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Key aide in IRS’ Tea Party targeting controversy put on leave after allegations of new anti-GOP effort
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A former deputy to Lois Lerner — who oversaw the IRS division accused of targeting conservative groups during the Obama years — was placed on leave after lawmakers raised alarms that a new sub-department she was leading was becoming politicized.
In 2013, Lerner was hauled before Congress, where it was revealed her agency had wrongfully scrutinized tax-exempt applications related to the phrases «Tea Party,» «9/12» and «Constitution.» The Treasury’s inspector general later confirmed «inappropriate criteria» was used to target conservative groups and criticized ineffective oversight of systemic bias.
IRS Commissioner of Large Business and International Division Holly Paz – Lerner’s then-deputy – was placed on leave last week as lawmakers drew attention to a subordinate work-unit aimed at auditing pass-through businesses that Biden-era Commissioner Danny Werfel had created and assigned her to lead.
Werfel called the new work-unit a big step in «ensur[ing] the IRS holds the nation’s wealthiest filers accountable,» and Paz called it an «important change» in the IRS structure.
TRUMP SCORES MAJOR WIN AS SENATE INSTALLS IRS CRITIC TO LEAD THE AGENCY
The exterior of the Internal Revenue Service building in Washington, D.C. (AP Photo)
However, by 2025, lawmakers, including Sen. Marsha Blackburn, R-Tenn., warned that the pass-thru-business compliance unit had transformed to be «motivated by ideology rather than principles of sound tax administration.»
«Pass-through entities form the bulk of Main Street businesses across the country. This includes countless family businesses, professional services firms, and real estate ventures that serve as the backbone of our local economies,» Blackburn and Senate Majority Whip John Barrasso, R-Wyo., wrote to the Treasury in May.
Around that time, Sen. Joni Ernst, R-Iowa., warned Treasury Secretary Scott Bessent that Paz’s team «has made tongue-in-cheek political comments,» including their stated wish to «make basis great again» – a phrase regarding taxation loss/gain that hearkens to President Donald Trump’s MAGA slogan.
In that regard, Rep. Lloyd Smucker, R-Pa., wrote to IRS Commissioner Billy Long in July that a Biden-era «basis-shifting transaction rule» had «extended the scope» of enforcement.
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Lois Lerner testifies. (AP File)
«American taxpayers and businesses deserve clear and consistent tax rules that allow them to confidently comply with the law,» Smucker wrote, adding he and Rep. Mike Kelly, R-Pa., are seeking to have that rule «reconsidered» for the sake of unburdening «Main Street» businesses.
Chuck Flint, a former top aide to Blackburn and president of the Alliance for IRS Accountability, told Fox News Digital on Tuesday that Paz’s past targeting of conservative groups makes her «unfit for government service.»
Flint said her statements to Congress and role as LB&I chief «places a cloud over the IRS.»
«Paz’s Biden-era pass-through unit is now bludgeoning conservative businesses with fines and must be disbanded. Commissioner Long is flexing his muscles on the IRS Deep State and sending a signal to rogue bureaucrats by placing Paz on leave.»
Blackburn warned in her letter to Bessent that an IRS news release referencing targeting «complex arrangements» lacked clear definitions and created the impression that legitimate business structures could be unfairly targeted based on legal structure versus actual tax compliance risk.
«Even more concerning, the announcement explicitly states that the bureaucratic changes were designed primarily to ‘achieve its goal of increased audit rates in this complex area’.»
LAWMAKERS TAKE ACTION AFTER REPORT SHOWS BIDEN-ERA SBA FAILED TO PROBE 2 MILLION ALLEGED COVID AID FRAUDSTERS
Former Rep. Billy Long, R-Mo., President Donald Trump’s nominee to be Internal Revenue Service commissioner. (Andrew Harnik/Getty Images)
«This focus on increasing audits rather than improving compliance suggests an agenda-driven approach to enforcement,» Blackburn said.
In her letter, Ernst warned Bessent that Paz’s team members «have also undermined their appearance of impartiality by comparing legally acceptable transactions to obscene material, saying, ‘It’s one of those ‘You know it when you see it’ – a joking reference to [Supreme Court Justice Potter Stewart’s] attempt to define pornography.
«This team is reportedly acting independently and duplicating existing IRS processes, wasting taxpayer money, and not coordinating with the pre-existing offices,» Ernst said.
«Most concerning of all, the new pass-through auditors even use a new template for requesting taxpayer information they’ve deemed ‘The Art of the IDR,’ (versus ‘The Art of the Deal’) which treats taxpayers as guilty until proven innocent.»
«Unfortunately, the Biden administration picked up right where Ms. Lerner and her team left off. On September 20, 2023, then-Commissioner Daniel Werfel announced, with language that resembled Democrat talking points, the creation of a duplicative new work unit [led by Paz] to specifically audit pass-through businesses and partnerships. The new office subjects these businesses to potentially two separate IRS examinations in the same year.
