EPIC - EPIC v. IRS (Donald Trump's Tax Records)

EPIC v. IRS (Donald Trump's Tax Records)

Background |
Section 6103(k)(3) |
EPIC's Interest |
Legal Documents |
FOIA Documents |
Resources

Top News

Senate Dials Back Plan to Force SSN Collection by Payment Services, As EPIC Urged: The Senate Finance Committee has significantly scaled back a proposal in the pending budget reconciliation bill to expand the mandatory reporting regime for private financial information in the United States, a move that EPIC and peer organizations called for last month. The original proposal would have required peer-to-peer apps and services to provide the IRS with Tax Identification Numbers and other data for accounts with inflows and outflows of more than $600 per year. Because most individuals do not hold a separate TIN from their Social Security Number, this plan would have forced private entities to collect the SSNs of millions of Americans. The revised proposal raises the threshold from $600 to $10,000, a significant step toward recommendations by EPIC and other privacy and consumer rights groups. “At minimum, the expanded reporting requirement should be scaled back to apply only to business accounts or individual accounts with a high de minimis threshold, adjusted for inflation over time,” the coalition wrote in its letter to the Senate Finance Committee. U.S Treasury Secretary Janet Yellen also praised the change. (Oct. 20, 2021)
Supreme Court Rejects Trump's Bid to Shield Tax Returns: The U.S. Supreme Court ruled Thursday that a New York grand jury can obtain President Trump’s tax returns from the President’s accounting firm. In its decision from Trump v. Vance, the Court rejected the President's attempt to block the grand jury's subpoena. "Two hundred years ago, a great jurist of our Court established that no citizen, not even the President, is categorically above the common duty to produce evidence when called upon in a criminal proceeding," the Court wrote. "We reaffirm that principle today and hold that the President is neither absolutely immune from state criminal subpoenas seeking his private papers nor entitled to a heightened standard of need." EPIC filed an amicus brief in the case supporting disclosure. EPIC explained that President Trump broke with 40 years of precedent by concealing his tax records, even as he sought to collect sensitive voter and citizenship data from the public. "This is inverted liberty: privacy for the President and compelled disclosure of personal data for the public," EPIC argued. "That is antithetical to the structure and practice of modern democracies which safeguard the privacy of citizens and impose transparency obligations on political leaders, most notably the President." EPIC previously sought public release of President Trump's tax returns in EPIC v. IRS, arguing that disclosure was necessary to correct numerous factual misstatements made by the President. In EPIC v. IRS II, EPIC is seeking "offers-in-compromise" and related tax records of President Trump and his businesses. (Jul. 9, 2020)

More top news »

Court Requires Trump to Disclose Tax Returns to Prosecutor » (Oct. 7, 2019)

A federal judge in New York has ordered President Trump to turn over eight years of personal tax returns to the Manhattan district attorney. Judge Victor Marrero rejected the President's attempt to block a grand jury subpoena for the returns, holding that the President is not immune from state criminal prosecution. "The Court cannot square a vision of presidential immunity that would place the President above the law with the text of the Constitution," the court wrote. EPIC previously sought President Trump's tax returns in EPIC v. IRS, arguing that disclosure was necessary to correct numerous factual misstatements made by the President about his taxes. In EPIC v. IRS II, EPIC is seeking "offers-in-compromise" and related tax records of President Trump and his businesses.

Congress Sues for Release of Trump's Tax Returns » (Jul. 2, 2019)

The U.S. House of Representatives has filed suit to obtain six years of President Trump's personal tax returns from the IRS. Rep. Richard Neal, Chairman of the House Ways and Means Committee, has the authority under a section of the tax code to obtain the tax returns. But the IRS and Treasury Department have repeatedly refused to comply with the law. EPIC has sought the release of the President's tax records in two lawsuits: EPIC v. IRS I and EPIC v. IRS II. The D.C. Circuit's opinion in EPIC v. IRS I is cited in the House's complaint multiple times. EPIC previously urged Congress to obtain and publicly release of President Trump's tax returns. EPIC is seeking to determine the extent of Russian interference in the 2016 presidential election.

