U.S. Rep. Panetta Passes Legislation to Codify Presidential Audits Under Federal Law, Fix Program Failures

WASHINGTON, DC – U.S. Representative Jimmy Panetta (D-Carmel Valley) voted to pass the Presidential Tax Filings and Audit Transparency Act of 2022 to ensure our nation's tax laws are applied evenly and justly to all, including the President and Vice President of the United States. Rep. Panetta was an original cosponsor of the legislation which was introduced following a review by the Committee on Ways and Means and the Joint Committee on Taxation that showed significant failures by the Internal Revenue Service (IRS) to properly review and audit the former president.

Despite the Presidential Audit Program at the IRS to conduct mandatory audits on the President and Vice President, the Committee on Ways and Means found that under the previous administration the program was dormant. Despite what ex-President Donald Trump told the American people about being audited, the IRS failed to complete one audit of his tax returns. A review of the audit files repeatedly notes insufficient resources to do thorough and regular reviews through the Presidential Audit Program.

"The failures of the IRS to provide critical oversight of the previous administration demonstrate the need for fundamental reforms of the Presidential Audit Program," said Rep. Panetta. "This legislation ensures that our nation's tax laws are applied fairly and evenly for all Americans, including those that are elected to our nation's highest office. As elected officials it's our responsibility to provide oversight and maintain public confidence in our institutions, and where there are clear failures, to work quickly to fix those issues for the next generation."

The Presidential Tax Filings and Audit Transparency Act of 2022 would codify the IRS Mandatory Audit program to ensure the President and Vice President are adhering to our nation's tax laws, require the IRS to audit the President and Vice President within 90 days of filing and notify the public of its review, and ensure the IRS adequately staffs the program.

On December 20, 2022, Rep. Panetta voted to publicly release reports and their attached exhibits by the Committee on Ways and Means and the Joint Committee on Taxation detailing the failures of the IRS.

Ways and Means Chairman Richard Neal first requested President Trump's tax returns from the IRS in 2019, but the Trump Administration refused. Chairman Neal challenged the Administration in court, until the Biden Administration instructed the Treasury to produce the returns in July 2021. President Trump intervened in the case, but his counterclaims and appeals were dismissed, leading him to file an emergency application for a stay at the Supreme Court. In November 2022, the Supreme Court vacated a prior stay and denied further applications, leading to the release of the returns and information about the Presidential Audit program to the Ways and Means Committee.

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