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«One would think Commissioner Werfel would go to great lengths to avoid hearkening back to previous scandals. Instead, he thumbed his nose at taxpayers by placing Lois Lerner’s deputy— Holly Paz—at the helm,» Ernst wrote.
Lerner was front-and-center during the Obama-era scandal, testifying before Congress as head of the tax-exempt organizations division, as a deluge of reports of targeting right-leaning nonprofits abounded.
During the 2013 investigation by the House Oversight Committee, Reps. Jim Jordan, R-Ohio, and Darrell Issa, R-Calif., demanded Paz answer for «inconsistencies» from a transcribed interview with committee staff involving statements about «intervention» against Tea Party groups.
A 2015 report by then-Senate Finance Committee leaders Orrin Hatch, R-Utah, and Ronald Wyden, D-Ore., found that in other cases, some liberal terminology was also flagged, including «ACORN,» «progressive» and «medical marijuana.»
«While handled poorly, groups on both sides of the political spectrum were treated the same in their efforts to secure tax-exempt status,» Wyden said at the time, while then-Rep. Kevin Brady, R-Texas, said Democrats should be equally outraged as Republicans.
Fox News Digital reached out to Treasury, the IRS and an email connected to Paz for comment.
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Las inundaciones repentinas causadas por intensas lluvias sorprendieron a la población del pueblo de Dharali, en el distrito de Uttarkashi en el estado indio de Uttarakhand, después de que un torrente de lodo y agua arrasara el martes un estrecho valle montañoso del Himalaya. Al menos cuatro personas fallecieron y alrededor de cien permanecen desaparecidas, según confirmaron autoridades estatales y federales.
El ministro de Estado de Defensa, Sanjay Seth, declaró a la agencia de noticias Press Trust of India (PTI) que “es una situación grave… Hemos recibido información que indica que hay cuatro muertos y alrededor de 100 personas desaparecidas. Rezamos por su seguridad”. Imágenes difundidas por los medios locales mostraron ríos de agua fangosa arrastrando casas y tiendas, mientras personas intentaban escapar ante la oleada de escombros.
Prashant Arya, funcionario administrativo de la región, detalló que “unos doce hoteles han sido arrastrados y varias tiendas se han derrumbado”. Agregó que el ejército indio, junto con policías y rescatistas, trabajaba en la búsqueda de desaparecidos y en la evacuación de quienes permanecían atrapados bajo los restos de los edificios colapsados. El ejército desplegó 150 soldados que han auxiliado en el rescate de unas 20 personas en las primeras horas tras la tragedia.
El comandante de la Fuerza Estatal de Respuesta a Desastres, Arpan Yaduvanshi, informó que el lodo alcanzó hasta 15 metros de profundidad en algunos puntos, cubriendo por completo varios edificios de la localidad. Una alerta roja por lluvias “extremadamente intensas” fue emitida para Uttarakhand por el Departamento Meteorológico de la India, que también ha pronosticado más precipitaciones en los próximos días para la zona.
El primer ministro de India, Narendra Modi, expresó sus condolencias e indicó que “no se está escatimando ningún esfuerzo para prestar asistencia”. El ministro principal del estado de Uttarakhand, Pushkar Singh Dhami, añadió que las agencias de rescate trabajan “a toda máquina” para salvar vidas y ofrecer alivio a los afectados, señalando que la inundación fue causada por un “aguacero” repentino e intenso.
La Autoridad Nacional de Gestión de Desastres de la India (NDMA) solicitó el despliegue de tres helicópteros para apoyar las tareas de rescate, debido a las dificultades de acceso derivadas del terreno montañoso y las condiciones meteorológicas. Las autoridades ordenaron el cierre de escuelas en varios distritos, incluidos Dehradun y Haridwar, dado el pronóstico de lluvias continuas.
La región ha experimentado un aumento en la frecuencia y gravedad tanto de inundaciones como de deslizamientos de tierra, especialmente durante la temporada del monzón, que va de junio a septiembre. Los expertos en gestión ambiental atribuyen parte de este incremento al cambio climático y al desarrollo urbano no controlado en áreas propensas a desastres, como ocurría en los Himalayas.
En 2013, Uttarakhand enfrentó una tragedia similar cuando lluvias intensas causaron la muerte de más de 6.000 personas y afectaron a 4.500 aldeas. Según un informe de 2023 del Centro Internacional para el Desarrollo Integrado de las Montañas, al menos 200 de los más de 2.000 lagos glaciares de la región podrían desbordarse y causar inundaciones catastróficas río abajo.
De acuerdo con la Base de Datos de Eventos de Emergencia de la Universidad de Louvain, en 2024 ocurrieron 167 desastres en Asia, el número más alto entre todos los continentes, que incluyeron tormentas, inundaciones, olas de calor y terremotos, y causaron pérdidas superiores a 32.000 millones de dólares.
