[Senate Hearing 118-808]
[From the U.S. Government Publishing Office]
S. Hrg. 118-808
NOMINATIONS OF JAMES R. IVES, ROSE E.
JENKINS, ADAM B. LANDY, AND KASHI WAY
=======================================================================
HEARING
before the
COMMITTEE ON FINANCE
UNITED STATES SENATE
ONE HUNDRED EIGHTEENTH CONGRESS
SECOND SESSION
on the
NOMINATIONS OF
JAMES R. IVES, TO BE INSPECTOR GENERAL, DEPARTMENT OF THE TREASURY;
ROSE E. JENKINS, TO BE A JUDGE OF THE UNITED STATES TAX COURT; ADAM B.
LANDY, TO BE A JUDGE OF THE UNITED STATES TAX COURT; AND KASHI WAY, TO
BE A JUDGE OF THE UNITED STATES TAX COURT
__________
JUNE 4, 2024
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Printed for the use of the Committee on Finance
______
U.S. GOVERNMENT PUBLISHING OFFICE
64-301--PDF WASHINGTON : 2026
COMMITTEE ON FINANCE
RON WYDEN, Oregon, Chairman
DEBBIE STABENOW, Michigan MIKE CRAPO, Idaho
MARIA CANTWELL, Washington CHUCK GRASSLEY, Iowa
ROBERT MENENDEZ, New Jersey JOHN CORNYN, Texas
THOMAS R. CARPER, Delaware JOHN THUNE, South Dakota
BENJAMIN L. CARDIN, Maryland TIM SCOTT, South Carolina
SHERROD BROWN, Ohio BILL CASSIDY, Louisiana
MICHAEL F. BENNET, Colorado JAMES LANKFORD, Oklahoma
ROBERT P. CASEY, Jr., Pennsylvania STEVE DAINES, Montana
MARK R. WARNER, Virginia TODD YOUNG, Indiana
SHELDON WHITEHOUSE, Rhode Island JOHN BARRASSO, Wyoming
MAGGIE HASSAN, New Hampshire RON JOHNSON, Wisconsin
CATHERINE CORTEZ MASTO, Nevada THOM TILLIS, North Carolina
ELIZABETH WARREN, Massachusetts MARSHA BLACKBURN, Tennessee
Joshua Sheinkman, Staff Director
Gregg Richard, Republican Staff Director
(II)
C O N T E N T S
----------
OPENING STATEMENTS
Page
Wyden, Hon. Ron, a U.S. Senator from Oregon, chairman, Committee
on Finance..................................................... 1
Crapo, Hon. Mike, a U.S. Senator from Idaho...................... 3
CONGRESSIONAL WITNESS
Clyburn, Hon. James E., a U.S. Representative from South Carolina 6
ADMINISTRATION NOMINEES
Ives, James R., nominated to be Inspector General, Department of
the Treasury, Washington, DC................................... 4
Jenkins, Rose E., nominated to be a judge of the United States
Tax Court, Washington, DC...................................... 7
Landy, Adam B., nominated to be a judge of the United States Tax
Court, Washington, DC.......................................... 8
Way, Kashi, nominated to be a judge of the United States Tax
Court, Washington, DC.......................................... 9
ALPHABETICAL LISTING AND APPENDIX MATERIAL
Clyburn, Hon. James E.:
Testimony.................................................... 6
Prepared statement........................................... 21
Crapo, Hon. Mike:
Opening statement............................................ 3
Prepared statement........................................... 21
Ives, James R.:
Testimony.................................................... 4
Prepared statement........................................... 22
Biographical information..................................... 23
Responses to questions from committee members................ 28
Jenkins, Rose E.:
Testimony.................................................... 7
Prepared statement........................................... 38
Biographical information..................................... 39
Responses to questions from committee members................ 48
Landy, Adam B.:
Testimony.................................................... 8
Prepared statement........................................... 50
Biographical information..................................... 51
Responses to questions from committee members................ 59
Warren, Hon. Elizabeth:
Letter to Richard K. Delmar from Senator Warren and
Representative Jayapal, May 10, 2024....................... 61
Way, Kashi:
Testimony.................................................... 9
Prepared statement........................................... 62
Biographical information..................................... 63
Responses to questions from committee members................ 67
Wyden, Hon. Ron:
Opening statement............................................ 1
Prepared statement........................................... 69
NOMINATIONS OF JAMES R. IVES, TO BE
INSPECTOR GENERAL, DEPARTMENT OF THE
TREASURY; ROSE E. JENKINS, TO BE A
JUDGE OF THE UNITED STATES TAX COURT;
ADAM B. LANDY, TO BE A JUDGE OF THE
UNITED STATES TAX COURT; AND KASHI
WAY, TO BE A JUDGE OF THE
UNITED STATES TAX COURT
----------
TUESDAY, JUNE 4, 2024
U.S. Senate,
Committee on Finance,
Washington, DC.
The hearing was convened, pursuant to notice, at 10 a.m.,
in Room SD-215, Dirksen Senate Office Building, Hon. Ron Wyden
(chairman of the committee) presiding.
Present: Senators Cortez Masto, Warren, Crapo, Grassley,
Thune, Johnson, and Blackburn.
Also present: Democratic staff: Jonathan Goldman, Senior
Tax Counsel, International; Eric LoPresti, Detailee; Joshua
Sheinkman, Staff Director; Tiffany Smith, Deputy Staff Director
and Chief Counsel; and Ryder Tobin, Senior Investigative
Counsel and Nominations Advisor. Republican Staff: Courtney
Connell, Chief Tax Counsel; Andrew Dell'Orto, Policy Advisor;
Gregg Richard, Staff Director; and James Williams, Tax and
Economic Policy Advisor.
OPENING STATEMENT OF HON. RON WYDEN, A U.S. SENATOR FROM
OREGON, CHAIRMAN, COMMITTEE ON FINANCE
The Chairman. The Finance Committee will come to order.
Today, the committee meets to discuss four nominations.
James Ives has been nominated to serve as Inspector General of
the Department of the Treasury; and Rose Jenkins, Adam Landy,
and Kashi Way are all nominated to serve as judges of the
United States Tax Court. I will begin with the Treasury
Inspector General.
Inspectors General perform an essential oversight role
across the government. At the Treasury, they oversee a
department with a budget of billions of dollars and immense
influence over the U.S. and global economy. They do important
work rooting out waste, fraud, and abuse.
There has not been a confirmed Treasury Inspector General
for nearly 5 years. It is critical that the next Inspector
General is undaunted by political pressure and unafraid to
confront big issues, even when it is unpopular.
I am a firm believer that tough oversight results in good
government. Mr. Ives brings oversight experience from all over
the Federal Government to his nomination. He currently serves
as the Principal Deputy Director of the Defense Criminal
Investigative Service, which is the criminal investigative arm
of the Department of Defense's Office of Inspector General. He
has also served within the Inspector General offices at NASA
and the Government Publishing Office.
He was a special agent with the State Department's
Diplomatic Security Service and a reserve special agent with
the U.S. Coast Guard Investigative Service. When you add it all
up, he has more than 3 decades of experience in oversight and
law enforcement, and that will be highly valuable in the job as
Treasury Inspector General.
Next up we will hear from our three nominees for the Tax
Court. The U.S. Tax Court is the judicial backbone of the
Federal tax code. It is the best opportunity Americans have to
dispute tax bills before they have to pay. It keeps them from
getting stuck in slow-moving courts when they have a tax issue
that just needs resolution.
So, this committee is thankful to have three nominees
willing to take on an important job, all of whom bring a blend
of public and private experience to their nominations. Rose
Jenkins brings 15 years of experience in tax law to her
nomination. She has particular expertise in international tax
law and administrative issues. She is currently an attorney in
the Office of Associate Chief Counsel for Procedure and
Administration.
It is her second go-round with the IRS Chief Counsel. She
previously served in the international office as well. She has
valuable experience in the private sector, and she has been at
NYU's Tax Law Center.
Adam Landy has been a special trial judge on the Tax Court
since 2021. He too has several years of experience at the
Office of the IRS Chief Counsel, serving in Baltimore and San
Francisco, as well as in the private sector.
Finally, Kashi Way is a Senior Legislative Counsel with the
staff of the Joint Committee on Taxation. At the Joint
Committee, Mr. Way's primary focus is on energy, tax issues,
and research and development, but his background covers much
more.
In 18 years at the Joint Committee on Taxation, he has had
a big impact on major bills, including the Energy Policy Act of
2005, the American Recovery and Reinvestment Act of 2009, the
American Taxpayer Relief Act of 2012, the Tax Cuts and Jobs Act
of 2017, and the Inflation Reduction Act of 2022.
I think I can fairly speak for the entire committee, Mr.
Way, that we are big fans of the staff at the Joint Committee
on Taxation. We simply could not do our jobs without your
professionalism and that of your colleagues. You do not get a
whole lot of recognition there on the staff of the Joint
Committee on Taxation, but you have had a very good base of
support from colleagues on both sides of this committee, and
please convey that to the Joint Committee. You will make an
excellent Tax Court judge, but this committee will be sorry to
lose your counsel up here on Capitol Hill.
I want to thank and congratulate all four of our excellent
nominees, and thank them for joining the committee this
morning. I think we are going to have a good discussion.
Senator Crapo?
[The prepared statement of Chairman Wyden appears in the
appendix.]
OPENING STATEMENT OF HON. MIKE CRAPO,
A U.S. SENATOR FROM IDAHO
Senator Crapo. Thank you very much, Mr. Chairman, and
welcome to our four nominees: Mr. Ives, Ms. Jenkins, Mr. Landy,
and Mr. Way. As Chairman Wyden has just explained, today we
will first hear from James Ives, who is nominated to serve as
Inspector General of the Treasury Department.
This position is responsible for keeping both the Treasury
Secretary and Congress fully and currently informed about the
problems and deficiencies relating to the administration of the
Treasury Department programs and their operations, including
the necessity for corrective action.
Mr. Ives, given your depth of experience in the Inspector
General community, you are undoubtedly aware of the importance
of oversight and accountability within the executive branch. If
confirmed, it will be your duty to lead efforts to investigate
criminal activity and employee misconduct at Treasury's
bureaus; combat waste, fraud, and abuse; and detect and deter
fraud tied to pandemic-
related legislation and other Treasury operations.
I will be counting on an effective Inspector General to
monitor these issues and ensure a professional level of work at
the IG's office.
Now, moving to the other three nominees under consideration
today: Ms. Jenkins, Mr. Landy, and Mr. Way, who have been
nominated to the United States Tax Court. The Tax Court is
committed to providing taxpayers, most of whom are self-
represented, with a reasonable opportunity to challenge the IRS
with as little inconvenience and expense as practicable.
If taxpayers have a disagreement with the IRS, the Tax
Court serves as a venue to get a fair, impartial, and efficient
hearing. The Tax Court plays a central role in the maintenance
of our tax laws, the complexity of which requires highly
skilled judges.
It is the Finance Committee's responsibility to ensure that
judges nominated to serve on the Tax Court are prepared to
tackle these complex issues. These positions are especially
important to uphold the public trust in the tax system, which
the American taxpayers expect and deserve.
I thank each of our nominees for your dedication to our
country, and I look forward to hearing your testimony today.
Thank you very much, Mr. Chairman.
[The prepared statement of Senator Crapo appears in the
appendix.]
The Chairman. I thank my colleague.
And I did a pretty expansive introduction earlier, but
suffice it to say that Mr. Ives has decades of experience in
oversight and law enforcement. Ms. Jenkins has 15 years of
experience in international tax law and administrative issues.
Mr. Way has 18 years of experience working at the Joint
Committee on Taxation. And what we are going to do is await
Congressman Clyburn, who will give a formal introduction to Mr.
Landy.
I think what we will do is, we will just start with you,
Mr. Ives. And at some point, I would say to our witnesses, when
Mr. Clyburn arrives, we will go to him to introduce Mr. Landy
and then continue with our proceedings.
So, why don't you make your opening statement, Mr. Ives?
And we welcome you.
STATEMENT OF JAMES R. IVES, NOMINATED TO BE INSPECTOR GENERAL,
DEPARTMENT OF THE TREASURY, WASHINGTON, DC
Mr. Ives. Thank you, Mr. Chairman.
Mr. Chairman, Ranking Member Crapo, and members of the
committee, I am honored to have been nominated to serve as
Inspector General of the Department of the Treasury. If
confirmed, I look forward to working closely with this
committee in fulfilling the Office of Inspector General's vital
oversight role.
I would like to recognize my wife Jennifer and our son
Jordan for their continued support throughout this process. I
also express my appreciation to my colleagues at the Department
of Defense's Office of Inspector General for their
encouragement, professionalism, and accomplishments overseeing
our Nation's largest and most complex government institution.
I have dedicated my entire adult life to public service.
Within 2 months of graduating college, I accepted an entry-
level position with the Department of Justice. Just over a year
later, I transferred to DoD IG, where I served as a special
agent with their law enforcement arm, the Defense Criminal
Investigative Service, for over 10 years.
I quickly came to appreciate the critical importance of the
Inspector General role, seeing firsthand how well-executed IG
initiatives can detect and deter fraud and abuse, and return
millions of dollars of ill-gotten gains to the government. My
work entailed uncovering procurement fraud, health-care fraud,
cybercrimes, and diversion of sensitive military technology,
resulting in successful criminal prosecutions and civil
penalties and fines.
By way of example, I participated in an exhaustive 5-year
investigation that resulted in the largest health-care fraud
recovery in our Nation's history at the time. In 2001, my life
changed dramatically when I was detailed to New York City to
assist with the government's investigation and recovery efforts
following the September 11th terrorist attacks.
Subsequent to the attacks, defending the country against
additional terrorist events became DoD's top priority. I was
then asked to serve as DoD IG's full-time representative to the
FBI's Joint Terrorism Task Force upon returning home, where I
conducted counterterrorism investigations on a full-time basis
from 2001 through 2004. This experience taught me the value of
interagency collaboration, and the importance of ensuring OIG
priorities align with our Nation's broader objectives.
In 2004, I was promoted into a DoD IG headquarters
position. Over the next several years, I held a variety of
leadership positions at DoD IG, culminating in my appointment
to the Senior Executive Service in 2009. Throughout this
period, I developed a keen appreciation for the extent to which
an Inspector General can foster positive change by promoting
efficiency within their respective agency.
After serving for over 2 decades at DoD, I sought to
diversify my portfolio and joined the National Aeronautics and
Space Administration's OIG, where I led the Office of
Investigations for approximately 6 years. While serving at
NASA, I continued to engage in focused and objective oversight
by overseeing investigations involving fraud, corruption, and
other criminal activity.
I was also afforded the opportunity to serve as the Acting
Inspector General of the Government Publishing Office in early
2019, while the organization was seeking a new permanent
Inspector General. In 2021, I experienced a homecoming of sorts
when I returned to DoD IG. I initially served as the
organization's Deputy Inspector General for Overseas
Contingency Operations before returning to DCIS, where I
currently serve as Principal Deputy Director.
Since returning to DCIS, a primary focus has been ensuring
we provide timely oversight of DoD's Ukraine response efforts.
I am extremely proud of the extent to which the entire DoD IG
workforce has embraced this critical mission. Having served as
a member of the IG community for over 30 years, I am fully
aware that the role of Inspector General can be a challenging
one. IGs are unique in that they report to both the department
they oversee and Congress.
Successful IGs learn to master the art of respectfully and
professionally engaging agency and congressional leaders, while
remaining independent, objective, and nonpartisan. I believe my
experience has shown that I am capable of ensuring that
Treasury Department's OIG embraces these tenets; and if
confirmed, I will continue to engage in the same aggressive,
objective oversight that I have consistently promoted
throughout my entire career.
Thank you for considering my nomination. I would be happy
to answer your questions.
[The prepared statement of Mr. Ives appears in the
appendix.]
The Chairman. Thank you, Mr. Ives.
We have had the good fortune to be able to have Congressman
Clyburn here. He has been so helpful on many of this
committee's issues. I cannot even remember how many times we
have talked about Medicaid, for example--an area the
Congressman has great interest in.
Mr. Landy, you are a lucky fellow to have Congressman
Clyburn introduce you. After basketball games, my mother would
always say, ``Dear, I hope you're running with the right crowd
tonight.'' If you have Congressman Clyburn, you are, Mr. Landy,
running with the right crowd. So, Congressman Clyburn, why
don't you go ahead and introduce Mr. Landy?
Then we will go back to our order of witnesses. So my
nominees are clear, we will go to Ms. Jenkins, Mr. Landy, and
Mr. Way.
Please go ahead, Congressman Clyburn.
STATEMENT OF HON. JAMES E. CLYBURN,
A U.S. REPRESENTATIVE FROM SOUTH CAROLINA
Representative Clyburn. Well, thank you very much, Chairman
Wyden, Ranking Member Crapo, other members of the committee.
Thank you for granting me the opportunity to introduce and
speak in support of Adam Landy's nomination to the United
States Tax Court.
Adam hails from the big city of Aiken, SC. Although Aiken
is not in my congressional district----
The Chairman. How many people live in Aiken?
Representative Clyburn. Well, it would be easy to count,
but a little more time will be required than we have here
today. Although Aiken is not in my congressional district, Adam
graduated from the University of South Carolina and the
University of South Carolina Law School, both of which are in
the district I proudly represent here in this august body.
Adam has been associated with members of the Clyburn family
for most of his life. He attended high school and law school
with a cousin, Courtney Clyburn Pope, now a South Carolina
State circuit judge. Courtney's mother, Mrs. Beverly Clyburn--
wife of my first cousin William--is the second most senior
member in the South Carolina House of Representatives. While
she was a high school guidance counselor, I think she did a
pretty good job guiding him along the way.
Now, my father drilled into me from childhood that
experience is the best teacher, and that certainly is true with
Adam. After an encounter, which resulted in a tax preparer's
fees absorbing nearly all of his tax refund for filing a simple
1040-EZ, Adam vowed to never let that happen again.
As an attorney for the Internal Revenue Service, Adam has
argued before the Tax Court, and has served as a special trial
judge in the same venue. He remains connected to his colleagues
through his membership and service in the American and National
Bar Associations.
He learned how to prepare his own returns and became a
preparer for his friends. As a law student at USC, Adam
developed a love for the tax code and immersed himself in the
intricacy of tax law. Adam began working with the Volunteer
Income Tax Assistance program, where he provided vital
assistance to people who desperately needed their refunds to
make ends meet, as we often say in the southern culture.
He continued his work after graduation and clerked on the
State Circuit Court for Judge Julie Michelle Childs, now on the
prestigious United States Court of Appeals for the District of
Columbia.
Adam has a diversity of experience in the profession that
makes him an ideal candidate. I am pleased to be here today to
speak on his behalf, and thank you so much for allowing me to
help Adam continue to make South Carolina and our citizenry
proud.
Thank you.
[The prepared statement of Representative Clyburn appears
in the appendix.]
The Chairman. We are in turn, Congressman, very honored to
have you here. And, Mr. Landy, I think you have basically been
described as a human version of Direct File, because that is
some send-off. And, Congressman, you are welcome to stay
through our whole proceedings. I know you have a very busy
schedule and calendar, but you are always welcome here, and I
appreciate----
Representative Clyburn. I thank you very, very much, and
thanks to the entire committee for indulging me for these few
moments.
The Chairman. Thank you.
Representative Clyburn. By the time I see you again, Mr.
Chairman, I will have an accurate count on how many people are
in Aiken.
The Chairman. Great; done.
Representative Clyburn. Thank you. Thank you so much.
The Chairman. We send you off. Thank you, Congressman.
Okay; Ms. Jenkins. That is a hard job following Congressman
Clyburn.
Ms. Jenkins. It is a hard job, yes.
STATEMENT OF ROSE E. JENKINS, NOMINATED TO BE A JUDGE OF THE
UNITED STATES TAX COURT, WASHINGTON, DC
Ms. Jenkins. Good morning, Chairman Wyden, Ranking Member
Crapo, and other members of the Finance Committee. Thank you
for holding this hearing to consider my nomination to serve on
the United States Tax Court. I am also grateful to the
committee staff for their efforts throughout this process.
I appreciate the opportunity to be here today, accompanied
by my parents Antonio Jenkins-Lara and Rose Jenkins, and my
husband Daniel Horner, whose encouragement and support have
been unwavering. I would also like to thank my many mentors and
other colleagues throughout my career, who have taught and
challenged me to be the best tax attorney that I can be, and
provided me the opportunities that have led to me being here
today.
I am grateful to the President for nominating me and
providing me the chance, if confirmed, to serve the tax system,
of which I have been a part my entire career. I have had a
variety of roles in the tax system, and have always been guided
by a drive to make sense of the tax laws, and apply them in a
principled manner befitting our system of voluntary tax
compliance.
I have worked with taxpayers struggling to get their arms
around the tax consequences of messy facts that often came
about as a result of simply living their lives and operating
their businesses. And I have worked with dedicated public
servants who work zealously to ensure that not only the letter,
but also the spirit of the law, is followed.
Ultimately, the complexity of the tax laws, the broad and
uncertain scope of facts that may be relevant to any particular
question, and the inherent tension between the IRS and
taxpayers, mean that there may be many cases in which they do
not see eye to eye. That makes the mission of the Tax Court so
critical. By providing a national forum for the expeditious
resolution of disputes based on a careful consideration of the
merits of each case, it instills confidence in taxpayers that
they will receive a fair hearing. The Tax Court's efforts to
ensure a uniform interpretation of the code provide certainty
and stability that benefits not only the taxpayers that appear
before it, but all stakeholders in the tax system at large.
In addition to allowing me to develop a deep understanding
of particular areas of tax law, my career has given me an
appreciation of the differing perspectives, not only between
the government and taxpayers, but also among different types of
taxpayers. That understanding, as well as the experience
engaging the collaborative, analytical, and decision-making
processes entailed, will benefit me as a member of the Tax
Court, working collegially to ensure uniform application of the
law.
More broadly, my experiences throughout my career have
instilled in me a propensity for close, careful listening and
thorough, open-minded analysis and discussion, which are
critical to fair and impartial judgment. If confirmed, I commit
to maintaining these principles in service of the Tax Court's
critical mission.
I look forward to the committee's questions.
[The prepared statement of Ms. Jenkins appears in the
appendix.]
The Chairman. Thank you very much.
Mr. Landy?
STATEMENT OF ADAM B. LANDY, NOMINATED TO BE A JUDGE OF THE
UNITED STATES TAX COURT, WASHINGTON, DC
Mr. Landy. Thank you, Mr. Chairman. Good morning, Chairman
Wyden, Ranking Member Crapo, and distinguished members of the
Finance Committee. Thank you for scheduling this hearing and
processing my nomination. Thank you to President Biden for
nominating me to serve as a judge on the United States Tax
Court. I am humbled and honored by the opportunity to continue
to serve on the Court if I am fortunate to be confirmed.
Thank you to Congressman Jim Clyburn for his introduction
this morning, and to him and his staff for their support
throughout this process. As native South Carolinians, my family
and I are grateful to the Congressman for his service to this
Nation and our beloved home State.
I acknowledge and thank my wife Courtney, who is here this
morning, as she is my best friend, my fiercest defender, and
ultimate cheerleader. My sons Brooks and Miles, whom I love so
much, are here today. Because of them, I strive to be the best
version of myself daily.
My father Robert is watching remotely this morning, and I
thank him for modeling hard work and tenacity. I honor the
memory of my mother Darlean, a former public school educator,
who instilled in me the importance of obtaining an education
and being there for people in their time of need. Whether it
was taking my siblings and me with her to deliver meals through
the Meals on Wheels program, or encouraging me to become
involved with the United Way of the Midlands, she made sure we
understood the duty to give back to our community and to serve
others.
To my siblings Erica, Marcus, and Jason, along with
extended family members, my mother- and father-in-law Ricardo
and Diane Wingate, my church family and friends who are
watching remotely, thank you for your love, prayers, and
support.
Finally, I would like to thank the Chief Judge of the
United States Tax Court; my fellow judicial officers on the
court; Anita Rizek, Legislative Counsel for the Court; and my
former supervisors Erik Doerring, Nancy Gilmore, and Thomas
Mackinson, for their support during the public phase of this
nomination process.
As a law student and young lawyer, I clerked for Judge J.
