The Trump administration has initiated a significant restructuring of the Internal Revenue Service (IRS), setting its sights on affluent Democratic benefactors suspected of bankrolling political activities. Interim IRS Commissioner Scott Bessent has appointed advisor Gary Shapley to assemble a list of individuals who may be subjected to criminal probes.
The move has drawn attention due to the inclusion of billionaire Democratic donor George Soros as a potential subject of these investigations. Soros, a long-time financier of progressive causes, has been a focal point of Republican scrutiny over his political contributions.
According to reports, this initiative has garnered backing from congressional Republicans. Senator Ted Cruz (R-TX) has been at the forefront, proposing legislation aimed at utilizing the Racketeer Influenced and Corrupt Organizations Act (RICO) to prosecute those funding anti-Trump demonstrations. During an appearance on Sean Hannity's show, Cruz emphasized the importance of tracing and disrupting these financial streams, particularly in light of the recent "No Kings" rallies.
Soros, along with his son Alex, have been repeatedly criticized by Republicans for their significant financial support of Democratic initiatives. The Open Society Foundation, founded by Soros, stands as the world's preeminent backer of progressive endeavors. The Daily Mail reported that his Fund for Policy Reform donated $60 million to Democratic candidates and causes in 2024, ranking as a top donor in the political landscape.
The administration's efforts to apply RICO statutes to political protestors began with President Trump's direction to Attorney General Pam Bondi to investigate Soros and demonstrators who protested against him. The broad reach of the RICO statute, which encompasses rioting provisions, offers a legal avenue for the administration to target not just financial backers but also participants in demonstrations like the "No Kings" marches.
This approach is part of a broader strategy by President Trump, who has instructed Bessent to pinpoint individuals allegedly inciting political violence for potential investigation. In a cabinet meeting, Trump expressed confidence in Bessent's ability to carry out this task. Trump's criticisms extend beyond Soros, having previously targeted other prominent liberal donors such as Tom Steyer and Michael Bloomberg.
When the Wall Street Journal reached out for comment, Shapley expressed gratitude for his role but did not address inquiries about potential donor targeting. A spokesperson from the Treasury Department underscored the team's commitment to collections, privacy, and customer service.
In response to the allegations, the Open Society Foundation has repudiated any wrongdoing and denounced violence, though it has not provided specific rebuttals to the administration's claims.
The restructuring of the IRS follows the ousting of Commissioner Billy Long by Trump in August, after a brief two-month tenure. Long, who had a history of criticizing the IRS, was replaced by Treasury Secretary Bessent on an interim basis.
