Cameron Miranda
While presidential candidates are not required by law to release their tax returns to the public, federal law requires them to hand tax releases to Congress in some instances. Individual income tax returns are private information, protected by law from unauthorized disclosure. However, the Ways and Means Committee may obtain, inspect, and disclose the confidential tax information of any taxpayer without their consent. In 2021, the U.S. House of Representatives passed legislation as part of the For the People Act of 2021 that would require Presidents, Vice Presidents, and nominees to publicly disclose several years of their tax returns.
| Characteristics | Values |
|---|---|
| Are presidents legally required to release their tax returns? | No, but federal law requires them to hand tax releases to Congress in some instances. |
| What does federal law say about Congress accessing tax returns? | Federal law authorizes Congress to look at anyone's tax returns "when sitting in closed executive session". |
| Can Congress make a written request for the president's tax returns? | Yes, and the Treasury Secretary must provide them. |
| Do presidential candidates release their tax returns? | They are not required by law to release them to the public, but almost all presidential and vice-presidential candidates have released portions of their tax returns to the public over the last few decades. |
| Can state legislatures require candidates to release tax returns? | Yes, California and New York have passed such laws. |
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What You'll Learn
- While there is no law requiring presidents to publish their tax returns, federal law authorises Congress to view them
- Congress can request presidential tax records without violating separation of powers
- Presidential candidates might use their tax records to garner political support
- Donald Trump was the first major presidential candidate not to release his tax returns
- Trump's tax returns were obtained by the House Ways and Means Committee, which subsequently released six years' worth
While there is no law requiring presidents to publish their tax returns, federal law authorises Congress to view them
While presidential candidates are not required by law to release their tax returns, federal law requires them to hand over tax releases to Congress in some instances. Individual income tax returns are private information protected by law from unauthorized disclosure. The Internal Revenue Service (IRS) is barred from releasing any taxpayer information except to authorized agencies and individuals. However, federal law authorises Congress to view tax returns.
According to federal tax law, if the House Ways and Means Committee chairman files a written request for the president's tax returns, the Treasury Secretary must provide them. The Ways and Means Committee may obtain, inspect, and even disclose the confidential tax information of any taxpayer, even without that taxpayer's consent. The Senate Finance Committee and the Joint Committee on Taxation have identical authority under section 6103(f)(1) and (4)(A) of the Internal Revenue Code.
In 2019, the U.S. House Oversight Committee subpoenaed Mazars for tax and other records related to an investigation into then-President Trump's conduct. Trump was the first major presidential candidate not to release his tax returns, breaking a 30-year streak. Trump's refusal set up a massive legal fight between Congress and the White House. In 2021, the Manhattan district attorney obtained several years of Trump's tax information, and in late 2022, the U.S. House Ways and Means Committee obtained and released six years of his returns.
In March 2021, the U.S. House of Representatives passed legislation as part of the For the People Act of 2021 that would require Presidents, Vice Presidents, and nominees to publicly disclose several years of their tax returns through the Federal Election Commission. Proponents of these measures argue that public disclosure of tax returns could expose conflicts of interest, reveal the President's and candidates' annual tax liability and tax rates, and enable the public to observe whether the President or candidates have engaged in tax evasion or tax avoidance.
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Congress can request presidential tax records without violating separation of powers
There is no law requiring the President of the United States to publicly disclose their tax returns. However, Congress can request presidential tax records without violating the separation of powers.
Congress has broad investigative powers and can subpoena almost any information in pursuit of its investigation function. Investigations must be related to possible legislation, meaning they must be related to a subject about which Congress has the power to pass a law. While investigations have been challenged and, in some rare cases, courts have ruled that Congress cannot enforce subpoenas on a particular subject, Congress's investigative powers are generally quite extensive.
Congress has the authority to request and obtain tax information from any filer, including the president, under the plain language of the tax code. The House Ways and Means Committee, in particular, has the power to request tax returns from the Treasury Department for review in closed session under the Revenue Act of 1924. The Supreme Court has also recognized Congress's power to compel testimony so that it can do its job of informed legislating.
In the case of President Donald Trump's tax returns, Congress's request was upheld by the U.S. District Court for the District of Columbia, which ruled that the subpoena for Trump's tax records was well within Congress's investigative powers and did not violate the separation of powers. The U.S. Court of Appeals for the District of Columbia also ruled against Trump, upholding the lower court's decision and stating that the House Oversight Committee had the authority to issue the subpoena for Trump's tax returns.
While some argue that Congress should not have the power to scrutinize tax returns at will, others believe that public disclosure of tax returns could expose conflicts of interest, reveal tax liability and rates, and enable the public to observe whether the President has engaged in tax evasion or tax avoidance.
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Presidential candidates might use their tax records to garner political support
While there is no legal requirement for presidential candidates to release their tax returns to the public, doing so can be used to garner political support. Tax records can be used to make claims about a candidate's tax policies and demonstrate that they are "walking the walk" when it comes to their tax plans. This strategy can be a way to show transparency and build trust with voters.
