Safeguarding Against IRS Audits: Critics of Trump Prepare for Potential Reprisals

By Tim Reid, Jonathan Landay and Richard Cowan

WASHINGTON (Reuters) – Prominent critics of President-elect Donald Trump, including key figures from his first administration, are urging their accountants to take precautions against possible IRS audits should Trump return to the White House.

Historians highlight that several U.S. administrations in the 20th century have misused the Internal Revenue Service (IRS) to target political opponents through audits.

Among the critics, six individuals—including two national security officials and a CIA officer—express concerns regarding vindictive IRS investigations. Many are implementing safeguards against the potential of being targeted due to Trump's history of seeking retribution against his perceived enemies. "We are going through our finances with a fine-tooth comb," noted one former national security official.

During his campaign, Trump called for the prosecution of perceived adversaries, including President Joe Biden and those who investigated his campaign's alleged ties to Russia.

Recently, Trump filed a lawsuit against the Des Moines Register for alleged interference in the November 5 election.

While Trump has not explicitly mentioned using the IRS for revenge, attorney Mark Zaid, representing some critics, stated many fear unfounded audits that could lead to significant financial and emotional stress, even in the absence of tax issues.

In an NBC interview, Trump denied wanting to investigate political foes. However, he implied he would support investigations against those he believes have committed crimes.

Several critics of Trump spoke to Reuters anonymously due to fear of reprisals. Other prominent figures, including officials from Obama's administration and Liz Cheney, did not respond to interview requests.

The article also discusses the complex nature of the U.S. tax system. Despite a general rarity of audits (only 0.44% from 2013 to 2021), a major audit can be a lengthy and costly process.

Trump's previous critics like James Comey and Andrew McCabe experienced audits during and after Trump's presidency, raising suspicions about political motivations. However, a 2022 IRS report cleared the agency of misconduct in their audits.

The piece concludes by noting the historical context of IRS misuse, recalling Nixon's attempts to use the agency against his enemies, a practice scrutinized by historians.

Recent comments from legislators indicate they are closely monitoring potential IRS actions under Trump’s influence.