NOTE: Document at the end of the article.
The Internal Revenue Service (IRS) is facing renewed scrutiny after reports surfaced that Elizabeth Kastenberg, a figure allegedly involved in the targeting of conservative organizations during the Obama administration, has been appointed as the acting director of the IRS’s Office of Professional Responsibility (OPR). This office is charged with upholding ethical standards among tax professionals, preparers, and other third parties who interact with the IRS.
Kastenberg’s appointment was first reported by the Washington Examiner and further investigated by the American Accountability Foundation (AAF), a conservative watchdog group. According to AAF’s findings, Kastenberg played a notable role in the controversial IRS actions from 2010 to 2013, when Tea Party-affiliated and other right-leaning groups were subjected to heightened scrutiny while seeking tax-exempt status under the 501(c)(4) designation.
Congressional investigations at the time uncovered a pattern of bias, and in 2013, then-IRS official Lois Lerner became a central figure in the scandal, eventually resigning under pressure. Kastenberg was reported to have participated in high-level meetings and legal reviews that supported denying nonprofit status to conservative groups. A 2011 email attributed to her even acknowledged the political nature of the delays in processing applications, stating that some cases were “held back primarily because of their political party affiliation rather than specifically any political activities.”
Critics argue that Kastenberg’s new role overseeing ethics within the IRS creates a conflict of interest, particularly in light of her documented involvement in a politically charged episode that damaged the agency’s credibility. “It’s deeply concerning that someone previously connected to one of the most egregious examples of political bias in federal service is now in charge of enforcing ethical standards,” said a spokesperson for AAF.
Joining Kastenberg in the OPR is Jacqueline Bennett, another controversial figure. According to the AAF, Bennett has made numerous public statements critical of former President Donald Trump and has participated in anti-Trump demonstrations. Screenshots of past social media activity reportedly show her comparing the Trump administration to Nazi Germany and labeling Trump a “psychopath.” Her presence in a leadership role at the ethics office has only added to concerns about partisan influence within the agency.
The OPR’s mandate is to ensure tax professionals adhere to ethical standards, particularly those outlined in IRS Circular 230. With Kastenberg and Bennett now comprising half of the division’s top leadership, watchdogs argue that political bias could undermine the agency’s impartiality and public trust.
This controversy comes amid broader concerns about politicization within the IRS. A prior report from the Washington Examiner noted that a majority of senior staff within the IRS commissioner’s office had shown support for liberal causes through political donations or public commentary. Although efforts to depoliticize the agency were made under the Trump administration, these latest appointments have sparked fears that entrenched bias remains.
As of now, the IRS and the Treasury Department have not issued public statements addressing the appointments or responding to the AAF’s findings. Until more transparency is offered, critics say doubts about the impartiality of the IRS’s ethics enforcement will persist.
Press the link below for document:
871388756-House-Oversight-Staff-Report-Details-IRS-Investigation-Findings-Tax-Notes
