The head of the Justice Department’s Tax Division has departed for private practice, just as the planned dismantling of the Tax Division was set to take place. Karen Kelly, who served as acting deputy assistant attorney general of the Tax Division, departs after serving nearly 30 years as a Justice Department attorney.
As we reported, Justice officials announced earlier this summer that the Tax Division would be eliminated and its attorneys relocated to other existing divisions within the department. In existence for more than 90 years, the Tax Division is one of the main operating divisions within the Justice Department and has primary responsibility for criminal and civil tax litigation in federal district courts across the nation.
According to Tax Notes, reorganization of the Tax Division was set to take place on August 9, the day after Kelly’s departure, but has been delayed until later this month. Angelo Frattarelli, head of civil tax for the southern enforcement section, is said to be the next acting head of the Tax Division, until it is dismantled.
Kelly’s decision to leave the Tax Division follows several high profile departures of Tax Division leadership officials earlier this year, and comes as the Internal Revenue Service itself faces unprecedented turmoil at the top, with the tax agency having no fewer than 7 leaders since January. Significant leadership turnover at these two federal agencies tasked with tax enforcement will undoubtedly have a detrimental impact on tax administration and enforcement, particularly with both agencies facing significant workforce reductions as well.
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