ICYMI: Wyden Raises Alarm Over Weaponization of IRS at Senate Finance Hearing
FOR IMMEDIATE RELEASE
Thursday, June 4, 2026
Wyden: Trump’s “Immunity Deal is the Biggest Scam to the Taxpayer in American History”
WASHINGTON, D.C. – At yesterday’s Senate Finance Committee hearing with Treasury Secretary Scott Bessent, Ranking Member Ron Wyden (D-OR) delivered a sweeping indictment of what he described as the Trump Administration's unprecedented abuse of the IRS. He called out the use of the nation's tax enforcement apparatus not as a neutral law enforcement tool, but as an instrument of political favoritism that shields the powerful while leaving ordinary Americans subject to the full weight of federal scrutiny.
Sen. Wyden highlighted the recent settlement of a lawsuit brought by President Trump against his own administration over an IRS tax return leak — a case he argued a federal judge was prepared to dismiss before a rushed resolution was reached. Sen. Wyden described the outcome as the administration's “new high water mark for public corruption.” According to Sen. Wyden, the settlement produced two distinct benefits for the President and his family:
Attorney General Todd Blanche canceled what Wyden described as a long-running IRS dispute that could have resulted in approximately $100 million in back taxes owed by Trump.
The entire Trump family and the Trump Organization were effectively shielded from any past tax crimes, creating what Wyden called a blanket immunity unavailable to any other American.
As Sen. Wyden so eloquently put it: "As of right now, everybody in America is subject to audit except the Trump family."
Sen. Wyden also called again for a 6103 waiver — which would allow the committee to examine the relevant tax records — and urged Chairman Mike Crapo (R-ID) to support a bipartisan investigation. Crapo declined to authorize the waiver.
Key Moments From Sen. Wyden’s Questioning:
On Treasury’s Role in the Settlement:
Wyden pressed Secretary Bessent directly, arguing that the Treasury Department was not a passive observer but an active participant in the settlement process — serving as both a defendant in the underlying lawsuit and a negotiator in its resolution. He further alleged that IRS attorneys had informed Treasury leadership that Trump's legal case had no real merit, and suggested that Treasury's top lawyer resigned in protest over the final outcome.
Wyden called for a bipartisan committee investigation, framing the issue as one that implicates the integrity of the entire tax enforcement system: "This is an abuse of the IRS that goes way beyond anything that I have any familiarity with.”
On a Two-Tiered System of Justice:
As Sen. Wyden noted, the Trump family now has negotiated exit from a nine-figure tax dispute and immunity from past conduct: "The bottom line in this administration is the machinery of government works to the benefit of Donald Trump before all else."
On Bessent’s Silence:
As Secretary Bessent dodged questions and refused to respond, Sen. Wyden made it clear: “This whole settlement is the most brazen abuse of power in American history.”
Key lines of questioning Bessent declined to answer:
Who originated the May 19th addendum canceling Trump's audits — was it Trump, DOJ, or Treasury?
Did Bessent see the 25-page memo prepared by career IRS attorneys recommending the DOJ move to dismiss Trump's lawsuit — a memo reportedly delivered to Treasury in April, before the settlement was reached?
Will Treasury provide the committee with a copy of that IRS memo?
Did Bessent know in advance that Trump planned to file his lawsuit against the IRS — given that Booz Allen's Treasury contracts were canceled just three days before the suit was filed?
Will Treasury send the committee all records documenting the decision to cancel those contracts?