Las autoridades continúan las labores de búsqueda y rescate en Dharali, mientras la población se mantiene alerta ante la amenaza de nuevas precipitaciones y posibles deslizamientos de tierra en la región montañosa del Himalaya.
(Con información de AFP y AP)
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Senate Republicans are mulling whether to go nuclear after negotiations with Senate Democrats to ram through President Donald Trump’s nominees fell apart over the weekend.
The path to confirming dozens of Trump’s outstanding nominees was destroyed when the president accused Senate Minority Leader Chuck Schumer, D-N.Y., of «political extortion,» and charged that the Democratic leader’s asking price for nominees was too high.
TRUMP TELLS SCHUMER TO ‘GO TO HELL’ OVER SENATE NOMINEE DEAL FUNDING DEMANDS AFTER NEGOTIATIONS COLLAPSE
Senate Republicans are mulling whether to go nuclear after negotiations with Senate Democrats to ram through President Donald Trump’s nominees fell apart over the weekend. (Anna Moneymaker/Getty Images; Al Drago/Bloomberg via Getty Images)
Now, lawmakers have left Washington without a deal to bundle dozens of nominees that made it through committee with bipartisan support, and a change to how the Senate handles the confirmation process is on the horizon.
Senate Majority Whip John Barrasso, R-Wyo., berated Schumer and Senate Democrats for their «unprecedented» blocks of the president’s nominees, and noted that every pick had been filibustered save for Secretary of State Marco Rubio, who glided through the Senate earlier this year.
«We have been working through the list, but there is still a large backlog because of the unprecedented filibuster by the Democrats of every nominee,» Barrasso said. «And if they don’t change their behavior, we’re going to have to change how things are done here, because a president needs to have his or her team in place.»
DEMS DIG IN, TRUMP DEMANDS ALL: NOMINEE FIGHT BOILS OVER IN SENATE AS GOP LOOKS FOR A DEAL
Sen. John Barrasso speaks to reporters during the weekly luncheons on Capitol Hill on June 24, 2025. (Tasos Katopodis/Getty Images)
Under normal circumstances, changing the rules in the Senate would require 67 votes, meaning that Senate Democrats would have to be on board with a change. However, there is a path that lawmakers refer to as the nuclear option, which allows for rules changes to only need a simple majority.
There is the political will among Republicans to change the rules, but doing so would open the door for Senate Democrats to do the same when they get into power once more.
«I think that way is going to happen anyways, because of what Schumer has done. He’s forced this, and it’s ridiculous that he’s doing this,» Sen. Markwayne Mullin, R-Okla., said. «And so, whatever, we’re at this point, and we’ll do, you know what they say, every action requires an equal [reaction], and that’s what we’re at right now.»
Some of the options on the table include shortening the debate time for nominees, getting rid of procedural votes for some lower-level nominees, grouping certain civilian nominees «en bloc» – something that is already done for military nominees – and, at the committee level, deciding whether to lower the number of nominees subject to the confirmation process.
GRIDLOCK CRUMBLES AS SENATE ADVANCES SPENDING BILLS IN RACE AGAINST SHUTDOWN
Senate Majority Leader John Thune pauses while speaking to reporters at the U.S. Capitol on July 1, 2025. (Getty Images/Andrwe Harnik)
Currently, over 1,200 positions go through Senate confirmation. Senate Republicans have been able to confirm over 130 of Trump’s picks so far, but had a loftier goal of doing at least 60 more before leaving town until September.
And there are over 140 nominees still pending on the Senate’s calendar.
«I think they’re desperately in need of change,» Senate Majority Leader John Thune, R-S.D., told reporters. «I think that the last six months have demonstrated that this process, nominations, is broken. And so I expect there will be some good robust conversations about that.»
As to when lawmakers will try to run with a rules change is still in the air. The Senate is gone from Washington until early September and will return to a looming deadline to avert a partial government shutdown.
Before leaving town, the Senate did advance a trio of spending bills – a first in the upper chamber since 2018 – but those same bills are unlikely to pass muster in the House, given that they spend at higher levels than the ones greenlit by the House GOP.
Ramming a rules change through without Democrats could also come at a price for government funding negotiations. Schumer said a possible rules change would be a «huge mistake» for Republicans to do on their own.
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«Because when they go at it alone, they screw up for the American people and for themselves,» he said.
When asked if there were any possible rule changes that he and Senate Democrats could agree to, Schumer said, «We should be working together on legislation to get things done for the American people.»
«That’s the way to go, not changing the rules, because when they change the rules, they say, ‘Only we’re going to decide what’s good for the American people,’ and every time they do that, the American people lose,» Schumer said.
Still, Republicans were unhappy with the way negotiations devolved after days of back and forth.
«We actually, we wanted a deal,» Mullin said. «And these people deserve to be put in position… they’re going to say that we’re trying to do a nuclear option. The fact is, they – Schumer – went nuclear a long time.»
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