The Justice Department’s Tax Division has faced a significant leadership void, with the position of tax assistant attorney general (AAG) remaining unfilled for most of the past decade. This vacancy hinders the division’s operations on multiple fronts, including overruling the IRS on federal tax code interpretations, managing civil tax trials and appeals, supervising hundreds of division lawyers, and directing the 93 U.S. Attorneys on handling criminal tax cases. The last AAG to have a substantial impact was Kathryn Keneally, who served from April 2012 to June 2014 and spearheaded efforts to stop Swiss banks from facilitating tax evasion (Forbes).
The lack of political leadership has broad implications. Career officials managing the division are highly competent, yet they lack the authority and political backing that presidential appointees bring. For instance, since the position has remained vacant, annual federal tax prosecutions have plummeted by 72% since 2013, indicating an erosion in tax law enforcement (Tax Notes). This decline can partly be attributed to the absence of a Senate-confirmed AAG who can prioritize and motivate enforcement efforts among prosecutors across the country.
The effects of the vacancy reverberate through the division’s internal and external operations. The Tax Division’s effectiveness, employee morale, and its interaction with the IRS, Congress, and the media are all adversely affected. This vacuum of leadership also deprives the division of opportunities to revise policies, celebrate achievements, and provide a clear vision for the future. As the division stands alone among major litigating components of the Justice Department without a presidentially appointed leader, the prestige and efficacy of the Tax Division continue to decline (Justice Department).
With the next administration and U.S. Senate, it becomes essential to prioritize filling the Tax AAG position to restore robust tax law enforcement and ensure a politically accountable leadership that aligns with broader tax administration goals (Bloomberg Tax).
Rod Rosenstein, a partner at King & Spalding, underscores the urgency of addressing this leadership vacuum. Rosenstein, who served as U.S. Deputy Attorney General from 2017 to 2019, emphasizes that a Senate-confirmed AAG is vital for the efficient and effective operation of the Tax Division.