which Republicans <a href="https://www.crapo.senate.gov/media/newsreleases/crapo-statement-on-irs-direct-file-pilot-project#">argued</a> would have turned the IRS into &#8220;tax preparer, tax collector, and tax enforcer.&#8221;
“The idea that a far-left &#8216;resister&#8217; who helped the Biden IRS set policy is now setting policy for Trump is deeply concerning,” the aide told The Daily Wire, adding that Treasury Secretary Scott Bessent &#8220;should clean house to get this politicization out.&#8221;
“I’m not surprised he’s said those far-left things because that’s how he has operated in the Chief Counsel’s Office,” the aide added. “We shouldn’t trust leftwing ideologues at the IRS in light of their weaponization of the agency during the Obama and Biden administrations.”
Outside of social media, Sacco helped prepare a lengthy <a href="https://harvardlawreview.org/print/vol-133/abolition-constitutionalism/">academic article </a>arguing that prisons should be abolished published by the Harvard Law Review. In the forward, the  primary author argued “that white supremacy is deeply woven into the fabric of every legal institution in the United States.”
In a post discussing his work on the project, Sacco contemplated the future of criminal justice in America. 
“It was truly amazing to work with Prof. Roberts and my fellow RAs on this piece over the past summer. It&#8217;s not easy to imagine a society without prisons, but I look at the prison system and mass incarceration completely different now after this experience,” he posted. 
<div class="image"><img loading="lazy" decoding="async" class="size-full wp-image-962663 aligncenter" src="https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-4.05.58-PM.png" alt="" width="525" height="406" srcset="https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-4.05.58-PM.png 525w, https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-4.05.58-PM-300x232.png 300w" sizes=" (max-width: 525px) 100vw, 525px" /></div>
The author of the article wrote that there “is good reason to renounce the Constitution because constitutional law has been critical to upholding the interests of the racial capitalist regime while advancing legal theories that justify its inhumanity.”
“Indeed, it is the realization that white supremacy is deeply woven into the fabric of every legal institution in the United States and upheld by U.S. constitutional law that made me an abolitionist in the first place,” the author added. 
Sacco also frequently posted anti-police messages on his account, including a call from anthem-kneeler Colin Kaepernick to “abolish” the “white supremacist institution of policing” and another post that claimed “policing is based on race” and that the job itself was “racist.” 
<div id="attachment_962661" style="width: 1164px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-962661" class="size-full wp-image-962661" src="https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-10.20.53-AM.png" alt="" width="1154" height="509" srcset="https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-10.20.53-AM.png 1154w, https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-10.20.53-AM-300x132.png 300w, https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-10.20.53-AM-1024x452.png 1024w, https://dw-wp-production.imgix.net/2025/08/Screenshot-2025-08-19-at-10.20.53-AM-768x339.png 768w" sizes=" (max-width: 1154px) 100vw, 1154px" />Screenshot of Sacco repost.</div>
Sacco&#8217;s account, now locked, states that he is currently &#8220;focused on tax policy, racial and criminal justice.&#8221;
The IRS did not respond to request for comment on Sacco&#8217;s status at the agency.

