WASHINGTON, D.C. – Today, America First Legal (AFL) filed a lawsuit against the Internal Revenue Service (IRS) and the Department of the Treasury for unlawfully concealing records regarding the Biden Administration’s plans for race-based tax audits.
The lawsuit comes after months of investigation into the Biden Administration's tax policies, which allegedly prioritize "racial equity" in tax compliance design. Deputy Secretary Wally Adeyemo highlighted that racial equity plays a pivotal role in the Administration's approach to tax compliance. Assistant Secretary for Tax Policy Lily Batchelder also mentioned efforts to obtain "microdata on race and ethnicity" for tax data, circumventing nondiscrimination laws.
According to the Treasury Advisory Committee on Racial Equity, they were set to "report to the Secretary by March 2024 on the changes implemented to correct disparities in tax audits." This committee has been at the forefront of recommending changes to reduce racial disparities in IRS audit processes.
In a recent podcast appearance, Rep. Jasmine Crockett (D-TX) suggested exempting black Americans from paying taxes as a form of reparations. However, she acknowledged the challenges of such a plan, noting that many within the black community "aren’t really paying taxes in the first place."
Speaking on the matter, America First Legal Counsel Michael Ding stated, "In a Woke world, nothing can be said to be certain, except death, taxes, and racism." The lawsuit aims to uncover the truth, uphold the rule of law, and prevent federal tax enforcement from being used as a tool in advancing divisive equity agendas.
As of now, both the IRS and the Department of the Treasury have failed to comply with legal requests for records, prompting AFL to take legal action to ensure transparency and accountability in tax enforcement practices.