IRS mandatory presidential audit policy goes under spotlight

Washington: An IRS policy governing the audits of tax returns filed by U.S. presidents is under new scrutiny after a report published by a congressional panel found the agency failed to perform the mandatory inspection of Donald Trump’s returns until Congress pressed for information about the process.

The three-point policy states that individual returns for the president and the vice president are subject to mandatory review, “should always be kept in an orange folder,” should be kept from the eyes of IRS employees, and “should be locked in a secure drawer or cabinet when the examiner or reviewer is away from the work area.”

The report released Tuesday by the Democratic majority on the House Ways and Means Committee said the process, which dates to 1977, was “dormant, at best” during the early years of the Trump administration. Democrats in Congress are responding by introducing legislation that would codify the IRS policy into law with more stringent requirements.

Tax experts say the failure to launch the audit earlier is emblematic of a larger problem regarding the IRS’ capacity to examine high-income taxpayers’ returns — and a reminder of Trump as a norm-defying president.

John Koskinen, who served as IRS commissioner during both the Obama and Trump administrations, said the policy has been out of the public eye because presidents have traditionally released their tax-return summaries to the public.

Image courtesy of (Image: Bradenton Herald)

Share this post