Since the 1970s, most presidents and some vice presidents have chosen to release their tax returns publicly. This trend began with Richard Nixon, who released his tax statements after they were leaked by the IRS. Nixon's documents revealed that he had paid less than $800 in taxes in 1970, despite earning $200,000 that year. This disclosure was not a voluntary act of transparency but rather a form of damage control.
Despite the lack of a legal mandate, almost all presidential and vice-presidential candidates in recent decades have released at least portions of their tax returns. This partial disclosure allows candidates to maintain a degree of privacy while still providing pertinent information to the public.
Some argue that tax returns should be made public to enhance accountability and enable oversight. Proponents of mandatory disclosure claim that it could expose conflicts of interest, reveal tax liability and rates, and allow the public to observe whether candidates have engaged in tax evasion or avoidance. Additionally, tax records can shed light on a candidate's charitable donations, deductions, credits claimed, debts, and offshore assets.
On the other hand, critics argue that tax returns are private information and that mandatory disclosure could increase the risk of identity theft. They assert that financial information should be kept confidential and that releasing tax returns is a political choice, not a legal requirement.
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Donald Trump was the first major presidential candidate not to release his tax returns
There is no law stating that a president must show their tax returns. However, Donald Trump was the first major presidential candidate not to release his tax returns. Trump broke with the tradition that began in the 1970s when Richard Nixon released his tax returns to show voters that he paid taxes. Since then, every major presidential candidate and sitting president except Trump has made their tax information public.
In 2012, Trump sought to have Republican presidential candidate Mitt Romney's tax returns released, stating that not seeing a presidential candidate's tax returns would lead people to think there was "something wrong". Trump's former political adviser, Sam Nunberg, said that by 2014, he had persuaded Trump to withhold his tax returns, as he wanted to "look rich rather than smart". Trump had also stated that he tries very hard to pay as little tax as possible.
In 2016, Trump was asked if he would release his tax returns, to which he replied: "we'll be working that over in the next period of time". After being elected president, Trump refused to release his tax returns, despite promising to do so during his campaign. Trump repeatedly and falsely claimed that he could not release the returns while they were under audit by the Internal Revenue Service (IRS). However, the House Ways and Means Committee found that Trump's returns were not under audit until years later, in 2019.
In 2021, the Manhattan district attorney obtained several years of Trump's tax information, and in late 2022, the House Ways and Means Committee obtained and released six years of his returns. Trump's refusal to release his tax returns has been criticised as it may have hidden potential conflicts of interest, tax evasion, and other tax avoidance strategies.
Some people argue that presidential candidates should be required to release their tax returns to increase transparency and accountability. They believe that financial information should be made available to the public to evaluate tax compliance and understand how a candidate's personal finances may influence their decisions in office. However, others argue that tax returns are private information and that releasing them could increase the risk of identity theft.
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Trump's tax returns were obtained by the House Ways and Means Committee, which subsequently released six years' worth
While there is no law requiring US presidents to disclose their tax information to the public, most presidents have chosen to do so since the 1970s. In 2021, the Manhattan district attorney obtained several years of Trump's tax information, and in late 2022, the House Ways and Means Committee obtained and released six years of his tax returns, from 2015 to 2020. This move ended years of legal battles and speculation, as Trump had refused to release his tax returns, even suing the state and the House Ways and Means Committee to block their release.
The House Ways and Means Committee has the authority to obtain, inspect, and disclose the tax information of any taxpayer without their consent, as outlined in section 6103(f)(1) and (4)(A) of the Internal Revenue Code. The committee's request for Trump's tax returns was initially denied by the Treasury Secretary, who argued that the House lacked a "legitimate legislative purpose" for the request. However, the committee sued and ultimately obtained the returns in November 2022.
The release of Trump's tax returns revealed that he paid relatively little in federal taxes in the years before and during his presidency. According to the committee, the IRS failed to audit Trump's taxes during the first two years of his presidency, and the only audit conducted during his tenure was never completed. Trump has accused the committee of seeking his taxes under false pretenses, claiming that the probe is politically motivated.
The public disclosure of tax returns is a contentious issue. While some argue that it could expose conflicts of interest and enable the public to observe whether the President has engaged in tax evasion, others believe it is an invasion of privacy and that financial information should be classified.
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Frequently asked questions
No, there is no law requiring presidents to publish their tax returns.
Yes, Donald Trump was the first major presidential candidate not to release his tax returns, breaking an over 30-year streak.
Trump repeatedly and falsely claimed that he could not release his taxes while they were under audit by the Internal Revenue Service (IRS).
Yes, federal law requires presidents to hand tax returns to Congress in some instances. Under federal law, Rep. Richard Neal or Sen. Chuck Grassley, chair of the Senate Finance Committee, can make a written request for the president's tax returns.
Yes, the Ways and Means Committee may obtain, inspect, and disclose the confidential tax information of any taxpayer, even without that taxpayer's consent. However, the Internal Revenue Service is barred from releasing any taxpayer information except to authorized agencies and individuals. Congress must also abide by the same rules on tax returns as the president.
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