Watchdog Group Discovers Obama-Era IRS Official Who Targeted Political Opponents Promoted

A prominent government watchdog group is calling for the removal of a senior IRS official, Holly Paz, due to her involvement in the controversial targeting of conservative groups during the Obama administration. Paz, who served as the top deputy to former IRS Commissioner Lois Lerner, is currently overseeing the IRS’s Large Business and International Division. This division plays a key role in managing tax administration for high-asset businesses and wealthy individuals. The call for her removal comes as the American Accountability Foundation (AAF) uncovers disturbing connections between Paz and the infamous Tea Party scandal that rocked the IRS during Obama’s presidency.

The scandal, which emerged in 2013, exposed that the IRS had unfairly scrutinized conservative organizations seeking tax-exempt status, while progressive groups were not subjected to the same level of scrutiny. This selective treatment led to widespread accusations of political bias within the agency. In response to public outrage, the IRS issued an apology in 2017 for its conduct, acknowledging that the agency had wrongly targeted conservative groups.

Paz was a central figure in this controversy, serving as a top deputy to Lois Lerner, the IRS official at the heart of the scandal. During the height of the Tea Party controversy, Paz personally reviewed between 20 and 30 applications from conservative groups. Many of these applications were held up for over a year, a delay that ultimately prevented these organizations from gaining tax-exempt status in a timely manner.

The American Accountability Foundation (AAF) launched an investigation into the IRS’s leadership and its ongoing political bias. AAF’s findings revealed that Holly Paz, after being placed on leave and ousted from her role at the IRS in 2013, was reinstated to a high-ranking position within the agency during the Biden administration. This, the AAF argues, is troubling given Paz’s central involvement in the Tea Party scandal and ongoing concerns about political partisanship within the IRS.

In a letter sent to Treasury Secretary Scott Bessent, AAF stated that Paz “cannot be allowed to maintain a role in the IRS.” The group further emphasized that taxpayers deserve to have confidence in the impartiality of IRS leadership, especially given the agency’s history of partisan controversy. AAF wrote, “With allegations that the IRS maintains political bias and is still targeting conservatives, Paz cannot be allowed to continue in her current position.”

Given the sensitive nature of her current position and the vast amount of influence she wields over high-net-worth individuals and businesses, the AAF contends that her prior involvement in partisan activities raises significant concerns about the agency’s ability to operate without political bias.

READ NEXT: The IRS Could Help ICE Identify Illegal Immigrants