Michelle Childs, now, as the Congressman said, a circuit judge
for the United States Court of Appeals for the DC Circuit, but
then a judge on the South Carolina Circuit Court. I learned
from Judge Childs the importance of evaluating the parties'
arguments thoroughly, conducting comprehensive research to
provide some legal advice, and administering justice with a
calm temperament. This experience is why I desire to become a
judge.
As a special trial judge, I have strived daily to implement
these traits of proper judicial temperament and skill to
competently serve the public. Since concluding my legal
education, I represented taxpayers and the IRS before the Tax
Court.
As a tax lawyer, I acquired an understanding of the
challenges taxpayers and the IRS face, while developing solid
listening and communication skills, strong research and writing
skills, and good judgment. As a special trial judge, I
demonstrate traits of proper judicial temperament and skill in
conducting motions hearings and trials, and resolving tax
disputes through written orders and published opinions.
While the cases I will hear as a Tax Court judge, if I'm
fortunate to be confirmed, will differ in the content and
complexity from my current role, I will bring my current and
prior professional experiences to this new role in adjudicating
tax disputes in an impartial and expeditious manner.
Mr. Chairman, Ranking Member Crapo, members of the
committee, thank you for your consideration. I am happy to
answer any questions.
[The prepared statement of Mr. Landy appears in the
appendix.]
The Chairman. Thank you very much, Mr. Landy. And let the
record also show that Mr. Landy's children have been perfectly
behaved.
Mr. Landy. Thank you, Mr. Chairman.
The Chairman. Thank you.
Mr. Way, welcome.
STATEMENT OF KASHI WAY, NOMINATED TO BE A JUDGE OF THE UNITED
STATES TAX COURT, WASHINGTON, DC
Mr. Way. Thank you. Good morning. Chairman Wyden, Ranking
Member Crapo, and members of the Finance Committee, thank you
for holding this hearing to consider my nomination to serve as
a judge on the United States Tax Court. I am honored to have
been nominated by the President, and I greatly appreciate the
opportunity to be here today. Thank you also to the committee
staff for their assistance throughout this process.
I am joined this morning by my wife Diane and my sons Ian
and Evan, whose love and support have been a continuous source
of strength for me. I am also joined by my 81 year-old mother,
who flew in from California. She raised me as a single mom on a
secretary's salary before going to night school to become a
computer programmer. Without her as a role model, I certainly
would not be here today. I also want to acknowledge Tom
Barthold, my boss, and Chief of Staff of the Joint Committee on
Taxation. Finally, I am grateful for the numerous friends and
colleagues who are in attendance or watching virtually.
For more than 19 years, I have been serving the Congress on
the staff of the Joint Committee on Taxation. During that time,
I have worked under multiple chairmen from both parties, and my
goal has always been to provide the best nonpartisan advice
possible. As you all know, there is a lot of behind-the-scenes
work that goes into every tax bill that comes up for a vote.
The tax legislative process is one that requires
thoughtfulness, patience, and dedication. It has truly been an
honor and a privilege to help you prepare your legislation and
advance your policies over these many years.
As anyone who has filed a tax return knows, our tax system
is complicated and can frustrate even well-intentioned
taxpayers. The Tax Court affords taxpayers a crucial forum for
resolving civil disputes with the IRS. It is my desire to
contribute to the fairness of the tax system by helping to
resolve these disputes in a manner that ensures taxpayers have
the opportunity to be heard and pay no more than what is
required under the law.
If I am confirmed, I will take the skills I have learned on
the Joint Committee staff to serve the country in a different
capacity. In particular, I will continue to work thoughtfully,
patiently, and with dedication, to ensure fairness in the tax
system. If confirmed as a judge, I promise to impartially apply
the law to the facts before me in the resolution of tax
disputes.
Thank you again for the opportunity to appear today, and I
look forward to your questions.
[The prepared statement of Mr. Way appears in the
appendix.]
The Chairman. Thank you very much.
Now, I think the nominees know we have some obligatory
questions that we have to ask each of you. First, is there
anything that you are aware of in your background that might
present a conflict of interest with the duties of the office to
which you have been nominated?
Mr. Ives. No.
Ms. Jenkins. No.
Mr. Landy. No, Senator.
Mr. Way. No.
The Chairman. Second, do you know of any reason, personal
or otherwise, that would in any way prevent you from fully and
honorably discharging the responsibilities of the office to
which you have been nominated?
Mr. Ives. No.
Ms. Jenkins. No.
Mr. Landy. No.
Mr. Way. No.
The Chairman. Third, do you agree without reservation to
respond to any reasonable summons to appear and testify before
any duly constituted committee of the Congress if you are
confirmed?
Mr. Ives. I do agree.
Ms. Jenkins. Yes.
Mr. Landy. Yes.
Mr. Way. Yes.
The Chairman. Finally, do you commit to provide a prompt
response in writing to any questions addressed to you by any
Senator of the committee?
Mr. Ives. Yes.
Ms. Jenkins. Yes.
Mr. Landy. Yes, Mr. Chairman.
Mr. Way. Yes.
The Chairman. Okay; great. Thank you all, and let us go now
to questions.
Let me start with you, Mr. Ives. You are certainly well
qualified, and I look at your experience in oversight and so
many issues, and they have been on high-profile matters.
There is one area--and I think we have indicated this to
you--where we need reassurance before advancing your
nomination. That is, we ask a lot of our Inspectors General,
and particularly the Treasury Office of Inspector General. They
do great work at the direction of the Congress, ferreting out
waste, fraud, and abuse in programs that are critical to our
country.
And the office does sterling work in that regard, and your
resume makes me believe that you are well equipped to lead the
office on these matters. Unfortunately, when it comes to issues
of wrongdoing, corruption, conflicts of interest, or abuse of
power among officials at the Treasury Department, time and
again we have seen the Office of Inspector General pull its
punches. Investigations are not thorough or stop just short of
making tough decisions. It has been--and I want to be clear
about it--disappointing, and it is unacceptable. So my question
to you, Mr. Ives, is, when it comes to difficult, high-profile
issues, how can you assure the Finance Committee this morning
that you will be a tough investigator and speak truth to power,
and when have you done so in the past?
Mr. Ives. Thank you for the question, Mr. Chairman. The
short answer is, I have established a very proven track record.
Over the past 30 years, I have never shied away from
investigations that could potentially require the delivery of
very bad news to the Department or the Congress. And many of
those investigations could, quite frankly, have involved senior
officials. Case in point, just for an example: just last week,
an investigation involving a very senior military official, now
a former military official who has been charged with bribery,
was reported in media circles, and my organization played a
very critical role in that investigation.
Obviously, that type of investigation does not display the
Department in a favorable light. But I have never shied away
from work that may require me to speak truth to power. It comes
with the territory, and frankly an IG would be wholly
ineffective if he or she were unwilling to do so.
The Chairman. Thank you. And you can be certain that the
Senators on both sides of the dais are going to follow this up
and keep that commitment that you have made today in place. The
stakes are just so high. Thank you for your answer.
All right; let us go now to our Tax Court nominees. It is
my view that the three of you are very qualified individuals,
certainly cumulatively, you have decades of experience. I would
be interested--we can just go for the three of you--Ms.
Jenkins, Mr. Landy, Mr. Way--down the table.
I would be interested in what past experiences are going to
most shape your time on the Tax Court?
Ms. Jenkins?
Ms. Jenkins. Thank you for the question, Mr. Chairman. My
experience, particularly working on guidance and commenting on
guidance from outside of the IRS, I think has been most
relevant to my future work, in that it has taught me the value
of listening to different perspectives and understanding the
different perspectives that shape taxpayers' interactions with
the government.
I look forward to continuing to consider the different
perspectives of various taxpayers as they interact with the
government in front of the Tax Court.
The Chairman. Mr. Landy, for your question, I would like to
hear what past experiences will most shape your time on the Tax
Court?
Mr. Landy. Thank you for that question, Mr. Chairman.
Certainly, my past experience working as taxpayer counsel in
private practice, and also volunteering, as you heard this
morning, with the Volunteer Income Tax Assistance program, has
shaped me to certainly be able to understand the challenges
taxpayers face; to ask the right questions; to elicit the
answers that are necessary to provide sound legal advice; and
to provide a conclusion, hopefully a result that would be of
assistance to them.
And so, those past experiences I bring with me to this
role, in addition to my current role as a special trial judge
on the Court.
The Chairman. I was particularly impressed with that
experience, volunteering, because when I was getting out of law
school years ago, I got all the attorneys in town to volunteer
to come and in effect help start the senior citizens law
service, and it sounds like your background is very similar.
Mr. Way, your past experiences shaping your time on the
Court.
Mr. Way. Well certainly, on the staff of the Joint
Committee on Taxation, we consider a number of different
perspectives. We always try to be honest brokers in a
nonpartisan way. We work with Republicans and Democrats, and
try to give the best tax advice possible. I think certainly
that experience has influenced me and my perspective, and if
confirmed as a judge, I would try and bring that experience and
that perspective and listen to all sides, try to be as fair as
possible, and take all different perspectives into
consideration.
The Chairman. I think all four of you are going to serve as
excellent appointees, and I look forward to supporting you, and
we thank you.
Senator Crapo?
Senator Crapo. Thank you, Mr. Chairman.
And I would like to say first of all to each of you, that I
appreciated Senator Wyden's questions and your answers to them.
It was very helpful, and my questions are going to follow up,
in a little bit different way, the same approach.
First again, Mr. Ives, you have overseen accounts with
significant interest from Congress in the Inspector General
Offices at both the Department of Defense and NASA. While it is
important for IGs to be independent from their parent agencies'
leaders, Congress is a very specific and important principal
stakeholder of the results of IG reviews through committee
oversight, and we take that oversight very seriously.
How would you ensure that Congress stays informed on
ongoing investigations at the Treasury IG Office? And a follow-
up on that is, can you discuss your interactions in the past
with authorizing and appropriations committees in your IG
roles?
Mr. Ives. Thank you for the question, Senator. I, having
served over 30 years with the Office of Inspector General of a
couple of different organizations, completely understand the
relevance and importance of Congress's oversight role. So, I
will do everything within my power to ensure that Congress has
the information they need in furtherance of that role. I have
always taken that approach.
With regard to my past interaction with Congress and staff,
it has been extensive. I have always been quick to reply when
receiving requests for information from Congress. Obviously,
there are some factors that come into play in the investigative
world. Criminal investigations have to be complete before the
information is passed along. But again, the advantage I have
is, having worked over 30 years in the OIG community, I
understand that Congress's oversight role is just as important
as the OIG's oversight role.
Senator Crapo. Thank you. I appreciate that answer. You
will get a lot of input and requests from us.
And to each of the Tax Court nominees, each of you has
already responded in your own way to the issue that I want to
raise with you, but I would like you to do so again, with a
little more specificity on the way I am going to put it. If
confirmed, you will preside over cases that involve taxpayers
who often have few resources to deploy while making their case.
Yet the Internal Revenue Service is a very formidable opponent
on the other side of the case.
How does your professional experience lend itself to
ensuring that these taxpayers will be treated not only with the
respect and dignity they need, but with the fairness that they
hope they will get?
Ms. Jenkins. Thank you for the question, Senator. As a
preliminary matter, I would be sure to ensure that taxpayers
who appear before the Court unrepresented are aware of the
resources that may be available to them for assistance,
including Low-Income Taxpayer Clinics and assistance from bar
programs that may have pro bono programs. I would also be sure
to ensure that they understand the process, and that they know
that they have an impartial and open ear in me, and make sure
that they are comfortable proceeding before the Court, because
I think that it is very important to ensure that taxpayers who
are not as comfortable with the Tax Court proceedings feel that
they are receiving a full hearing.
Senator Crapo. Thank you.
Mr. Landy?
Mr. Landy. Ranking Member Crapo, thank you for that
question. In my current role now as a special trial judge, I
try to allow self-represented litigants to be heard. I do that
by making sure when there is a trial session that has been
scheduled, about 3 weeks out from the trial session, I attempt
to call, have a conference call with the self-represented
litigants to, number one, introduce myself, as I am the
presiding judge over your case; introduce myself, talk about
the process, ask them if they have any concerns. And we talk
through what are the issues that the IRS has raised in the
Notice of Deficiency so they have an idea as to what they need
to bring, if they have not already provided it to the IRS for
review. I make sure they have a trial where they know what the
expectations will be, and at trial I allow the taxpayer
petitioners to proceed in a manner that is most comfortable to
them.
I certainly want to understand the facts of the case, so
that as a judge I could apply the law as to those facts. So
certainly, keeping and being in communication with the
taxpayer.
Senator Crapo. Thank you.
And Mr. Way?
Mr. Way. Yes, Senator Crapo. Thank you for the question.
Certainly, I agree with you that it is important that self-
represented taxpayers have an opportunity to be heard in a fair
and equitable way.
In my experience on the Joint Committee staff, we certainly
have--sometimes we have tax LAs or people from outside groups
that come in. Some of them are very sophisticated. Some of them
are less sophisticated, and we adjust the kind of conversation
we have based on how much knowledge about tax that they have.
Now certainly, it is a different context being a judge,
with respect to a self-represented taxpayer. But I agree with
my fellow nominees that it is an important issue, and I would
listen and try and make those self-represented taxpayers have
an ability to be heard and present their cases in the best way
possible.
Senator Crapo. Thank you. And again, I appreciated each of
your responses.
The Chairman. All done? Thank you, Senator Crapo.
Senator Grassley?
Senator Grassley. Mr. Ives, you talked about something you
caught in the Defense Department: people stealing money. Was
that that lady who stole $106 million?
Mr. Ives. No sir, that was another investigation.
Senator Grassley. It was not. Okay.
Now for my first question to the Tax Court nominees. I do
not want you to answer today unless you can answer this
question with full knowledge of what the law is. So if you
cannot, then answer these questions in writing.
But I want to start with this opening. I authored important
updates to the IRS whistleblower program, which included
allowing whistleblowers to appeal award determinations to the
Tax Court. More recently, I have introduced legislation with
Chairman Wyden, Senators Wicker and Cardin to, among other
provisions, beef up anonymity protection for whistleblowers
appearing before the Tax Court. Whistleblowers often take on
great professional and personal risk in coming forward.
So, this is the question. Do you agree that protecting the
anonymity of whistleblowers before the Tax Court is vital to
maintaining the well-functioning IRS whistleblower program?
Let's start with you, Ms. Jenkins.
Ms. Jenkins. Thank you for the question, Senator. I do
agree that in our system of voluntary tax compliance, it is
very important to protect whistleblowers and the role that they
serve in ensuring that we collect our tax dollars. I would need
to consider more the countervailing factors, in terms of
privacy of and anonymity of whistleblowers in order to answer
your specific question.
Senator Grassley. Okay.
Mr. Landy?
Mr. Landy. Thank you, Senator. I certainly agree with the
comments Ms. Jenkins made. I have not seen your legislation you
referenced, but certainly whistleblowers play an important role
in our tax compliance system, as Ms. Jenkins said. And I would
certainly believe that that is an issue: that we can make sure
they have the ability to present their cases in a fair and
impartial manner before our court.
Senator Grassley. Mr. Way?
Mr. Way. Thank you for the question. I definitely agree
with my fellow nominees, and with the direction of your
question, which is that whistleblowers are important, and it is
important not just what they have to say, but to protect them,
so that new whistleblowers will not feel deterred from coming
forward.
With respect to your specific legislation that you have
introduced, I am not familiar with it. So I would have to
review it and then respond in writing.
Senator Grassley. Okay.
By the way, Ms. Jenkins, you are taking the place of
Elizabeth Paris, and she worked for this committee a long time.
And her trophy she carried around was a well-worn tax code, and
she always had it with her.
Okay. Mr. Ives, on March 11, 2024, I wrote all 74
Inspectors General requesting that they conduct a review of
their agency's nondisclosure policies and similar agreements. I
asked for that review to ensure compliance with the Federal
anti-gag law.
Now that is law today. That law requires that government
policies and agreements include the right to report wrongdoing
to Congress and the Inspector General, and the Office of
Special Counsel. On May 10, 2024, the Acting Treasury Inspector
General found two agreements not in compliance with the law,
and that the Treasury Department is working to update them.
So, my question to you: if confirmed, would you commit to
ensuring all Treasury nondisclosure policies and similar
agreements include the anti-gag provision that is required by
law, including the two agreements identified by the Acting
Inspector General?
And then a follow-up: would you also commit to ensuring
Treasury employees are fully informed of their rights to report
allegations of waste, fraud, and abuse?
Mr. Ives. The answer to both questions is ``yes,'' Senator.
Senator Grassley. Thank you. Now also for you, an
independent Inspector General is critical to effectively and
objectively carrying out functions free from bias and
interference. Inspectors General must also keep Congress fully
informed about the problems and deficiencies. So from that
respect, I should have said I just associate my remarks with
the chairman and ranking member.
So, my question to you: if confirmed, will you commit to
providing independent and protective oversight? You probably
already answered that question, but I would like to have it
answered again. Will you also commit to keeping Congress fully
informed of agency wrongdoing, recommendations of corrective
action, and Treasury implementation?
Mr. Ives. Yes, I will, Senator.
Senator Grassley. Okay; thank you.
Now to all Tax Court nominees: if you are confirmed to the
Tax Court, you will hear cases involving many different types
of taxpayers, ranging from large corporations to small
businesses and individuals. Regardless of who might appear
before you and what the issue might be, do you pledge to apply
the tax code as written by Congress and not attempt to
legislate in your capacity as a judge on the Tax Court?
Ms. Jenkins. Yes, I do, Senator.
Mr. Landy. Yes, Senator.
Mr. Way. Yes, Senator.
Senator Grassley. Okay.
And my last question to you folks: the Tax Court is
important, since it allows petitioners to challenge an assessed
deficiency before having to pay that amount to the IRS. Many
petitioners who go to Tax Court have little experience working
through the dispute with the IRS, and may even represent
themselves. Following up on the question that Senator Crapo
asked, without giving them an unfair advantage, how will you
ensure that all petitioners get their day in court?
Ms. Jenkins. Senator, I would make sure that they are aware
of the resources that may be available to them for support, and
I would also ensure that they are aware of the processes going
forward, and that they have in me a fair and open ear.
Senator Grassley. Okay.
Mr. Landy. Senator, as I said earlier, I would continue
with my current processes of contacting the petitioners before
trial to make sure they understand when and where their trial
will be conducted, communicate what issues are to be addressed,
and to make sure they understand the procedure and process
moving forward.
Mr. Way. And like my fellow nominees, I would try to make
sure that, particularly self-represented taxpayers have an
opportunity to access volunteer resources or pro bono
resources, so that they can get representation if they choose.
If they appear before me and they are self-represented, I would
try to have some sort of pretrial conference or something, as
my fellow nominee suggested, so that they are aware of what
will happen and how best to proceed.
The Chairman. The time of the gentleman has expired.
Senator Grassley. Congratulations, all.
The Chairman. And thank you very much, Senator Grassley,
for asking questions about the whistleblowers. And it is an
honor for me to be your cochair.
Senator Grassley. You bet.
The Chairman. Senator Warren is next.
Senator Warren. Thank you, Mr. Chairman, and
congratulations to all of our nominees.
Mr. Ives, you are nominated to be the Inspector General for
the Treasury Department. Now, I have long been a supporter of
IGs. I think their work as watchdogs is critical to protecting
taxpayers, and identifying waste, fraud, and abuse. This role
is particularly important when it comes to Federal ethics laws.
It is an area where I have been calling for tougher laws and
tougher enforcement for years, and it is an area where IGs need
to do more.
Two years ago, an investigation by my office found that
dozens of tax lawyers at big four accounting firms had taken
key positions at Treasury and the IRS, where they wrote tax
rules that saved their former clients tens of billions of
dollars. That is billions with a ``b.'' And then these tax
lawyers went right back out the revolving door to their old
employers, receiving big promotions and raises to boot.
Mr. Ives, do you agree that this kind of revolving door
abuse is exactly the kind of issue that merits a detailed
investigation by an IG?
Mr. Ives. I absolutely agree, Senator.
Senator Warren. Good. Well, I asked the Acting IG to
investigate this revolving door scandal at Treasury more than 2
years ago, and he finally released his findings in March. Let
me tell you, it was not worth the wait. The report concluded
that Treasury employees rewriting our tax code for the benefit
of giant corporations they used to work for could not be a
problem because, and I quote, ``Treasury's tax guidance review
process includes numerous stages of review and approval, and
multiple individuals.''
That is it, and because of that, the Acting IG did not
bother to conduct any audit of employer self-reporting of
potential conflicts. He did not conduct a detailed review of
any single agency policy or agency rulemaking. Mr. Ives, does
that make sense to you? Do you think the mere existence of
numerous stages of review and approval are enough to insulate
the Department from the impact of revolving door influence
peddling?
Mr. Ives. Without speaking to the specific report, my
answer is ``no.'' I am aware of many situations whereby there
was a lengthy review process in place, yet conflicts of
interest existed, and they were matters that warranted
investigation.
Senator Warren. I am glad to hear that. You know, this
report and its conclusions were atrocious, a whitewash of what
appears to be serious ethics problems at Treasury and IRS. I
wrote to the Acting IG and told him to withdraw this report and
start over, and I would like to move to have that letter
entered into the hearing record, Mr. Chairman.
The Chairman. Without objection, so ordered.
[The letter appears in the appendix beginning on p. 61.]
Senator Warren. Thank you.
Mr. Ives, if you are confirmed, will you take a fresh look
at this revolving door ethics problem at Treasury?
Mr. Ives. I will, Senator.
Senator Warren. That is what I want to hear. Thank you, Mr.
Ives.
You know, the work that IGs do is essential to ensuring
that the Federal Government works for hardworking American
taxpayers, not just big corporations and fancy tax lawyers in
Washington. In addition to digging into this specific scandal
with the big four accounting firms, I hope that, more broadly,
you will make ethics and conflicts of interest a priority, if
you are confirmed.
It is critical that IGs investigate these matters, identify
whether any laws have been broken--and this is important:
report to Congress if you find that the current Federal ethics
laws are inadequate and need to be strengthened.
Mr. Ives. I agree, Senator.
Senator Warren. Thank you very much.
Thank you, Mr. Chairman.
The Chairman. I thank my colleague, and these are important
issues. And I raised with Mr. Ives this question as well, about
this position pulling punches in the past. So we are going to
be making these a priority.
Senator Blackburn?
Senator Blackburn. Thank you, Mr. Chairman, and welcome to
each of you.
Mr. Ives, I have a couple of questions for you first.
I want to talk about, or get from you a little bit on this
issue where Treasury changed the definition of ``obligation''
for the ARPA funds to allow States and localities to spend that
slush fund that was paid out to them, to spend it past 2024,
and then report that spending back to Treasury.
So I would hope that you would look at what happened with
this change of definition, and that you are going to
investigate how Treasury took that action; did not come to
Congress, but took that action.
Mr. Ives. Thank you for the question, Senator. Candidly, I
am not currently working at Treasury. I will need to be briefed
more fully on that topic, but it appears to be a significant
topic that warrants IG attention.
Senator Blackburn. Yes, I think it does warrant the IG
attention, and we would like to see that.
The other question that I have for you is on the
unemployment compensation fraud that has taken place. When you
look at that fraud that took place during the pandemic and the
estimate of $135 billion on that--the CARES Act provided $268
billion in expanded insurance benefits. And then we know that
much of this fraud was conducted by some well-organized groups,
and because the benefits were paid with money from the Treasury
and not the State trust fund, States have little incentive to
go after this.
And of course, Senator Crapo has legislation that would
address this, but how do you plan to prevent these instances?
What are you going to do in that investigation?
Mr. Ives. Thank you for the question, Senator. First and
foremost, my understanding is that the Treasury IG is currently
prioritizing those types of investigations. If I were
confirmed, they would continue to do so.
I think there is more that can be done on the front end
when those types of legislation are being put together, and
when Treasury is formulating its own policies as far as working
with the IG to establish some controls that should be in place
to avoid the fraud, which obviously is more effective than
going after each individual, if that is the case.
Senator Blackburn. Okay.
For our Tax Court nominees, one of the things we hear about
in Tennessee is the case backlog and getting this resolved. So,
Ms. Jenkins, starting with you and down the line, what are you
going to do to address the backlog?
Ms. Jenkins. Thank you, Senator. I do think, given the
significant caseload of the Tax Court, it will be important to
have a full slate of appointed judges.
If confirmed, I would endeavor to maximize my efficiency in
terms of case management, courtroom management, chambers
management, and also encourage the parties to maximize
cooperation, and seek to determine ways that I can run things
more efficiently, perhaps deciding cases or issues on motions
as opposed to needing to wait and conduct trials. So those are
all the things that I would try to do to minimize the backlog.