IRS Refuses Congressional Demand for President’s Tax Returns » (Apr. 11, 2019)

The IRS has refused to comply with Rep. Richard Neal’s deadline to turn over President Trump's tax returns. As Chairman of the House Ways and Means Committee, Rep. Neal has the authority under a section of the tax code to obtain the tax returns. Rep. Neal's letter demanded six years of tax returns from President Trump and his business entities. It is a well established tradition for Presidents and Presidential candidates to make public their tax returns. EPIC has sought the release of the President's returns in two lawsuits: EPIC v. IRS I and EPIC v. IRS II. EPIC also sent a request to the IRS for information about Rep. Richard Neal's request. EPIC previously urged Congress to obtain and publicly release of President Trump's tax returns. EPIC is seeking to determine the extent of Russian interference in the 2016 presidential election.

EPIC Files First Lawsuit for Special Counsel Report on Russian Election Interference » (Mar. 22, 2019)

EPIC has filed a Freedom of Information Act lawsuit to obtain the final report by Special Counsel Robert Mueller concerning Russian interference in the 2016 U.S. presidential election. Attorney General William Barr notified Congress on Friday that the Special Counsel had delivered the final report. In November 2018, EPIC submitted a detailed Freedom of Information Act request to the Department of Justice seeking records about the investigation. The Special Counsel was authorized to conduct an investigation into Russian interference, including "any links and/or coordination between the Russian government and individuals associated with the campaign of President Donald Trump." Special Counsel Mueller has since brought criminal charges against 34 individuals and three organizations. EPIC, through its Democracy and Cybersecurity Project, has pursued multiple FOIA cases concerning Russian interference with the 2016 election, including EPIC v. FBI (response to Russian cyberattacks), EPIC v. ODNI (Russian hacking), EPIC v. IRS I (release of Trump's tax returns), EPIC v. IRS II (release of Trump's offers-in-compromise), and EPIC v. DHS (election cybersecurity). The case for the release of the Mueller Report is EPIC v. DOJ, No. 19-810 (D.D.C.) [Exhibits].

EPIC Celebrates Sunshine Week With 2019 FOIA Gallery » (Mar. 11, 2019)

In celebration of Sunshine Week, EPIC has unveiled the 2019 FOIA Gallery. Since 2001, EPIC has published annually highlights of EPIC’s most significant open government cases and Freedom of Information Act requests. In 2018, EPIC obtained e-mails about mass surveillance programs developed by Justice Kavanaugh as a White House legal advisor, records about the controversial DHS "media monitoring program," communications between the FTC and Facebook about the agency's failure to enforce the 2011 Consent Order, and documents that revealed obscure travel blacklists in the "SecureFlight" program. In the latest FOIA gallery, EPIC also highlight a significant ruling from the D.C. Circuit in EPIC v. IRS where the court stated that the IRS "misunderstands its FOIA disclosure obligations." This is one of two cases EPIC filed to obtain the public release of President Trump's tax records. In EPIC v. IRS, the district court noted that President Trump tweeted, "For the record, I have ZERO investments in Russia. Russia has never tried to use leverage over me. I HAVE NOTHING TO DO WITH RUSSIA - NO DEALS, NO LOANS, NO NOTHING!"

Trump-Russia Records at Issue in Mueller Probe, EPIC v. IRS » (Nov. 30, 2018)

New revelations in the Mueller probe implicate EPIC’s Freedom of Information Act cases for President Trump’s tax returns. In EPIC v. IRS, currently before the D.C. Circuit, EPIC argued that the IRS has the authority to disclose the returns to correct misstatements of fact concerning financial ties to Russia. Trump had tweeted that “Russia has never tried to use leverage over me. I HAVE NOTHING TO DO WITH RUSSIA - NO DEALS, NO LOANS, NO NOTHING.” This claim is now disproven by the Special Counsel’s investigation, which recently determined that Mr. Trump pursued a major real estate deal with the Russian government in 2016. In a second case, EPIC v. IRS II, EPIC is seeking the release of tax records related to President Trump's businesses. EPIC has also filed a FOIA request for records concerning the Special Counsel investigation.

