President Trump has nominated James R. Gadwood, a tax lawyer from the firm Miller & Chevalier, to be the chief counsel at the Internal Revenue Service. This nomination is expected to face scrutiny, especially after the recent decision to protect the president from tax audits.
The White House announced the nomination on Tuesday. Miller & Chevalier, the firm where Mr. Gadwood works, represents DJT Holdings LLC, President Trump’s holding company, in tax-related matters. Three individuals familiar with this information confirmed the representation.
Mr. Gadwood is known for representing large corporations and wealthy clients in IRS audits, according to his law firm profile. However, it remains unclear whether he directly participated in any work for Mr. Trump. Historically, the IRS has audited the president’s tax returns annually.
A key aspect of Mr. Gadwood’s confirmation process will likely focus on the Trump administration’s decision to halt IRS audits of Mr. Trump, his family, and their affiliates. Acting Attorney General Todd Blanche issued this directive as part of resolving a lawsuit Mr. Trump initiated against the IRS earlier this year.
Despite supporting the tax immunity, the Trump administration has distanced itself from creating a $1.8 billion fund. This fund was part of a settlement to conclude the lawsuit against the IRS, which accused the agency of failing to prevent the leak of Mr. Trump’s tax returns during his first term.
Mr. Blanche’s order raises significant legal questions for the IRS. It brings into question whether IRS agents could face criminal consequences for adhering to the directive. One unresolved tax conflict with the IRS could potentially cost Mr. Trump over $100 million.