Senator Blackburn. Thanks.
Mr. Landy. Thank you for that question, Senator. Certainly,
my commitment to you is that I will work with the parties, have
as speedy a trial as we can, and to offer an opinion, an
expeditious resolution, order, or published opinion in a short
amount of time.
Senator Blackburn. Thank you.
Mr. Way. Like my fellow nominees, I would also try to
expedite the trial sessions and pretrial procedures to try and
get things moving more quickly, and try to--I do want to say,
there is a specific docket, and judges go to different cities.
But I also understand there is an opportunity to do remote
pretrial management.
And so I would try and use those processes also to try and
expedite cases.
Senator Blackburn. Okay.
Judge Landy, I understand that as a special trial judge,
you have done a good bit of your work remotely and virtually.
And I would like to hear from you, are there any differences
that you have seen in the virtual work as compared to doing
this in person?
Mr. Landy. Thank you for the question, Senator. I have
certainly--I came on the Court during the pandemic, and virtual
was the option at the time, and certainly the Court will
continue to use virtual in those cities where it makes sense
and for those taxpayers specifically where it makes sense.
But my experience with virtual has certainly been similar
to if we were in person, to offer the taxpayers an opportunity
to present their case in the manner they prefer, and to offer a
fair and impartial resolution of their cases.
Senator Blackburn. Okay. Thank you all.
Thank you, Mr. Chairman.
The Chairman. I thank my colleague.
Senator Crapo and I have completed our questioning, but our
colleague, Senator Grassley, has one additional question he
would like to ask of you, Mr. Ives.
Senator Grassley. Just to ask you kind of for your help.
You know, I brought up the $106 million theft that went on in
the Defense Department. Now, you said you were not
investigating that, so obviously I cannot ask you anything
about that.
But I have asked several questions of the Department about
how this could be going on, the theft for over 6 years, and
nobody finds it. And so I guess, number one, if you could help
get answers to my question. But more importantly, I sent along
with my questions a 1997 report that I issued after some
investigations about the DoD check-writing machine that goes on
in Cincinnati or some place in Ohio. And people were writing
personal checks to their families.
So I investigated; I got an answer. I gave a report of what
was wrong with the Defense Department management system that
they do not catch these things, and so I put out this report.
So, I read about $106 million over 6 years being stolen by
one woman in the Defense Department. And so, I sent this report
along as a reminder that we have been working on this thing for
a long time. And 27 years is a long time to get something done
so the stealing does not go on.
And I hope people will read that 1997 report and find out
that things are really wrong in the Defense Department.
Thank you very much.
The Chairman. I thank my colleague, and we go back to
battles with respect to auditing the Pentagon and the like. So,
I appreciate my colleague's leadership.
Okay. So, I want to thank all the members on both sides of
the aisle who participated today. Based on what I have heard, I
strongly support all four of these nominations.
Mr. Ives has decades of experience in oversight and law
enforcement, and I want to note that several of us have asked
about what is going to be done if you are confirmed as the
Treasury IG. You have made it clear when it comes to issues of
wrongdoing, corruption, conflicts of interest, or abuse of
power among officials at the Treasury Department, if you are
confirmed, the days of pulling punches are over there. And so,
we very much appreciated your response.
To you, Ms. Jenkins, Mr. Landy, and Mr. Way, I believe you
are highly qualified. You are going to bring decades of public
and private experience to the Tax Court.
What I would say to colleagues and staff who have not been
able to be here, regarding questions for the record, the
deadline for members to submit these questions for the record
will be this Friday, June 7th, at 5 p.m., and I have to tell my
colleagues that the deadline is firm.
We thank members on both sides of the aisle for their
cooperation. The committee is adjourned.
[Whereupon, at 11:07 a.m., the hearing was concluded.]
A P P E N D I X
Additional Material Submitted for the Record
----------
Prepared Statement of Hon. James E. Clyburn,
a U.S. Representative From South Carolina
Chairman Wyden and Ranking Member Crapo, thank you for the
opportunity to speak in support of Adam Landy's nomination to the
United States Tax Court.
Adam hails from the ``big'' city of Aiken, SC. Although Aiken is
not in my congressional district, Adam has been associated with members
of the Clyburn family for most of his life. He attended high school and
law school with my cousin Courtney Clyburn Pope, now a South Carolina
State circuit judge. Courtney's mother, Mrs. Beverly Clyburn--wife of
my first cousin State Representative William Clyburn--was his high
school guidance counselor. A product of South Aiken High School, the
University of South Carolina, and the University of South Carolina
School of Law, Adam has a fundamental understanding of what it means to
look out for ``the least of these.''
After an encounter which resulted in a tax preparer's fees
absorbing almost all of his tax refund for filing a simple 1040EZ, Adam
vowed to never let that happen again. He learned how to prepare his own
returns and became a tax preparer for his friends. As a law student at
USC, Adam developed a love for the tax code and immersed himself in the
intricacies of tax law.
As a 1L student, Adam started working with the Volunteer Income Tax
Assistance program, where he provided vital assistance to people who
desperately needed their refunds to live and make ends meet. He
continued this work after graduation, well into his legal career as a
tax attorney.
Adam has a diversity of experiences in the profession that make him
an ideal candidate. As an attorney for the Internal Revenue Service, he
has argued before the Tax Court and has served as a special trial judge
in the same venue, calling ``balls and strikes.'' He remains connected
to his colleagues through his membership and service to the American
Bar Association and the National Bar Association. Adam clerked on the
State circuit court for Judge J. Michelle Childs, now on the
prestigious United States Court of Appeals for the District of Columbia
Circuit.
With a proven record of exceptional experience in tax law, Adam
Landy is well prepared to serve on the United States Tax Court. He has
already made his hometown and our State proud, and I have no doubt he
will serve with distinction on this important court.
Mr. Chairman, I ask the committee's favorable consideration of this
well-qualified nominee. Thank you.
______
Prepared Statement of Hon. Mike Crapo,
a U.S. Senator From Idaho
Thank you, Mr. Chairman, and welcome to our four nominees: Mr.
Ives, Ms. Jenkins, Mr. Landy, and Mr. Way. Congratulations on your
nominations, and thank you all for your willingness to serve.
Today, we will first hear from James Ives, who is nominated to
serve as Inspector General of the Treasury Department. This position is
responsible for keeping both the Treasury Secretary and Congress fully
and currently informed about the problems and deficiencies relating to
the administration of Treasury Department programs and operations,
including the necessity for corrective action.
Mr. Ives, given your depth of experience in the Inspector General
community, you are undoubtedly aware of the importance of oversight and
accountability within the executive branch. If confirmed, it will be
your duty to lead efforts to investigate criminal activity and employee
misconduct at Treasury's bureaus; combat waste, fraud, and abuse; and
detect and deter fraud tied to pandemic-related legislation and other
Treasury operations.
I will be counting on an effective Inspector General to monitor
these issues and ensure a professional level of work at the IG's
office.
Now, moving to the other three nominees under consideration today:
Ms. Jenkins, Mr. Landy, and Mr. Way, who have been nominated to the
United States Tax Court. The Tax Court is committed to providing
taxpayers, most of whom are self-
represented, with a reasonable opportunity to challenge the IRS, with
as little inconvenience and expense as is practicable. If taxpayers
have a disagreement with the IRS, the Tax Court serves as a venue to
get a fair, impartial, and efficient hearing.
The Tax Court plays a central role in the maintenance of our tax
laws, the complexity of which requires highly skilled judges. It is the
Finance Committee's responsibility to ensure that judges nominated to
serve on the Tax Court are prepared to tackle these complex issues.
These positions are especially important to uphold public trust in
the tax system, which American taxpayers expect and deserve.
I thank each of the nominees for their dedication to our country,
and I look forward to hearing their testimony.
______
Prepared Statement of James R. Ives, Nominated to be
Inspector General, Department of the Treasury
Mr. Chairman, Ranking Member Crapo, and members of the committee, I
am honored to have been nominated to serve as Inspector General of the
Department of the Treasury. If confirmed, I look forward to working
closely with this committee in fulfilling the Office of Inspector
General's vital oversight role.
I would like to recognize my wife Jennifer and our son Jordan for
their continued support throughout this process. I also express my
appreciation to my colleagues at the Department of Defense's Office of
Inspector General (DoD IG) for their encouragement, professionalism,
and accomplishments overseeing our Nation's largest--and most complex--
government institution.
I have dedicated my entire adult life to public service. Within 2
months of graduating college, I accepted an entry-level position with
the Department of Justice. Just over a year later, I transferred to DoD
IG, where I served as a special agent with their law enforcement arm,
the Defense Criminal Investigative Service (DCIS), for over 10 years. I
quickly came to appreciate the critical importance of the Inspector
General role, seeing firsthand how well-executed OIG initiatives can
detect and deter fraud and abuse and return millions of dollars of ill-
gotten gains to the government. My work entailed uncovering procurement
fraud, health-care fraud, cybercrimes, and diversion of sensitive
military technology, resulting in successful criminal prosecutions and
civil penalties and fines. By way of example, I participated in an
exhaustive 5-year investigation that resulted in the largest health-
care fraud recovery in our Nation's history at the time.
In 2001, my life changed dramatically when I was detailed to New
York City to assist with the government's investigation and recovery
efforts following the September 11th terrorist attacks. Subsequent to
the attacks, defending the country against additional terrorist events
became DoD's top priority. I was then asked to serve as DoD IG's full-
time representative to the FBI's Joint Terrorism Task Force upon
returning home, where I conducted counterterrorism investigations on a
full-time basis from 2001 through 2004. This experience taught me the
value of interagency collaboration, and the importance of ensuring OIG
priorities align with our Nation's broader objectives.
In 2004, I was promoted into a DoD IG headquarters position. Over
the next several years, I held a variety of leadership positions at DoD
IG, culminating in my appointment to the Senior Executive Service in
2009. Throughout this period, I developed a keen appreciation for the
extent to which an Inspector General can foster positive change by
promoting efficiency within their respective agency.
After serving for over 2 decades at DoD, I sought to diversify my
portfolio and joined the National Aeronautics and Space
Administration's OIG, where I led the Office of Investigations for
approximately 6 years. While serving at NASA, I continued to engage in
focused and objective oversight by overseeing investigations involving
fraud, corruption, and other criminal activity. I was also afforded the
opportunity to serve as the Acting Inspector General of the Government
Publishing Office in early 2019 while the organization was seeking a
new permanent Inspector General.
In 2021, I experienced a homecoming of sorts when I returned to DoD
IG. I initially served as the organization's Deputy Inspector General
for Overseas Contingency Operations before returning to DCIS, where I
currently serve as Principal Deputy Director. Since returning to DCIS,
a primary focus has been ensuring we provide timely oversight of DoD's
Ukraine response efforts. I am extremely proud of the extent to which
the entire DoD IG workforce has embraced this critical mission.
Having served as a member of the OIG community for over 30 years, I
am fully aware that the role of Inspector General can be a challenging
one. IGs are unique in that they report to both the department they
oversee and Congress. Successful IGs learn to master the art of
respectfully and professionally engaging agency and congressional
leaders while remaining independent, objective, and nonpartisan. I
believe my experience has shown that I am capable of ensuring that the
Treasury Department's OIG embraces these tenets. And if confirmed, I
will continue to engage in the same aggressive, objective oversight
that I have consistently promoted throughout my entire career.
Thank you for considering my nomination. I would be happy to answer
your questions.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): James Richard Ives.
2. Position to which nominated: Inspector General, Department of the
Treasury.
3. Date of nomination: January 11, 2024.
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: July 2, 1970, Glens Falls, NY.
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list all secondary and higher education institutions,
dates attended, degree received, and date degree granted):
Georgetown University, 2004-2005.
Master of Policy Management, granted in May 2005.
State University of New York's College at Brockport, 1990-1992.
Bachelor's Degree in Criminal Justice, granted in May 1992.
Adirondack Community College, 1988-1990.
Associate's Degree in Police Science, granted in May 1990.
Hudson Falls High School, 1984-1988.
High School Diploma, granted in June 1988.
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment for each job):
1992-1994.
U.S. Department of Justice, Immigration and Naturalization
Service.
Montreal, Canada.
Position held: Immigration Inspector.
1994-1998.
U.S. Department of Defense, Office of Inspector General,
Defense Criminal Investigative Service.
Boston, MA.
Position held: Special Agent.
1998-1999.
U.S. Department of State, Diplomatic Security Service.
Washington, DC.
Position held: Special Agent.
1999-2015
U.S. Department of Defense, Office of Inspector General Defense
Criminal Investigative Service.
Boston, MA; Arlington, VA; Alexandria, VA.
Positions held:
Special Agent (1999-2004, Boston, MA).
Criminal Intelligence Program Manager (2004-2005,
Arlington, VA).
Assistant Deputy Director for National Security
(2005-2007, Arlington, VA).
Deputy Director of Investigative Operations (2007-
2008, Arlington, VA).
Special Agent-in-Charge, Mid-Atlantic Field Office
(2008-2009, Arlington, VA).
Note: While serving in this
position, I temporarily served as DoD IG's
Acting Principal Director of the Office of
Professional Responsibility for approximately a
4-month period.
Assistant Inspector General for Investigative
Operations/Deputy Director of the Defense Criminal
Investigative Service (Arlington, VA and Alexandria,
VA, 2009-2015).
Note: While serving in this
position, I temporarily served as Acting Deputy
Inspector General for Intelligence and Special
Assessments for approximately a 4-month period.
2015-2021.
National Aeronautics and Space Administration.
Office of Inspector General.
Washington, DC.
Position held: Assistant Inspector General for Investigations.
Note: While serving in this position, I served on a
detail assignment as the Acting Inspector General of
the Government Publishing Office in Washington, DC for
a 4-month period.
2021-present.
U.S. Department of Defense, Office of Inspector General.
Alexandria, VA.
Positions held:
Deputy Inspector General for Overseas Contingency
Operations (2021).
Principal Deputy Director of the Defense Criminal
Investigative Service (2021-present).
Other Employment
1998-2006.
U.S. Coast Guard Reserve.
Coast Guard Investigative Service.
Boston, MA and Washington, DC.
Active Reservist (E5), 1998-2000.
Individual Ready Reserve, 2000-2006.
Position held: Special Agent (reservist).
2017-present.
American University.
Washington, DC.
Position held: Adjunct Professorial Lecturer (part-time).
2007-present.
University of Maryland Global Campus.
Adelphi, MD.
Position held: Adjunct Professor (part-time).
10. Government experience (list any current and former advisory,
consultative, honorary, or other part-time service or positions with
Federal, State, or local governments held since college, including
dates, other than those listed above):
All government experience is listed above.
11. Business relationships (list all current and former positions held
as an officer, director, trustee, partner (e.g., limited partner,
nonvoting, etc.), proprietor, agent, representative, or consultant of
any corporation, company, firm, partnership, other business enterprise,
or educational or other institution):
None.
12. Memberships (list all current and former memberships, as well as
any current and former offices held in professional, fraternal,
scholarly, civic, business, charitable, and other organizations dating
back to college, including dates for these memberships and offices):
Council of the Inspectors General on Integrity and Efficiency
(CIGIE), Chair of the Assistant Inspector General for
Investigations (AIGI) Committee (2020-2021).
Fairfax County Police Department's Citizens Advisory Committee,
Sully District, Vice Chair (2017-2018).
Senior Executives Association (approximately 2011-2021),
member.
Federal Law Enforcement Officers Association, member
(approximately 1994-2021).
Association of Inspectors General (2021-present), member.
Chantilly National Country Club (2021-present), Chantilly, VA,
member.
Alpha Phi Sigma National Criminal Justice Honor Society,
inducted in 1992.
Phi Theta Kappa National Honor Society, inducted in 1990.
13. Political affiliations and activities:
a. List all public offices for which you have been a candidate
dating back to the age of 18.
None.
b. List all memberships and offices held in and services
rendered to all political parties or election committees,
currently and during the last 10 years prior to the date of
your nomination.
None.
c. Itemize all political contributions to any individual,
campaign organization, political party, political action
committee, or similar entity of $50 or more for the past 10
years prior to the date of your nomination.
None.
14. Honors and awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement received
since the age of 18):
SCHOLARSHIPS
Women in the Marines Corp scholarship (sponsored by
grandmother), 1988.
Adirondack Community College academic scholarship (full
tuition), 1988-1990.
FELLOWSHIP
Senior Executive Fellowship, Harvard University, November 2017.
AWARDS AND RECOGNITIONS
Received DoD IG's Distinguished Career Achievement Award upon
departing the organization in 2015.
Received DoD IG's Team Work Award for contributing to the
agency's prolonged multicomponent oversight efforts in Iraq,
Kuwait, and Afghanistan (2014).
Received DCIS's Manager of the Year award (2007).
Received DoD OIG's Team Work Award for working in conjunction
with other DCIS program managers to prepare an intelligence
assessment deemed relevant to a multitude of DoD assets (2005).
Received a certificate of appreciation from the President's
Council for Integrity and Efficiency for substantial
participation in the U.S. Government's response to terrorist
attacks upon New York City on September 11, 2001. I was one of
a group of DCIS special agents who were immediately detailed to
New York for several months to assist in the government's
investigation and recovery efforts (2001).
Received the Department of Health and Human Services Office of
Inspector General Cooperative Achievement Award for
Investigative Excellence (2000).
Received the President's Council for Integrity and Efficiency
Award for Investigative Excellence (2000).
Received the U.S. Attorney's Office (District of Massachusetts)
Award for Investigative Excellence (2000).
Received the Federal Law Enforcement Training Center Award for
Academics upon achieving a 95.68 cumulative exam score (1998).
Throughout my career, I received approximately 12 separate
outstanding performance awards or special act awards with
accompanying cash awards of varying amounts, as well as a
quality step increase.
Inducted into the Hudson Falls, NY Central School District's
Wall of Distinction (2010), which honors highly successful
graduates of the Hudson Falls Central School District who have
gone on to distinguished careers in various fields and become
role models in their communities.
15. Published writings (list the titles, publishers, dates, and
hyperlinks (as applicable) of all books, articles, reports, blog posts,
or other published materials you have written):
Authored an article entitled, ``Inspectors General:
Prioritizing Accountability,'' which was featured in the Fall/
Winter 2009-2010 edition of The Journal of Public Inquiry. See
page 25 at: https://www.ignet.gov/sites/default/files/files/
fw09jpi.pdf.
16. Speeches (list all formal speeches and presentations (e.g.,
PowerPoint) you have delivered during the past 5 years which are on
topics relevant to the position for which you have been nominated,
including dates):
None.
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
I am a seasoned Federal Government oversight professional who
possesses over 3 decades of highly relevant experience, to
include 28 years' experience within the U.S. Inspector General
community, and 14 years' experience as a senior executive at
the U.S. Department of Defense and the National Aeronautics and
Space Administration. I possess wide-ranging experience
conducting and overseeing exceptionally complicated
investigations, audits, inspections, and evaluations pertaining
to some of our Nation's most sensitive initiatives. I also
possess extensive experience detecting, investigating, and
deterring multifaceted corporate fraud, public corruption
(e.g., bribery, kickbacks, gratuities, and conflicts of
interest), procurement and acquisition fraud, complex financial
crimes, accounting fraud, arrant mismanagement, grievous policy
or procedural violations, and employee misconduct.
The investigations I have conducted or overseen have resulted
in billions of dollars in penalties, fines, and restitution
being returned to the U.S. Government. By way of example, I
participated in an exhaustive 5-year long health-care fraud
investigation that uncovered a wide-ranging conspiracy to
defraud Medicare, TRICARE (the military's health-care system),
and a variety of other Federal health-care programs. The
investigation resulted in the largest health-care fraud
recovery in our Nation's history at the time, and several high-
level executives pleaded guilty to criminal charges.
Also noteworthy is the fact that I was a member of a group of
OIG special agents who responded to the tragic terrorist
attacks of September 11, 2001. In the aftermath of the attacks,
I was immediately deployed to New York City, where I assisted
with the government's recovery and investigative efforts for
several months.
My entire adult life has been devoted to public service, and I
look forward to continuing to serve the country in this new
capacity if I am privileged to be confirmed.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections (including participation in future
benefit arrangements) with your present employers, business firms,
associations, or organizations if you are confirmed by the Senate? If
not, provide details.
Yes.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
No.
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
No.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next presidential election, whichever is
applicable? If not, explain.
Yes.
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any current and former investments, obligations,
liabilities, or other personal relationships, including spousal or
family employment, which could involve potential conflicts of interest
in the position to which you have been nominated.
None.
2. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years (prior to the
date of your nomination), whether for yourself, on behalf of a client,
or acting as an agent, that could in any way constitute or result in a
possible conflict of interest in the position to which you have been
nominated.
None.
3. Describe any activity during the past 10 years (prior to the date
of your nomination) in which you have engaged for the purpose of
directly or indirectly influencing the passage, defeat, or modification
of any legislation or affecting the administration and execution of law
or public policy. Activities performed as an employee of the Federal
Government need not be listed.
None.
4. Explain how you will resolve any potential conflict of interest,
including any that are disclosed by your responses to the above items.
(Provide the committee with two copies of any trust or other
agreements.)
In connection with this nomination process, I have consulted
with the Office of Government Ethics and the Designated Agency
Ethics Official at the Department of the Treasury to identify
any potential conflicts of interest. I am unaware of any
potential conflicts of interest. In the event that an actual or
potential conflict of interest arises during my appointment, I
will consult with the Treasury Department's ethics counsel and
take the measures necessary to resolve the conflict.
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of ethics
for unprofessional conduct before any court, administrative agency
(e.g., an Inspector General's office), professional association,
disciplinary committee, or other ethics enforcement entity at any time?
Have you ever been interviewed regarding your own conduct as part of
any such inquiry or investigation? If so, provide details, regardless
of the outcome.
No.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than a minor traffic offense? Have you ever been interviewed
regarding your own conduct as part of any such inquiry or
investigation? If so, provide details.
No.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
Yes. In 2013, I was one of numerous individuals listed as a
defendant in a Federal civil suit (complaint for damages
pursuant to 18 U.S.C. Sec. 1331 and Bivens) filed in the Middle
District of Georgia (3:13-cv-175-J-99TJC-MCR, Debra L. Long vs.
David E. Nammias et al.). The plaintiff (Long) claimed her
Fourth Amendment rights were violated when she was
investigated, arrested, and prosecuted for defrauding the
government (she was ultimately acquitted). Although I was not
directly involved in conducting the investigation, I was named
in the suit by virtue of my role as Special Agent-in-Charge of
the DCIS field office responsible for conducting the
investigation. The case was dismissed without prejudice in
2015.
In 2014, I was the plaintiff in a small claims case
(GV14017343-00, James R. Ives vs. Jeremy Trujillo) in the
General District Court of Virginia (Fairfax County). I filed a
warrant in debt suit when a contractor accepted a deposit but
failed to provide deck sealing services at my home. The case
was dismissed at my request when the contractor performed the
required services.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
No.
5. Please advise the committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
I have served honorably as a Federal law enforcement officer
for over 30 years. I have held a top-secret security clearance
for my entire adult life. I have never been subjected to any
form of discipline. I enjoy a stellar reputation throughout the
OIG community.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
Yes.
2. If you are confirmed by the Senate, are you willing to provide
such information as is requested by such committees?
Yes.
______
Questions Submitted for the Record to James R. Ives
Questions Submitted by Hon. Catherine Cortez Masto
Question. There are significant opportunities for artificial
intelligence to extend the abilities of an Inspector General in
assuring accountability of government agencies. If confirmed to this
role, will you commit to investigate how AI can be implemented to help
provide independent, objective, and unbiased reviews of the
department's operations?
Answer. Artificial intelligence technologies hold great promise for
the government sector and present enhanced opportunities for government
agencies to benefit the public and increase mission effectiveness. If
confirmed, I commit to exploring the ways in which artificial
intelligence technologies can be leveraged to improve the work of
Treasury's Office of Inspector General, including by enhancing the
OIG's ability to analyze data to identify patterns that indicate
possible waste, fraud, and abuse. I commit that any such use of these
technologies will be undertaken with structured governance and that I
will make myself available to work with you and your staff on this
important issue.
Question. A March 6, 2024 Treasury Office of Inspector General
Report (OIG-24-025) found that OFAC complied with requirements
regarding Ukraine/Russia-
related Sanctions but documentation was not consistently complete nor
timely closed.