U.S. House Flips, EPIC Seeks Release of Trump Tax Returns » (Nov. 7, 2018)

With the change of control in Congress and the ongoing interest in President Trump's tax returns, two EPIC Freedom of Information Act cases will receive renewed attention. In EPIC v. IRS, currently before the D.C. Circuit, EPIC argued that the IRS has the authority to disclose the returns to correct numerous misstatements of fact concerning his financial ties to Russia. President Trump tweeted that "Russia has never tried to use leverage over me. I HAVE NOTHING TO DO WITH RUSSIA - NO DEALS, NO LOANS, NO NOTHING"—a claim contradicted by his own attorneys, family members, and business partners. EPIC has repeatedly urged Congress to exercise oversight of the IRS and to support the disclosure of the President's returns in EPIC's case. In a second case, EPIC v. IRS II, EPIC is seeking the release of additional tax records related to President Trump and over 300 of his businesses. Two-thirds of voters favor the release of Trump's tax returns.

EPIC Obtains Comey's Memos Detailing Conversations with Trump » (May. 15, 2018)

Through a Freedom of Information Act request, EPIC obtained declassified memorandums from former FBI Director James Comey detailing his conversations with President Trump from January to April 2017. The conversations include President Trump asking about the possibility of imprisoning journalists, dropping the investigation of former advisor Michael Flynn, and the need to "lift the cloud" of the Russia investigation. In early 2017, EPIC launched the Project on Democracy and Cybersecurity. EPIC is currently pursuing several FOIA cases concerning Russian interference with the 2016 election including: EPIC v. ODNI (Russian hacking), EPIC v. IRS (release of Trump's tax returns), and EPIC v. DHS (election cybersecurity).

EPIC Tells Senate Finance Committee: Support Release of Trump Tax Records » (Apr. 12, 2018)

In advance of a hearing regarding challenges facing the IRS, EPIC sent a statement to the Senate Finance Committee urging the release of President Trump's tax returns. EPIC v. IRS is one of several FOIA cases EPIC is pursuing concerning Russian interference in the 2016 Presidential election. EPIC recently filed the opening brief in the case before the D.C. Circuit Court of Appeals. EPIC told the court that the IRS has the authority to disclose the President's returns to correct numerous misstatements of fact concerning financial ties to Russia. For example, President Trump tweeted that "Russia has never tried to use leverage over me. I HAVE NOTHING TO DO WITH RUSSIA - NO DEALS, NO LOANS, NO NOTHING"--a claim "plainly contradicted by his own attorneys, family members, and business partners." As EPIC told the Court, "there has never been a more compelling FOIA request presented to the IRS."

D.C. Circuit Sets Schedule for EPIC Case to Obtain Trump Tax Returns » (Dec. 19, 2017)

The D.C. Circuit Court of Appeals has set a schedule in EPIC’s case to obtain President Trump’s tax returns. EPIC previously argued that the IRS has the authority to release the records to correct numerous misstatements of fact concerning financial ties to Russia, such as President Trump’s tweet "Russia has never tried to use leverage over me. I HAVE NOTHING TO DO WITH RUSSIA - NO DEALS, NO LOANS, NO NOTHING." The IRS recently admitted to EPIC that it has used this authority at least 10 times in one year. The schedule for the appeal was announced the same week that Congress considers sweeping tax legislation, but Congress and the public remain in the dark about the consequences of the legislation on the President’s personal finances. According to CNN, 73% of Americans favor release of the President’s tax returns. EPIC v. IRS is one of several FOIA cases concerning Russian interference in the 2016 Presidential election, including EPIC v. ODNI (scope of Russian interference), EPIC v. FBI (response to Russian cyber attack), and EPIC v. DHS (election cybersecurity). EPIC’s opening brief in EPIC v. IRS is due January 24, 2018.

Pew Survey Examines "Future of Truth and Misinformation Online" » (Oct. 20, 2017)

The Pew Research Center released a report on how to address the spread of digital misinformation in the coming decade. The report's respondents were evenly divided on whether technological advances in the coming decade will fix the problem of misinformation, or only compound it. EPIC President Marc Rotenberg told Pew, "The problem with online news is structural: There are too few gatekeepers, and the internet business model does not sustain quality journalism. The reason is simply that advertising revenue has been untethered from news production." The prevalence of "fake news" was one of the most significant issues in the 2016 presidential election. EPIC's Democracy and Cybersecurity Project seeks to restore integrity in democratic elections. EPIC is also pursuing details of the Russian election interference in FOIA cases against the FBI, the Office of Director in National Intelligence, and the IRS. This week several senators introduced bipartisan legislation to strengthen disclosure requirements for online political ads.

