A group of Democratic senators, led by Oregon's Ron Wyden, are urging Scott Bessent, President Trump’s nominee for Treasury Secretary, to undergo an IRS audit and disclose his tax records before the Senate Finance Committee votes on his confirmation. In a letter sent Monday, Senators Wyden, Elizabeth Warren, and Sheldon Whitehouse raised concerns based on a confidential memo prepared by Finance Committee staff. This document highlighted potential discrepancies in Bessent's tax filings over the past three years, particularly regarding self-employment taxes and certain deductions. The committee is set to vote on Bessent's nomination on Tuesday, and these requests aim to ensure transparency and credibility as he prepares for this significant role.
The Democratic senators have expressed serious reservations about Bessent's tax practices. According to the confidential memo, Bessent allegedly avoided over $900,000 in Medicare taxes through his hedge fund, Key Square Group. The memo argues that despite being actively involved in the fund, Bessent claimed he was not liable for certain taxes due to his status as a limited partner under state law. This stance contrasts with recent Treasury Department interpretations of tax liability for limited partners. Additionally, the memo questions deductions Bessent took for losses from All Seasons Press, a conservative publishing house he owns. These issues raise doubts about his adherence to tax laws and his suitability for a high-ranking government position.
Bessent has defended himself against these allegations. During his confirmation hearing last week, he stated that the matter was subject to litigation and disputed the figures cited in the memo, asserting that the actual amount in question was lower. He promised to wind down his hedge fund if confirmed and set aside the disputed sum, paying it if required by court order. Despite these assurances, Democrats remain concerned and have requested that Bessent recuse himself from any Treasury discussions related to the identified tax issues. They also urged him to support IRS enforcement efforts targeting complex partnerships, large corporations, and wealthy individuals.
As the Senate Finance Committee prepares to vote on Bessent's nomination, the letter from Wyden, Warren, and Whitehouse underscores the importance of addressing these tax-related concerns. By requesting Bessent to commit to their demands in writing ahead of the vote, the senators aim to ensure that the nominee can serve effectively and credibly in his potential new role. The outcome of this request could influence the speed and smoothness of the confirmation process.