Treasury Secretary Scott Bessent refused to clarify whether President Donald Trump and his family retain immunity from IRS audits during a Senate Finance Committee hearing on Wednesday. The administration abandoned plans for a $1.776 billion compensation fund tied to Trump’s settlement with the IRS, but the status of the audit immunity remains unclear.
Core Facts & Developments
- Bessent’s Refusal to Comment: Bessent cited ongoing litigation when pressed by lawmakers, including Sen. Catherine Cortez Masto (D-Nev.), who accused him of dodging questions. He stated, “There’s continuing litigation, and I’m unable to comment on ongoing litigation.”
- Uncertainty Over Audit Immunity: Acting Attorney General Todd Blanche indicated Tuesday that the IRS audit immunity portion of the settlement remains in effect, but the White House and Treasury have not confirmed this.
Deeper Dive & Context
The Compensation Fund’s Abandonment
The administration scrapped the $1.776 billion fund, which could have included payouts to participants in the January 6, 2021, Capitol riot, after bipartisan backlash. Trump told reporters he was unaware of the fund’s status, calling it a “beautiful thing” when it was proposed.
Bessent’s Role at the IRS
Bessent, who had been acting IRS commissioner, clarified that his term expired but that he retains authority to perform commissioner duties. Sen. Cortez Masto pressed him on whether this made him the acting commissioner, but Bessent denied it, stating, “I am performing the duties of the commissioner.”
Political Reactions
Sen. Cortez Masto criticized Bessent’s evasiveness, calling it “outrageous on behalf of the American republic.” Democrats have questioned whether Trump and his family received preferential treatment after a leak of their tax returns by a former IRS contractor.
Legal and Procedural Context
The settlement stems from Trump’s $10 billion lawsuit against the IRS, which remains unresolved. A federal judge in Florida is overseeing the case, but no ruling has been issued on the audit immunity provision.
White House Silence
The White House did not respond to inquiries about the settlement’s status, leaving the public without official confirmation on Trump’s audit immunity.