EPIC, Open Government Groups Call for Release of Trump's Tax Returns » (Oct. 11, 2017)

EPIC and a coalition of leading open government organizations have urged the Joint Committee on Taxation and the IRS Commissioner to release Donald Trump's tax returns to correct numerous misstatements of fact concerning the President's financial ties to Russia, such as "Russia has never tried to use leverage over me. I HAVE NOTHING TO DO WITH RUSSIA - NO DEALS, NO LOANS, NO NOTHING." These statements have been directly contradicted by his attorneys, members of his family, and various news reports. The IRS Commissioner, with the approval of the Joint Committee on Taxation, is authorized to release tax records to "correct misstatements of fact," and the agency exercised the authority ten times in one year. EPIC is also pursuing a lawsuit against the IRS after the agency failed to release Trump's tax records in response to a FOIA request. EPIC v. IRS is now pending before the D.C. Circuit Court of Appeals.

2018 Intelligence Authorization Reflects Concerns About Russian Hacking » (Aug. 25, 2017)

In the proposed intelligence reauthorization for 2018, the Senate has included provisions reflecting widespread concern about the Russian interference in the 2016 election. Among other requirements, S. 1761 mandates a report to Congress detailing the past cyber attacks on election infrastructure and the risk of future attacks, as well as a report assessing the intelligence community response to the attacks. The bill also gives the intelligence community 90 days to develop a strategy to counter the threat of future Russian cyber attacks. And the bill requires the Director of National Intelligence to submit to Congress a report assessing the "threat of Russian money laundering to the United States." EPIC raised similar concerns in a series of leading open government cases concerning the Russian interference. In EPIC v. FBI, EPIC is seeking information about the FBI's response to the attacks and has obtained the FBI Notification Procedures that should have been followed after a cyber attack. In EPIC v. ODNI, EPIC is seeking the release of the complete intelligence report on the scope of the Russian attack. And in EPIC v. IRS, EPIC is seeking to obtain the public release of Donald Trump’s tax returns.

EPIC v. IRS: District Court Rules IRS May Withhold Trump Tax Records » (Aug. 18, 2017)

A federal court in Washington, DC has ruled that the IRS may withhold President Trump's tax records sought by EPIC under the Freedom of Information Act. EPIC had argued that the IRS has the authority to release the records to correct numerous misstatements of fact concerning the President's financial ties to Russia. The President, for example, tweeted: "Russia has never tried to use leverage over me. I HAVE NOTHING TO DO WITH RUSSIA - NO DEALS, NO LOANS, NO NOTHING!" However, the Court ruled that “until President Trump or Congress authorizes release of the tax returns, EPIC (and the rest of the American public) will remain in the dark." EPIC v. IRS is one of three leading open government cases concerning Russian interference with the 2016 Presidential election. In EPIC v. ODNI, EPIC is seeking the release of the complete report on the scope of the attack. In EPIC v. FBI, EPIC is seeking information about the FBI’s response to the attack. EPIC will continue to pursue the release of President’s Trump’s tax records and related evidence of financial relations with the Russian government.

Report Shows Increase in Open Government Lawsuits, EPIC Among Nation's Leading FOIA Litigators » (Jul. 27, 2017)

A new report from the FOIA Project shows a "dramatic rise" in the number Freedom of Information Act lawsuits filed by nonprofit and advocacy groups. According to TRAC, these organizations now account for more FOIA suits than "any other single class." EPIC was the fifth most frequent litigator among nonprofit and advocacy groups nationwide. In 2017, EPIC has filed five FOIA lawsuits. EPIC is currently litigating EPIC v. ODNI, EPIC v. FBI, and EPIC v. IRS, three of the leading open government cases concerning Russian interference with the 2016 Presidential election. Last week, EPIC filed a new FOIA lawsuit against Customs and Border Protection for information about the agency's deployment of a biometric entry/exit tracking system, including at US airports. For more information about EPIC's latest open government work, visit: https://epic.org/open_gov/.

