President Trump has put forward James R. Gadwood, a lawyer from Miller & Chevalier, as the nominee for the top legal post at the Internal Revenue Service. The firm has previously handled tax matters for the president, which might intensify the scrutiny of this nomination. This follows the administration’s recent decision to shield the president from tax audits.
The White House announced the nomination of Mr. Gadwood to become the chief counsel of the IRS. Miller & Chevalier represents DJT Holdings LLC, President Trump’s holding company, in tax-related issues. Three people familiar with this relationship have confirmed the connection. Mr. Gadwood, noted for representing large corporations and affluent individuals in IRS audits, has not responded to inquiries about his involvement in Mr. Trump’s tax matters at the firm.
The confirmation process for Mr. Gadwood is expected to spotlight the Trump administration’s unusual directive to halt audits of President Trump, his family, and associates. Todd Blanche, the acting attorney general, issued this protective order as part of settling a lawsuit that Mr. Trump filed earlier this year against the IRS. The lawsuit contended that the agency should have prevented the leak of his tax returns during his first term.
The administration has defended the tax immunity decision but has moved away from establishing a proposed $1.8 billion fund aimed at compensating those claiming federal overreach. This fund was initially planned as part of the settlement of Mr. Trump’s lawsuit against the IRS.
Mr. Blanche’s directive to terminate audits of President Trump and his family raises significant legal questions for the IRS. It introduces concerns about whether tax agents could face legal consequences for complying with this order. One prominent tax issue with the IRS could have led to a financial cost exceeding $100 million for Mr. Trump.
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