WASHINGTON — Under sharp questioning from some Democratic senators, President Donald Trump’s choice to head the IRS promised on Thursday to work for the benefit of ordinary taxpayers in administering the massive new tax law.
Charles Rettig is a Beverly Hills tax lawyer who has represented thousands of individuals and companies in civil and criminal tax matters before the agency and against it in court. He also defended Trump’s decision to break with tradition by refusing to release his personal tax filings during the 2016 presidential campaign.
At his confirmation hearing by the tax-writing Senate Finance Committee, Rettig was asked whether, given his experience representing wealthy individuals in tax-avoidance cases, he would work for ordinary taxpayers.
“I have seen the difficulties faced by taxpayers of all kinds,” Rettig said. “I will work … to take on challenges with the impact on taxpayers in mind.”
Retting, if confirmed by the Senate as Internal Revenue Service commissioner, will face a colossal challenge in administering and enforcing the new law, the most sweeping overhaul of the U.S. tax code in 30 years. The complex, $1.5 trillion package was muscled through Congress by the majority Republicans late last year with Democrats unanimously voting against it.
The new law, Trump’s signature legislative achievement, provides generous tax cuts for corporations and the wealthiest Americans, and more modest reductions for middle- and low-income individuals and families. Starting early this year, millions of working Americans saw increases in their paychecks with less tax withheld.
Rettig, 61, has worked at his Beverly Hills, Calif., law firm, Hochman, Salkin, Rettig, Toscher & Perez, for more than 35 years.
His clients have included affluent taxpayers seeking to strike deals with the IRS to turn over information on offshore bank accounts in exchange for reduced penalties. He has sued the IRS on behalf of clients seeking to reduce their tax penalties, and chaired the IRS advisory council, which acts as a public forum for discussing tax issues with agency officials.
Rettig also pledged at the hearing to uphold the political independence of the IRS. He had defended Trump’s refusal to release his tax returns, writing that Trump was facing the IRS “Wealth Squad.” Trump has accused the IRS of unfairly harassing him with audits and cited the IRS’ ongoing audit of his returns as the reason for his refusal.
“Mr. Rettig … needs to demonstrate that he will maintain independence from the Trump White House,” said Sen. Ron Wyden of Oregon, the committee’s senior Democrat.
Rettig said he expects that taxpayers “will see me as staunchly independent or more so.”
The quality of service provided by the agency for taxpayers is a primary issue. Rettig would take over an agency that has been pummeled for years by Republican lawmakers and has seen its funding slashed by 20 percent since 2010.
