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IRS whistleblowers seek judge to dismiss Hunter Biden lawsuit against the tax agency

Ponca Post Team by Ponca Post Team
May 18, 2024
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Two IRS employees, who were given whistleblower protections to express their concerns regarding the government’s alleged mishandling of the investigation into Hunter Biden, have requested a federal judge to dismiss a civil lawsuit filed by the president’s son against the federal tax agency.

Gary Shapley and Joseph Ziegler, the whistleblowers, have requested to intervene in the matter. They argue that the IRS faces a conflict of interest when attempting to defend their decision to publicly speak out and inform Congress about their experiences investigating the president’s son.

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According to arguments filed with a federal judge on Friday, the lawyers representing the two agents stated that the Whistleblower Protection Act granted them the right to communicate with the media about the information they believed involved gross mismanagement and an abuse of authority. Specifically, they mentioned the mishandling of the Hunter Biden case.

Hunter Biden filed a civil case against the IRS in September, accusing Shapley and Ziegler of being involved in a campaign to publicly tarnish his image by disclosing confidential taxpayer information. However, Shapley and Ziegler are not directly named as defendants in the lawsuit.

The lawsuit claims that IRS agents deliberately singled out Mr. Biden and attempted to publicly embarrass him by disclosing private information about his tax matters.

The case is still in its early stages, and Shapley and Ziegler have not been given a clear opportunity to defend their decision to speak publicly, including on CBS News, regarding their observations during the ongoing criminal tax investigation involving Hunter Biden. The trial for this criminal case is set to start in June. Instead, it is the responsibility of the IRS to justify the whistleblowers’ choice to publicly disclose their information.

Two veteran IRS agents have filed separate motions on Friday, advocating for their participation in the case to defend their actions. They also argue for the dismissal of the case.

According to one motion, Shapley and Ziegler have a strong personal stake in the outcome of this action. Their careers, reputations, and protection against negative consequences are all at risk.

They argue for dismissal, claiming that they took precautions to avoid revealing any confidential taxpayer information. Furthermore, they assert that when discussing Hunter Biden’s information, they did so in a manner that is protected by Congress and whistleblower statutes.

The Department of Justice was approached for comment on the filings made on Friday, but declined to provide any response. As of now, neither the IRS nor Hunter Biden’s legal team has submitted any formal reply to the requests presented by the two agents. The final decision on their intervention will rest with U.S. District Court Judge Rudolph Contreras, once Biden and the IRS have addressed the requests.

In an interview with CBS News last year, Shapley raised concerns about the alleged preferential treatment in the investigation of the president’s son. According to Shapley, during the Trump administration, he faced repeated obstacles that hindered his ability to carry out routine steps in the IRS investigation, which he would have otherwise taken in similar cases.

“As a special agent for IRS Criminal Investigation, it is crucial for us to ensure that we treat every individual with equal fairness,” expressed Shapley, an experienced veteran with 14 years of service at the agency, during an interview with CBS News. “Unfortunately, that was not the case in this particular situation.”

The Justice Department has refuted any claims of Hunter Biden receiving preferential treatment.

Hunter Biden’s legal team has yet to provide a response to the request for comment.

Confidentiality laws strictly govern how IRS employees must handle taxpayer information. When Shapley and his attorneys were interviewed by CBS News in May, they emphasized their cautious approach to discussing the matter publicly.

The Biden lawsuit against the IRS refers to particular statements made by Shapley and an attorney. It argues that Shapley and attorney Mark Lytle, although not mentioned in the lawsuit, publicly revealed the investigation’s existence without Hunter Biden’s consent during interviews on April 19 and May 24. Additionally, the lawsuit alleges that Shapley disclosed confidential information about Hunter Biden’s taxes and finances during a June 28 CBS News interview. The whistleblowers, however, contest both of these claims.

In recent filings, the IRS attorneys contended that a specific section of the case should be dismissed. Their argument hinged on the assertion that private citizens, acting on behalf of IRS agents, are not protected by the tax privacy provisions. Furthermore, they maintained that disclosures can be made if an IRS agent has reason to believe that the disclosed return or return information may be connected to potential misconduct, maladministration, or taxpayer abuse.

In their filed motions on Friday, the two agents express their dissatisfaction with the IRS’s approach to the lawsuit. Rather than seeking a complete dismissal, the IRS has chosen to dismiss the claims based on the alleged disclosures made by individuals who are not employed by the IRS, including Shapley’s attorney. The agents argue that since the IRS is the subject of the whistleblower complaints, it is not in a position to defend the actions of the agents.

In their statement, they emphasize the evident conflicts of interest.

Hunter Biden is seeking $1,000 for every instance of unauthorized disclosure in his lawsuit, along with unspecified punitive damages.

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