The Internal Revenue Service fired a top aide on Monday following an internal review that found she targeted conservative, tax-exempt organizations under the Obama administration.
Holly Paz was terminated from her position as IRS commissioner of the Large Business and International Division, Fox News reported. She was placed on administrative leave in late July. It remains unclear whether her replacement has been selected.
The Washington Examiner contacted the IRS for comment.
In 2013, the Obama administration was scrutinized when the IRS applied unfair criteria against conservative groups applying for nonprofit organization status. The federal agency targeted tax-exempt applications featuring conservative-friendly phrases, like “Tea Party” or “Constitution.”
Back then, the Treasury Department’s inspector general for tax administration concluded the IRS used “inappropriate criteria” when considering such applications.
Paz, who served as top IRS official Lois Lerner’s deputy at the time, was involved in handling the documents. Lerner resigned over her role in the political controversy, while Paz continued serving at the agency over the next decade.
The IRS conducted its internal review after a watchdog report concluded that the Large Business and International Division, led by Paz, consisted of President Donald Trump’s critics and partisan Democrats who openly opposed the Republican administration’s agenda. The conservative American Accountability Foundation published the report in April.
The firing of Paz is in line with Treasury Secretary Scott Bessent’s goal to “de-weaponize” federal agencies, particularly focusing on the IRS. Bessent is currently serving as the IRS acting commissioner after Trump removed Billy Long as the tax agency’s chief last month.
TOP IRS DIVISION APPEARS PACKED WITH ANTI-TRUMP OFFICIALS
Elizabeth Kastenberg, head of the IRS’s Office of Professional Responsibility, is also being investigated for her alleged conduct against conservatives, according to reports. Like Paz, Kastenberg was tied to the 2013 IRS scandal.
The Trump administration has cut over 25% of the IRS’s 100,000-person workforce since January, primarily through federal buyouts and a restructuring effort across the agency.