MixCollage-20-Aug-2025-12-18-PM-8990

Top IRS Lawyer Under Trump Pledged To ‘Resist’ President, Is Former Dem Aide

Court Packing

Tom Cotton

A voting rights group started by twice-failed Georgia gubernatorial candidate Stacey Abrams should be stripped of its tax-exempt status for “blatant disregard” of non-profit rules, a watchdog organization argued Tuesday. 
The Foundation for Accountability and Civic Trust (FACT) filed a <a href="https://65db7681-e755-4cff-abe7-1d9e373df4db.usrfiles.com/ugd/65db76_5ed5e2641c3e44a5b6d9fb9eac79d12b.pdf">complaint</a> with the IRS, saying that Fair Fight Action should be investigated for bankrolling an expensive election lawsuit it argues was only for Abrams’s personal benefit. The complaint comes just months after another one of Abrams’s election non-profit organizations was penalized for illegally spending millions to back her campaign. 
The lawsuit in question, Fair Fight Action v. Raffensperger, challenged Georgia officials over various election integrity measures in place during Abrams’ 2018 race against Republican Brian Kemp. After several years of litigation, Fair Fight Action lost its case when an Obama-appointed judge <a href="https://cases.justia.com/federal/district-courts/georgia/gandce/1:2018cv05391/257857/916/0.pdf?ts=1664630826">ruled</a> that Georgia’s election laws were constitutional and did not violate the Voting Rights Act. 
During the suit, Fair Fight Action was represented by a law firm operated by Allegra Lawrence-Hardy, one of Abrams’s <a href="https://www.realclearinvestigations.com/articles/2025/06/05/friends_with_benefits_stacey_abrams_funneled_millions_to_her_lawyer_1114621.html">close friends</a>.
“The law is clear that organizations with tax-exempt status must operate for the public good, not for the personal benefit of one individual,” FACT Executive Director Kendra Arnold told The Daily Wire. “Fair Fight Action’s activities, including funding what appears to be a failed politically motivated lawsuit that paid millions to a close personal friend, demonstrate a blatant disregard for these rules.”
Over the course of five years, Fair Fight Action paid the firm of Lawrence-Hardy over $20 million, according to <a href="https://projects.propublica.org/nonprofits/organizations/471427359">tax filings</a>. Fair Fight Action paid the firm $3,062,292 in 2019, $6,363,615 in 2020, $4,441,206 in 2021, $5,034,464 in 2022, and $1,300,280 in 2023.
Arnold argues that Fair Fight Action launched its lawsuit solely for Abrams’s benefit. 
“After she lost her first election for governor of Georgia in 2018, Fair Fight Action engaged in what appeared to be political activity and brought a lawsuit challenging Abrams’ election loss,” Arnold wrote in a letter to the IRS obtained by The Daily Wire. “The organization has served as an arm of Abrams’ political campaigns, notably funding a lawsuit directly challenging her first campaign loss and serving as a bridge between her two runs for governor.”
Once described by the New York Times as a “fundraising powerhouse for Democrats,” Fair Fight Action has struggled in recent years. In January 2024, it was <a href="https://www.nytimes.com/2024/01/30/us/politics/fair-fight-layoffs-stacey-abrams.html">reported</a> that the group was cutting 75% of its staff and was millions of dollars in debt. 
“In essence, an organization interested in providing a ‘common good’ for the citizenry would not put its existence or efficacy at risk to benefit a single individual,” Arnold told The Daily Wire. 
In her letter, Arnold pointed to the New Georgia Project, another one of Abram’s linked voting organizations that has faced scrutiny. The organization, which Abrams founded in 2013, agreed to pay $300,000 after the State Ethics Commission <a href="https://www.politico.com/f/?id=00000194-6ae1-d7e4-af9d-eaf5fa010000">found</a> that the organization likely violated state campaign finance laws by failing to report over $7 million spent in support of Abrams. 
Arnold wants the IRS to impose a financial penalty and revoke Fair Fight Action’s tax-exempt status if merited by an investigation. 
“The facts above certainly indicate that the sole motivation of Fair Fight Action and its conduct has been to benefit a few individuals — not the community as a whole,” she wrote.

Stacey Abrams In Conversation With Dr. Carla Hayden

Another Stacy Abrams Nonprofit Could Be In Trouble

Brian Kemp

Elections

Ethics

Georgia

Stacey Abrams

WASHINGTON — President Donald Trump has removed Internal Revenue Service Commissioner Billy Long from his role, replacing him temporarily with Treasury Secretary Scott Bessent.
A senior White House official confirmed the news to The Daily Wire on Friday afternoon, <a href="https://www.nytimes.com/2025/08/08/us/politics/trump-billy-long-irs-commissioner.html">first reported by The New York Times</a>, only two months after Long was sworn into the role in June. He formerly served as a congressman for Missouri, and <a href="https://www.congress.gov/bill/114th-congress/house-bill/27/cosponsors?s=1&amp;r=89">previously co-sponsored legislation</a> to terminate the IRS.
Long will now become the ambassador of Iceland, a White House official shared with The Daily Wire on Friday.
“It is a honor to serve my friend President Trump and I am excited to take on my new role as the ambassador to Iceland,&#8221; Long said in a statement. &#8220;I am thrilled to answer his call to service and deeply committed to advancing his bold agenda. Exciting times ahead!”
<div id="attachment_958901" style="width: 874px" class="wp-caption alignnone"><a href="https://www.dailywire.com/news/president-trump-removes-irs-commissioner-makes-him-ambassador-to-iceland/senate-finance-committee-holds-confirmation-hearing-for-billy-long" rel="attachment wp-att-958901"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-958901" class="wp-image-958901 size-large" src="https://dw-wp-production.imgix.net/2025/08/GettyImages-2215540388-864x576.jpg" alt="" width="864" height="576" srcset="https://dw-wp-production.imgix.net/2025/08/GettyImages-2215540388-864x576.jpg 864w, https://dw-wp-production.imgix.net/2025/08/GettyImages-2215540388-300x200.jpg 300w, https://dw-wp-production.imgix.net/2025/08/GettyImages-2215540388-768x512.jpg 768w, https://dw-wp-production.imgix.net/2025/08/GettyImages-2215540388.jpg 1024w" sizes=" (max-width: 864px) 100vw, 864px" /></a>Former Representative Billy Long during a Senate Finance Committee confirmation hearing in Washington, DC, US, on Tuesday, May 20, 2025. Photographer: Nathan Howard/Bloomberg via Getty Images</div>
Bessent&#8217;s temporary appointment makes him the sixth person to head the IRS this year, NBC News <a href="https://www.nbcnews.com/politics/economics/trump-replaces-irs-chief-with-bessent-rcna223965">reported</a>. The Treasury Secretary is already tasked with &#8220;trade talks with China, Canada and Mexico&#8221; while also assisting in the search for a new Federal Reserve chair.
It is not immediately clear who the president is considering to replace Long.