Given your previous experiences, I am sure you understand the
importance of effective and efficient anti-money laundering programs to
prevent terrorist financing. If confirmed to this role, how will you
work with the offices within Treasury to ensure speedy and accurate
compliance of all rules, regulations, and statutes?
Answer. Having been a member of the Inspector General community for
over 30 years, mostly in the national defense space, I certainly
understand the importance of a robust OIG that holds agencies
accountable for maintaining compliance with all rules, regulations, and
statutes. Both Congress and the American people must have confidence
that their government is working for them, and I have seen firsthand
how an effective OIG can greatly enhance transparency and
accountability, leading to better government.
Throughout my career, I have learned that successful Inspectors
General respectfully and professionally engage agency leaders to elicit
timely and necessary information, while remaining wholly independent,
objective, and impartial in their reviews. If confirmed, I commit that
I will approach the Inspector General role at Treasury in this manner,
exhibiting the diligence and integrity that I have shown throughout my
entire career to achieve successful outcomes. Further, I will do
everything I can to ensure that all OIG employees have the tools and
resources necessary to be successful at their jobs.
______
Questions Submitted by Hon. Chuck Grassley
Question. During the hearing you testified that ``over the past 30
years, I've never shied away from investigations that potentially
require the delivery of very bad news to the Department or the Congress
for that matter,'' and ``just last week, an investigation involving a
very senior military official, now a former military official, who has
been charged with bribery, was reported in media circles. And my
organization played a very critical role in that investigation.'' I
asked whether this was in reference to the approximately $106 million
dollars that former Army civilian employee Janet Mello was convicted of
stealing in March of 2024, and you said ``no.''
Regarding Janet Mello, on March 19, 2024, I first wrote to Defense
Finance Accounting Service (DFAS) Director Davis requesting answers how
Janet Mello could have obtained 43 fraudulent payments from DFAS
totaling approximately $106 million over the course of 7 years for a
fake company created and owned in Mello's name. I've included my March
19, 2024, letter and my May 28, 2024, follow-up letter to DFAS.
Has the DoD OIG opened or plan to open an investigation into the
circumstances that allowed Janet Mello to steal the approximately $106
million from taxpayers over 7 years? If not, why not?
Answer. The DoD OIG component that I currently oversee, the Defense
Criminal Investigative Service (DCIS), played no role in the
investigation at issue. My understanding is that the investigation was
conducted by the U.S. Army's Criminal Investigation Command (Army CID)
in conjunction with the Internal Revenue Service's (IRS) Criminal
Investigations Division and the Department of Justice.
As DoD OIG's law enforcement arm, DCIS's role is typically limited
to the investigation of potential criminal violations, whereas other
OIG components, by virtue of their responsibilities, explore the
circumstances that may have resulted in deficiencies that could lead to
fraud, waste, or abuse. Since the underlying investigation is complete
and the subject of the investigation has pleaded guilty, DCIS does not
plan to launch its own investigation. My responsibilities at DoD OIG
are specific to DCIS, so I am uncertain whether other OIG components
plan to open inquiries (audits, evaluations, et cetera) that are
directly or indirectly related to this matter.
Question. When did the DoD OIG become aware of Mello's fraudulent
conduct?
Answer. See above. The investigation at issue was conducted by Army
CID and IRS. DCIS played no role in the investigation. I first became
aware of the matter when reviewing a Department of Justice press
release and related media coverage referencing Mello's indictment on
December 6, 2023. I would respectfully refer you to Army CID and IRS
for more information on their investigative work.
Question. Did the DoD OIG receive any tips concerning Mello's
fraudulent conduct prior to and after the criminal investigation
leading to her arrest? If yes, please describe in detail the actions
taken by the DOD OIG office to investigate these tips.
Answer. See above. DCIS was not involved in the investigation at
issue. To the best of my knowledge, DCIS has never received tips or
other complaints pertaining to Mello. I would respectfully refer you to
Army CID and IRS for more information on their investigative work.
Question. Reports and court records indicate the IRS first caught
wind of Mello's fraudulent activity. When did the IRS first contact DoD
about suspicions concerning Mello?
Answer. See above. DCIS was not involved in the investigation at
issue. I am unaware of the particulars regarding the IRS's interactions
with Army CID. I would respectfully refer you to Army CID and IRS for
more information on their investigative work.
Question. Did the DoD or DoD OIG open and then initiate an
investigation into Mello after being notified about the IRS
investigation? If not, why not?
Answer. See above. DCIS was not involved in the investigation
involving Mello. I am unaware of the particulars regarding the IRS's
interactions with Army CID. I would respectfully refer you to Army CID
and IRS for more information on their investigative work.
Question. Have any corrective actions been taken against employees
who allowed Janet Mello to fraudulently steal the approximately $106
million from Army? If yes, please provide a detailed description of the
corrective actions. If not, why not?
Answer. See above. As DCIS played no role in the investigation at
issue, I am unaware of the corrective action(s) the Army has taken--or
plans to take--in response to this matter. I would respectfully refer
you to Army CID and IRS for more information on their investigative
work.
Question. In your testimony, you stated that ``I initially served
as the organization's Deputy Inspector General for Overseas Contingency
Operations before returning to DCIS, where I currently serve as
principal deputy director. Since returning to DCIS, a primary focus has
been ensuring we provide timely oversight of DOD's Ukraine response
efforts. I am extremely proud of the extent to which the entire DOD IG
workforce has embraced this critical mission.''
On October 17, 2023, I wrote to DoD Secretary Austin concerning the
DoD OIG report titled, The DoD's Accountability of Equipment Provided
to Ukraine, which found non-U.S. weaponry was, at one point, stolen
from Ukraine fighters by criminals, volunteer fighters, and arms
traffickers. The DoD OIG report ``found that the DoD was unable to
provide end-use monitoring (EUM) in accordance with DoD policy because
of limited U.S. presence in Ukraine.'' While some oversight efforts
have been reportedly improved since the IG report, DoD OIG has
indicated that oversight of U.S.-provided weaponry continues to be an
issue as recent as May and June of 2023. It is imperative that the
government properly oversees how taxpayer funds and military equipment,
supported by the taxpayer, have been used and that the equipment is not
trafficked to arm our enemies.
Since the release of the DoD OIG report mentioned above, what
efforts has the DoD OIG taken to:
Ensure DoD has the adequate number of personnel to access and
track U.S.-provided weapon deliveries to Ukraine?
Account for how much U.S. weaponry is missing and the total
dollar amount of that equipment?
Ensure DoD has taken steps to prevent U.S.-provided weaponry to
Ukraine is not sold on the black market or by other illicit means?
Answer. The report referenced above was issued by DoD OIG's
Evaluations component. The DoD OIG component that I currently oversee,
DCIS, did not play a substantive role in the review that resulted in
the issuance of the report, nor was I personally involved in the
review. Given this fact, I cannot speak to the report's findings or the
follow-on actions associated with the report. However, DCIS has
assigned senior investigators to Embassy Kiev who routinely engage with
U.S. and host nation officials regarding criminal allegations involving
related matters. DCIS is currently prioritizing any/all investigations
involving the potential diversion of U.S. defense articles destined for
Ukraine and other fraudulent schemes involving DoD's Ukraine-response
efforts.
Question. How many DoD personnel currently have on-the-ground
access to U.S.-provided weapons deliveries in Ukraine? How do they
track U.S. equipment and at what stages in the delivery process do they
track it?
Answer. See above. The DoD OIG component that I currently oversee,
DCIS, did not play a substantive role in the review that resulted in
issuance of the report. Given this fact, I am unable to elaborate on
the report's findings or follow-on actions associated with the report.
I would respectfully refer you to DoD OIG's Evaluations component for
more information about their work.
Question. How much U.S.-provided weaponry to Ukraine is unaccounted
for? What is the total dollar amount of that equipment?
Answer. See above. The DoD OIG component that I currently oversee,
DCIS, did not play a substantive role in the review that resulted in
issuance of the report. Given this fact, I am unable to elaborate on
the report's findings or follow-on actions associated with the report.
I would respectfully refer you to DoD OIG's Evaluations component for
more information about their work.
Question. What steps have you taken to ensure U.S.-provided
weaponry to Ukraine is not sold on the black market or by other illicit
means? To-date, has DoD encountered any diverted, U.S.-provided
equipment intended for Ukraine? If so, please explain the details of
the equipment, the facts surrounding each diversion, and whether the
equipment was recovered.
Answer. DCIS is one of several law enforcement organizations
responsible for investigating the alleged diversion of U.S.-provided
equipment intended for Ukraine, to include items sold on the black
market or by other illicit means. At my direction, the component is
currently prioritizing these investigations. To date, DCIS's
investigations have not substantiated any such instances, however, we
continue to aggressively pursue any/all allegations involving potential
diversion.
Question. You were not present at the DOD Office of Inspector
General (OIG) during the investigation that led up to the OIG's 2020
Report on the Joint Enterprise Defense Infrastructure (JEDI) Cloud
Procurement. However, you returned to the DOD OIG in 2021, a time
period when I and other members of Congress were criticizing that
report and serious omissions that rendered its conclusions
questionable. Since then, members have asked for the names of OIG
officials who worked on the report, but the office has failed to
provide that information to Congress. I addressed the U.S. Senate on
March 14, 2024, highlighting failures in the report related to its
analysis of ethics issues involving Senior Advisor to Secretary James
Mattis, Sally Donnelly, and her business partner, Andre Pienaar.
The OIG has failed to respond to that address or to my inquiry
about how new information I revealed in 2022 may have affected its JEDI
conflicts analysis. This information included the identity of the
company that purchased Ms. Donnelly's firm as she entered DOD service,
which the DOD OIG failed to obtain during its investigation. Internal
emails omitted from the OIG's report show Ms. Donnelly working behind
the scenes to favor Amazon in the early stages of the JEDI procurement,
even though she was receiving payments for the sale of her company to
an Amazon-affiliated company. Despite this, the OIG found no areas
where Ms. Donnelly violated any of her ethical obligations.
Did you have any role at all, or did you discuss with anyone in
DOD, in the DOD OIG, or outside DOD at any time, any of the inquiries I
have made related to the JEDI procurement? If so, please describe your
role and the content of those conversations to the best of your memory.
Answer. No. I did not play any role in the DoD OIG inquiry at
issue, nor have I discussed related matters with anyone in DoD, in the
DoD OIG, or outside DoD at any time.
Question. Did you have any role in the DOD IG's response to my
October 24, 2022 letter, which provided details related to the sale of
Ms. Donnelly's company, SBD Advisors? If so, describe that role and
whether you played any role in the OIG's failure to answer the issues I
raised.
Answer. No. I did not play any role in this matter.
Question. Did anyone at DOD OIG raise concerns with you about the
integrity of the OIG's JEDI report at any time? If so, what were those
concerns, and who raised them?
Answer. No. I did not play any role in this matter. No one at DoD
OIG has raised concerns with me regarding this matter.
Question. Have you heard of the concept of ``rounding'' OIG
reports? If so, what do you take that term to mean, and are you aware
of any instances where the practice was employed at the DOD OIG?
Answer. No. I am unfamiliar with the term ``rounding.'' I have not
heard this term referenced in discussions with any DoD OIG employees.
Question. Do you believe an Inspector General has the right to
refuse to supply the names of public servants who worked on a report,
paid for by the taxpayer, where Congress requests that information due
to serious concerns about the work product? Will you pledge to provide
the names of those who work on reports in your new role, if Congress
asks for that information?
Answer. I believe that an Inspector General should be as
transparent as possible when receiving requests from Congress. If
confirmed, I will pledge to review all Treasury OIG polices relating to
the release of information requested by Congress in conjunction with
the organization's Office of Counsel, and ensure said policies advance
transparency and comply with acceptable legal standards and relevant
governing principles.
Question. Do you know the names of any OIG officials who worked on
the 2020 JEDI report? If so, please name all officials you know who
worked on the report and their role in it.
Answer. Since I did not play any role in the review or responding
to follow-on inquiries, I am not able to name the OIG officials who
worked on the report and/or describe their roles.
Question. Have you worked on any other matters at DOD OIG where
anyone alleged Amazon had received improper preference in any contract,
or had improperly been awarded a contract? If so, please describe the
subject of the investigation, your role in it, and the status and/or
conclusion of that investigation.
Answer. No.
Question. If you are confirmed, how would you handle a similar
inquiry from Congress that questions the integrity and conclusions of
one of your reports? Please distinguish what steps you would take and
how they would differ from the steps the DOD OIG has taken in
responding to congressional inquiries related to JEDI.
Answer. Since I did not play any role in the review or responding
to follow-on inquiries, I am unable to comment on the steps that DoD
OIG has taken in responding. However, if I were confirmed and Congress
were to raise concerns regarding the integrity and conclusions of any
Treasury OIG report, I would ensure that those concerns were thoroughly
investigated. And if necessary, I would ensure that appropriate
corrective action was taken in the event a report was found to be
deficient.
United States Senate
Charles E. Grassley
President pro tempore emeritus
WASHINGTON, DC 20510-1501
March 19, 2024
The Honorable Audrey Y. Davis
Director
Defense Finance and Accounting Service
8999 East 56th St.
Indianapolis, IN 46249
Dear Director Davis:
I am writing to request information and supporting documentation
pertaining to 43 fraudulent payments totaling $103.3 million that your
office made to a fake company, CHYLD, created by an Army employee,
Janet Y. Mello.
In order to help me understand how such a large sum of money could
be paid to a non-existent company from 2016 to 2023 without detection
by internal controls and/or vigilant oversight, I request that you
provide the following documents and answers to related questions:
A list of all payments to CHYLD/Mello, including date of
payment, amount of payment, payee, reemit address;
All 43 payment vouchers;
Were all payments made with U.S. Treasury checks?
The indictment indicates that CHYLD/Mello award packages
included her memoranda giving DFAS ``instructions to cut a check to the
entity specified in the award package, CHYLD. DFAS would then mail the
check to CHYLD per shipping instructions detailed in the memo.'' The
checks were sent via FEDEX to a UPS Mailbox rented by Mello and located
at 20770 Hwy 281 N Suite 108-421, San Antonio, TX 78258 and other
addresses. Is there anything unusual or suspicious about her special
instructions on handling and delivery of the 43 checks?
DFAS payments are automatically mailed or transmitted directly
to a remit address. So why were special instructions necessary for her
checks?
Law requires a taxpayer identification number (TIN) on all
certified payment vouchers submitted to a disbursing officer for
payment. The TIN is a unique 9-digit identifier assigned to all
individuals by the Social Security Administration and to businesses by
the Internal Revenue Service (IRS). Did the TIN and other data on the
Mello payment vouchers match up with pertinent data on U.S. Treasury
checks?
Were tax forms or any other tax reporting documents submitted to
the IRS concerning thepayments to CHYLD?
When did IRS first alert DFAS to the potential fraud on CHYLD
payments?
Provide any DFAS communications with IRS regarding this matter.
Vendors, which have completed a service contract with the Army's
Child and Youth Services Division (CYS), submit an invoice requesting
payment. Mello, however, seemed to bypass invoicing procedures.
Apparently, she substituted a Standard Form (SF) 1080, which is
normally used to transfer funds between agencies, for an invoice. Court
documents indicate that her use of an SF 1080 signaled to DFAS that
``CHYLD was recognized as a government vendor allowing payment to
proceed without an invoice.'' Was this a blatant misuse of an SF 1080?
Since an SF 1080 is used for fund transfers between appropriations, how
can that form be used to invalidate the requirement for invoices to
document the delivery of goods and services at an agreed upon price?
Where in the regulations does it say that an SF 1080 can be
substituted for an invoice?
Who in DFAS management approved the substitution of an SF 1080
for an invoice? Isn't that a violation of financial management
regulations?
Why did Mello insist on an SF 1080 versus invoice?
Isn't this a red flag?
Were all 43 payments totaling $103 million made without
invoices?
Please provide all Mello's instructions contained in the
memoranda that formed the foundation for her allegedly fraudulent
payments. If all are identical, then just provide one example.
Why didn't due diligence detect this sham operation early on?
How could it continue for 7 years undetected?
Was there anything out of the ordinary about the documentation
presented in support of the CHYLD/Mello checks?
Did any of these payments raise red flags? Did any questions or
concerns surface within DFAS regarding any of these payments? If so,
please provide all pertinent details.
Director Davis, when did you first become aware of Mello's
alleged fraudulent activity?
Since the fraud continued for 7 years without interruption, who
in the Department is chiefly responsible for this colossal failure of
internal controls? Has anyone been held accountable?
DFAS employees have access the DoD-wide Hotline. Were there any
Hotline complaints regarding these payments?
Was having Mello listed as the point of contact on all 43
payments a red flag?
Was the role of IMCOM \1\ in this matter in any way improper or
unusual?
---------------------------------------------------------------------------
\1\ Installation Management Command, at Fort Sam Houston.
The answers to these questions may pinpoint where and how internal
controls failed. With that information, maybe we can solve this
---------------------------------------------------------------------------
problem.
It seems inconceivable that the Army and DFAS could pour $103
million into just one simple military-connected 4-H youth project over
the short span of 7 years without raising any questions or having one
overseer curious enough to inspect the project. The address of the fake
company was not more than a few miles from the CYS program management
office at Fort Sam Houston in San Antonio where Mello was employed. A
spot check would have been so quick and easy, and the fraud would have
been exposed instantly.
I look forward to your full support and cooperation in addressing
this matter. I expect all of my questions to be answered by March 29,
2024. If you need to discuss my inquiry, you may contact Charles Murphy
or Noah Parlee in my office. Your assistance in resolving these issues
would be appreciated.
Sincerely,
Charles E. Grassley,
U.S. Senator
______
United States Senate
Charles E. Grassley
President pro tempore emeritus
WASHINGTON, DC 20510-1501
May 28, 2024
Director Audrey Y. Davis
Defense Finance and Accounting Service
8999 East 56th Street
Indianapolis, IN 46249
Dear Director Davis:
Your May 7th response to my March 19th inquiry regarding the $109
million in fraudulent payments to Ms. Janet Mello is unsatisfactory for
three reasons: (1) You do not answer my questions; (2) You do not
explain why the Mello case was allowed to fester undetected for 6
years; and (3) You do not explain how you will bring internal controls
up to required standards.
First, please answer all my questions. The list is attached for
your convenience.
Second, your letter opens with this truncated thought: ``financial
controls are very important to the Defense Department and Defense
Finance and Accounting Service (DFAS),'' as they should be. However,
you need to expand on that. As the Pentagon's chief bill payer, you
need to explain why internal controls are important. You need to
explain how they should play a key role in detecting and deterring
theft and preventing fraudsters like Mello from ripping off the
taxpayers. You need to tell us why they failed in the case of Mello,
and fully explain how you are planning to beef up controls. You need to
get to work with the financial managers in the Pentagon on designing a
whole new system of internal controls that will permanently plug all
the holes. To get there, the department should acquire modern, fully
integrated accounting systems that are capable of tracking
transactions--the lifeblood of controls.
Third, you also make a claim that defies understanding given the
hundreds of millions of taxpayer dollars lost to fraud. You assert that
the fraudulent payments to Ms. Mello ``complied with applicable DoD
regulations and policy.'' What is the meaning of that statement?
Clearly, something is very wrong. Mello was able to drive a Mack Truck
right through gaping holes in DFAS controls from at least December 2016
until August 2023. DFAS was clueless until the Army's investigative
agency blew the whistle. To make matters worse, in reading court
documents, I see a number of irregularities or red warning flags.
Mello--with DFAS cooperation--may have used some very unusual and
clever payment procedures to circumvent controls. Her complicated
payment instructions should have alerted DFAS watchdogs: ``Something
doesn't smell right.'' A quick spot check of Mello's fictitious ``work
site'' could have blown her cover in short order. On-site inspections
are a valuable way to verify delivery with certainty.
The importance of delivery verification--be it goods or services--
was hammered home in a review of DoD internal controls prepared by my
Judiciary Oversight Subcommittee staff 25 years ago. That investigation
was led by Mr. A. Ernest Fitzgerald, Management Systems Deputy of the
Air Force, who was detailed to my staff to conduct this review.\1\ This
investigation was triggered by the theft of large sums of money by four
crooks--military and DoD civilians. They mirror the Mello case. With
Ernie's leadership, we tested controls by tracking 200 invoices
generated by an office in the Pentagon where fraud had occurred. We
followed them through the entire cycle of transactions--from request to
purchase, to contract award, to invoice, to payment and issuing of U.S.
Treasury checks, and to delivery verification, including, for example,
an on-site inspection of audiovisual equipment serial numbers in the
National Military Command Center to be sure they matched supporting
documentation. Verification depended on meticulous document and
hardware match-ups.
---------------------------------------------------------------------------
\1\ Ernie Fitzgerald was removed from his senior position at the
direction of President Nixon for ``committing truth'' on the C-SA
aircraft cost overrun. After 12 years of legal battles, he was
reinstated in his former position by court order but was never allowed
to do this job. He was relegated to a cubbyhole in the attic of the
Pentagon until retirement. His 2-year assignment to my staff allowed
him to apply his vast knowledge to oversight of wasteful DoD spending
practices.
I forward the September 1998 staff report to you, hoping it will
give you insight on the Mellocase and how any official with oversight
responsibilities can take the initiative and check todetermine whether
a transaction is legitimate.\2\
---------------------------------------------------------------------------
\2\ https://www.grassley.senate.gov/imo/media/doc/
grassley_staff_joint_review_of_internal_
control_at_dod_1998_report.pdf.
Given the magnitude of the fraudulent payments to Mello, I think
you owe Congress a full report on what happened, who is responsible,
and what corrective action is planned, including the need for
administrative and disciplinary action. With the red flags highlighted
in court documents, a watchful eye might have caught the fraudulent
payments early on. Approving $109 million in fraudulent payments
without a spot check to verify delivery is unacceptable. Heads should
---------------------------------------------------------------------------
roll.
In closing, I would like to remind you that Mello is just one small
dot on a long trail of thefts--a trail that keeps reinforcing this
inescapable truth: DoD/DFAS Internal controls are weak or non-existent.
This warning has been popping up in audit reports for 30-40 years. The
taxpayers deserve better. DFAS needs to get on the stick and establish
effective controls over the peoples' money.
Your full cooperation and prompt response will be appreciated.
Charles E. Grassley
U.S. Senator
______
Questions Submitted by Hon. Todd Young
Question. In your opinion, is it ever acceptable for an IRS
employee or contractor to disclose confidential taxpayer data
illegally, ``yes'' or ``no''? If your answer is ``yes,'' please provide
examples of the circumstances you believe would warrant such illegal
activity.
Answer. No. The safety and security of taxpayer data are of
critical importance, and IRS employees and contractors have a duty to
safeguard this confidential information and comply with all legal
obligations that govern the sharing of taxpayer data. Any individual
who unlawfully discloses confidential taxpayer information should be
held accountable under the law. It is my understanding that the
Treasury Inspector General for Tax Administration (TIGTA) has
jurisdiction over Internal Revenue Service matters, including unlawful
disclosures of taxpayer information. However, if confirmed to lead
Treasury's Office of Inspector General, I commit to working closely
with TIGTA and Treasury leadership to ensure that the security of
taxpayer data is a top priority.
Question. In the event that an IRS employee or contractor illegally
discloses confidential taxpayer information, in your opinion as a lay
person do you believe that individual should be criminally charged for
each individual offense, ``yes'' or ``no''? If your answer is ``no,''
please explain. Note that this question asks your opinion as a lay
person and does not ask how you would approach any kind of
recommendation if you were to be confirmed to this position.
Answer. It is my understanding that TIGTA has jurisdiction over
Internal Revenue Service matters, including the unlawful disclosure of
taxpayer information, and that the Department of Justice is responsible
for making charging decisions where an individual has violated the law.
I am aware that the Internal Revenue Code imposes strict
confidentiality requirements with respect to taxpayer data and imposes
penalties for unlawful disclosures of this information. Any individual
who unlawfully discloses confidential taxpayer information should be
held accountable under the law.
Having spent more than 3 decades in the Inspector General
community--a substantial part of which was in the DoD IG's law
enforcement arm, I appreciate the critical importance of holding
criminal wrongdoers accountable. Throughout my career, my
investigations have resulted in successful criminal prosecutions and
civil penalties and fines. If confirmed, I commit to you that I will
continue to vigorously investigate potential violations of law within
the purview of Treasury's Office of Inspector General to help ensure
that individuals who break the law are held accountable.