EPIC Obtains Privacy Procedures for IRS Private Debt Collection » (Jul. 10, 2017)

As the result of a Freedom of Information Act request to the IRS, EPIC has obtained hundreds of documents detailing procedures that bind private debt collectors dealing with U.S. taxpayers. Following a Congressional mandate, the IRS outsourced debt collection for some U.S. taxpayers to private debt collection agencies. Transfer of personal and financial data to private entities raises data security and privacy concerns, and also makes scams and threatening phone collection tactics easier to perpetrate. A group of U.S. senators has already accused one of the four companies of engaging in abusive and illegal phone contacts. The documents obtained by EPIC show how the IRS monitors the companies and the procedures companies must follow when contacting taxpayers. EPIC also obtained the privacy and data security requirements imposed on the debt collectors, details of how they must handle complaints, and the IRS contracts for all four companies. In FOIA lawsuit EPIC v. IRS, EPIC is also seeking therelease of President Trump's Tax records from the agency.

EPIC v. ODNI: Intelligence Agency Opposes Release of Report on Russian Hacking » (Jun. 27, 2017)

In a motion filed in EPIC v. ODNI, the government contends that it is not obligated to review a critical government report for even partial release under the Freedom of Information Act. EPIC filed the lawsuit for the release of the complete report on the Russian interference with the 2016 election after the ODNI published a limited, declassified version. "The ODNI should release the complete report to EPIC so that the public and the Congress can understand the full extent of the Russian interference with the 2016 Presidential election," EPIC President Marc Rotenberg told POLITICO. "It is already clear that government secrecy is frustrating meaningful oversight. The FBI, for example, will not even identify the states that were targeted by Russia." EPIC will challenge the agency's response as the litigation continues in federal district court in Washington, DC. EPIC v. ODNI is one of several FOIA suites EPIC is pursuing under the new EPIC Democracy and Cybersecurity Project focused on preserving democratic institutions. In EPIC v. IRS EPIC seeks release of President Trump's Tax records. In EPIC v. FBI, EPIC has already obtained the Bureau's procedures for notifying organizations that are the target of a cyber attack.

EPIC Pursues Release of Trump Tax Returns in IRS FOIA Case » (Jun. 27, 2017)

EPIC filed a court brief Monday opposing an attempt by the Internal Revenue Service to dismiss EPIC's FOIA lawsuit for President Trump's tax returns. EPIC filed the suit for the tax records on April 15 after the IRS refused to process EPIC's FOIA Request for the President's returns. The IRS responded by asking the court to dismiss the case, insisting that the agency did not have to process EPIC's request because the President's consent had not been obtained. As EPIC told the court on Monday, the IRS focused on the wrong law, ignoring a provision that gives EPIC a right to access the President's tax records without consent. EPIC explained that the agency's argument "is irrelevant to the processing of this particular FOIA request." EPIC v. IRS is one of three leading open government cases concerning Russian interference with the 2016 Presidential election. In EPIC v. ODNI, EPIC is seeking the release of the complete report on the scope of the attack. In EPIC v. FBI, EPIC is seeking information about the FBI’s response to the attack.

IRS Opposes EPIC's FOIA Suit for Trump Tax Returns » (Jun. 13, 2017)

The Internal Revenue Service has asked a court to dismiss EPIC's FOIA lawsuit for President Donald Trump's tax records. EPIC filed the suit on April 15 after the IRS refused to consider a FOIA request for the President's returns. As EPIC told the court, "There has never been a more compelling FOIA request presented to the IRS." EPIC also explained that IRS Commissioner is empowered to release tax returns to "correct misstatements of fact" and to ensure the "integrity and fairness" of the tax system. In yesterday's filing, the IRS conceded that "the FOIA provides an adequate remedy in this case" but insisted that the agency did not have to process EPIC's request or release any records.

Leaked Document Details Russian Interference Efforts in 2016 Election » (Jun. 6, 2017)

A National Security Agency document leaked to The Intercept details Russian attempts to interfere in the 2016 Presidential Election via cyber attacks. The document concludes that the attacks were carried out by Russian military intelligence and involved spear-phishing emails and a cyber attack on a private manufacturer of devices that maintain and verify the voter rolls. EPIC Is currently litigating EPIC v. ODNI, EPIC v. FBI, and EPIC v. IRS, three of the leading open government cases concerning Russian interference with the 2016 Presidential election.