William Long Testifies In Senate Nomination Hearing To Be IRS Commissioner

President Trump Removes IRS Commissioner, Makes Him Ambassador to Iceland

A far-left organization partnered with financial institutions, activist groups, and the Mexican consulate to push banks to offer mortgage loans to illegal aliens and “protect undocumented immigrants.”
Rise Economy, a leftist organization formerly called the California Reinvestment Coalition, was behind a <a href="https://calreinvest.org/wp-content/uploads/2019/02/Here-to-Stay-Report-Final.pdf">report</a> advocating for mortgage loans to be made available to illegal aliens who obtain an Individual Taxpayer Identification Number (ITIN), a financial tool that often enables illegals to obtain home and auto loans.
The report indicates that the marketing and <a href="https://www.dailywire.com/news/inside-the-company-financing-the-illegal-alien-takeover-of-american-homes?topStoryPosition=undefined&amp;author=Spencer+Lindquist&amp;category=Investigation&amp;elementPosition=0&amp;row=1&amp;rowHeadline=Top+Stories&amp;rowType=Top+Stories&amp;title=Meet+The+Mortgage+Company+Enabling+Illegal+Immigrants+To+Buy+American+Homes">distribution</a> of <a href="https://www.dailywire.com/news/bank-founded-by-democrat-billionaire-loans-illegals-money-to-fight-systemic-racism?author=Spencer+Lindquist&amp;category=News&amp;elementPosition=11&amp;row=0&amp;rowType=Vertical+List&amp;title=Bank+Founded+By+Democrat+Billionaire+Loans+Illegals+Money+To+Fight+%E2%80%98Systemic+Racism%E2%80%99">loans</a> to illegal aliens, which The Daily Wire has documented <a href="https://www.dailywire.com/news/yet-another-mortgage-company-is-marketing-home-loans-to-illegal-aliens">extensively</a>, may in part be the result of leftwing ideology and activism rather than simply a response to market incentives.
The group thanked a wide range of supporting organizations, which it said “were essential in framing the research and tailoring the recommendations outlined in this report.” Among those dubbed “community partners” are the Consulate General of Mexico in San Francisco and <a href="https://www.lrcl.org/our-mission-history">La Raza Centro Legal</a>, a San Francisco-based ethnic advocacy organization that offers deportation defense.
The La Raza Community Resource Center, which also <a href="https://www.larazacrc.org/">offers deportation defense</a> assistance to illegal aliens, was listed as a partner of the organization. Also listed is the Beneficial State Foundation, the project of a bank run by a Democrat billionaire that The Daily Wire previously <a href="https://www.dailywire.com/news/bank-founded-by-democrat-billionaire-loans-illegals-money-to-fight-systemic-racism?author=Spencer+Lindquist&amp;category=News&amp;elementPosition=11&amp;row=0&amp;rowType=Vertical+List&amp;title=Bank+Founded+By+Democrat+Billionaire+Loans+Illegals+Money+To+Fight+%E2%80%98Systemic+Racism%E2%80%99">reported</a> offers auto loans targeted to illegal aliens.
Rise Economy’s report specifically encouraged the distribution of home loans to illegal aliens, urging policymakers and community partners to “work collectively on solutions-driven policies to increase access to mortgage loans for immigrant families including ITIN holders.”
Rise Economy’s goal, the 2019 report noted, was to “push for safe banking and equitable access to small business lending, mortgages, accessible retirement systems, and public benefits for ITIN holders.” The report focused on mortgage loans again, with one section reading “policymakers and community partners should work collectively on solutions-driven policies to increase access to mortgage loans for undocumented families including ITIN holders,” one line reads.
“The Here to Stay campaign coalition recommends that financial institutions provide access to safe banking and lending to immigrant families including ITIN holders,” the report said. “Community-driven solutions must also be proposed to protect undocumented immigrants who rely on public benefits.”