Question. As a current Inspector General, does it strike you as
surprising or alarming that it took over 2 years for the ProPublica
leaker, Charles Littlejohn, to be charged for his crimes? Why or why
not?
Answer. I believe this government functions best when there is
robust, rigorous, and timely oversight of alleged waste, fraud, and
abuse. The American people and Congress deserve transparency and
accountability from their government agencies, and IG offices have a
responsibility to act expeditiously to deliver clarity and provide
answers as promptly as possible.
From my time in the Inspector General community, I know that
investigation timelines can vary substantially. For example, complex
investigations that involve a large number of parties and require
substantial forensic analysis can take longer to conduct, but it is
critically important that these investigations be thorough and
comprehensive so that no one escapes accountability. Throughout my
career, I have always prioritized being both timely and thorough in my
work, and, if confirmed, I will ensure that Treasury's Office of
Inspector General conducts its investigations in this manner.
Question. If you were to be confirmed to this position and there
were to be another incident of illegal IRS data disclosure during your
tenure, do you commit to investigating the matter as promptly as
possible and providing both majority and minority staff of this
committee with monthly updates regarding the investigation, ``yes'' or
``no''? If you answer is ``no,'' please explain and provide an
alternative periodic update schedule that you commit to maintain if
this issue were to arise.
Answer. I deeply respect the important oversight role of Congress
and, having spent my career in the IG community, understand that
Congress can be an important partner to IG offices. I recognize that
Congress requires timely information from the executive branch,
including IG offices, in order to conduct its work, and, if confirmed,
I will ensure that me and my team regularly engage with this committee
on a bipartisan basis to provide timely and accurate responses to your
questions.
With respect to unlawful disclosures of taxpayer information, it is
my understanding that TIGTA has jurisdiction over these and other
Internal Revenue Service matters. However, if confirmed to lead
Treasury's Office of Inspector General, I will be a close partner to
TIGTA and will certainly raise your concerns about the security of
taxpayer data with TIGTA's leadership.
Question. Do you agree with the Supreme Court's holding in
Americans for Prosperity vs. Bonta, ``yes'' or ``no''? If your answer
is ``no,'' please explain.
Answer. A key responsibility of OIGs is to ensure that the
government agencies they oversee comply with both statutes and
applicable judicial holdings. In executing this responsibility, OIG
employees must always act independently and impartially, regardless of
their personal views on the state of the law. If confirmed, I would be
happy to meet with you to discuss how Treasury's Office of Inspector
General ensures that the Department adheres to legal requirements
imposed on it by statute and case law.
Question. Do you believe that charitable giving serves a valuable
role in society and existing laws regarding illegal disclosure of
charitable donor information should be vigorously enforced, ``yes'' or
``no''? If your answer is ``no,'' please explain.
Answer. While I certainly agree that charitable giving serves a
valuable role in society, if confirmed, I would need to look into this
issue and the role of Treasury's Office of Inspector General in this
space vis-a-vis TIGTA. It is my understanding that TIGTA has
jurisdiction over Internal Revenue Service matters, including unlawful
disclosures of taxpayer information. If confirmed, I commit to working
with you and your staff regarding your interest in this issue.
Question. On May 14, 2024, I introduced S. 4326, the Protecting
Charitable Giving Act, with Senator Lankford. I am attaching a copy of
that legislation to these questions for your reference.
In your opinion as a lay person, do you support this legislation,
``yes'' or ``no''? If your answer is ``no,'' please explain. Note that
this question asks your opinion as a lay person and does not ask how
you would approach any kind of recommendation if you were to be
confirmed to this position.
Answer. A key function of an Inspector General is to ensure that
laws, as enacted, are being complied with. In fulfilling this duty, an
IG must always act in an impartial and unbiased manner, without showing
preference towards a particular policy position or proposed
legislation. If confirmed, I commit that I will carry out my duties
impartially and independent of any personal policy views, as I have
done throughout my long career in the IG community.
Question. As you know, my Republican colleagues and I are concerned
about the alarming incidents of fraud in the various COVID pandemic
relief programs. We want to ensure that taxpayer dollars were used
efficiently and effectively, and that fraudsters are identified and
brought to justice. I understand that pandemic fraud as a whole is
still under investigation. The Department of the Treasury Inspector
General has jurisdiction over the CARES Act's Coronavirus Relief Fund
(CRF) and the American Rescue Plan Act's State and Local Fiscal
Recovery Funds (SLFRF) program. Both were significant sums of money
given to States and localities to use for a broad range \1\ of
purposes.\2\ I am interested in learning the answers to the following
two questions:
---------------------------------------------------------------------------
\1\ See, e.g., https://home.treasury.gov/system/files/136/CRF-
Guidance-Federal-Register_2021-00827.pdf.
\2\ See, e.g., https://home.treasury.gov/policy-issues/coronavirus/
assistance-for-state-local-and-tribal-governments/state-and-local-
fiscal-recovery-funds.
How much money from each fund that was improperly spent by
---------------------------------------------------------------------------
localities has been recouped?
What steps are being taken in terms of audits and investigations?
For example, how many audits and/or investigations are active and what
is their status?
If you are confirmed, do you commit to providing my staff, along
with the majority and minority committee staffs, a briefing on the
above requests within 60 days of taking office, ``yes'' or ``no''? If
your answer is ``no,'' please provide an alternative time frame to
which you are willing to commit.
Answer. Throughout my career, I have seen how well-executed OIG
initiatives can detect and deter fraud and abuse and return millions of
dollars of ill-gotten gains to the government. My work over the past 3
decades has entailed uncovering elaborate fraud schemes, including one
investigation that resulted in the largest health care fraud recovery
in our Nation's history at the time. If confirmed as Treasury Inspector
General, I commit that investigating fraud will be a top priority for
the office.
Because I am not currently in Treasury's Office of Inspector
General, I do not know the answers to your questions above, but I will
look into these issues promptly, if I am confirmed. Further, if
confirmed, I commit to working with you and other members of the
committee concerning your interest in pandemic relief programs. I
believe it is important for IGs to be close partners to Congress, and I
know this is an issue in which there is significant congressional
interest.
______
Prepared Statement of Rose E. Jenkins, Nominated to be
a Judge of the United States Tax Court
Good morning, Chairman Wyden, Ranking Member Crapo, and other
members of the Finance Committee. Thank you for holding this hearing to
consider my nomination to serve on the United States Tax Court. I'm
also grateful to the committee staff for their efforts throughout this
process. I appreciate the opportunity to be here today, accompanied by
my parents, Antonio Jenkins-Lara and Rose Jenkins, and my husband,
Daniel Horner, whose encouragement and support has been unwavering. I
would also like to thank my many mentors and other colleagues
throughout my career who have taught and challenged me to be the best
tax attorney that I can be and provided me the opportunities that have
led to me being here today. And I am grateful to the President for
nominating me and providing me the chance, if confirmed, to serve the
tax system of which I have been a part my entire career.
I have had a variety of roles in the tax system and have always
been guided by a drive to make sense of the tax laws and apply them in
a principled manner befitting our system of voluntary tax compliance. I
have worked with taxpayers struggling to get their arms around the tax
consequences of messy facts that often came about as a result of simply
living their lives and operating their businesses. And I have worked
with dedicated public servants who work zealously to ensure that not
only the letter but the spirit of the law is followed. Ultimately, the
complexity of the tax laws, the broad and uncertain scope of facts that
may be relevant to any particular question, and the inherent tension
between the IRS and taxpayers mean that there are many cases in which
they do not see eye to eye. That makes the mission of the Tax Court so
critical. By providing a national forum for the expeditious resolution
of disputes, based on a careful consideration of the merits of each
case, it instills confidence in taxpayers that they will receive a fair
hearing. And the Tax Court's efforts to ensure a uniform interpretation
of the code provide certainty and stability that benefit not only the
taxpayers that appear before it, but all stakeholders in the tax system
at large.
In addition to allowing me to develop a deep understanding of
particular areas of the tax law, my career has given me an appreciation
of the differing perspectives, not only between the government and
taxpayers, but also among different types of taxpayers. That
understanding, as well as the experience engaging in the collaborative,
analytical, and decision-making processes entailed, will benefit me as
a member of the Tax Court working collegially to ensure uniform
application of the law. More broadly, my experiences throughout my
career have instilled in me a propensity for close, careful listening
and thorough, open-minded analysis and discussion, which are critical
to fair and impartial judgment. If confirmed, I commit to maintaining
these principles in service of the Tax Court's critical mission. I look
forward to answering the committee's questions.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): Rose Elena Jenkins.
2. Position to which nominated: Judge, United States Tax Court.
3. Date of nomination: February 1, 2024.
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: December 29, 1984; Minneapolis,
Minnesota, USA.
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list all secondary and higher education institutions,
dates attended, degree received, and date degree granted):
Clements High School.
Attended August 1997-May 1998.
No degree conferred.
Hightower High School.
Attended August 1998-May 2001.
High school diploma conferred May 2001.
Stanford University.
Attended September 2001-August 2005.
BA--Economics, German Studies--conferred June 12, 2005.
MA--International Education Administration and Policy
Analysis--conferred September 29, 2005.
Bucerius University.
Attended September-December 2007 as part of law school study
abroad program.
No degree conferred.
The University of Texas at Austin.
Attended August 2005-May 2008.
JD--conferred May 17, 2008.
New York University.
Attended September 2009-December 2011.
Executive LLM--conferred January 23, 2012.
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment for each job):
Student Supervisor--Stanford University Residential Services--
Stanford, CA--June-August 2005.
VITA Site Manager--Foundation Communities, Community Tax
Centers--Austin, TX--January-April 2006.
Summer Associate--Vinson and Elkins LLP--Houston, TX--May-July
2006.
Law Clerk--Texas Association of School Boards--Austin, TX--July
2006-May 2007.
VITA Site Manager--Foundation Communities, Community Tax
Centers--Austin, TX--January-April 2007.
Summer Associate--Skadden, Arps, Slate, Meagher and Flom LLP--
New York, NY--May-July 2007.
Summer Associate--Vinson and Elkins LLP--Houston, TX--July-
August 2007.
VITA Site Manager--Foundation Communities, Community Tax
Centers--Austin, TX--January-April 2008.
Tax Associate--Skadden, Arps, Slate, Meagher and Flom LLP--New
York, NY--September 2008-January. 2013.
Editor/Author, State and Local Tax--Thomson Reuters--New York,
NY--January 2013-November 2013.
Attorney, Branch 2, Office of Associate Chief Counsel
(International)--Internal Revenue Service, Office of Chief
Counsel--Washington, DC--November 2013-August 2017.
Senior Counsel, Branch 2, Office of Associate Chief Counsel
(International)--Internal Revenue Service, Office of Chief
Counsel--Washington, DC--August 2017-June 2019.
Special Counsel, Office of Associate Chief Counsel
(International)--Internal Revenue Service, Office of Chief
Counsel--Washington, DC--June 2019-February 2020.
Managing Director, Washington National Tax-International Tax--
KPMG--Washington, DC--February 2020-August 2021.
Senior Attorney Advisor--The Tax Law Center at NYU Law--New
York, NY (working remotely from Washington, DC)--August 2021-
January 2023.
Attorney, Branch 2, Office of Associate Chief Counsel
(Procedure and Administration)--Internal Revenue Service,
Office of Chief Counsel--Washington, DC--January 2023-present.
10. Government experience (list any current and former advisory,
consultative, honorary, or other part-time service or positions with
Federal, State, or local governments held since college, including
dates, other than those listed above):
None.
11. Business relationships (list all current and former positions held
as an officer, director, trustee, partner (e.g., limited partner,
nonvoting, etc.), proprietor, agent, representative, or consultant of
any corporation, company, firm, partnership, other business enterprise,
or educational or other institution):
None.
12. Memberships (list all current and former memberships, as well as
any current and former offices held in professional, fraternal,
scholarly, civic, business, charitable, and other organizations dating
back to college, including dates for these memberships and offices):
Professional
New York State Bar--2009-present.
New York State Bar Association and New York State Bar
Association Tax Section--2020-2022.
New York State Bar Association Tax Section Executive
Committee--2022.
Scholarly
Texas Journal of Women and the Law--2006-2008.
Civic/Charitable
Stanford Alumni Association--2005-present.
Manhattan Institute--2008-2009.
Friends of the National Zoo--2014-2022.
Capitol Hill Restoration Society--2015-present.
Studio Theater Friends with Benefits--2016-2017.
Martin House--2019-2020.
Round House Inner Circle--2020-2021.
13. Political affiliations and activities:
a. List all public offices for which you have been a candidate
dating back to the age of 18.
None.
b. List all memberships and offices held in and services
rendered to all political parties or election committees,
currently and during the last 10 years prior to the date of
your nomination.
None.
c. Itemize all political contributions to any individual,
campaign organization, political party, political action
committee, or similar entity of $50 or more for the past 10
years prior to the date of your nomination.
None.
14. Honors and awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement received
since the age of 18):
Research/Academic
Chappell-Lougee Scholarship granted by Stanford Undergraduate
Research Opportunities in 2003.
Fulbright Scholarship offered but not accepted in 2005.
``With honors'' recognition upon conferral of JD from The
University of Texas at Austin.
Professional
Chief Counsel National Recognition for Superior Achievement
Award in Legal Research and Writing in 2014.
Department of the Treasury Legal Research and Writing Award in
2014.
Associate Chief Counsel (International) Quick Hit Award in
2016.
Department of the Treasury Certificate of Appreciation in 2016.
Chief Counsel National Recognition for Superior Achievement in
Legal Research and Writing in 2016.
Commissioner's Award in 2017.
Department of the Treasury Legal Team of the Year in 2018.
Chief Counsel National Outstanding Published/Technical Guidance
Award in 2019.
Commissioner's Award in 2019.
Deputy Commissioner for Services and Enforcement Award in 2021.
15. Published writings (list the titles, publishers, dates, and
hyperlinks (as applicable) of all books, articles, reports, blog posts,
or other published materials you have written):
IRS Materials Co-Authored with Other IRS and Department of the Treasury
Colleagues
Notice 2014-51, Section 1298(f) Reporting Requirements for U.S.
Persons that Hold Stock of a Passive Foreign Investment Company
that is Marked to Market Under Section 475 or Another Chapter 1
Code Provision Other Than Section 1296, September 29, 2014,
available at https://www.irs.gov/irb/2014-40_IRB#NOT-2014-51.
Notice 2014-52, Rules Regarding Inversions and Related
Transactions, October 14, 2014, available at https://
www.irs.gov/irb/2014-42_IRB#NOT-2014-52.
Chief Counsel Attorney Memorandum 2015-001, Earnings and
Profits Consequences of Section 951(a) Income Inclusions,
available at https://www.
irs.gov/pub/irs-counsel/AM2015-001.pdf.
United States Property Held by Controlled Foreign Corporations
in Transactions Involving Partnerships; Rents and Royalties
Derived in the Active Conduct of a Trade or Business, available
at https://www.federalregister.gov/documents/2015/10/29/2015-
27604/united-states-property-held-by-controlled-foreign-
corporations-in-transactions-involving.
TD 9733, September 2, 2015, available at https://
www.federalregister.gov/documents/2015/09/02/2015-
21574/united-states-property-held-by-controlled-
foreign-corporations-in-transactions-involving.
TD 9733 Preamble Correction, October 29, 2015,
available at https://www.federalregister.gov/documents/
2015/10/29/2015-27604/united-states-property-held-by-
controlled-foreign-corporations-in-transactions-
involving.
TD 9733 Correction, October 29, 2015, available at
https://www.
federalregister.gov/documents/2015/10/29/2015-27603/
united-states-property-held-by-controlled-foreign-
corporations-in-transactions-involving.
REG-155164-09, September 2, 2015, available at https://
www.federal
register.gov/documents/2015/09/02/2015-21572/united-
states-property-held-by-controlled-foreign-
corporations-in-transactions-involving.
REG-155164-09 Preamble Correction, October 29, 2015,
available at https://www.federalregister.gov/documents/
2015/10/29/2015-27601/united-states-property-held-by-
controlled-foreign-corporations-in-transactions-
involving.
TD 9792, November 3, 2016, available at https://
www.federalregister.gov/documents/2016/11/03/2016-
26425/united-states-property-held-by-controlled-
foreign-corporations-in-transactions-involving.
TD 9792 Preamble Correction, December 28, 2016,
available at https://www.federalregister.gov/documents/
2016/12/28/2016-31364/united-states-property-held-by-
controlled-foreign-corporations-in-transactions-
involving.
TD 9792 Correction, December 28, 2016, available at
https://www.
federalregister.gov/documents/2016/12/28/2016-31411/
united-states-property-held-by-controlled-foreign-
corporations-in-transactions-involving.
United States Property Held by Controlled Foreign Corporations Through
Partnerships With Special Allocations
REG-114734-16, November 3, 2016, available at https://
www.federal
register.gov/documents/2016/11/03/2016-26424/united-
states-property-held-by-controlled-foreign-
corporations-through-partnerships-with-special.
REG-114734-16 Correction, December 28, 2016, available
at https://www.federalregister.gov/documents/2016/12/
28/2016-31358/united-states-property-held-by-
controlled-foreign-corporations-through-partnerships-
with-special.
REG-122387-16, Treatment of Related Person Factoring Income;
Certain Investments in United States Property; and Stock
Redemptions Through Related Corporations, November 3, 2016,
available at https://www.federalregister.gov/documents/2016/11/
03/2016-26423/treatment-of-related-person-factoring-income-
certain-investments-in-united-states-property-and-stock.
Notice 2017-55, Treatment Under Section 956(c) of Certain
Property Temporarily Stored in the United States Following
Hurricane Irma or Hurricane Maria, October 16, 2017, available
at https://www.irs.gov/irb/2017-42_IRB
#NOT-2017-55.
Notice 2017-68, Treatment Under Section 956(c) of Certain
Receivables Following Hurricane Irma or Hurricane Maria,
November 13, 2017, available at https://www.irs.gov/irb/2017-
46_IRB#NOT-2017-68.
Inversions and Related Transactions
TD 9761, April 8, 2016, available at https://
www.federalregister.gov/documents/2016/04/08/2016-
07300/inversions-and-related-transactions.
REG-135734-14, April 8, 2016, available at https://
www.federalregister.
gov/documents/2016/04/08/2016-07299/inversions-and-
related-transactions.
REG-135734-14 Preamble Correction, June 2, 2016,
available at https://www.federalregister.gov/documents/
2016/06/02/2016-13015/inversions-and-related-
transactions-correction.
TD 9761 Preamble Correction, June 23, 2016, available
at https://www.
federalregister.gov/documents/2016/06/23/2016-14648/
inversions-and-related-transactions-correction.
TD 9761 Correction, June 23, 2016, available at https:/
/www.federal
register.gov/documents/2016/06/23/2016-14649/
inversions-and-related-transactions-correction.
TD 9761 Correction, July 19, 2016, available at https:/
/www.federal
register.gov/documents/2016/07/19/2016-16470/
inversions-and-related-transactions-correction.
TD 9834, July 12, 2018, available at https://
www.federalregister.gov/documents/2018/07/12/2018-
14693/inversions-and-related-transactions.
REG-125135-15, Ownership Attribution for Purposes of
Determining Whether a Person Is Related to a Controlled Foreign
Corporation; Rents Derived in the Active Conduct of a Trade or
Business, May 20, 2019, available at https://
www.federalregister.gov/documents/2019/05/20/2019-10464/
ownership-attribution-for-purposes-of-determining-whether-a-
person-is-related-to-a-controlled.
Amount Determined Under Section 956 for Corporate United States
Shareholders
TD 9859, May 23, 2019, available at https://
www.federalregister.gov/documents/2019/05/23/2019-
10749/amount-determined-under-section-956-for-
corporate-united-states-shareholders.
Correction to TD 9859, June 25, 2019, available at
https://www.
federalregister.gov/documents/2019/06/25/2019-13489/
amount-determined-under-section-956-for-corporate-
united-states-shareholders-correction.
REG-114540-18, November 5, 2018, available at https://
www.federal
register.gov/documents/2018/11/05/2018-24140/amount-
determined-under
-section-956-for-corporate-united-states-shareholders.
REG-105474-18, Guidance on Passive Foreign Investment
Companies, July 11, 2019, available at https://
www.federalregister.gov/documents/2019/07/11/2019-12030/
guidance-on-passive-foreign-investment-companies.
Regulatory Comment Letters Co-Authored with Colleagues or Other Tax
Practitioners
New York State Bar Association Tax Section, Report No. 1448--
Report on Proposed Regulations Providing Guidance Related to
the Foreign Tax Credit, February 9, 2021, available at https://
nysba.org/app/uploads/2021/02/Report-1448.pdf.
The Tax Law Center at NYU Law, Additional Recommendations for
Guidance on the Corporate Alternative Minimum Tax, December 6,
2022, available at https://www.law.nyu.edu/sites/default/files/
Tax%20Law%20Center%20Com
ment%20on%20CAMT%20%2812-6-2022%29_508.pdf.
KPMG Publications Co-Authored with KPMG Colleagues
KPMG report: Analysis of final FDII regulations_Tax reform,
July 31, 2020, available at https://assets.kpmg.com/content/
dam/kpmg/us/pdf/2020/07/tnf-kpmg-report-analysis-final-fdii-
regulations-july31-2020.pdf.
KPMG report: Analysis of final and proposed regulations, high-
tax exception under GILTI and subpart F, August 13, 2020,
available at https://assets.kpmg.com/content/dam/kpmg/us/pdf/
2020/08/tnf-kpmg-report-gilti-hte-aug13-2020.pdf.
KPMG report: Initial impressions of final and proposed foreign
tax credit regulations, October 5, 2020, available at https://
assets.kpmg.com/content/dam/kpmg/us/pdf/2020/10/tnf-kpmg-
report-ftc-regulations-oct5-2020.pdf.
KPMG report: Summary and initial analysis of Pillar Two
Blueprint, October 12, 2020, available at http://
www.in.kpmg.com/TaxFlashNews-INT/KPMG-report-Summary-and-
initial-analysis-of-Pillar-Two.pdf.
Asset managers and BEPS 2.0--Stakeholders respond to the latest
proposals, April 2021, available at https://kpmg.com/xx/en/
home/insights/2021/04/asset-managers-and-beps-2-0-stakeholders-
respond-to-the-latest-proposals.html.
Final and proposed regulations, passive foreign investment
company (PFIC) rules, January 15, 2021, available at https://
assets.kpmg.com/content/dam/kpmg/us/pdf/2021/01/tnf-kpmg-
report-final-proposed-regs-pfic-rules-jan15-2021.pdf.
KPMG report: Permanent establishment-related considerations,
employees working remotely, June 14, 2021, available at https:/
/assets.kpmg.com/content/dam/kpmg/us/pdf/2021/06/21257.pdf.
Other Tax-Related Published Writings
As co-author--Unidentified portions of Checkpoint Catalyst--see
https://tax.thomsonreuters.com/en/checkpoint/catalyst/
authors#I-L.
The Tax Law Center at NYU Law, Build Back Better and the Cycle
of Tax Law Development, March 24, 2022, available at https://
medium.com/@taxlawcenter
/build-back-better-and-the-cycle-of-tax-law-development-
f6f476b4a772.
The Tax Law Center at NYU Law, The Gnarly Business of Taxing
Partnership-Held Foreign Corporations' Income, May 23, 2022,
available at https://medium.com/@taxlawcenter/the-gnarly-
business-of-taxing-partnership-held-foreign-corporations-
income-52b8ae165b21.
As co-author--The Hamilton Project and The Tax Law Center at
NYU Law, Six Economic Facts on International Corporate
Taxation, June 2022, available at https://
www.hamiltonproject.org/wp-content/uploads/2023/03/
Six_Facts_on_
International_Corporate_Taxation_-_Final.pdf.
As co-author--The Tax Law Center at NYU Law, Limit the Use of
Abusive Valuation Discounts in the Transfer Tax System, October
21, 2022, https://www.law.nyu.edu/sites/default/files/
Limit%20the%20Use%20of%20Abusive%20
Valuation%20Discounts%20in%20the%20Transfer%20Tax%20System.pdf.
As co-author--The Tax Law Center at NYU Law, Strengthening the
Generation-Skipping Transfer Tax to Address Dynasty Trusts,
November 2, 2022, available at https://www.law.nyu.edu/sites/
default/files/Strengthen%20the%2
0Generation-
Skipping%20Transfer%20Tax%20to%20Address%20Dynasty%20
Trusts.pdf.
