A government watchdog group is demanding the removal of a senior Internal Revenue Service (IRS) official linked to the controversial Obama-era scandal in which the agency allegedly targeted conservative groups.
Holly Paz, a top deputy to former IRS Commissioner Lois Lerner, was recently promoted under the Biden administration to lead a critical division at the IRS. According to The Daily Caller, Paz now serves as commissioner of the Large Business and International Division—a position overseeing tax compliance for large corporations and high-wealth individuals.
IRS Scandal Resurfaces with Paz’s Promotion
Paz’s new leadership role has drawn sharp criticism from the American Accountability Foundation (AAF), a conservative watchdog group, which argues that her past involvement in the 2012 Tea Party scandal makes her unfit for the job. The Tea Party scandal erupted when conservative organizations seeking tax-exempt status were subjected to unfair delays and additional scrutiny, while progressive groups were reportedly not held to the same standard.
In a letter sent to Treasury Secretary Scott Bessent, AAF expressed strong opposition to Paz’s continued role in the IRS, highlighting her previous dismissal from the agency in 2013 after allegations of political bias surfaced.
“With allegations that the IRS maintains political bias and is still targeting conservatives, Paz cannot be allowed to maintain a role in the IRS,” the letter states.
Watchdog Group Demands Action from Trump Administration
AAF has vowed to continue investigating the IRS for partisan bias, calling on former President Donald Trump’s administration—should he return to office—to eliminate any anti-conservative sentiment within the agency.
“Taxpayers deserve to have faith in those that receive a government salary, and Paz has proved undeserving of the honor to serve the American public,” the group asserted.
Paz’s IRS division is responsible for tax administration of domestic and foreign businesses with U.S. tax reporting requirements and assets exceeding $10 million. It also oversees Global High Wealth and International Individual Compliance programs, making her role highly influential in financial regulations.
IRS Faces Another Crisis: Outdated Systems and Cost Overruns
Beyond the controversy surrounding Paz, the IRS is also under fire for massive delays and cost overruns in its efforts to modernize the agency’s aging technology infrastructure.
Sam Corcos, a technology adviser working for the Elon Musk-led Department of Government Efficiency (DOGE), recently exposed alarming inefficiencies in the agency’s IT systems. Speaking with Treasury Secretary Scott Bessent on Fox News’ Laura Ingraham Show, Corcos revealed that the IRS’s technology is more than 30 years behind schedule and $15 billion over budget—with no clear resolution in sight.
IRS Still Using Decades-Old Technology
Corcos described the IRS’s outdated infrastructure, which still relies on old mainframes running COBOL and Assembly—technology that most banks and financial institutions replaced decades ago.
“Typically, in industry, this takes a few years and maybe a few hundred million dollars. We’re now 35 years into this… It was supposed to be delivered in 1996,” he stated.
“A huge part of our government is collecting taxes, yet we are dependent on outdated systems and contractors charging excessive fees. We need a solution before it spirals further out of control.”
Government Contractors Blamed for Costly Delays
Treasury Secretary Scott Bessent echoed Corcos’ concerns, pointing fingers at IRS contractors for the ongoing failures.
“Many IRS employees are fantastic, but the consultant groups are a major issue,” Bessent explained. “They operate like a boa constrictor, squeezing billions of dollars out of taxpayers while dragging out the modernization process indefinitely.”
The IRS’s failure to upgrade its technology has raised serious concerns about data security, taxpayer privacy, and the agency’s ability to efficiently process tax filings.
Calls for Reform Grow Louder
With the resurfacing of the Tea Party scandal, Holly Paz’s controversial appointment, and the IRS’s ongoing technology crisis, the agency is facing mounting scrutiny. Watchdog groups and conservative leaders are urging immediate action to restore public trust and prevent further misuse of government power.
As calls for reform intensify, the IRS will likely remain a central focus in upcoming political battles, with Republicans pushing for stronger oversight and Democrats defending the agency’s leadership.