Old Scandals Resurface
The IRS’s proposed action against Paz invokes allegations tied to the 2010–2012 controversy in which conservative organizations complained the agency unfairly delayed their applications for tax-exempt status. That scandal forced the resignation of senior IRS officials and became a lightning rod in Washington.
Yet a 2017 Treasury Inspector General report concluded the IRS had not acted with partisan bias. Paz maintains those issues were investigated and resolved long ago in her favor, making their revival now a weaponized tactic.
Seeking Relief in Court
Paz, who became permanent head of the Large Business and International Division in July 2023 after 18 years at the agency, argues the leaks have irreparably damaged her reputation and career. She contends the IRS has no legal grounds under the Privacy Act to share her records or employment status with media outlets or outside parties.
She is asking the court for declaratory relief, monetary damages, and a ruling that the government’s actions violated federal law.
“This is not the first time they’ve used private records to smear me,” Paz alleged in her filing, pointing to prior leaks of sensitive employment information.
Representatives of the IRS, Fox News, and Bloomberg did not immediately respond to requests for comment Thursday.