The Stanford Daily Articles
Student-initiated courses present new topics, February 14,
2002, available at https://archives.stanforddaily.com/2002/02/
14?page=1§ion=MODSMD_
ARTICLE5#article.
Water, Water Everywhere: Spring Trip Looks at California's
Precious H2O, April 15, 2002, available at https://
archives.stanforddaily.com/2002/04/15?
page=3§ion=MODSMD_ARTICLE10#article.
The wall at Arrillaga allows members of the Stanford Climbing
Wall Club to Keep on Rockin', October 21, 2002, available at
https://archives.stanforddaily.
com/2002/10/21?page=6§ion=MODSMD_ARTICLE19#article.
Cantor Arts Center to debut student guides, October 29, 2002,
available at https://archives.stanforddaily.com/2002/10/
29?page=2§ion=MODSMD_
ARTICLE9#article.
Speaking their Language: Students interpret for non-English
speakers at the Stanford Medical Center, November 8, 2002,
available at https://archives.stan
forddaily.com/2002/11/
08?page=6§ion=MODSMD_ARTICLE18#article.
Cult of the Red Bull: A look at caffeine consumption at
Stanford, November 14, 2002, available at https://
archives.stanforddaily.com/2002/11/14?page=2&sec
tion=MODSMD_ARTICLE8#article.
Students celebrate Ramadan away from home, November 21, 2002,
available at https://archives.stanforddaily.com/2002/11/
21?page=8§ion=MODSMD_AR
TICLE18#article.
Take a Byte Out of Learning: Computers in the Classroom,
January 23, 2003, available at https://
archives.stanforddaily.com/2003/01/23?page=1§ion=
MODSMD_ARTICLE5#article.
``Mitzvah Day'' Sparks Volunteerism: Encouraging service across
faiths, February 25, 2003, available at https://
archives.stanforddaily.com/2003/02/25?
page=10§ion=MODSMD_ARTICLE30#article.
Despite busyness, students find time for . . . Spirituality on
the Farm, April 1, 2003, available at https://
archives.stanforddaily.com/2003/04/01?page=1&
section=MODSMD_ARTICLE7#article.
New phone-a-thon greets Class of 2007, April 17, 2003,
available at https://archives.stanforddaily.com/2003/04/
17?page=2§ion=MODSMD_ARTICLE8#
article.
Freshmen dean begins campaign of kindness, May 6, 2003,
available at https://archives.stanforddaily.com/2003/05/
06?page=2§ion=MODSMD_ARTICLE
13#article.
A safer, cheaper option for rocket fuel . . . Rocket scientists
make candle wax into fuel, February 1, 2005, available at
https://archives.stanforddaily.com/2005/02/
01?page=3§ion=MODSMD_ARTICLE16#article.
Bacteria-powered cars? Researchers investigate hydrogen-
producing bacteria, February 8, 2005, available at https://
archives.stanforddaily.com/2005/02/
08?page=3§ion=MODSMD_ARTICLE15#article.
Tension, Sinus Migraine: More than just a pain in the head,
February 24, 2005, available at https://
archives.stanforddaily.com/2005/02/24?page=5§ion
=MODSMD_ARTICLE20#article.
Green Dorm Project team plans to bring eco-friendly dorm to
campus, March 1, 2005, available at https://
archives.stanforddaily.com/2005/03/01?page=3&
section=MODSMD_ARTICLE16#article.
Biodesign programs promote student biotech startups, March 9,
2005, available at https://archives.stanforddaily.com/2005/03/
09?page=11§ion=MODSMD
_ARTICLE30#article.
Student group offers Web design workshops, April 5, 2005,
available at https://archives.stanforddaily.com/2005/04/
05?page=3§ion=MODSMD_ARTICLE
17#article.
A breeding ground for start-ups . . . , April 12, 2005,
available at https://archives.stanforddaily.com/2005/04/
12?page=3§ion=MODSMD_ARTICLE15#
article.
The Ultimate Class Project: Making the Exhibit, May 4, 2005,
available at https://archives.stanforddaily.com/2005/05/
04?page=3§ion=MODSMD_AR
TICLE16#article.
Stanford, WTO partnership digitizes documents, May 10, 2005,
available at https://archives.stanforddaily.com/2005/05/
10?page=3§ion=MODSMD_AR
TICLE14#article.
Exotics in Eden? Alan Burdick discusses why non-native species
don't always spell doom, June 1, 2005, available at https://
archives.stanforddaily.com/2005/06/
01?page=18§ion=MODSMD_ARTICLE35#article.
Racing against the clock without a driver, June 1, 2005,
available at https://archives.stanforddaily.com/2005/06/
01?page=7§ion=MODSMD_ARTICLE
21#article.
Bay Area serves as startup breeding ground, June 10, 2005,
available at https://archives.stanforddaily.com/2005/06/
10?page=8§ion=MODSMD_AR
TICLE20#article.
Greenwell departs for S.F State, July 14, 2005, available at
https://archives.
stanforddaily.com/2005/07/
14?page=3§ion=MODSMD_ARTICLE4#article.
Students Work to Protect Passwords: Computer Science
Researchers Hope to Stump Hackers, August 4, 2005, available at
https://archives.stanforddaily.
com/2005/08/04?page=10§ion=MODSMD_ARTICLE20#article.
16. Speeches (list all formal speeches and presentations (e.g.,
PowerPoint) you have delivered during the past 5 years which are on
topics relevant to the position for which you have been nominated,
including dates):
I have not given any formal speeches. I have participated in
the following public panel discussions concerning tax but had
at most partial responsibility for the written presentations,
if any:
International Tax Institute presentation on recent IRS
guidance, June 11, 2019--I participated in this
presentation as part of my position at the IRS, Office
of Associate Chief Counsel (International), and upon
departing my position there in February 2020, I ceased
to have access to materials from that position.
KPMG presentation concerning considerations in making a
section 962 election, September 25, 2020--I
participated in this presentation as part of my
position at KPMG, and upon departing my position there
in August 2021, I ceased to have access to materials
from that position.
District of Columbia Bar Taxation Community
presentation concerning GILTI high-tax election,
October 22, 2020--I participated in this presentation
as part of my position at KPMG, and upon departing my
position there in August 2021, I ceased to have access
to materials from that position.
USA Branch of the International Fiscal Association 49th
Annual Conference presentation concerning foreign tax
credit rules, April 23, 2021--materials available at
https://cdn.ymaws.com/www.ifausa.org/resource/resmgr/
conference_2021/20210423_1400_tangles_and_tr.pdf.
Tax Policy Center, The Prescription: Fiscal Policy for
Today's Economy, December 23, 2021--video available at
https://www.youtube.com/watch?v=_
l4UYgMA9DI.
New York State Bar Association 2022 Law Student Meet
and Greets, February 17, 2022--No materials were
prepared for this informal discussion.
DC Bar Tax Community 2022 Tax Legislative and
Regulatory Update Conference presentation concerning
outbound tax developments, May 5, 2022--I participated
in this presentation as part of my position at The Tax
Law Center at NYU Law, and upon departing my position
there in January 2023, I ceased to have access to
materials from that position.
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
My 15 years of experience in the field of tax law have allowed
me to develop a deep understanding of our Nation's tax system
from a variety of perspectives that I would bring to my role as
a United States Tax Court judge, if confirmed. During law
school, I worked at Volunteer Income Tax Assistance (VITA)
centers, which exposed me to the experiences of lower-income
individual taxpayers as I worked to help educate them on their
tax obligations and file their tax returns. My public service
since then has given me an opportunity to branch out and handle
an array of matters affecting the implementation of tax laws,
including administrative law and procedural issues that
underlie the Court's work with all taxpayers. I was afforded
this opportunity as well during my work at the Tax Law Center
at New York University School of Law, where I focused on a
broad spectrum of issues, including making the tax system more
transparent and inclusive, as well as technical tax issues.
More than 5 years in private practice, both at law and
accounting firms, also provided me insight into large,
sophisticated taxpayers with complex returns and tax issues.
Similarly, during much of my time working for IRS Chief
Counsel, I focused on international tax issues, including
advising on examinations, litigation, and development of legal
guidance following the enactment of the Tax Cuts and Jobs Act.
This array of experiences has allowed me to see firsthand how
tax law affects everyone, from low-income families to the
largest businesses. This broad understanding of the tax
landscape and my deep knowledge of tax law would fruitfully
inform my work as a Tax Court judge.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections (including participation in future
benefit arrangements) with your present employers, business firms,
associations, or organizations if you are confirmed by the Senate? If
not, provide details.
Yes.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
No
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
No.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next presidential election, whichever is
applicable? If not, explain.
I expect to serve out my full term.
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any current and former investments, obligations,
liabilities, or other personal relationships, including spousal or
family employment, which could involve potential conflicts of interest
in the position to which you have been nominated.
My father, Antonio Jenkins-Lara, has a consulting business that
includes consulting on FATCA and other U.S. tax-related issues.
His clients could potentially have matters that would be
litigated in Tax Court.
2. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years (prior to the
date of your nomination), whether for yourself, on behalf of a client,
or acting as an agent, that could in any way constitute or result in a
possible conflict of interest in the position to which you have been
nominated.
I have provided tax advice to clients of KPMG that could
potentially result in positions that would be litigated in Tax
Court. Similarly, as an employee of the IRS, I have engaged in
rulemaking activity and advised on examination and other
administrative activity that could potentially be implicated in
litigation in Tax Court.
3. Describe any activity during the past 10 years (prior to the date
of your nomination) in which you have engaged for the purpose of
directly or indirectly influencing the passage, defeat, or modification
of any legislation or affecting the administration and execution of law
or public policy. Activities performed as an employee of the Federal
Government need not be listed.
Both as a member of the New York State Bar Association Tax
Section and as an employee of the Tax Law Center at NYU Law, I
participated in drafting formal comment submissions and
engaging in other commentary intended to affect the
administration of tax law. See, e.g., Regulatory Comment
Letters and Other Tax-Related Published Writings under Part
A.15 above.
4. Explain how you will resolve any potential conflict of interest,
including any that are disclosed by your responses to the above items.
(Provide the committee with two copies of any trust or other
agreements.)
If confirmed, I would take whatever steps were necessary and
appropriate after carefully and diligently applying 28 U.S.C.
section 455, Canon 3 of the Code of Conduct for United States
Judges, and other relevant canons, provisions and guidance,
including recusal.
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of ethics
for unprofessional conduct before any court, administrative agency
(e.g., an Inspector General's office), professional association,
disciplinary committee, or other ethics enforcement entity at any time?
Have you ever been interviewed regarding your own conduct as part of
any such inquiry or investigation? If so, provide details, regardless
of the outcome.
No.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than a minor traffic offense? Have you ever been interviewed
regarding your own conduct as part of any such inquiry or
investigation? If so, provide details.
No.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
No.
5. Please advise the committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
None.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
Yes.
2. If you are confirmed by the Senate, are you willing to provide
such information as is requested by such committees?
Yes.
______
Questions Submitted for the Record to Rose E. Jenkins
Question Submitted by Hon. Catherine Cortez Masto
Question. If confirmed as a judge to the United States Tax Court,
you will be responsible for interpreting how our tax laws apply to a
wide variety of plaintiffs--everything from multinational corporations
with large legal teams to small businesses and individuals who appear
before court without counsel.
What role would you give to legislative intent, conference report
language, or statements from members of Congress as you interpret and
apply regulations affecting tax law?
Answer. If confirmed, in addition to applying any binding
precedent, I would apply established methods of interpretation to
determine the meaning of a statute or regulation, including by starting
with a careful reading of the plain text of the provision and
consideration of a rule's place in the broader context of the Internal
Revenue Code and Treasury regulations. In addition to considering
whether certain canons of construction would be helpful, I would also
consider whether it would be appropriate to take into account
legislative history in interpreting the rule. I believe that, to the
extent legislative history provides insight into legislative intent,
such intent can reasonably inform a decision between multiple textually
plausible interpretations, though it cannot override clear statutory
text.
______
Questions Submitted by Hon. Mike Crapo
Question. In Fiscal Year 2023, there were around 22,000 cases filed
and 31,500 closed at the Tax Court. That was the second-least amount of
cases filed in the last 7 years and the second-most cases closed in the
same time span.
If confirmed, how will you prioritize providing fair and impartial
decisions while also managing your caseload efficiently?
Answer. The Tax Court function of providing a national forum for
the expeditious resolution of disputes and careful consideration of the
merits of each case serves an important role of fostering trust in our
system of voluntary tax compliance. If confirmed, I would commit to
consider all issues and arguments presented by petitioners with an open
mind, in order to provide them the fair and impartial hearing that they
deserve. I would also seek to provide them the expediency they deserve
by encouraging cooperation between the parties and considering
opportunities to decide cases or issues without the need for a trial.
Question. The IRS Office of Chief Counsel is responsible for
representing the government in matters before the Tax Court, and is
thereby involved in every dispute before the court. Some stakeholders
have expressed concern that this close relationship may lead to unjust
outcomes.
If confirmed, what will you do to ensure you remain fair and
impartial to all parties, and ensure you will not provide special
preferences?
Answer. I believe providing a fair and impartial hearing to
petitioners before the Tax Court is critical to providing all taxpayers
certainty and confidence in the tax system. Over my career, I've
analyzed tax law on behalf of a variety of types of stakeholders with
different interests in the tax system. I think this gives me a
particularly well-rounded view of the tax system that would enhance my
ability to remain neutral as a Tax Court judge, if confirmed. My
diversity of experience together with my established practice of
independent thought would bolster my commitment and propensity toward
fairness and impartiality.
______
Question Submitted by Hon. Steve Daines
Question. As of April 2024, the U.S. Tax Court had a backlog of 750
conservation easement cases. Last Congress, my bill, the Charitable
Conservation Easement Program Integrity Act, was signed into law to
provide clarity on a number of these cases. Since then, a number of
cases have been decided with differing outcomes, setting various
precedents, and a large backlog remains.
If confirmed to the U.S. Tax Court, how will you approach these
cases and help clear the backlog?
Answer. In recent years, the Tax Court has seen an increase in its
case load due, in part, to an increase in petitions in complex, fact-
intensive cases, like conservation easement cases. If confirmed, I
would endeavor to support the Tax Court mission of providing
expeditious resolution of cases in order to address the case load and
provide certainty to taxpayers as quickly as possible, taking into
account applicable precedent and legislation. I would seek to minimize
resolution time by encouraging cooperation between the parties in all
phases of the proceedings. I would also strongly consider opportunities
to decide cases or issues based on motions and stipulations, in order
to minimize the amount of time needed to wait for and conduct trials.
And, as the Tax Court has already done in some conservation easement
cases, I would consider ways of narrowing the scope of factual review
required in cases with parallel or otherwise related issues.
______
Questions Submitted by Hon. Todd Young
Question. The Tax Court plays a critical role in interpreting tax
law and resolving disputes between the IRS and taxpayers. As a nominee
for this Article I judgeship, you will be responsible for hearing a
wide range of cases.
Can you elaborate on your approach to applying the law impartially
and ensuring consistent application of tax code to all taxpayers,
regardless of their background?
Answer. I believe that the Tax Court mission of uniform
interpretation of the Internal Revenue Code serves an important
function in society by providing all taxpayers certainty, stability,
and confidence in the tax system. If confirmed as a judge on the United
States Tax Court, my approach to cases would be one of respect for
established precedent and a commitment to consider all issues and
arguments presented by petitioners, regardless of their background,
with an open mind. From the variety of experiences I have had in my
career, I have learned the importance of considering the perspectives
from which different parties may approach an issue and listening
carefully and engaging actively to ensure open and clear communication.
Question. Given the tremendous backlog of cases currently facing
the U.S. Tax Court, what specific strategies would you implement to
expedite case resolution?
Answer. If confirmed, I would place emphasis on the expeditious
resolution of cases in order to address the Tax Court case load and
support its mission. I would encourage cooperation between the parties
in all phases of the proceedings. I would also strongly consider
opportunities to decide cases or issues based on motions and
stipulations, in order to minimize the amount of time needed to wait
for and conduct trials. And I would keep a perpetual eye on efficiency
in my courtroom and my chambers.
Question. Would you consider increasing the number of hours that
the U.S. Tax Court is open to hear cases?
Answer. If confirmed, I would consider, based on my experience and
learning as a judge, and in consultation with the Chief Judge, ways to
enhance productivity, taking into account applicable laws, regulations,
and systems, as well as the staffing of the Tax Court.
Question. How do you envision these strategies mitigating the
harmful effects that prolonged case backlogs have on taxpayers awaiting
decisions?
Answer. Taxpayers deserve certainty as quickly as possible both in
order to minimize the financial costs relating to prolonged litigation
and so that they can go on with their lives. I expect that a full bench
of judges on the Tax Court working toward efficient adjudication of
petitions will help to continue to mitigate the negative effects on
taxpayers of the recent increase in the Tax Court case load.
Question. The lack of access to the Public Access to Court
Electronic Records (PACER) service has been a significant concern for
many taxpayers. It often takes an expensive courier service or an in-
person visit for a taxpayer to access records on their case.
What measures would you propose to enhance the accessibility and
transparency of court records through PACER?
Answer. It is important for the Tax Court to have an electronic
record system to ensure accessibility for petitioners and to foster
efficiency in managing the court's case load. The Tax Court has, in
recent years, improved accessibility and transparency through its
DAWSON case management system. From public statements, my understanding
is that the Tax Court continues to consider possibilities for
enhancements while taking into account the need to protect personally
identifiable information. If confirmed, I would look forward to
learning about the Tax Court's efforts and considering how to further
and balance the important goals of accessibility, transparency, and
privacy protection.
Question. How do you believe improved access to these records would
impact taxpayer service and trust in the judicial process?
Answer. Electronic access to records related to a taxpayer's own
case can facilitate timely, effective participation with minimal burden
and thus improve case management and the experience of the taxpayer
with the system. Broader electronic access to court records can provide
stakeholders throughout the system greater insight into function and
thinking of the court that can both facilitate enhanced administration
and foster increased trust in the legal process.
______
Prepared Statement of Adam B. Landy, Nominated to be
a Judge of the United States Tax Court
Thank you, Chairman Wyden, Ranking Member Crapo, and distinguished
members of the Finance Committee. Thank you for scheduling this hearing
and processing my nomination.
Thank you to President Biden for nominating me to serve as a judge
on the United States Tax Court. I am humbled and honored by the
opportunity to continue to serve on the court, if confirmed.
Thank you to Congressman James E. Clyburn for his introduction this
morning, and to him and his staff for their support throughout this
process. As native South Carolinians, my family and I are grateful to
the Congressman for his service to this Nation and our beloved home
State.
I acknowledge and thank my wife Courtney, who is my best friend,
fiercest defender, and ultimate cheerleader. My sons Brooks and Myles,
whom I love so much, are here today, and because of them, I strive to
be the best version of myself daily.
My father Robert is watching remotely this morning, and I thank him
for modeling hard work and tenacity. I honor the memory of my mother
Darlean, a former public school educator, who instilled in me the
importance of obtaining an education and being there for people in
their time of need. Whether it was taking my siblings and me with her
to deliver meals through the Meals on Wheels program or encouraging me
to become involved with the United Way, she made sure we understood the
duty to give back to our community and to serve others.
To my siblings Erica, Marcus, and Jason, along with extended family
members, my mother and father-in-law, Major (Ret.) Ricardo and Dr.
Diane Wingate, my church family and friends who are watching remotely,
thank you for your love, prayers, and support. Finally, I would like to
thank the Chief Judge of the Tax Court; my fellow judicial officers on
the Court; Anita Rizek, Legislative Counsel for the Tax Court; and my
former supervisors Erik Doerring, Nancy Gilmore, and Thomas Mackinson,
for their support during the public phase of this nomination process.
As a law student and young lawyer, I clerked for Judge J. Michelle
Childs, now a Circuit Judge for the United States Court of Appeals for
the DC Circuit, but then a judge on the South Carolina Circuit Court. I
learned from Judge Childs the importance of evaluating the parties'
arguments thoroughly, conducting comprehensive research to provide
sound legal analysis, and administering justice with a calm
temperament. This experience is why I desired to become a judge. As a
special trial judge, I have strived daily to implement these traits of
proper judicial temperament and skill to competently serve the public.
Since concluding my legal education, I represented taxpayers and
the IRS before the Tax Court. As a tax lawyer, I acquired an
understanding of the challenges taxpayers and the IRS face while
developing solid listening and communication skills, strong research
and writing skills, and good judgment. As a special trial judge, I
demonstrate proper traits of proper judicial temperament and skill in
conducting motions hearings and trials and resolving disputes through
written orders and published opinions. While the cases I will hear as a
Tax Court judge will differ in content and complexity from my current
role, I will bring my current and prior professional experiences to
this new role, if confirmed, in adjudicating tax disputes in an
impartial and expeditious manner.
Mr. Chairman, Ranking Member Crapo, and members of the committee,
thank you for your consideration. I am happy to answer any questions.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): Adam Brooks Landy.
2. Position to which nominated: Judge, United States Tax Court.
3. Date of nomination: February 1, 2024.
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: April 28, 1982; Aiken, South Carolina.
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list all secondary and higher education institutions,
dates attended, degree received, and date degree granted):
South Aiken High School.
Aiken, South Carolina.
August 1996-May 2000.
High school diploma, May 2000.
University of South Carolina.
Columbia, South Carolina.
August 2000-May 2004.
Bachelor's degree, Chemistry, May 2004.
University of South Carolina.
Columbia, South Carolina.
August 2004-May 2006.
Master's degree, Sport & Entertainment Management, May 2006.
University of South Carolina Joseph F. Rice School of Law.
Columbia, South Carolina.
August 2006-May 2009.
Juris Doctor, May 2009.
Northwestern University Pritzker School of Law.
Chicago, Illinois.
September 2009-May 2010.
LL.M, Taxation, May 2010.
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment for each job):
Adjunct Professor.
University of Baltimore School of Law.
1401 N. Charles Street.
Baltimore, Maryland 21201.
August 2022-May 2023; January 2024-present.
Special Trial Judge.
United States Tax Court.
400 Second Street, NW.
Washington, DC 20217.
December 2021-present.
Senior Attorney.
IRS Office of Chief Counsel.
Small Business/Self-Employed Division.
31 Hopkins Plaza, Suite 1320.
Baltimore, Maryland 21230.
August 2018-December 2021.
Senior Attorney.
IRS Office of Chief Counsel.
Small Business/Self-Employed Division.
100 First Street, Suite 1800.
San Francisco, California 94105.
August 2016-August 2018.
Associate Attorney.
McNair Law Firm, PA.
(The law firm merged with Burr and Forman, LLP, in 2019, with
the resulting firm being Burr and Forman).
1221 Main Street, Suite 1800.
Columbia, South Carolina 29201.
July 2010-August 2016.
Law Clerk.
Gergel, Nickles and Solomon, PA (now defunct law firm).
1519 Richland Street.
Columbia, South Carolina 29201.
February 2008-May 2008 and August 2008-May 2009.
Law Clerk.
The Honorable J. Michelle Childs.
South Carolina Judicial Department.
Richland County Judicial Center.
1701 Main Street.
Columbia, South Carolina 29201.
May 2008-August 2008.
Law Clerk.
Greenville County Attorney's Office.
301 University Ridge, Suite 2400.
Greenville County Square.
Greenville, South Carolina 29601.
May 2007-August 2007.
Graduate Assistant.
University of South Carolina Athletics Department.
Rice Athletics Center.
1304 Heyward Street.
Columbia, South Carolina 29208.
August 2004-July 2006.
Equipment Manager.
Benedict College.
1600 Harden Street.
Columbia, South Carolina 29204.
July 2004-August 2006.
Student Assistant--Gamecock Club.
University of South Carolina Athletics Department.
1304 Heyward Street.
Columbia, South Carolina 29205.
January 2004-August 2004.
Student Worker.
R.C. McEntire Trucking, Inc.
2040 American Italian Way.
Columbia, South Carolina 29209.
May 2003-August 2003.
Recreation Department Assistant.
Mount Pleasant Recreation Department.
100 Ann Edwards Lane.
Mt. Pleasant, South Carolina 29464.
May 2002-August 2002.
Student Research Assistant.
University of South Carolina School of Medicine.
6311 Garners Ferry Road.
Columbia, South Carolina 29209.
