Several Democratic lawmakers on Tuesday asked the Treasury Department’s inspector general to investigate the revolving door between the country’s largest accounting firms and key policy positions at the Treasury Department.
Senator Elizabeth Warren of Massachusetts and Representative Pramila Jayapal of Washington were promoted by an investigation published by The New York Times in September details how giant accounting firms embed top lawyers inside the government to draft tax rules that benefit their clients.
The Times found at least 35 examples where lawyers at the country’s biggest accounting firms had left to join government, mostly in the Treasury Department’s tax policy office, and later that goes back to their old company.
The Times found that while in government, many lawyers gave tax breaks to clients of their former firms, softening efforts to clamp down on tax evasion facilities and approved loopholes. their old companies. In nearly half of the examples, officials were promoted to partners upon rejoining their old firms.
This pattern has been repeated in both Democratic and Republican administrations, including the administrations of Donald J. Trump, Barack Obama, George W. Bush, and Bill Clinton.
Since October, two legislators gathered information from five accounting firms – PwC, EY, Deloitte, RSM and KPMG – detail this phenomenon.
“After our own investigation corroborated these allegations and raised new concerns about accounting giants exploiting these turnaround schemes, we urge you to immediately open an investigate this matter,” the two lawmakers wrote in their letterhas been sent to the Ministry of Treasury Acting Inspector General, Richard K. Delmarand its Inspector General of Tax Administration, J.Russell George.
“Accounting giants are abusing public trust and exploiting the revolving door between public service and private profit,” the lawmakers said in the letter.
Lawmakers revealed Feedback from companiesin which 24 such cases were recorded.
“But these revelations reveal only the tip of the iceberg,” the lawmakers wrote. “Neither the companies nor the Treasury Department provide meaningful information about the responsibilities of their employees and customers, either in companies or while in government.”
In their letter, they cite an episode uncovered by The Times about a Deloitte tax attorney who campaigned to undermine proposed Treasury rules to end a tax law. offshore tax strategies of different accounting firms. He then joined the Treasury and oversaw those very regulations – closely matching the changes he sought while in the private sector. He soon returned to Deloitte and was promoted to partner.
In their letter, the lawmakers asked the agency to investigate several areas, including the extent to which companies, “through employees located at the Treasury Department and the IRS, may have influence improperly influence departmental and agency policies, or may obtain information or influence that gives their clients a significant advantage. They also look for information about employees’ “rewards” after rejoining their former companies, as well as policies at the Treasury, IRS, and companies to prevent abuse.
https://www.nytimes.com/2022/02/22/us/politics/treasury-elizabeth-warren-accounting-firms.html The Treasury Department was asked to investigate hiring from accounting firms