Not all of the partners cited in the report appear to be ideologically motivated, however. Rise Economy added that “this report was made possible with financial support from” various financial institutions, including JP Morgan, Capital One, U.S. Bank, and the Banc of California. None of the banks responded to a request for comment.
The Daily Wire has exposed various companies that market loans to illegal aliens, including <a href="https://www.dailywire.com/news/inside-the-company-financing-the-illegal-alien-takeover-of-american-homes?topStoryPosition=undefined&amp;author=Spencer+Lindquist&amp;category=Investigation&amp;elementPosition=0&amp;row=1&amp;rowHeadline=Top+Stories&amp;rowType=Top+Stories&amp;title=Meet+The+Mortgage+Company+Enabling+Illegal+Immigrants+To+Buy+American+Homes">Prysma Lending</a>, which held a webinar with an immigration lawyer and created a guide to deportation defense for its customers. There&#8217;s also <a href="https://www.dailywire.com/news/yet-another-mortgage-company-is-marketing-home-loans-to-illegal-aliens">Amres</a>, which articulated its goal to “empower non-citizens,” created a guide called “Bridging the Gap for Undocumented Residents,” and told the stories of various illegal aliens who were able to obtain mortgage loans.
The former leader of a Texas land developer lobbying organization appeared to confirm that developments like <a href="https://www.dailywire.com/topic/colony-ridge">Colony Ridge</a> would go out of business if they were forced to check if buyers had social security numbers.
<blockquote class="twitter-tweet">
EXCLUSIVE: A Texas land developer admitted that the Colony Ridge business model relies on selling land to unqualified foreign buyers:
&#8220;We will not be able to sell our developments if each of our buyers have to have SS#’s.&#8221;
I obtained his stunning admissions🧵 <a href="https://t.co/f2nWFuWA5r">pic.twitter.com/f2nWFuWA5r</a>
— Spencer Lindquist 🇺🇸 (@SpencerLndqst) <a href="https://twitter.com/SpencerLndqst/status/1890063065489735954?ref_src=twsrc%5Etfw">February 13, 2025</a></blockquote>
One company belonging to the lobbying organization, called Cayetano, encouraged buyers to “own a piece of American land” just north of the border with Mexico. It also accepted identification from the Mexican government in processing land sales, The Daily Wire <a href="https://www.dailywire.com/news/texas-developer-tells-mexican-citizens-to-own-a-piece-of-american-land-on-southern-border?author=Spencer+Lindquist&amp;category=News&amp;elementPosition=undefined&amp;row=0&amp;rowType=Vertical+List&amp;title=Texas+Developer+Tells+Mexican+Citizens+To+%E2%80%98Own+A+Piece+Of+American+Land%E2%80%99+On+Southern+Border">revealed</a>.
These loans, experts say, can encourage illegal aliens to stay in the country in violation of federal law. Federation for American Immigration Reform Media Director Ira Mehlman <a href="https://www.dailywire.com/news/inside-the-company-financing-the-illegal-alien-takeover-of-american-homes">previously discussed</a> the risks associated with allowing the practice with The Daily Wire
“Access to mortgages can serve as an incentive for illegal aliens to remain in the country, especially at a time when the goal of the government is convincing illegal aliens to leave,” Mehlman noted. “Congress could take many actions — from disclosure to outright prohibition — and set a national standard for states to follow.”
Lending arrangements that rely on ITINs could soon become riskier. Not only is the government cracking down on illegal immigration and pursuing a policy of mass deportation, but the Department of Homeland Security and the IRS signed an <a href="https://immigrationforum.org/article/irs-ice-immigration-data-sharing-agreement-explainer/">agreement</a> allowing the law enforcement agency to obtain information on illegal aliens from the IRS.
Rise Economy did not respond to a request for comment.