May 2001-August 2001.
10. Government experience (list any current and former advisory,
consultative, honorary, or other part-time service or positions with
Federal, State, or local governments held since college, including
dates, other than those listed above):
None.
11. Business relationships (list all current and former positions held
as an officer, director, trustee, partner (e.g., limited partner,
nonvoting, etc.), proprietor, agent, representative, or consultant of
any corporation, company, firm, partnership, other business enterprise,
or educational or other institution):
Saluda Shoals Foundation Board, Director, 2015-2016
(approximate).
12. Memberships (list all current and former memberships, as well as
any current and former offices held in professional, fraternal,
scholarly, civic, business, charitable, and other organizations dating
back to college, including dates for these memberships and offices):
Admissions:
South Carolina Bar, 2009-present.
United States Tax Court, 2010-present.
District of Columbia Bar, 2020-present.
Professional:
American Bar Association.
Association Member, 2006-present.
Delegate, House of Delegates, 2020-2023; 2016-2017.
Member, Coalition on Racial and Ethnic Justice, 2016-
2019.
Member, Judicial Division--Lawyers Conference, 2020-
2021.
Member, Judicial Division--National Conference of
Federal Trial Judges, 2022-present.
Member, Section on Taxation, 2010-present.
Member, Standing Committee on Membership, 2019-2022.
Member, Standing Committee on Meetings and Travel,
2022-present.
American Constitution Society Member, 2020-2021 (approximate).
Black Law Students Association Member, 2006-2009.
Columbia, South Carolina Tax Study Group Member, 2010-2016.
Chicago Bar Association, Association Member, 2009-2010.
District of Columbia Bar, Bar Member, 2020-present.
Member, Innovations in Legal Practice Committee (f/k/a
the Global Legal Practice Committee), 2020-present.
Federal Bar Association, Association Member, 2022-present.
J. Edgar Murdock American Inns of Court Member, 2021-2022.
National Bar Association, Association Member, 2021-present.
Member, Section on Taxation, 2021-present.
Treasurer, Section on Taxation, 2021.
Richland County, South Carolina Bar Association Member, 2010-
2016.
South Carolina Bar, Bar Member, 2009-present.
Member, Conventions Committee, 2014-present.
Member, Diversity Committee, 2018-2022.
Member, Section on Taxation, 2010-2016.
Co-Chair, Young Lawyers Division Annual Bar Convention
Committee, 2015-2017; Member, 2014.
Chair, Volunteer Income Tax Assistance Program, 2011-
2016.
United States Tax Court.
Member, Human Resources Committee, 2021-present.
Member, STJ Retirement Implementation Committee, 2023-
present.
Member, Information Technology Committee, 2021-present.
Member, Judicial Security Working Group, 2023-present.
Charitable:
United Way of the Midlands.
Member, Chair-Elect, Chair, Former Chair, Young Leaders
Society, 2011-2016.
Other:
Capital City Club, Columbia, South Carolina Member, 2011-2016
(approximate).
The Y of Central Maryland Member, 2023-present.
University of South Carolina Alumni Association (I do not
recall the dates of membership).
University of South Carolina/Gamecock Club Member, 2001-
present.
13. Political affiliations and activities:
a. List all public offices for which you have been a candidate
dating back to the age of 18.
I have never been a candidate for public office.
b. List all memberships and offices held in and services
rendered to all political parties or election committees,
currently and during the last 10 years prior to the date of
your nomination.
Volunteer Letter Writer, Swing Left, Fall 2020.
c. Itemize all political contributions to any individual,
campaign organization, political party, political action
committee, or similar entity of $50 or more for the past 10
years prior to the date of your nomination.
Act Blue/Biden for President and Biden Fight Fund, $128.
Act Blue/Jaime Harrison for U.S. Senate (South Carolina), $125.
Act Blue/Democratic National Committee, $62.34.
Vincent Sheheen for Governor (South Carolina), $400.
14. Honors and awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement received
since the age of 18):
Phi Delta Phi Honor Society Membership Inducted, 2007.
University of South Carolina Dean's List, 2000-2001.
University of South Carolina Joseph F. Rice School of Law.
Carolina Legal Merit Scholarship, 2006-2009.
Dean's List, 2008-2009.
Special Projects Editor, Journal of International Law
and Business, 2008-2009.
15. Published writings (list the titles, publishers, dates, and
hyperlinks (as applicable) of all books, articles, reports, blog posts,
or other published materials you have written):
Contributing Author, McNair Law Insights, ``South Carolina
Economic Development Incentives: Sales and Use Tax Exclusions
and Exemptions,'' May 19, 2016, https://www.burr.com/tax-law-
insights/south-carolina-economic-development-incentives-sales-
and-use-tax-exclusions-and-exemptions.
Contributing Author, Tax Law Insights, ``Wait a Minute:
Congress Passes Law Requiring Consistent Basis Reporting
between Estates and Beneficiaries for Estate Tax Purposes,''
March 30, 2016, https://www.burr.com/tax-law-insights/wait-a-
minute-congress-passes-law-requiring-consistent-basis-
reporting-between-estates-and-beneficiaries-for-estate-tax-
purposes.
Contributing Author, Tax Law Insights, ``South Carolina
Economic Development Incentives: Job Development Credit,''
March 23, 2016, https://www.burr.com/tax-law-insights/south-
carolina-economic-development-incentives-job-development-
credit.
Contributing Author, Tax Law Insights, ``South Carolina's
Motion Picture Project and Production Facility Credit,''
November 6, 2015, https://www.burr.
com/tax-law-insights/south-carolinas-motion-picture-project-
and-production-facility-credit-2.
Contributing Author, Tax Law Insights, ``The Revocable Trust:
Is This a Necessary Component of Your Estate Plan? (Part 2),''
October 16, 2015, https://www.burr.com/tax-law-insights/the-
revocable-trust-is-this-a-necessary-component-of-your-estate-
plan.
Contributing Author, Tax Law Insights, ``Forget to File Your
FBAR? Don't Worry, You Can Still File Without Incurring
Penalties!'', previously located at www.sctaxlawyers.net, June
22, 2015.
Contributing Author, Tax Law Insights, ``South Carolina
Department of Revenue Issues Guidance Regarding the Tax
Treatment for Married Same-Sex Couples,'' December 10, 2014,
https://www.burr.com/tax-law-insights/south-carolina-
department-of-revenue-issues-guidance-regarding-the-tax-
treatment-for-married-same-sex-couples.
Contributing Author, Tax Law Insights, ``Same Sex Couples May
Now File Married Income Tax Returns in South Carolina,''
November 24, 2014, https://www.burr.com/tax-law-insights/same-
sex-couples-may-now-file-married-income-tax-returns-in-south-
carolina.
Contributing Author, Tax Law Insights, ``Same-Sex Marriages in
South Carolina: Tax Implications of Condon v. Haley,'' November
14, 2014, https://www.burr.com/tax-law-insights/same-sex-
marriages-in-south-carolina-tax-implications-of-condon-v-haley.
Contributing Author, Tax Law Insights, ``IRS Announces New
Procedures for U.S. Citizens Residing Overseas Who Have Not
Filed Tax Returns and Reported Income,'' September 12, 2012,
https://www.burr.com/tax-law-insights/new-procedures-for-u-s-
citizens-residing-overseas-who-have-not-filed-tax-returns-and-
reported-income.
Contributing Author, Tax Law Insights, ``The Importance of a
Qualified Appraisal for Conservation Easements,'' August 1,
2012, https://www.burr.com/tax-law-insights/importance-of-
qualified-appraisal-for-conservation-easements.
Contributing Author, Tax Law Insights, ``IRS Announces More
Flexible Offer-in Compromise Terms to Help More Struggling
Taxpayers Make a Fresh Start,'' June 5, 2012, https://
www.lexology.com/library/detail.aspx?g=0a69ae3b-6a08-4cc0-bb36-
f4bc95594d3b.
Contributing Author, Tax Law Insights, ``IRS Revises
Streamlined Installment Agreement Program,'' March 22, 2012,
https://www.lexology.com/library/detail.aspx?g=c68700e8-d7e3-
4fe9-8762-4352fc9289eb.
Contributing Author, Tax Law Insights, ``Reinstatement for Tax-
Exempt Organizations Whose Exemption Status was Automatically
Revoked by the IRS,'' March 7, 2012, https://www.burr.com/tax-
law-insights/reinstatement-automatic-revocation-tax-exempt-
status-org.
Contributing Author, Tax Law Insights, ``United States Tax
Court Agrees with Taxpayer and Finds Reasonable Cause to Abate
Employment Tax Penalties,'' July 29, 2011, https://
www.burr.com/tax-law-insights/us-tax-court-agrees-with-
taxpayer.
16. Speeches (list all formal speeches and presentations (e.g.,
PowerPoint) you have delivered during the past 5 years which are on
topics relevant to the position for which you have been nominated,
including dates):
Co-Presenter, Important Tax Court Procedural Cases, September
26, 2023, U.S. Tax Court, Washington, District of Columbia.
Copy of prepared materials provided.
Presenter, Conversation with Nonprofit Organizations Clinic
Students and Professor Jaclyn Cherry, University of South
Carolina Joseph F. Rice School of Law, March 28, 2023, via
Zoom. I have no notes, transcript, or recording.
Co-Presenter, Important Tax Court Procedural Cases, November
10, 2022, U.S. Tax Court, Washington, District of Columbia.
Copy of prepared materials provided.
Presenter, A View from The Bench: An Update on Recent
Developments in the U.S. Tax Court, University of Baltimore
School of Law, November 4, 2022, via Zoom. Copy of prepared
materials provided.
Co-Presenter, Federal Career Opportunities in Tax Law, August
30, 2022, via Zoom. I have no notes, transcript, or recording.
Presenter, 2022 AI Todd Estate Planning and Taxation Workshop--
Special Edition, June 19, 2022, Kiawah Island, South Carolina.
Copy of prepared materials provided.
Presenter, A View from The Bench: An Update on Recent
Developments in the U.S. Tax Court, May 26, 2022, National Bar
Association Tax Section, via Zoom. Copy of prepared materials
provided.
Co-Presenter, Federal Careers in Tax Law Panel, August 30,
2022, Internal Revenue Service Office of Chief Counsel, via
Zoom. I have no notes, transcript, or recording.
Co-Presenter, Tax Court Updates: The View from the Bench,
American Bar Association--Tax Section May Meeting, May 14,
2022, Marriott Marquis Hotel, Washington, District of Columbia.
I have no notes, transcript, or recording.
Co-Presenter, Diversity in Tax Law, Maryland State Bar
Association, April 15, 2022, via Zoom. I have no notes,
transcript, or recording.
Presenter, Income Taxation and the Cannabis Industry for IRS
Chief Counsel Attorneys, June 2020, Baltimore, Maryland. Upon
resigning from the IRS Office of Chief Counsel in December
2021, I no longer have access to these internal presentation
materials.
Co-Presenter, Interview Techniques and Strategies for IRS
Examination Personnel, May 2020, Baltimore, Maryland. Upon
resigning from the IRS Office of Chief Counsel in December
2021, I no longer have access to these internal presentation
materials.
Co-Presenter, Civil Fraud Examination Strategies and Indirect
Methods of Proving Gross Income, IRS East Territory and Legacy
Territory Personnel, September 2019, Baltimore, Maryland. Upon
resigning from the IRS Office of Chief Counsel in December
2021, I no longer have access to these internal presentation
materials.
Presenter, Interview Techniques and Strategies for IRS
Examination Personnel, August 2018, San Jose, California. Upon
resigning from the IRS Office of Chief Counsel in December
2021, I no longer have access to these internal presentation
materials.
Presenter, Bridging the Gap Between Chief Counsel and IRS
Examination Personnel, April 2018, San Jose, California. Upon
resigning from the IRS Office of Chief Counsel in December
2021, I no longer have access to these internal presentation
materials.
Co-Presenter, Audit Techniques Training for Marijuana
Dispensaries for IRS Northern California and Southwestern
Territory Examination Personnel, March 2017 and June 2017, San
Francisco, California. Upon resigning from the IRS Office of
Chief Counsel in December 2021, I no longer have access to
these internal presentation materials.
Co-Presenter, The Repeal of TEFRA: What Tax Practitioners Need
to Know, McNair Law Firm, P.A. Tax Practice Group Summer
Series, May 2016, Columbia, South Carolina. Upon resigning from
McNair Law Firm, P.A. in August 2016, I no longer have access
to these presentation materials.
Co-Presenter, South Carolina Sales and Use Taxes: Operation and
Administration of the Taxes and Potential Discharge in
Bankruptcy, South Carolina Bankruptcy Law Association Annual
Meeting, May 2015, Savannah, Georgia. Upon resigning from
McNair Law Firm, P.A. in August 2016, I no longer have access
to these presentation materials.
Presenter, Tax Implications of U.S. v. Windsor--Repeal of the
Defense of Marriage Act, South Carolina Bar Convention--Tax
Section, January 2014, Kiawah Island, South Carolina. Upon
resigning from McNair Law Firm, P.A. in August 2016, I no
longer have access to these presentation materials.
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
I have tax litigation experience from all three perspectives:
representing taxpayers, representing the Internal Revenue
Service, and adjudicating cases as a special trial judge on the
United States Tax Court. As a special trial judge, I have
conducted motion hearings and trials and have resolved these
disputes through written orders and published opinions. These
opportunities have allowed me to demonstrate my patience,
judicial temperament, and case management skills. Furthermore,
my service on court committees has allowed me to understand the
Court's jurisprudence and internal processes. The combination
of these experiences has equipped me with the requisite skills
to further the Court's mission to provide expeditious
resolution of tax disputes.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections (including participation in future
benefit arrangements) with your present employers, business firms,
associations, or organizations if you are confirmed by the Senate? If
not, provide details.
If confirmed by the Senate, I will continue to work at the
United States Tax Court but in a new role. Also, I have served
as an adjunct professor at the University of Baltimore School
of Law. If confirmed and if offered by the law school, I plan
to periodically teach a course, with the approval of the Chief
Judge of the United States Tax Court. Otherwise, I do not have
any plans, commitments, or agreements to pursue other outside
employment.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
See response to question B.1. above.
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
No.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next presidential election, whichever is
applicable? If not, explain.
Yes.
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any current and former investments, obligations,
liabilities, or other personal relationships, including spousal or
family employment, which could involve potential conflicts of interest
in the position to which you have been nominated.
My spouse is employed by UnitedHealth Group Incorporated (UHG)
and has been awarded equity in UHG. My spouse and I also own
stock in other publicly traded companies. If confirmed, I will
recuse myself from all discussions related to UHG, any
subsidiary corporations owned by UHG, and any entities in which
my spouse and I are stockholders.
2. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years (prior to the
date of your nomination), whether for yourself, on behalf of a client,
or acting as an agent, that could in any way constitute or result in a
possible conflict of interest in the position to which you have been
nominated.
Presently, I recuse myself and will continue to recuse myself
with respect to any cases I worked on while employed by the IRS
Office of Chief Counsel.
3. Describe any activity during the past 10 years (prior to the date
of your nomination) in which you have engaged for the purpose of
directly or indirectly influencing the passage, defeat, or modification
of any legislation or affecting the administration and execution of law
or public policy. Activities performed as an employee of the Federal
Government need not be listed.
None.
4. Explain how you will resolve any potential conflict of interest,
including any that are disclosed by your responses to the above items.
(Provide the committee with two copies of any trust or other
agreements.)
If confirmed, I would take whatever steps were necessary and
appropriate after carefully and diligently applying 28 U.S.C.
section 455, Canon 3 of the Code of Conduct for United States
Judges, and other relevant canons, provisions, and guidance,
including recusal.
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of ethics
for unprofessional conduct before any court, administrative agency
(e.g., an Inspector General's office), professional association,
disciplinary committee, or other ethics enforcement entity at any time?
Have you ever been interviewed regarding your own conduct as part of
any such inquiry or investigation? If so, provide details, regardless
of the outcome.
Yes.
On April 26, 2023, a taxpayer in a docketed case before the
United States Tax Court filed a Complaint Relating to Judicial
Conduct or Disability of Judges and Special Trial Judges (the
``Complaint'') contending that I engaged in judicial
misconduct. In the Complaint, the taxpayer alleged that I: (1)
improperly permitted an attorney for the IRS Office of Chief
Counsel to represent the IRS Appeals Office prior to (and
subsequently at) trial, (2) failed to determine that the issued
notice of deficiency was invalid, (3) improperly directed the
taxpayer's attention to a non-precedential bench opinion issued
by the Court regarding similar arguments raised by this
taxpayer in a prior docketed case for reference, (4)
demonstrated improper bias and partiality in the docketed case,
and (5) erred in failing to recuse myself from the case.
The United States Tax Court Judicial Conduct and Disability
Council investigated the Complaint, and on June 12, 2023, the
Court dismissed the Complaint. The Council determined that my
judicial decisions in the docketed case were merit-related.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than a minor traffic offense? Have you ever been interviewed
regarding your own conduct as part of any such inquiry or
investigation? If so, provide details.
No.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
No.
5. Please advise the committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
None.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
Yes.
2. If you are confirmed by the Senate, are you willing to provide
such information as is requested by such committees?
Yes.
______
Questions Submitted for the Record to Adam B. Landy
Question Submitted by Hon. Catherine Cortez Masto
Question. If confirmed as a judge to the United States Tax Court,
you will be responsible for interpreting how our tax laws apply to a
wide variety of plaintiffs--everything from multinational corporations
with large legal teams to small businesses and individuals who appear
before the Court without counsel.
What role would you give to legislative intent, conference report
language, or statements from members of Congress as you interpret and
apply regulations affecting tax law?
Answer. The U.S. Supreme Court has established judicial precedent
regarding the interpretation and application of statutes and
regulations affecting tax law. I adhere to that precedent in my current
role as a special trial judge of the U.S. Tax Court, and if confirmed
as a judge, I will continue to do so.
______
Questions Submitted by Hon. Mike Crapo
Question. In Fiscal Year 2023, there were around 22,000 cases filed
and 31,500 closed at the Tax Court. That was the second-least amount of
cases filed in the last 7 years and the second-most cases closed in the
same time span.
If confirmed, how will you prioritize providing fair and impartial
decisions while also managing your caseload efficiently?
Answer. From my experiences as a special trial judge, I have
developed processes to handle my caseload efficiently. If confirmed, I
will promptly review cases assigned to me by the Chief Judge to
determine whether any legal disputes exist which would prevent the
cases from being calendared for trial. Thereafter, I will encourage
communication and cooperation between taxpayers and the IRS to
facilitate settlement or a streamlined trial if settlement cannot be
reached. Next, I will use the case management features in DAWSON, the
Court's document management system, to ensure all deadlines are
properly calendared and to monitor the litigants' compliance with all
deadlines. Finally, I will allow the parties to be heard through
pretrial evidentiary hearings or through testimony elicited at trial
which will allow me to issue fair and impartial opinions.
Question. The IRS Office of Chief Counsel is responsible for
representing the government in matters before the Tax Court, and is
thereby involved in every dispute before the Court. Some stakeholders
have expressed concern that this close relationship may lead to unjust
outcomes.
If confirmed, what will you do to ensure you remain fair and
impartial to all parties, and ensure you will not provide special
preferences?
Answer. As a special trial judge, I take my ethical
responsibilities and obligations seriously and will continue to do so,
if confirmed. I will treat all parties who come before the Court in the
same manner and apply the law evenhandedly to the facts presented.
______
Question Submitted by Hon. Steve Daines
Question. As of April 2024, the U.S. Tax Court had a backlog of 750
conservation easement cases. Last Congress, my bill, the Charitable
Conservation Easement Program Integrity Act, was signed into law to
provide clarity on a number of these cases. Since then, a number of
cases have been decided with differing outcomes, setting various
precedents, and a large backlog remains.
If confirmed to the U.S. Tax Court, how will you approach these
cases and help clear the backlog?
Answer. Presently, the Court schedules conservation easement cases
for trial when taxpayers and the IRS can commit to a definite trial
date. If confirmed, I will request assignment of easement cases which
are ripe for trial and subsequent opinion. Upon assignment of these
cases, I will work with taxpayers and the IRS to get the cases ready
for trial. Specifically, I will solicit cooperation between the
litigants to identify as many efficiencies as possible in the pretrial
process, for instance, permitting the parties to stipulate as many
undisputed facts as possible through the discovery process and other
pretrial means. Hopefully, this approach will facilitate seamless trial
presentation and expeditious resolution of the cases by published
opinion or resolution by the parties.
______
Questions Submitted by Hon. Todd Young
Question. The Tax Court plays a critical role in interpreting tax
law and resolving disputes between the IRS and taxpayers. As a nominee
for this Article I judgeship, you will be responsible for hearing a
wide range of cases.
Can you elaborate on your approach to applying the law impartially
and ensuring consistent application of tax code to all taxpayers,
regardless of their background?
Answer. As a special trial judge, I strive to understand the
litigants' positions, clearly communicate my expectations for the case
as it progresses from the pretrial phase to trial, and carefully review
the evidence and arguments presented by the litigants at trial. This
approach has allowed me to apply the law evenhandedly to the facts
presented. If confirmed as a judge of the U.S. Tax Court, I will
continue to take this approach, which I believe helps me apply the law
impartially while ensuring consistent application of the Internal
Revenue Code.
Question. Given the tremendous backlog of cases currently facing
the U.S. Tax Court, what specific strategies would you implement to
expedite case resolution?
Answer. As a special trial judge, I work to expeditiously resolve
tax disputes through written orders and published opinions. I will
employ the same approach to expedite case resolution, if confirmed. I
will emphasize communication and cooperation between the litigants to
resolve any legal problems hindering the case from proceeding to trial
and case resolution. If confirmed, I will expedite resolution of tax
disputes by continuing to implement the strategies I developed while
serving as a special trial judge.
Question. Would you consider increasing the number of hours that
the U.S. Tax Court is open to hear cases?
Answer. The Chief Judge of the U.S. Tax Court assigns trial
sessions to judges. For certain cities and when necessary, the Court
increases the number of trial sessions, as well as the total number of
cases assigned to those cities. If confirmed, I commit to being
assigned as many trial sessions as possible to resolve the Court's
collective case inventory.
Question. How do you envision these strategies mitigating the
harmful effects that prolonged case backlogs have on taxpayers awaiting
decisions?
Answer. These strategies will facilitate the expeditious resolution
of the parties' tax disputes. If confirmed, I will continue to
incorporate these strategies developed as a special trial judge to
reduce the time taxpayers wait for a resolution of their tax disputes.
Question. The lack access to the Public Access to Court Electronic
Records (PACER) service has been a significant concern for many
taxpayers. It often takes an expensive courier service or an in-person
visit for a taxpayer to access records on their case.
What measures would you propose to enhance the accessibility and
transparency of court records through PACER?
Answer. The U.S. Tax Court does not use PACER for management of
court records. The U.S. Tax Court utilizes a case document management
system, known as DAWSON, to allow taxpayers to file petitions
electronically and for the parties to file and access pleadings and
other documents electronically for no fee. The U.S. Tax Court balances
the need for access to court records with the duty to prevent the
inadvertent disclosure of taxpayers' financial and personally
identifiable information, which are commonly included in Tax Court
filings. The public may, free of charge, utilize DAWSON to search,
view, and print court orders and published opinions. In August 2023,
the Court further expanded free public access to stipulated decisions,
posttrial briefs, and amicus briefs.
Question. How do you believe improved access to these records would
impact taxpayer service and trust in the judicial process?
Answer. Improved access to court records via DAWSON instills public
confidence in the U.S. Tax Court's mission to provide uniform
interpretation of internal revenue laws in a fair and transparent
manner.
______
Submitted by Hon. Elizabeth Warren,
a U.S. Senator From Massachusetts
Congress of the United States
Washington, DC 20515
May 10, 2024
Richard K. Delmar
Acting Inspector General
Office of the Inspector General
U.S. Department of the Treasury
1500 Pennsylvania Avenue, NW, Room 4436
Washington, DC 20220
Dear Mr. Delmar:
We write regarding your recently released ``Inquiry on Revolving Door
Between the Largest Accounting Firms and the Department of the
Treasury.''\1\
---------------------------------------------------------------------------
\1\ U.S. Department of the Treasury, Office of Inspector General,
``Inquiry on Revolving Door Between the Largest Accounting Firms and
the Department of the Treasury,'' OIG-CA-24-015, March 21, 2024,
https://oig.treasury.gov/sites/oig/files/2024-03/OIG-CA-24-
015%20%28508%
20compliant%20-%20secured%29.pdf.
