It has been confirmed that a top aide linked to the IRS’s scandal involving the targeting of conservative groups has been fired. Holly Paz, who served as the IRS Commissioner of Large Business and International Division, was terminated on Monday, according to sources. Paz, a former deputy to Lois Lerner, had been on administrative leave since last month, with her dismissal following an internal review.
The firing of Paz brings renewed attention to the 2013 scandal, where the IRS was found to have wrongfully scrutinized applications from groups with terms like “Tea Party,” “9/12,” and “Constitution” in their names. A Treasury inspector general’s report at the time confirmed that “inappropriate criteria” were used, and criticized the lack of oversight. Paz was a key figure in this process, described as a link between the IRS office in Cincinnati, where the initial screenings occurred, and the agency’s headquarters.
According to Fox News, she reviewed and helped oversee the handling of these tax-exempt applications. The dismissal of Paz comes amid scrutiny over a new work unit she was assigned to lead, which was created to audit pass-through businesses. This unit was part of a larger effort by the current IRS Commissioner, Danny Werfel, to “hold the nation’s wealthiest filers accountable.” Paz herself called the new unit an “important change” in the IRS’s structure.
The IRS gets rid of another democrat leaning official
The timing of Paz’s firing has raised questions, as it follows her placement on administrative leave after allegations of a new anti-GOP effort. The current Treasury Secretary, Scott Bessent, is reportedly working to “de-weaponize” the IRS. His office has declined to comment on the specific firing, but sources indicate that he is working closely with IRS whistleblowers and leaders to improve the agency’s operations.
The 2013 scandal led to years of litigation, and in 2017, the IRS settled lawsuits with the targeted groups. In a statement at the time, the agency offered a “sincere apology,” admitting its treatment of the plaintiffs was “wrong.” The settlement acknowledged that the IRS screened applications based on names and policy positions, subjected them to “heightened scrutiny and inordinate delays,” and demanded unnecessary information.
BREAKING: The IRS has fired a top aide to former Obama official Lois Lerner, who targeted conservative groups, Fox News Digital learns pic.twitter.com/0rP2nt9hay
— Fox News (@FoxNews) September 9, 2025
It’s hard to really side with the IRS at all lately since the agency fired a bunch of workers just to remember that it needed them. It’s almost as if that department isn’t doing well anyway. This new firing may open up a spot in the “external revenue service,” if anyone believes that will still be a thing.
Both Paz and Lois Lerner had previously requested to have their testimonies in the targeting case kept private, citing fears of death threats. Lerner became the public face of the scandal, but Paz’s involvement as her deputy was also a central part of the story. Still, it’s been many years since then, and any firing should have happened much sooner.