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Leftist Group Tied To Mexican Consulate Pushed Banks To Lend To Illegal Aliens

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The IRS made clear its stance on churches endorsing political candidates in front of their congregations, saying in a court filing on Monday that houses of worship are free to push political candidates from the pulpit without fear of losing their tax-exempt status.
The IRS clarification came in a lawsuit court filing after two Texas churches and an association of Christian broadcasters sued, seeking an exemption from the ban on churches endorsing political candidates, The New York Times <a href="https://www.nytimes.com/2025/07/07/us/politics/irs-churches-politics-endorse-candidates.html">reported</a>. While the plaintiffs sought a carve-out for all nonprofits, the IRS agreed in a court filing to allow churches to endorse candidates without penalty.
According to the IRS, the Johnson Amendment — which has been part of the U.S. tax code since 1954 — does not prohibit a church from communicating with its congregants about its preferred political candidates, comparing such endorsements to “a family discussion concerning candidates.”
“Thus, communications from a house of worship to its congregation in connection with religious services through its usual channels of communication on matters of faith do not run afoul of the Johnson Amendment as properly interpreted,” the agency wrote in the <a href="https://storage.courtlistener.com/recap/gov.uscourts.txed.232590/gov.uscourts.txed.232590.35.0.pdf">court filing</a>.
The IRS added that it has long refrained from enforcing the Johnson Amendment against churches &#8220;for speech concerning electoral politics in the context of worship services.&#8221; For several years, pastors from around the country organized to test the tax code during &#8220;Pulpit Freedom Sunday,&#8221; The Washington Post reported. The IRS only launched one investigation stemming from &#8220;Pulpit Freedom Sunday,&#8221; and the agency did not punish any churches.
The IRS statement will be celebrated by many conservative Christians who have long viewed the prohibition on political endorsements as infringing upon their free speech.
During his first term, President Donald Trump stated that he wanted to &#8220;totally destroy&#8221; the Johnson Amendment, which was introduced by then-Senator Lyndon B. Johnson (D-TX) in 1954.
“I will get rid of and totally destroy the Johnson Amendment and allow our representatives of faith to speak freely and without fear of retribution,” Trump <a href="https://www.washingtonpost.com/politics/trump-vows-to-totally-destroy-restrictions-on-churches-support-of-candidates/2017/02/02/fed9bad2-e981-11e6-bf6f-301b6b443624_story.html">told</a> Christians at the National Prayer Breakfast in 2017. “I will do that, remember.”
For the Johnson Amendment to be repealed, Congress would have to take action.
Proponents of the Johnson Amendment argue that the tax code is essential for guarding campaign finance laws. If the Johnson Amendment were repealed, some worry that political contributions could be funneled through tax-exempt 501(c)(3) organizations, and the contributions could remain undisclosed and tax-deductible.

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Trump’s IRS Says Churches Can Endorse Political Candidates Without Losing Tax Status

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Treasury Secretary Scott Bessent admitted he had to laugh when Rep. Richard Neal (D-MA) claimed that the Internal Revenue Service (IRS) had implemented updated technology in recent years.
During a Thursday hearing on Capitol Hill, Bessent fielded questions from a number of House members on the One Big, Beautiful Bill — and he said that while he had &#8220;great respect&#8221; for Neal, he couldn&#8217;t help but be amused by his assertions regarding supposed improvements at the IRS.
WATCH:
<blockquote class="twitter-tweet">
🚨NEW—Treasury Secretary Scott Bessent FACT-CHECKS Democrat Richard Neal!
NEAL: &#8220;A professor at Yale has said that this [OBBB] will conservatively cause tens of thousands of unnecessary deaths!&#8221;
BESSENT: &#8220;I have great respect for you&#8230;But respectfully&#8230;I chuckled!&#8221;
&#8220;IT at… <a href="https://t.co/BEAFP9dfzN">pic.twitter.com/BEAFP9dfzN</a>
— Townhall.com (@townhallcom) <a href="https://twitter.com/townhallcom/status/1932812902416670948?ref_src=twsrc%5Etfw">June 11, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Neal began by claiming that improvements and &#8220;technological upgrades&#8221; were all thanks to former President Joe Biden&#8217;s Inflation Reduction Act, and that &#8220;cuts to Medicaid and SNAP&#8221; were going to lead to over a million lost jobs.
&#8220;A professor at Yale has said that this [OBBB] will conservatively cause tens of thousands of unnecessary deaths!&#8221; Neal continued. &#8220;Worse health care. Job losses. More borrowed money. The American people deserve considerably better than what we&#8217;re being told.&#8221;
Neal went on to &#8220;challenge&#8221; Bessent, saying that the minority side would work with the Trump administration if the bill would direct tax relief specifically to those making less than $400,000 in joint income.
<a href="https://get.dailywire.com/gift/?utm_medium=website&amp;utm_source=wisepops&amp;utm_campaign=dad&amp;utm_content=fathersdaygiftpopups" target="_blank" rel="noopener">Gift Dad an All Access Membership. Use code DAD40 at checkout to save 40%!</a>
&#8220;Mr. Neal &#8230; Representative Neal,&#8221; Bessent replied. &#8220;I have great respect for you. We&#8217;ve had great conversations, but respectfully, if I weigh a thousand pound and you weigh 50 and I gain ten pounds &#8230;&#8221;
Bessent attempted to explain how the 2017 tax cuts — which have been widely panned by Democrats — lowered taxes for lower income brackets and those with higher incomes shouldered much more of the burden.
&#8220;I can&#8217;t — I&#8217;m sorry, I chuckled when you talked about the IT at the IRS,&#8221; Bessent continued. &#8220;The program is 35 years behind schedule. 35 years. And is wasting $2 billion a year.&#8221;
&#8220;That&#8217;s why we put the extra money in!&#8221; Neal objected.
&#8220;No, no, no, no, no! The extra money went in for BODIES!&#8221; Bessent fired back. &#8220;And whistleblowers acknowledged that standards were being lowered to bring in new agents. Money is not the issue here. It is how the money is spent.&#8221;
&#8220;That&#8217;s exactly right, we agree on that,&#8221; Neal interjected. &#8220;How the money is spent.&#8221;
&#8220;And it has been spent poorly,&#8221; Bessent replied.