The FOIA Project Provides 2017 FOIA Report » (May. 31, 2017)

A new report from The FOIA Project tracks many of the Freedom of Information Act lawsuits filed by media organizations and journalists in 2017. According to TRAC, forty-five new FOIA lawsuits were filed by thirty-nine news organizations and reporters. The New York Times, with six FOIA suits, filed suit most frequently. In second place is EPIC, which has already filed four FOIA lawsuits in 2017, including a suite of lawsuits under the new EPIC Democracy and Cybersecurity Project focused on preserving democratic institutions. In EPIC v. ODNI EPIC seeks public release of the January 2017 report of the intelligence community on Russian hacking, and in EPIC v. IRS EPIC seeks release of President Trump's Tax records. In EPIC v. FBI, EPIC has already obtained the Bureau's procedures for notifying organizations that are the target of a cyber attack. EPIC has asked Congress to determine whether the FBI did enough to notify US political organizations about Russian cyber attacks during he 2016 Presidential election.

EPIC to House Committee: IRS Must Release Trump Tax Records » (May. 22, 2017)

In advance of an IRS Oversight hearing, EPIC has sent a statement to the House Appropriations Committee regarding EPIC v. IRS, the case in which EPIC is seeking release of President Trump's tax records. According to EPIC, "There has never been a more compelling FOIA request presented to the IRS." In the request to the IRS, EPIC explained that the IRS Commissioner may release tax returns to "correct misstatements of fact" and to ensure the "integrity and fairness" of the tax system. EPIC is currently pursuing several high level FOIA cases, including EPIC v. FBI and EPIC v. ODNI, to determine the scope of Russian interference with the 2016 Presidential election.

EPIC v. ODNI: EPIC Anticipates Release of Report on Russian Hacking » (May. 2, 2017)

In a Freedom of Information Act lawsuit EPIC v. ODNI, EPIC anticipates the May 3 release of the Complete Assessment of the Russian interference in the 2016 presidential election. In January 2017, the Director of National Intelligence released a limited, declassified version report about the "multi-pronged attack" on democratic institutions. EPIC filed a FOIA suit for public release of the Complete Assessment of Russian interference. As EPIC explained in an op-ed in The Hill and statements to Congress, the "public has a right to know the details when a foreign government attempts to influence the outcome of a U.S. presidential election." In accordance with the briefing schedule in the case, the ODNI must release all non-exempt portions of the Complete Assessment on May 3, 2017 to EPIC. EPIC is also pursuing two related FOIA cases as part of the Democracy and Cybersecurity Project. In EPIC v. FBI, EPIC is seeking records concerning the FBI's investigation of Russian interference. In EPIC v. IRS, EPIC is seeking release of President Trump’s Tax records.

EPIC Sues IRS for Release of Trump's Tax Records » (Apr. 15, 2017)

Today EPIC filed a FOIA lawsuit against the IRS after the agency failed to release Donald J. Trump’s tax records. According to EPIC, "There has never been a more compelling FOIA request presented to the IRS.” In the request to the IRS, EPIC explained that the IRS Commissioner may release tax returns to "correct misstatements of fact" and to ensure the “integrity and fairness" of the tax system. EPIC cited an earlier statement of Senator Charles Grassley (R-IA), a member of the Joint Committee on Taxation, in support of the release. The case is captioned EPIC v. IRS, 17-670 (D.D.C. filed Apr. 15, 2017). For more information, see the Press Release about EPIC v. IRS. EPIC is currently pursuing several high level FOIA cases, including EPIC v. FBI and EPIC v. ODNI, to determine the scope of Russian interference with the 2016 Presidential election.

Background

If the Freedom of Information Act means anything, it means that the American public has the right to know whether records exist in a federal agency which reveal that the U.S. president has financial dealings with a foreign adversary.

With that in mind, EPIC submitted a FOIA request to the Internal Revenue Service on February 16, 2017 seeking “Donald J. Trump’s tax returns for tax years 2010 forward and any other indications of financial relations with the Russian government or Russian businesses.”

Donald J. Trump’s failure to release his tax returns is unprecedented and goes against the long-standing tradition of candidates for the U.S. presidency. The release of President Trump’s tax returns would help determine whether statements regarding his business relations with Russia and the Russian government are correct or not correct.

