Mr. President, It’s Time To End The IRS’ “License To Hunt”

The Internal Revenue Service, under the Biden administration, quietly armed itself with a new set of powers that are now being used to shakedown the very backbone of the American economy: small and family-owned businesses. Even with President Trump back in the White House, these overreaching and blatantly politicized enforcement regimes remain in operation. That’s unacceptable. They must be dismantled immediately.

At the center of this quiet assault is a disturbing creation: the IRS Pass-Through Unit. Ostensibly formed to crack down on tax evasion by wealthy individuals using partnerships and S-corporations, this unit has instead become a blunt political weapon. It operates under vague authority, without congressional approval, and is actively targeting law-abiding businesses across the country. Businesses now live in fear of retroactive rulings, arbitrary penalties and endless audits. And here’s the kicker: Apparently this unit is being led by the same person who was deeply involved in the Obama-era Tea Party targeting scandal—forced out, only to be brought back in under Biden’s watch, behind closed doors.

The IRS’ new Revenue Ruling 2024-14 weaponizes the “economic substance doctrine,” a vague and largely discretionary standard, to retroactively question legitimate business transactions. What does that mean in practice? It means the IRS now has the power to label routine, previously lawful decisions as suspicious—then penalize businesses accordingly. Compliance is no longer enough. Businesses can be found “non-compliant” simply because an IRS agent interprets their intentions differently. In short, tax certainty—once a bedrock principle of our system—is gone.

Let’s be clear, these efforts are politically motivated. They fly in the face of Executive Order 14219, which President Trump signed to eliminate unlawful rules and reduce burdens on the private sector. Yet these IRS initiatives continue undisturbed, functioning like the administrative state’s own version of a deep state rebellion—slow-walking Trump’s reforms, while punishing Main Street.

Just this month, the National Association of Manufacturers called for the complete dismantling of the IRS Pass-Through Unit, citing its dangerous and expansive interpretation of tax law. Senators Blackburn, Barrasso and Lankford have sounded the alarm in Congress. And leading economists like Steve Moore have rightly pointed out that this isn’t merely bureaucratic overreach—it’s a targeted campaign to hobble the very businesses that power America’s recovery.

We need immediate action. Treasury Secretary Scott Bessent must move swiftly to withdraw Revenue Ruling 2024-14 and disband the rogue IRS Pass-Through Unit. These Biden-era initiatives are undermining confidence in our tax system and are creating a climate of fear among job creators. This isn’t tax enforcement; it’s persecution.

President Trump ran on ending the weaponization of government. He has the mandate—and the obligation—to act now. Repeal the rules, end the unit and restore the rule of law and predictability in tax policy. The message must be clear: Under this administration the IRS will serve the people—not harass them.