Treasury Sec Admits He ‘Chuckled’ When Democrat Boasted About Improvements At IRS

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President Trump is apparently pushing for a higher tax rate. That’s a nonstarter.
The tax regime that President Trump put into place in his first term, his tax cuts, were a boon to the economy. They actually disproportionately benefited people who were middle and lower class. Revising the tax regime to pay for more loopholes and tax breaks in particular areas by increasing taxes on the highest income earners will sink investment capital. That&#8217;s what it does.
As somebody who has been in most tax brackets at one point in my life, I can tell you I will invest less if I have less money to invest. That&#8217;s true for everyone who is a high net earner. Increasing the income tax on the top income tax bracket in order to pay for more useless government spending — because nobody has the actual guts to say in American politics that we spend too much on our social welfare programs, which we do, particularly our means tested social welfare programs — will break the American economy.
It&#8217;s like shifting deckchairs on the Titanic.
Increasing the marginal tax rate at the top by 2% or something similar is not going to save anything. If the Republican Party is now the tax-raising party and the tariff party, we will have to see how that works out for them at the polls.
I do not think it is going to work out particularly well.
<h3><a href="https://www.dailywire.com/episode/bss-ep-2196-member-exclusive?elementPosition=3&amp;row=2&amp;rowHeadline=Latest+Episodes&amp;rowType=Horizontal+Show+Episodes+Carousel" target="_blank" rel="noopener">WATCH: The Ben Shapiro Show</a></h3>
According to some reports, President Trump is privately urging speaker Mike Johnson to raise the top tax rate and close the so-called “carried interest loophole.”
You hear about the “carried interest loophole” all the time. Very often the media will use a term and call it a loophole when it&#8217;s not a loophole at all. Here’s an example: They will refer to a “gun show loophole,” claiming that if you&#8217;re a federally licensed firearms dealer, you can just go to a gun show and sell a gun randomly, which is not true. They say the “gun show loophole” means a private person who sells a gun to his friend doesn&#8217;t have to necessarily go through all of the federal background check, which just means that if you are a federally licensed firearms dealer and you&#8217;re a private individual, that these rules don&#8217;t apply to you in the same way.
So what is the “carried interest loophole”? Is it a loophole at all? What is carried interest? “Carried interest” works like this: Fund managers typically receive two forms of compensation. If you work at hedge fund or in private equity or venture capital, you have two forms of being paid.
One is a management fee, which is just income. You simply get paid a flat fee to handle people&#8217;s portfolios.
Then there&#8217;s the so-called “carried interest,” which is a share of the fund&#8217;s profits. The fund makes a profit; you get a share of the profit. But in order for it to qualify for capital gains tax as opposed to income tax, the underlying investments have to be held for more than three years.
Management fees are taxed at the regular income rate; carried interest is taxed as the long-term capital gain at a maximum rate of 20% if the underlying investments are held for more than three years.
So here is the question. If you have a share of the profits, isn&#8217;t that more like owning a stock? That&#8217;s the reason why it&#8217;s not treated as a form of typical income. It&#8217;s more like selling a stock because you actually are getting a share of stock that was profitable and then it was sold. Thus it&#8217;s more like a capital gain than it is like income.
Now you can make an argument that capital gains should be taxed the same as income. But stop pretending that the “carried interest loophole” is a form of normal income that&#8217;s getting carved out for hedge fund managers. That&#8217;s not what it is.
This populist leftist economic policy for heavy trade restrictionism for the sake of trade restrictionism as a subsidy to particular areas of the American economy added to higher tax rates, and I&#8217;m wondering what the difference is between that economic policy per se and leftist Democrat senator Sherrod Brown&#8217;s economic policy when he was senator from Ohio.
That is not the economic policy that President Trump enacted in his first term that was so wildly successful in increasing the earnings of everybody from the bottom part of the spectrum to the top part of the spectrum.
This would be a mistake.

