Leading House Democrat Bill Pascrell demands Biden replace IRS chief over tax document destruction ‘scandal’

Charles P. Rettig, commissioner of the Internal Revenue Service, testifies during the Senate Finance Committee hearing titled The IRS Fiscal Year 2022 Budget, in Dirksen Senate Office Building in Washington, D.C., June 8, 2021.

A leading House Democrat on Friday called on President Joe Biden to replace IRS Commissioner Charles Rettig over the agency's controversial destruction of data related to 30 million paper-filed tax returns.

The chair of the oversight subcommittee of the House Ways and Means Committee said that the IRS is vital to public confidence in our nation.

Pascrell said that this latest revelation adds to the public's falling confidence in the tax system.

If the American people see the incompetence of the IRS they will lose confidence in the agency.

The IRS and the White House did not respond to requests for comment.

The Treasury Department's inspector general for tax administration released the findings of an audit which have angered tax preparers.

The audit showed that the IRS still has a significant amount of paper-filed individual and business tax returns that are not processed.

The audit found that the inability to process backlogged paper-filed returns contributed to the decision to destroy 30 million paper-filed information return documents.

Employers and financial institutions can send W-2 forms to the IRS.

According to CNBC, tax preparers fear that the destruction of the documents could leave the IRS unable to verify details on a taxpayer's returns, which in turn can lead to refunds being delayed.

The president of the New York State Society of Enrolled Agents said she was horrified when she read the report.

There were no taxpayer consequences as a result of this action, according to the IRS.

The agency said that taxpayers or payers won't be subject to penalties because they haven't been.

Pascrell said that Ways and Means Committee members and other members of Congress have shown immense patience with the IRS.

The career IRS staff have performed admirably while under immense pressure, strained resources and nearly impossible circumstances. I have shown my respect for the work of the reform of the IRS, but enough is enough.

This latest revelation adds to the public's falling confidence in our tax system. If the American people see incompetence at the IRS, that confidence will not recover.

Mr. Rettig has had plenty of time and cooperation to start fixing the IRS. Real accountability is needed. President Biden needs to replace Mr. Rettig and appoint a Chief Counsel for the IRS.

Kate Dore contributed to the report.