Trump Nominates Lawyer with Ties to Personal Tax Matters for IRS Top Legal Position

President Donald Trump has nominated James R. Gadwood as the chief counsel for the Internal Revenue Service (IRS). Gadwood is affiliated with Miller & Chevalier, a law firm that has handled tax matters for Trump.

The White House announced Trump’s decision on Tuesday. Gadwood’s association with Miller & Chevalier has gained attention due to the firm’s representation of DJT Holdings LLC, Trump’s holding company, according to sources. Given this relationship, Gadwood’s nomination could attract scrutiny following the Trump administration’s recent decision to exempt the president from IRS audits last month.

On his law firm profile, Gadwood states that he has represented large corporations and wealthy individuals in IRS audits. However, he did not respond to inquiries about his involvement in tax work for Trump. Historically, the IRS has audited the president’s tax return annually.

A significant aspect of Gadwood’s confirmation process might be the Trump administration’s directive to halt IRS audits of Trump and his family, an unprecedented move. Acting Attorney General Todd Blanche implemented this protective measure during the settlement of a lawsuit initiated by Trump against the IRS earlier in the year.

While maintaining protection from audits, the Trump administration has reversed its plan to create a $1.8 billion fund to compensate individuals claiming federal overreach. This fund was part of the settlement to Trump’s lawsuit against the IRS, which accused the agency of failing to prevent the leak of his tax returns during his first term.

Blanche’s order to cease audits on Trump and his family introduces significant legal challenges for the IRS. There are concerns about possible criminal penalties for IRS agents who adhere to this directive. One outstanding tax dispute with the IRS may have potentially cost Trump over $100 million.