Trump Hails The Election Of First US Pope As A ‘Great Honor’

Why Raising The Top Tax Rate Is A Recipe For Economic Decline

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President Donald Trump on Thursday extended the freeze on hiring new government workers for another 90 days.
The administration has said that the freeze is part of an effort to make the government more efficient and promote fiscal responsibility. The freeze, now in effect until July 15, includes exceptions for the military and other national security-related positions. 
“No Federal civilian position that is presently vacant may be filled, and no new position may be created, except as otherwise provided for in this memorandum or required by applicable law,” Trump wrote in a memo. “In carrying out this memorandum, the heads of agencies shall seek efficient use of existing personnel and funds to improve public services and the delivery of those services.”
The memorandum said that the freeze does not apply to military personnel of the Armed Forces or positions related to immigration enforcement, national security, and public safety. Agencies are allowed to apply for exemptions to the hiring freeze to the Office of Management and Budget, which can grant exemptions on a case-by-case basis.
&#8220;The extension of the hiring freeze is a critical step in shrinking the federal government and ensuring taxpayer dollars are used efficiently,&#8221; the White House <a href="https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-extends-the-hiring-freeze/" target="_blank" rel="noopener">said</a>. &#8220;The American people elected President Trump to drain the swamp and end ineffective government programs that empower government without achieving measurable results.&#8221;
For the IRS, Trump&#8217;s memo says the staffing moratorium will remain in effect until otherwise determined by Treasury Secretary Scott Bessent in consultation with OMB Director Russ Vought and acting Department of Government Efficiency Administrator Amy Gleason.
If they determine &#8220;that it is in the national interest to terminate the freeze,&#8221; they are directed to publish a notice in the Federal Register.
The IRS has already <a href="https://www.dailywire.com/news/tax-day-miracle-over-20k-irs-employees-took-trumps-second-buyout-offer" target="_blank" rel="noopener">lost thousands</a> of employees this year, with more than 20,000 taking buyout offers from the Trump administration to leave their positions, and another 7,000 probationary workers being terminated. The firings are currently being challenged in court.
After the freeze ends for the other government departments and agencies, the White House said that federal entities will only be allowed to hire one new employee for every four that leave. The White House said that during former President Joe Biden&#8217;s last two years in office, one out of every four new jobs was in government. 
“President Trump is committed to reversing this trend by prioritizing private-sector job growth and reducing the federal workforce to focus on essential functions,” the White House said.

MixCollage-18-Apr-2025-09-58-AM-7418

Trump Extends Hiring Freeze: ‘Critical Step In Shrinking The Federal Govt’

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According to The Washington Post, the Trump administration is pushing the Internal Revenue Service to revoke Harvard University’s tax-exempt status.
The Post <a href="https://www.washingtonpost.com/business/2025/04/16/trump-harvard-tax-exempt-irs/">reported</a> that three sources informed the outlet that President Donald Trump&#8217;s administration had asked the IRS to make the move, although there is no confirmation that it has done so. WaPo also reported that its sources claimed Andrew De Mello, the IRS’s acting chief counsel, was asked by the Treasury Department to take the action. Sources also claimed this is part of a feud with Ivy League schools that the Trump administration views as &#8220;woke.&#8221;
“I think they’re going to go after a whole bunch of them,” former House Speaker Newt Gingrich (R-GA) said. “I’m not sure why we need to be funding people who aggressively refuse to give up a variety of values and structures that most Americans don’t agree with.”
On Tuesday. President Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114342374504628520">posted</a> on Truth Social, “Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting ‘Sickness?’ Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!”
White House spokesperson Harrison Fields stated: &#8220;Any forthcoming actions by the IRS will be conducted independently of the president, and investigations into any institution’s violations of its tax status were initiated prior to the president’s TRUTH.”
In January 2024, Rep. Jason T. Smith (R-MO), chairman of the House Ways and Means Committee, <a href="https://www.politico.com/news/2024/01/10/jason-smith-harvard-mit-penn-might-not-deserve-tax-exemption-00134815" target="_blank" rel="noopener">suggested</a> that the responses of Harvard, Cornell, the University of Pennsylvania, and MIT to the antisemitism on their campuses might justify revoking their tax-exempt status. The college’s actions “raise several questions, including whether your institutions are fulfilling their educational purposes as required to receive 501c3 tax-exempt status &#8230;”
On Monday, the Trump administration’s Department of Education announced it would freeze $2.2 billion in multi-year grants and $60 million in multi-year contract value to Harvard University after the school said it would not comply with the Trump administration’s demand that the university <a href="https://www.harvard.edu/research-funding/wp-content/uploads/sites/16/2025/04/Harvard-Response-2025-04-14.pdf">claimed</a> would “invade university freedoms.”
Last Friday, the Departments of Education and Health and Human Services sent a <a href="https://www.harvard.edu/research-funding/wp-content/uploads/sites/16/2025/04/Letter-Sent-to-Harvard-2025-04-11.pdf">letter</a> to Harvard in which they stated, “By August 2025, the University must adopt and implement merit-based hiring policies, and cease all preferences based on race, color, religion, sex, or national origin …” adding that the same attitude must prevail in admissions policies. The correspondence also declared that by the same date, the university must “prevent admitting students hostile to the American values and institutions inscribed in the American Constitution and Declaration of Independence, including students supportive of terrorism and anti-Semitism.”
The university “shall commission an external party … to audit the student body, faculty and leadership for viewpoint diversity” by August 2025, the letter continued, in order to ensure that the leftist perspective that dominates the university should be contrasted with other viewpoints.
Alan Garber, the president of Harvard University, responded with a <a href="https://www.harvard.edu/president/news/2025/the-promise-of-american-higher-education/">statement</a> in which he said, “We have informed the administration through our legal counsel that we will not accept their proposed agreement,” contending, “The University will not surrender its independence or relinquish its constitutional rights” and claiming the administration’s demands violated “Harvard’s First Amendment rights … threatens our values as a private institution devoted to the pursuit, production, and dissemination of knowledge.”

