COMMITTEE ON WAYS AND MEANS, UNITED STATES HOUSE OF REPRESENTATIVES v. UNITED STATES DEPARTMENT OF THE TREASURY et al

Filing 1

COMPLAINT against CHARLES P. RETTIG, INTERNAL REVENUE SERVICE, STEVEN T. MNUCHIN, UNITED STATES DEPARTMENT OF THE TREASURY (Fee Status:Filing Fee Waived) filed by COMMITTEE ON WAYS AND MEANS, UNITED STATES HOUSE OF REPRESENTATIVES. (Attachments: #1 Exhibit A, #2 Exhibit B, #3 Exhibit C, #4 Exhibit D, #5 Exhibit E, #6 Exhibit F, #7 Exhibit G, #8 Exhibit H, #9 Exhibit I, #10 Exhibit J, #11 Exhibit K, #12 Exhibit L, #13 Exhibit M, #14 Exhibit N, #15 Exhibit O, #16 Exhibit P, #17 Civil Cover Sheet, #18 Summons, #19 Summons, #20 Summons, #21 Summons, #22 Summons, #23 Summons)(Letter, Douglas)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
COMMITTEE ON WAYS AND MEANS,
UNITED STATES HOUSE OF REPRESENTATIVES,
1102 Longworth House Office Building
Washington, D.C. 20515,
Plaintiff,
Case No. 1:19-cv-1974

v.
UNITED STATES DEPARTMENT OF
THE TREASURY,
1500 Pennsylvania Avenue N.W.
Washington, D.C. 20220, et al.,
Defendants.

Exhibit L

RI CHARD E. NEAL,
MASSACHUSETIS,
CHAIRMAN
JOHN LEWIS, GEORGIA
LLOYD DOGGETT, TEXAS
MIKE THOMPSON, CALIFORN IA
JOHN 8. LARSON, CONN ECTICUT
EARL BLUMEN AUER. OREGON
RON KIND, WISCONSIN
BILL PASCRELL JR., NEW JERSEY
DANN Y K. DAVIS, ILLIN OIS
LINDA T. SANCHEZ, CALIFORN IA
BRIAN HIGGINS, NEW YORK
TERR I A. SEWELL, ALABAMA
SUZAN DE LBENE, WASHINGTON
JUDY CHU, CALIFORNIA
GWEN MOORE, WISCONSIN
DAN KI LDE E, MICHIGA N
BREN DAN BOYLE , PENNSYLVAN IA
DON BEYEA, VIRGINIA
DWIGHT EVANS. PEN NSYLVANIA
BRAD SCHNEIDER, ILLINOIS
TOM SUOZZI, NEW YORK
JIMMY PANETTA , CALIFORNIA
STEPHANIE MURPHY, FLORIDA
JIMMY GOMEZ, CALIFORNIA
STEVEN HOR SFORD, NEVADA

Qeongregg of tbe Wniteb ~tateg
m.~. J!,ouse of l\epresentatibes
COMMITIEE ON WAYS AND MEANS
1102

LONGWORTH HOUSE OFFICE BUILDING

[phone]

wmtn.sbington, 11)(( 20515-0348
http://waysandmeans.house.g ov

KEVIN BRADY,
TEXAS,
RANKING MEMBER
DEVIN NUNES, CALIFORNIA
VERN BUCHANAN, FLORIDA
ADRIAN SM ITH, NEBRASKA
KENNY MARCHANT, TEXAS
TOM REED, NEW YORK
M IKE KELLY, PENNSYLVANIA
GEORGE HOLDING, NORTH CAROLINA
JASON SMITH, MISSOURI
TOM RICE, SOUTH CAROLINA
DAVID SCHWEIKERT, A RIZONA
JACKIE WALORSKI, IN DIANA
DARIN LAHOOD, ILLINOIS
BRAD R. WENSTRUP, OHIO
JODEY ARRINGTON, TEXAS
DREW FERGUSON, GEORGIA
RON ESTES. KANSAS
GARY ANDRES,
MINORITY STAFF DIRECTOR

May 10, 2019

BRAN DON CASEY,
MAJORITY STAFF DIRECTOR

The Honorable Charles P. Rettig
Commissioner
Internal Revenue Service
1111 Constitution Avenue, NW
Washington, D.C. 20224

The Honorable Steven T. Mnuchin
Secretary
Department of the Treasury
1500 Pennsylvania A venue, NW
Washington, D.C. 20220