Notably, the public favors the release of the President’s tax records. According to an ABC News poll, three-quarters of Americans say he should release his returns. More than 1 million people have signed a petition urging the federal government to “[i]mmediately release Donald J. Trump's full tax returns, with all information needed to verify emoluments clause compliance.”

After the IRS refused to process EPIC's FOIA request, EPIC filed suit against the agency on April 15, 2017 in the U.S. District Court for the District of Columbia. On August 18, 2017, the Court granted the IRS's motion to dismiss EPIC's case, concluding that "until President Trump or Congress authorizes release of the tax returns, EPIC (and the rest of the American public) will remain in the dark." EPIC has appealed the District Court's decision to the U.S. Court of Appeals for the D.C. Circuit, which heard arguments in the case on Thursday, September 13, 2018.

Section 6103(k)(3)

In the aftermath of President Richard M. Nixon’s resignation, Congress enacted the Tax Reform Act of 1976 to strengthen the accountability of the IRS. Senator Lowell Weicker (R-CT) described the law as a “legislative remedy to the flaws of Government exposed by the chain of abuses we call Watergate.”

To ensure the “integrity and fairness [of the IRS] in administering the tax laws,” one provision of the Act—§ 6103(k)(3)—permits the IRS Commissioner to “disclose such return information or any other information with respect to any specific taxpayer to the extent necessary for tax administration purposes to correct a misstatement of fact published or disclosed with respect to such taxpayer's return or any transaction of the taxpayer with the Internal Revenue Service.” The provision requires the Commissioner to obtain the approval of the Joint Committee on Taxation.

Section 6103(k)(3) provides the IRS with an “extremely important” authority “to protect itself and the tax system[.]” As Sen. Chuck Grassley (R-IA) has explained, certain “type[s] of factual misstatements should trigger disclosure of return information” under § 6103(k)(3) if they are of a sufficient “degree of seriousness.”

The IRS has approached the Joint Committee on Taxation about its § 6103(k)(3) authority in at least two other matters. In 1997, the IRS Commissioner “requested the opportunity to explore with Chairman Archer and Chairman Roth the possibility of using Code section 6103(k)(3) to permit the IRS to correct misstatements of fact regarding examinations of tax-exempt organizations.” Commissioner Richardson explained that “unfounded reports erode public confidence in the integrity of the IRS, thereby undermining the self-assessment compliance system.” The IRS put forward a similar proposal in 1981 to correct misstatements by tax protestors that the IRS was “letting them get away with not filing or that [the IRS was] harassing them.”

’Misstatement[s] of Fact’

Many individuals, including the President, have published conflicting statements of fact about the contents of President Trump’s tax returns. At least some of these statements of fact must necessarily be false because they are contradictory.

In July 2016, for example, Trump stated on Twitter: “For the record, I have ZERO investments in Russia.” Days later, Trump stated in an interview that he had “no relationship to Russia whatsoever” and “no debts” in the country.

However, numerous news organizations have covered President Trump’s ties to Russian business and government. The Washington Post reported that “[s]ince the 1980s, Trump and his family members have made numerous trips to Moscow in search of business opportunities, and they have relied on Russian investors to buy their properties around the world.” CBS News noted that “[w]hile the Republican presidential nominee has denied any ties to Russia, his connections to the country and its president go back years.”

Following his election, President Trump tweeted on January 11, 2017: "Russia has never tried to use leverage over me. I HAVE NOTHING TO DO WITH RUSSIA - NO DEALS, NO LOANS, NO NOTHING!” On February 16, the President reiterated his statement in a nationally televised press conference: “I can tell you, speaking for myself, I own nothing in Russia. I have no loans in Russia. I don't have any deals in Russia.”

Yet three separate investigations—one by the Federal Bureau of Investigation, one by the House Intelligence Committee, and one by the Senate Intelligence Committee—are poised to examine President Trump’s business connections to Russia. Sen. Chris Murphy (D-CT) recently asserted that President Trump’s tax returns “could shed light on Trump’s ‘bizarre positioning’ towards Russia” and alleged “either that the Russians have something on Trump, or that there are financial ties that are requiring Trump to behave this way or perhaps the Russians helped him in the election and this is sort of a quid pro quo.”