We requested that you conduct this investigation in February 2022,
after The New York Times reported that ``[t]he largest U.S. accounting
firms have perfected a remarkably effective behind-the-scenes system to
promote their interests in Washington,''\2\ and our investigation
revealed that ``since 2001, at least 24 . . . employees [of big
accounting firms] left to take senior tax-policy positions in the
Federal Government, including at Treasury and [the Internal Revenue
Service], and returned to their firms after government work, often
receiving massive promotions and raises.''\3\
---------------------------------------------------------------------------
\2\ New York Times, ``How Accounting Giants Craft Favorable Tax
Rules from Inside Government,'' Jesse Drucker and Danny Hakim,
September 19, 2021, https://www.nytimes.com/2021/09/19/business/
accounting-firms-tax-loopholes-government.html.
\3\ Senator Elizabeth Warren, ``Warren, Jayapal Call on Treasury,
Tax Inspectors General to Investigate Unethical Revolving Door Between
Treasury and `Big Five' Accounting Firms,'' press release, February 22,
2022, https://www.warren.senate.gov/newsroom/press-releases/warren-
jayapal-call-on-treasury-tax-inspectors-general-to-investigate-
unethical-revolving-door-between-treasury-and-big-five-accounting-
firms.
Letter from Senator Elizabeth Warren and Representative Pramila
Jayapal to Department of the Treasury Inspector General Richard K.
Delmar and Treasury Inspector General for Tax Administration J. Russell
George, February 18, 2022, https://www.warren.senate.gov/imo/media/doc/
2022.02.18%20Letter%20to%20Treasury%20IGs%20on%20Revolving%20Door.pdf.
It took you over 2 years to conduct your review--and the result was an
irresponsible whitewash that failed to seriously investigate the
problem or hold any individual or company accountable. This represents
a failure on your part--you failed to conduct a serious inquiry, and
you should retract this report and start over in order to conduct a
meaningful review of the scope and significance of this revolving door
---------------------------------------------------------------------------
problem at the Treasury Department.
Your report concluded that:
Treasury has policies and procedures in place to protect
Treasury and its tax policies and revenue rulings from undue
influence by employees with potential conflicts of interest.
Specifically, Treasury's tax guidance review process includes
numerous stages of review and approval of tax guidance before
publication. The process is coordinated with multiple
individuals and offices within IRS and Treasury from the tax
guidance development's earliest stages.\4\
---------------------------------------------------------------------------
\4\ U.S. Department of the Treasury, Office of Inspector General,
``Inquiry on Revolving Door Between the Largest Accounting Firms and
the Department of the Treasury,'' OIG-CA-24-015, March 21, 2024, p. 3,
https://oig.treasury.gov/sites/oig/files/2024-03/OIG-CA-24-015%20%
28508%20compliant%20-%20secured%29.pdf.
This conclusion--and the rationale by which you reached it--is absurd.
In simple terms, you concluded that because many Department officials
are involved in developing important tax rules, there can be no
meaningful conflicts of interest. This fails a basic test of logic and
common sense: in reality, the more Treasury or IRS Department officials
that are working on a key tax rule--particularly in the absence of key
rules and regulations to address revolving door conflicts of interest--
the more likely these rules are to be affected by conflicts of
---------------------------------------------------------------------------
interest.
That is why, when your sister Inspector General (IG) office--the
Treasury Inspector General for Tax Administration--conducted a similar
review, that review determined that, ``between 2017 and 2021, 496 IRS
employees--or 15 percent of the agency's workforce--received income
from a large accounting firm or large corporation,'' that ``37 of those
employees were IRS executives, senior officials responsible for key
agency decision-making,'' and that in several instances, ``employees .
. . charged time to a private letter ruling in which the taxpayer's
representative was the same large accounting firm that the employee
recently worked for before joining the IRS or left the IRS to join''--
``rais[ing] impartiality concerns.''\5\
---------------------------------------------------------------------------
\5\ Letter from Senator Elizabeth Warren and Representative Pramila
Jayapal to IRS Commissioner Danny Werfel, September 27, 2023, pp. 1-2,
https://www.warren.senate.gov/imo/media/doc/
2023.09.27%20Letter%20to%20IRS%20on%20TIGTA%20Report.pdf; Treasury
Inspector General for Tax Administration, ``Processes Are in Place to
Identify and Address Potential Conflicts of Interest in Large Corporate
Tax Administration,'' August 24, 2023, pp. 5 and ii, https://
www.tigta.gov/sites/default/files/reports/2023-08/202340047fr.pdf.
The decision to write off obvious opportunities for Treasury employees
to exert improper influence on tax policies is not the only gap on your
report. You indicated that ``Treasury relies primarily on employees
self-reporting'' to identify and prevent conflict of interest.\6\ But
you conducted no audit of any employee's reporting to determine if this
reliance was justified, and you ``did not perform a review of the
information in the Ethics Tracker'' that the Treasury Department uses
to retain ethics information on employees, and did not conduct a
detailed review of any single agency policy action or rulemaking.\7\
---------------------------------------------------------------------------
\6\ U.S. Department of the Treasury, Office of Inspector General,
``Inquiry on Revolving Door Between the Largest Accounting Firms and
the Department of the Treasury,'' OIG-CA-24-015, March 21, 2024, p. 4,
https://oig.treasury.gov/sites/oig/files/2024-03/OIG-CA-24-015%20%28
508%20compliant%20-%20secured%29.pdf.
\7\ Id.
This was a drive-by investigation that appeared to be designed to reach
pre-
conceived results absolving Treasury officials of wrongdoing despite
---------------------------------------------------------------------------
the obvious evidence of serious revolving door conflicts of interest.
Your office can and must do better. Given our concerns about this
matter, and the ongoing ethics threats to agency policymaking, we ask
that you retract this report and its conclusions, and conduct a more
thorough and meaningful review.
Sincerely,
Elizabeth Warren Pramila Jayapal
United States Senator Member of Congress
______
Prepared Statement of Kashi Way, Nominated to be a
Judge of the United States Tax Court
Chairman Wyden, Ranking Member Crapo, and members of the Finance
Committee, thank you for holding this hearing to consider my nomination
to serve as a judge on the United States Tax Court. I am honored to
have been nominated by the President, and I greatly appreciate the
opportunity to be here today. Thank you also to the committee staff for
their assistance throughout this process.
I am joined this morning by my wife Diane and my sons Ian and Evan,
whose love and support have been a continuous source of strength for
me. I am also joined by my 81-year-old mother, who flew in from
California. She raised me as a single mom on a secretary's salary
before going to night school to become a computer programmer. Without
her as a role model, I certainly would not be here today. I also want
to acknowledge Tom Barthold, my boss and the Chief of Staff of the
Joint Committee on Taxation. Finally, I am grateful for the numerous
friends who are in attendance or watching virtually.
For more than 19 years, I have been serving the Congress on the
staff of the Joint Committee on Taxation. During that time, I have
worked under multiple chairmen from both parties, and my goal has
always been to provide the best nonpartisan advice possible. As you all
know, there is a lot of behind-the-scenes work that goes into every tax
bill that comes up for a vote. The tax legislative process is one that
requires thoughtfulness, patience, and dedication. It has truly been an
honor and a privilege to help you prepare your legislation and advance
your policies over these many years.
As anyone who has filed a tax return knows, our tax system is
complicated and can frustrate even well-intentioned taxpayers. The Tax
Court affords taxpayers a crucial forum for resolving civil disputes
with the IRS. It is my desire to contribute to the fairness of the tax
system by helping to resolve these disputes in a manner that ensures
taxpayers have the opportunity to be heard and pay no more than what is
required under the law.
If I am confirmed, I will take the skills I have learned on the
Joint Committee staff to serve the country in a different capacity. In
particular, I will continue to work thoughtfully, patiently, and with
dedication to ensure fairness in the tax system. If confirmed as a
judge, I promise to impartially apply the law to the facts before me in
the resolution of tax disputes.
Thank you again for the opportunity to appear today, and I look
forward to your questions.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): Kashi Manu Way.
2. Position to which nominated: Judge, United States Tax Court.
3. Date of nomination: February 1, 2024.
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: East Greenville, PA.
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list all secondary and higher education institutions,
dates attended, degree received, and date degree granted):
University of Southern California, 1988-1993, B.A., December
1993.
University of Sussex, England, 1992-1993 (year abroad; no
degree).
Columbia University, 1993-1994, M.A., February 1995.
University of Virginia, 1996-1999, J.D., June 1999.
Georgetown University, Spring 2004 (took one course on
consolidated tax returns; no degree).
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment for each job):
Research Assistant to Dr. Seweryn Bialer, Columbia University,
Graduate School of Arts and Sciences, New York City, NY, 1993-
1994 (academic year).
Paralegal Specialist, United States Department of Justice,
Washington, DC, 1994-1996.
Research Assistant to Professor A. E. Dick Howard, University
of Virginia, School of Law, Charlottesville, VA, 1997 (summer).
Summer Associate, Dewey Ballantine, LLP, New York City, NY,
1998 (summer).
Clerk to Judge Joseph Gale, United States Tax Court,
Washington, DC, 1999-2001.
Associate, Covington and Burling, LLP, Washington, DC, 2001-
2005.
Legislation Counsel and Senior Legislation Counsel, United
States Congress, Joint Committee on Taxation, Washington, DC,
March 2005-present.
Professorial Lecturer, George Washington University Law School,
Washington, DC, spring semester 2023 (taught a 2-unit evening
tax course).
10. Government experience (list any current and former advisory,
consultative, honorary, or other part-time service or positions with
Federal, State, or local governments held since college, including
dates, other than those listed above):
None.
11. Business relationships (list all current and former positions held
as an officer, director, trustee, partner (e.g., limited partner,
nonvoting, etc.), proprietor, agent, representative, or consultant of
any corporation, company, firm, partnership, other business enterprise,
or educational or other institution):
Treasurer (volunteer), East Rockville Civic Association,
Rockville, MD, 2015-present (this is a neighborhood civic
association with an annual budget of approximately $1,000).
12. Memberships (list all current and former memberships, as well as
any current and former offices held in professional, fraternal,
scholarly, civic, business, charitable, and other organizations dating
back to college, including dates for these memberships and offices):
Virginia Tax Review, Editor, then Editor-in-Chief, 1997-1999
(academic journal at the University of Virginia School of Law).
California Bar (inactive), Member, 1999-present.
Washington, DC, Bar, Member, 2000-present.
East Rockville Civic Association, Treasurer (volunteer), 2015-
present; Member, 2014-present.
13. Political affiliations and activities:
a. List all public offices for which you have been a candidate
dating back to the age of 18.
None.
b. List all memberships and offices held in and services
rendered to all political parties or election committees,
currently and during the last 10 years prior to the date of
your nomination.
None.
c. Itemize all political contributions to any individual,
campaign organization, political party, political action
committee, or similar entity of $50 or more for the past 10
years prior to the date of your nomination.
July 2019--donated $200 to Friends of Suzan Pitman. Suzan Pitman
was a candidate for the city of Rockville, MD, city council.
14. Honors and awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement received
since the age of 18):
Phi Beta Kappa, 1992.
Virginia Governor's Fellow, 1997.
15. Published writings (list the titles, publishers, dates, and
hyperlinks (as applicable) of all books, articles, reports, blog posts,
or other published materials you have written):
State and Local Sales Tax on Internet Commerce: Developing a
Neutral and Efficient Framework, 19 Virginia Tax Review 115,
Summer 1999.
Want a new way to commute? Ride a scooter!, Greater Greater
Washington, December 3, 2015 (attached and available online at
Want a new way to commute? Ride a scooter!--Greater Greater
Washington (https://ggwash.org/contributors/kway)).
16. Speeches (list all formal speeches and presentations (e.g.,
PowerPoint) you have delivered during the past 5 years which are on
topics relevant to the position for which you have been nominated,
including dates):
None.
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
I have been working as a tax lawyer for more than 24 years,
first as a clerk at the Tax Court, then in private practice at
a large DC law firm, and since March 2005 on the staff of the
Joint Committee on Taxation. During that time, I have worked in
many areas of taxation, covering both corporate and individual
income taxes. In addition to this deep knowledge base, I have
spent nearly 2 decades providing technical tax advice on a
nonpartisan basis to members of the House and Senate and their
staff. With respect to the Senate Finance Committee in
particular, I have assisted the majority and minority staff
under multiple Chairmen in the development of their tax
proposals. I have also provided similar assistance to the
legislative aides of individual Senators serving on the
committee.
My role has always been to provide the best nonpartisan advice
possible, with the goal of improving whatever idea or proposal
with which I have been presented. This service has helped me to
develop the kind of balanced temperament important for a judge.
Finally, to give back to the tax community, I taught an evening
tax seminar in the spring of 2023 at the George Washington
University Law School. With this background, I believe I have
the knowledge, skill, and temperament to be a successful Tax
Court judge.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections (including participation in future
benefit arrangements) with your present employers, business firms,
associations, or organizations if you are confirmed by the Senate? If
not, provide details.
Yes.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
No.
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
No.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next presidential election, whichever is
applicable? If not, explain.
Yes.
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any current and former investments, obligations,
liabilities, or other personal relationships, including spousal or
family employment, which could involve potential conflicts of interest
in the position to which you have been nominated.
None.
2. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years (prior to the
date of your nomination), whether for yourself, on behalf of a client,
or acting as an agent, that could in any way constitute or result in a
possible conflict of interest in the position to which you have been
nominated.
None.
3. Describe any activity during the past 10 years (prior to the date
of your nomination) in which you have engaged for the purpose of
directly or indirectly influencing the passage, defeat, or modification
of any legislation or affecting the administration and execution of law
or public policy. Activities performed as an employee of the Federal
Government need not be listed.
In the fall of 2014, I opposed the construction of a self-
storage facility in my Rockville, MD, neighborhood. To that
end, I spoke in opposition at several city of Rockville Mayor
and council and planning commission meetings.
4. Explain how you will resolve any potential conflict of interest,
including any that are disclosed by your responses to the above items.
(Provide the committee with two copies of any trust or other
agreements.)
If confirmed, I would take whatever steps were necessary and
appropriate after carefully and diligently applying 28 U.S.C.
section 455, Canon 3 of the Code of Conduct for United States
Judges, and other relevant canons, provisions and guidance,
including recusal.
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of ethics
for unprofessional conduct before any court, administrative agency
(e.g., an Inspector General's office), professional association,
disciplinary committee, or other ethics enforcement entity at any time?
Have you ever been interviewed regarding your own conduct as part of
any such inquiry or investigation? If so, provide details, regardless
of the outcome.
No.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than a minor traffic offense? Have you ever been interviewed
regarding your own conduct as part of any such inquiry or
investigation? If so, provide details.
No.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
In 2011-2012, my wife and I were two of more than 25 named
defendants in a civil suit in Florida relating to my wife's
deceased uncle's estate. The purpose of the lawsuit was to
recover money from the estate and the estate's beneficiaries.
Since neither my wife nor I were beneficiaries of the estate,
the judge granted our motion to be dismissed from the case.
Other than that, we have not been parties in any litigation or
regulatory matters.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
No.
5. Please advise the committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
None.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
Yes.
2. If you are confirmed by the Senate, are you willing to provide
such information as is requested by such committees?
Yes.
______
Questions Submitted for the Record to Kashi Way
Question Submitted by Hon. Catherine Cortez Masto
Question. If confirmed as a judge to the United States Tax Court,
you will be responsible for interpreting how our tax laws apply to a
wide variety of plaintiffs--everything from multinational corporations
with large legal teams to small businesses and individuals who appear
before court without counsel.
What role would you give to legislative intent, conference report
language, or statements from members of Congress as you interpret and
apply regulations affecting tax law?
Answer. If confirmed, I would apply any binding precedent and rely
on well-
established tools of statutory interpretation--starting with the plain
text of the law--in determining the meaning of a statute. Legislative
history, including conference report language and statements from
members of Congress, may be considered and can be useful where the
meaning of the statutory text and any judicial precedent and binding
administrative guidance is ambiguous, but cannot override a plain
reading of a clear statute.
______
Questions Submitted by Hon. Mike Crapo
Question. In Fiscal Year 2023, there were around 22,000 cases filed
and 31,500 closed at the Tax Court. That was the second-least amount of
cases filed in the last seven years and the second-most cases closed in
the same time span.
If confirmed, how will you prioritize providing fair and impartial
decisions while also managing your caseload efficiently?
Answer. If confirmed, I will work hard to provide fair and
impartial decisions in a timely manner. Every case is different, and
each petitioner deserves to have their case thoughtfully considered. If
confirmed, I will strive to do that without any unnecessary delays.
Question. The IRS Office of Chief Counsel is responsible for
representing the government in matters before the Tax Court, and is
thereby involved in every dispute before the Court. Some stakeholders
have expressed concern that this close relationship may lead to unjust
outcomes.
If confirmed, what will you do to ensure you remain fair and
impartial to all parties, and ensure you will not provide special
preferences?
Answer. If confirmed, I will treat both petitioners and the IRS
respondent in an equal and professional manner and not favor any
particular litigant or their representative, regardless of whether they
appear routinely before the Tax Court. To this end, I will strive to
maintain a neutral decorum to avoid even the appearance of bias.
______
Question Submitted by Hon. Steve Daines
Question. As of April 2024, the U.S. Tax Court had a backlog of 750
conservation easement cases. Last Congress, my bill, the Charitable
Conservation Easement Program Integrity Act, was signed into law to
provide clarity on a number of these cases. Since then, a number of
cases have been decided with differing outcomes, setting various
precedents, and a large backlog remains.
If confirmed to the U.S. Tax Court, how will you approach these
cases and help clear the backlog?
Answer. I believe taxpayers deserve certainty and efficiency in our
system of taxation. If confirmed, I will impartially apply the various
precedents to the facts of any conservation easement cases that come
before me. As more cases are decided, the law should become more
settled, allowing for cases to be resolved more quickly. I would also
encourage the parties to work cooperatively so that issues may be
resolved without the need for a trial.
______
Questions Submitted by Hon. Todd Young
Question. The Tax Court plays a critical role in interpreting tax
law and resolving disputes between the IRS and taxpayers. As a nominee
for this Article I judgeship, you will be responsible for hearing a
wide range of cases.
Can you elaborate on your approach to applying the law impartially
and ensuring consistent application of tax code to all taxpayers,
regardless of their background?
Answer. If confirmed, I will impartially apply any applicable
provisions of the Internal Revenue Code, taking into account the plain
text of those provisions and any binding precedent. I will consistently
apply this interpretive process to all cases that come before me,
regardless of the background or sophistication of the petitioner. In
addition, to ensure a consistent application of the facts to the law, I
will strive to allow all petitioners, regardless of background and to
the extent permitted under the law, to make their best case and present
all relevant facts.
Question. In your time at the Joint Committee on Taxation you have
worked on a number of legislative items, including the IRA-related
energy provisions.
Should the court hear cases on these and other legislative items,
how would you differentiate your role as instrumental in constructing
the law with your role to impartially hear the case of taxpayers?
Answer. I recognize that the judicial process is fundamentally
different from the legislative process. If confirmed, I will apply the
law as written to any case before me. To that end, I would apply any
applicable provisions of the Internal Revenue Code, taking into account
the plain text of those provisions and any binding precedent. I would
not consider any role I or my Joint Committee on Taxation staff
colleagues may have had in the legislative process.
Question. Given the tremendous backlog of cases currently facing
the U.S. Tax Court, what specific strategies would you implement to
expedite case resolution?
Answer. If confirmed, I would strive to resolve cases promptly,
while at the same time ensuring that every petitioner has an
opportunity to be heard and have their case thoughtfully considered. To
the extent possible and where amenable to the parties, I will seek to
leverage the Tax Court's relatively recent ability to have remote trial
sessions, where that might prove convenient for taxpayers.
Question. Would you consider increasing the number of hours that
the U.S. Tax Court is open to hear cases?
Answer. If confirmed, I would certainly consider ways to make the
Tax Court more productive such that cases are resolved efficiently,
taking into account any relevant laws and regulations. including
consulting with the Chief Judge.
Question. How do you envision these strategies mitigating the
harmful effects that prolonged case backlogs have on taxpayers awaiting
decisions?
Answer. If implemented, I would envision these strategies as
helping to reduce the backlog of cases while ensuring that every case
is thoughtfully considered.
Question. The lack of access to the Public Access to Court
Electronic Records (PACER) service has been a significant concern for
many taxpayers. It often takes an expensive courier service or an in-
person visit for a taxpayer to access records on their case.
What measures would you propose to enhance the accessibility and
transparency of court records through PACER?
Answer. I understand that the Tax Court's DAWSON case management
system operates in a manner similar to PACER and makes many documents
publicly available, while at the same time protecting certain
personally identifiable information. If confirmed, I will encourage the
Tax Court to increase the effectiveness of DAWSON while maintaining
these privacy protections.
Question. How do you believe improved access to these records would
impact taxpayer service and trust in the judicial process?
Answer. Easy access to court records that maintain protections for
personally identifiable information can reduce the costs and
frustration associated with an in-person visit or courier service. Any
reduction in administrative burdens would improve taxpayer confidence
and satisfaction with the process and increase transparency and public
accountability more broadly.
______
Prepared Statement of Hon. Ron Wyden,
a U.S. Senator From Oregon
The Finance Committee meets this morning to discuss four
nominations. James Ives is nominated to serve as Inspector General of
the Department of the Treasury. And Rose Jenkins, Adam Landy, and Kashi
Way are all nominated to serve as judges of the United States Tax
Court.
I'll begin with the Treasury IG. Inspectors General perform an
essential oversight role across the government. At the Treasury, they
oversee a department with a budget of billions of dollars and immense
influence over the U.S. and global economy. They do important work
rooting out waste, fraud, and abuse.
There has not been a confirmed Treasury Inspector General for
nearly 5 years. It's critical that the next IG is undaunted by
political pressure and unafraid to confront big issues, even when it's
unpopular. I'm a firm believer that tough oversight results in good
government.
James Ives brings oversight experience from all over the Federal
Government to his nomination. He currently serves as the Principal
Deputy Director of the Defense Criminal Investigative Service, which is
the criminal investigative arm of the Department of Defense's Office of
Inspector General. He's also served within the IG offices at NASA and
the Government Publishing Office.
He was also a special agent with the State Department's Diplomatic
Security Service and a reserve special agent with the U.S. Coast Guard
Investigative Service. All in all, he has more than 3 decades of
experience in oversight and law enforcement, which will be highly
valuable in the top job as Treasury IG.
Next up, the three nominees for the tax court. The U.S. Tax Court
is the judicial backbone of the Federal tax code. It's the best
opportunity Americans have to dispute tax bills before they have to
pay. And it keeps them from getting stuck in slow-moving courts when
they have a tax issue that needs resolution.
So this committee is thankful to have three nominees willing to
take on this important job--all of whom bring a blend of public and
private experience to their nominations.
Rose Jenkins brings 15 years of experience in tax law to her
nomination, with particular expertise in international tax law and
administrative issues. She is currently an attorney in the Office of
Associate Chief Counsel for Procedure and Administration. It's her
second go-round with the IRS Chief Counsel, as she previously served in
the international office as well. She has valuable experience in the
private sector and at NYU's Tax Law Center.
Adam Landy has been a special trial judge on the Tax Court since
2021. He too has several years of experience at the Office of the IRS
Chief Counsel, serving in Baltimore and San Francisco, as well as in
the private sector.
And finally, Kashi Way is a Senior Legislative Counsel with the
staff of the Joint Committee on Taxation. At the Joint Committee, Mr.
Way's primary focus is on energy tax issues and R&D, but his background
covers a lot more.
In 18 years at JCT, he's had a big impact on such landmark bills as
the Energy Policy Act of 2005, the American Recovery and Reinvestment
Act of 2009, the American Taxpayer Relief Act of 2012, the Tax Cuts and
Jobs Act of 2017, and the Inflation Reduction Act of 2022.
I speak for this entire committee when I say that we are big fans
of the staff over at JCT. We would not be able to do our jobs without
their expertise and professionalism, and they rarely get the
recognition they deserve. Mr. Way will make an excellent Tax Court
judge, but this committee will be sorry to lose his counsel here on
Capitol Hill.
I want to congratulate all four nominees and thank them for joining
the committee this morning. I look forward to our discussion.
[all]