Dear Commissioner Rettig and Secretary Mnuchin,
To date, the Internal Revenue Service ("IRS") has failed to provide the return and return
information requested by my April 3, 2019 letter, despite an unambiguous legal obligation to do
so. Such information originally was due by April 10, 2019. In a letter dated April 23, 2019, I was
notified that the Department of the Treasury ("Treasury") was consulting with the Department of
Justice ("Justice") in connection with this request. The letter advised that Treasury, and not the
IRS, expected to provide the Committee on Ways and Means (" Committee") a final decision by
May 6, 2019, after it had received Justice' s legal guidance. On May 6, relying on advice from
Justice, Treasury notified me by letter of its determination that it is not authorized to disclose the
requested tax returns and return information because the Committee' s request "lacks a legitimate
legislative purpose."
As stated in my prior correspondence, the IRS is under a mandatory obligation to provide
the information requested under section 6103(f)(l) of the Internal Revenue Code, which states that
"[u]pon written request from the chairman of the Committee on Ways and Means of the House of
Representatives, the chairman of the Committee on Finance of the Senate, or the chairman of the
Joint Committee on Taxation, the Secretary shall furnish such committee with any return or return
information specified in such request" (emphasis added). Section 6103 has long been regarded as
clear and unambiguous. Compliance is not discretionary under any circumstance, even if the
taxpayer is under audit. The Conu11ittee never has been denied a request made under section
6103(f). Although the Committee is not required to provide a reason for requests under section
6103(f), I am responding to your letters out of respect for the IRS, Treasury, and their responsibility
to fairly and impartially administer the Federal tax laws.

The Committee Has a Legitimate Legislative Purpose
The April 23 letter alleges that the Committee' s asserted purpose is a pretext, but this claim
is false. As stated in my April 3 letter, the Committee requested the return and return information

Commissioner Rettig
Secretary Mnuchin
May JO, 2019
Page 2

because it is considering legislative proposals and conducting oversight related to our Federal tax
laws, including, but not limited to, the extent to which the IRS audits and enforces the Federal tax
laws against a President. Earlier this Congress, compliance and disclosure related to the Federal
tax returns of the President and Vice President were included in the scope of a Committee hearing.
As you know, the mandatory examination of the President and Vice President is set forth in the
Internal Revenue Manual (" IRM") but is not codified. Legislation may therefore be necessary. It
cannot be denied that legislation related to IRS examination and enforcement is within the
Committee's jurisdiction, and the Committee has a responsibility to inform itself in the course of
legislating.
The President is the most powerful public official in this country. No other single
American has the power to sign bills into law and direct an entire branch of government. The
Committee believes this fact calls for concordant scrutiny into the President's ability to influence,
even indirectly, the administration of the Federal tax laws. The purpose underlying inclusion of
the mandatory audit in the IRM was so that no IRS employee would have to make the decision to
audit a sitting President. 1 However, there is more to an audit than just the decision to initiate it.
Among other considerations, the Committee wants to be sure that IRS employees who determine
the scope of the President's audit, or who determine whether to continue previously-initiated
audits, are protected in the course of their work.
As the Supreme Court has stated: "A legislative body cannot legislate wisely or effectively
in the absence of information respecting the conditions which the legislation is intended to affect
or change; and where the legislative body does not itself possess the requisite information-which
not infrequently is true-recourse must be had to others who do possess it." 2 With respect to the
Committee' s consideration of legislative proposals concerning mandatory examination, the
President's tax returns and return information are necessary to guide that legislative action.
Treasury takes issue with the fact that the Committee seeks tax inforn1ation related to only
the current President. This concern is misplaced and ignores the fact that the tax issues raised by
the current President are unique. The President has stated repeatedly that his returns are under
routine audit,3 and, in 2016, his tax attorneys reported that his returns have been under continuous
examination since 2002 and involve transactions and activities reported on returns in 2008 and
earlier. 4 The continuous audit and activities from 2008 and before, the use by the President of a
granter trust controlling hundreds of businesses, and the volume of his tax returns5 make this
President markedly different from previous Presidents or Vice Presidents examined under the
IRS's mandatory audit procedures.