Meanwhile, news reports continue to contradict the President’s factual claims about his financial dealings. “I believe Trump’s tax returns are key evidence in the investigations into the extent of Russian interference in the election and should be made public or at least provided to Congress,” one commentator wrote. President Trump’s statements that he “has ZERO investments in Russia” and that he has “NOTHING TO DO WITH RUSSIA” have even been contradicted by his family. In 2008, Donald Trump, Jr. stated that “Russians make up a pretty disproportionate cross-section of a lot of our assets. . . . We see a lot of money pouring in from Russia.”

’Tax Administration Purposes’

President Trump, media commentators, and many members of the public have attacked the integrity and fairness of IRS in recent months, alleging religious discrimination, political bias, and economic favoritism in the agency’s administration of the tax code.

President Trump has claimed that he “unfairly get[s] audited by the I.R.S. almost every single year” and has accused the agency of targeting him for both religious and political reasons. In a February 2016 CNN interview, Trump stated: "I'm always audited by the IRS, which I think is very unfair—I don't know, maybe because of religion, maybe because of something else.” Trump added that the IRS may target him “because of the fact that I'm a strong Christian, and I feel strongly about it and maybe there's a bias.”

Others have questioned whether the IRS is unfairly deferential toward President Trump and other wealthy taxpayers. In a Forbes article titled “Do Wealthy People Like Trump Have Easier IRS Audits?,” tax attorney Robert W. Wood reported that Trump and other big earners appear to elude IRS auditors at higher rates than regular earners. “[S]tatistics might be read to suggest that wealthy individuals often outdo even this elite wing of the IRS [the IRS Wealth Squad],” Wood wrote. “[I]n a significant percentage of the audits it handles, the IRS Wealth Squad walks away without a single dollar.”

Still others have announced their intention to “withhold[] payment until Trump releases his own tax returns, since they believe the documents would prove that he's not fit to be president.”

In order to maintain public confidence in the agency’s equitable administration of the tax code, the IRS must exercise its power under § 6103(k)(3) to release Donald Trump’s returns.

EPIC’s FOIA Request

On February 16, 2017, EPIC submitted a FOIA request to the Internal Revenue Service seeking “all of Donald J. Trump’s individual income tax returns for tax years 2010 forward, and any other indications of financial relations with the Russian government or Russian businesses.” In a letter dated March 2, 2017, the IRS acknowledged receipt of EPIC’s request but stated that it was “closing [EPIC’s] request as incomplete with no further action.”

On March 29, 2017, EPIC submitted an appeal and renewed FOIA request to the IRS. EPIC explained its right to seek and access such records under 26 U.S.C. § 6103(k)(3) and urged the IRS Commissioner to “move promptly to obtain permission from the Joint Commission on Taxation to release the records EPIC has requested.”

In a letter dated April 6, 2017, the IRS acknowledged receipt of EPIC’s appeal but again stated that it was closing EPIC’s request as “incomplete.” The agency asserted that “any future request regarding this subject matter [would] not be processed.”

On April 15, 2017, EPIC filed suit in the U.S. District Court for the District of Columbia seeking to compel disclosure of the requested tax records. On August 18, 2017, the Court granted the IRS's motion to dismiss EPIC's case, concluding that "until President Trump or Congress authorizes release of the tax returns, EPIC (and the rest of the American public) will remain in the dark."

EPIC’s Interest

As Marc Rotenberg, President of EPIC, has said: "There has never been a more compelling request presented to the IRS than the request from EPIC to obtain the tax records of President Donald J. Trump."

There is a widespread concern that the President’s private financial interests may conflict with the national interests of the United States. There is a related concern that Mr. Trump may have entered into business relations with the Russian government that aided his presidential campaign. There is simply no way to resolve these disputes without the release of the tax records. The public has the right to know.

“The public interest in disclosure of this information could not be greater,” EPIC noted in the Complaint against the IRS. “This complaint presents unique facts that would not apply to the release of any other tax returns for any other taxpayer.”

In addition to this case, EPIC has filed two other Freedom of Information Act lawsuits regarding Russian interference in the 2016 Presidential Election: EPIC v. FBI (concerning a request for records related to the hack of the DCCC, DNC, and RNC systems) and EPIC v. ODNI (concerning a request for the full report on "Russian Activities and Intentions in Recent US Elections").