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Tuesday, November 5, 2024

House committee chairs demand action over alleged IRS retaliation against whistleblowers

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Rep. Jason T. Smith, U.S. Representative for Missouri's 8th District | Official Website

Rep. Jason T. Smith, U.S. Representative for Missouri's 8th District | Official Website

House Committee on Ways and Means Chairman Jason Smith, Committee on Oversight and Accountability Chairman James Comer, and Committee on the Judiciary Chairman Jim Jordan are seeking clarification from the Internal Revenue Service (IRS) regarding alleged retaliation against whistleblowers Gary Shapley and Joseph Ziegler. The two IRS agents had reported issues related to the federal criminal investigation of Hunter Biden.

In a letter addressed to Acting Principal Deputy Special Counsel Karen Gorman, the chairmen requested an update on the U.S. Office of Special Counsel's (OSC) investigation into these allegations. They also urged for an immediate stay at the U.S. Merit Systems Protection Board to halt what they described as threatening actions by the IRS.

The chairmen stated: “SSA Shapley’s and SA Ziegler’s whistleblowing took courage and bravery. Because of their important disclosures, Americans learned how the IRS treats individuals differently based upon their last names." They further emphasized that despite facing personal and professional challenges, both agents have remained steadfast in their claims.

Gary Shapley's attorney disclosed that shortly after an interview with investigative journalists was released, detailing evidence of differential treatment by the IRS towards taxpayers, Shapley received a notice from the IRS. This notice gave him 15 days to choose between accepting a demotion or resigning from his position. This development occurred despite prior testimony from IRS Commissioner Daniel Werfel assuring that whistleblowers would not face retaliation.

Previously, in July 2023, several committees had already contacted OSC for an inquiry into possible retaliatory measures against these whistleblowers. In June 2024, additional concerns were raised regarding how the U.S. Department of Justice was handling this matter.

The chairmen highlighted OSC's authority under federal law to request a stay on personnel actions if deemed necessary due to prohibited practices: “OSC has the express authority to seek a stay at the Board under 5 U.S.C. § 1214(b)(1)(A)(i).” They called for an immediate consideration of Shapley's case for such a stay and requested a comprehensive briefing due to prolonged proceedings without conclusions.

For further details, readers can access the full letter addressed to OSC Acting Principal Deputy Special Counsel Karen Gorman online.

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