1
JCX-3-19, Background Regarding the Confidentiality and Disclosure of Federal Tax Returns (Feb. 4, 2019), at 21
(quoting IRS spokesperson).
2 McGrain v. Daugherty, 273 U.S. 135, 175 ( 1927).
3
See, e. g., Donald J. Trump (@realDonaldTrump), Twitter (May 11 , 2016, 1:51 PM),
https://twitter.com/real DonaldTrump/status/730500562022760448 .
4
Letter from Sheri A. Dillon and William F. Nelson to Mr. Donald J. Trump, Re: Status of U.S. federal income tax
returns (Mar. 7, 2016).
5 See, e.g. , Donald J. Trump (@realDonaldTrump), Twitter (Oct. 15, 2015, 10:13 AM),
https://twitter.com/ realDonaldTrump/status/654706635663773696.

Commissioner Rettig
Secretary Mnuchin
May 10,2019
Page 3

Case Law Supports the Committee

The April 23 letter relies heavily on a single quotation from Watkins v. United States about
exposure "for the sake of exposure."6 In Watkins, the facts at hand and the nature of the
investigation were wholly different from the Committee' s current oversight efforts. The
Committee' s eff01is to understand the IRS ' s mandatory audit of the President, the head of the
Executive Branch, bear no similarity to the House Un-American Activities Committee's efforts to
uncover members of the Communist Party. Moreover, the Court' s objection in Watkins was that
the witness was not informed adequately of the scope of the Committee's investigation, a defect
that certainly cannot be claimed here. In this instance, the Committee clearly has defined the scope
of its investigation, and your letters evidence that you are fully aware of and have spent much time
pondering the Committee's legislative purpose.
Furthermore, selectively quoting from Watkins does not erase the remainder of the Court's
opinion. Importantly, the Court lays out the IRS ' s obligation here: " It is unquestionably the duty
of all citizens to cooperate with the Congress in its efforts to obtain the facts needed for intelligent
legislative action. It is their unremitting obligation ... to respect the dignity of the Congress and
its committees." 7 Watkins also undermines Treasury' s efforts to second-guess why the Committee
requested certain tax returns instead of others: "The legislature is free to determine the kinds of
data that should be collected." 8 Clearly, the Supreme Court agrees that Congress is in the best
position to determine what information it requires to perform its own legislative work.
In closing, I appreciate Treasury' s offer for a briefing. A briefing, however, is not a
substitute for the requested tax returns and return information. In total, the IRS has had more than
four weeks to comply with the Committee's straightforward request. Therefore, please see the
enclosed subpoena. The return date is May 17, 2019. Thank you for your prompt attention to this
matter.
Sincerely,

The Honorable Richard E. N€al, Chairm
Committee on Ways and Means

Enclosure

6

354 U.S. 178, 200 (1957).
/d.atl87.
8
Id. at 215.
7

SUBPOENA
BY AUTHORITY OF THE HOUSE OF REPRESENTATIVES OF THE
CONGRESS OF THE UNITED STATES OF AMERICA
The Honorable Charles Rettig, Commissioner
To Internal Revenue Service
You are hereby commanded to be and appear before the
Committee on Ways and Means

of the House of Representatives of the United States at the place, date, and time specified below.

0

to produce the things identified on the attached schedule touching matters of inquiry committed to said
committee or subcommittee; and you are not to depart without leave of said committee or subcommittee.
Place of production: 1102 Longworth House Office Building, Washington, D.C. 20515
Date: May 17, 2019

D

Time: 5:00 p.m.

to testify at a deposition touching matters of inquiry committed to said committee or subcommittee;
and you are not to depart without leave of said committee or subcommittee.
Place of testimony:
Date:

Time:

I

D

----------

to testify at a hearing touching matters of inquiry committed to said committee or subcommittee; and
you are not to depart without leave of said committee or subcommittee.
Place of testimony:
Date:

---------

Time:

----------

To examiners or agents designated by Chairman Richard Neal
to serve and make return.
Witness my hand and the seal of the House of Representatives of the United'States, at

the city of Washington, D.C. this 1~

~

,

ttt--;f;!

Chairman or Authorized Member

Schedule A
In accordance with the attached instructions, you are required to produce, for each of the
tax years 2013 through 2018, the following return and return information:
1. The Federal individual income tax returns of Donald J. Trump.

2. All administrative files (workpapers, affidavits, etc.) for each requested Federal
individual income tax return of Donald J. Trump.
3. The Federal income tax returns of the following entities:
•
•
•
•
•
•
•
•

The Donald J. Trump Revocable Trust;
DJT Holdings LLC;
DJT Holdings Managing Member LLC;
DTTM Operations LLC;
DTTM Operations Managing Member Corp;
LFB Acquisition Member Corp;
LFB Acquisition LLC; and
Lamington Farm Club, LLC d/b/a Trump National Golf Club- Bedminster.