Harvard University

Trump Admin Wants IRS To Quash Harvard’s Tax-Exempt Status: Report

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As a former member of the House Ways and Means Committee, the leading tax-writing body in Congress, I am encouraged to see the White House finally providing the legislative branch the support it needs to reform the Internal Revenue Service.
During a recent Ways and Means subcommittee hearing, Rep. Max Miller (R-OH) stated, &#8220;Taxpayers deserve an agency that keeps up with the times, operates efficiently, and acts as a responsible fiduciary of the American people&#8217;s money.&#8221; Unfortunately, for generations, they have received anything but this. Everyone knows that the IRS has been plagued by inefficiency, poor customer service, and outdated operational processes. It is no surprise that it remains one of the most unpopular federal agencies.
Under President Donald J. Trump&#8217;s leadership, real change is finally underway.
On March 25, he signed an executive order directing the IRS to modernize its payment processing — transitioning it away from slow, outdated mail-based methods and towards electronic payment processing. This long-overdue move will significantly benefit millions of Americans each year, reducing delays and improving agency efficiency.
More importantly, however, Trump is forcing the IRS to begin operating like a business, not a bureaucracy.
In January, he issued a hiring freeze on IRS employees, preventing the agency from filling new or vacant positions so that his administration can assess what is (and isn&#8217;t needed). The importance of this move can&#8217;t be overstated.
Before Trump took office, the IRS appeared to be undergoing an identity crisis, expanding beyond its intended role without first working out the kinks of delivering on its core mission (tax collection). Before it hires thousands more employees to further this misguided expansion, the administration is wisely insisting on a strategic reassessment.
A prime example of the IRS&#8217;s overreach is its recent attempt to enter the tax preparation business. Despite the existence of highly effective private-sector solutions, the IRS launched a pilot program in 2024. A Treasury Department Inspector General report from March 20, 2025, revealed serious flaws. For example, the Direct File program failed to allow taxpayers to claim key deductions, including the education tax credit — potentially costing some filers nearly $1,000 in overpayments.
The system also proved rather complicated to use, so only one-third of those who started a return through Direct File actually completed and filed an accepted one.
The cost of Direct File? A staggering $61 million once over 2.3 million use it, at least according to IRS estimates — though the Inspector General warns that actual costs may be even higher.
Why is the IRS expanding its reach into tax preparation while continuing to fail at its core responsibility — tax collection?
In 2022, the agency reported a tax gap — the difference between taxes owed and taxes collected — of $606 billion.
Despite receiving an $80 billion funding boost from the Inflation Reduction Act, the IRS has yet to show any real progress in closing this gap.
Maybe that is because, instead of focusing on its fundamental mission, it is diverting resources to unnecessary new initiatives that create more inefficiencies and confusion.
President Trump understands that before an organization expands, it must first perfect its primary function.
Successful businesses refine their operations before scaling; failing ones expand too early and collapse under their own inefficiencies. The IRS is behaving like the latter — a bloated bureaucracy that is overextending itself.
That&#8217;s why Trump&#8217;s IRS hiring freeze is so crucial. By pausing new hires, the administration is forcing the agency to reassess its priorities, eliminate waste, and become a leaner, more effective agency. This is common sense and deserves broad bipartisan support.
The Ways and Means Committee will undoubtedly back these necessary reforms, and for the sake of American taxpayers, the rest of Congress should do the same. The future of meaningful IRS modernization depends on it.
 * * *
Mike Bishop represented Michigan in the U.S. House of Representatives from 2015 to 2019, where he served on the Committee on Ways and Means.
The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.

Tax Day 2025: Why Trump’s Effort To Reign In The IRS Makes Sense

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