4. All administrative files (workpapers, affidavits, etc.) for each requested Federal
income tax return of each entity listed above.

Schedule B (Instructions)
1. In complying with this subpoena, you are required to produce all responsive documents
that are in your possession, custody, or control, whether held by you or your past or
present agents, employees, and representatives acting on your behalf.
2. Subpoenaed documents, and all documents reasonably related to the subpoenaed
documents, should not be destroyed, altered, removed, transferred, or otherwise made
inaccessible to the Committee on Ways and Means ("Committee").
3. In the event that any entity, organization, or individual denoted in this subpoena is or has
been known by any name other than that herein denoted, the subpoena shall be read also
to include that alternative identification.
4. All documents shall be Bates-stamped sequentially and produced sequentially.
5. Documents produced in electronic format should be organized, identified, and indexed
electronically. The Committee's preference is to receive any electronic documents in
Portable Document Format (PDF).
6. Documents produced in response to this subpoena should include an index describing the
contents of the production. To the extent more than one CD, hard drive, memory stick,
thumb drive, zip file, box, or folder is produced, each should contain an index describing
its contents.
7. Documents produced in response to this subpoena shall be produced together with copies
of file labels, dividers, or identifying markers with which they were associated when the
subpoena was served.
8. When you produce documents, you should identify the paragraph(s) in the subpoena
schedule to which the documents respond.
9. The pendency of or potential for litigation shall not be a basis to withhold any
information.
10. In accordance with 5 U.S.C. § 552(d), the Freedom of Information Act ("FOIA") and any
statutory exemptions to FOIA shall not be a basis for withholding any infonnation.
11. Pursuant to 5 U.S.C. § 552a(b)(9), the Privacy Act shall not be a basis for withholding
information.
12. If compliance with the subpoena cannot be made in full by the specified due date,
compliance shall be made to the extent possible by that date. An explanation of why full
compliance is not possible shall be provided along with any partial production.

13. In the event that a document is withheld in full or in part on a claim of privilege, provide
a privilege log containing the following information concerning any such document: (a)
every privilege asserted; (b) the type of document; (c) the general subject matter; (d) the
date, author, addressee, and any other recipient(s); (e) the relationship of the author and
addressee to each other; and (f) the basis for the privilege(s) asserted. If a claimed
privilege applies to only a portion of any document, that portion only should be withheld
and the remainder of the document should be produced. As used herein, "claim of
privilege" includes, but is not limited to, any claim that a document either may or must be
withheld from production pursuant to any statute, rule, or regulation.
14. In complying with the subpoena, be apprised that (unless otherwise determined by the
Committee) the Committee does not recognize: any purported non-disclosure privileges
associated with the common law including, but not limited to, the deliberative-process
privilege, the attorney-client privilege, and attorney work product protections; any
purported privileges or protections from disclosure under FOIA or the Privacy Act; or
any purported contractual privileges, such as non-disclosure agreements.
15. Any assertion by a subpoena recipient of any such non-constitutional legal bases for
withholding documents or other materials shall be of no legal force and effect and shall
not provide a justification for such withholding or refusal, unless and only to the extent
that the Committee (or the chair of the Committee, if authorized) has consented to
recognize the assertion as valid.
16. If any document responsive to this subpoena was, but no longer is, in your possession,
custody, or control, identify the document (by date, author, subject, and recipients), and
explain the circumstances under which the document ceased to be in your possession,
custody, or control.
17. If a date or other descriptive detail set forth in this subpoena referring to a document is
inaccurate, but the actual date or other descriptive detail is known to you or is otherwise
apparent from the context of the subpoena, produce all documents that would be
responsive as if the date or other descriptive detail were correct.

18. This subpoena is continuing in nature and applies to any new information. Any record,
document, compilation of data, or information not produced because it has not been
located or discovered by the due date shall be produced i1mnediately upon subsequent
location or discovery.
19. Upon completion of the production, submit a written certification, signed by you or your

counsel, stating that: ( 1) a diligent search has been completed of all documents in your
possession, custody, or control that reasonably could contain responsive documents; and
(2) all documents located during the search that are responsive have been produced to the
Committee.

Schedule C (Definitions)
1. The term "return" shall have the meaning given to it in 26 U.S.C. § 6103(b)(l).

2. The term "return information" shall have the meaning given to it in 26 U.S.C.
§ 6103(b)(2).
3. The term "individual income tax return" shall have the meaning given to it in 26 U.S.C.
§ 60I l(e)(3)(C).