Ken Kies, the Treasury Department’s top tax policy official who has also been serving as the acting chief counsel at the Internal Revenue Service, is preparing to leave his government positions, according to multiple sources familiar with the situation. His departure is expected to create further leadership gaps within the federal tax administration.
Kies, a veteran lobbyist confirmed last year as the Treasury’s assistant secretary for tax policy, played a central role in shaping and enforcing tax regulations. In both his Treasury and IRS roles, he oversaw critical decisions that influence billions of dollars in tax revenues. Notably, Kies led the implementation of the tax legislation enacted in 2025, which extended several major tax cuts originally passed in 2017 and introduced new measures aligned with former President Donald Trump’s 2024 campaign promises, such as exemptions on tips and overtime earnings.
An administration official emphasized that Kies’s primary focus had been administering the new law and expressed appreciation for his service. However, his tenure also coincided with complex legal challenges involving the IRS, including a high-profile lawsuit filed by Trump against the agency. The suit, initiated in January, led to an extraordinary order by acting Attorney General Todd Blanche granting Trump special protections against audits. A federal judge subsequently criticized these protections, describing the lawsuit as an effort to use the courts to legitimize self-serving behavior.
Kies previously worked as a tax attorney for Trump before joining the administration and recused himself from decisions related to the legal case. The Justice Department’s settlement of Trump’s lawsuit prompted the resignation of the Treasury’s general counsel on the same day, highlighting ongoing tensions within the department. The order granting Trump audit immunity also raised significant legal uncertainties for the IRS regarding potential criminal liability for staff who might enforce it.
In addition to these challenges, Kies has faced public criticism from influential figures on the political right, such as activist Laura Loomer. Loomer has accused him of insufficiently addressing misuse of a broadly exploited tax break that the IRS has sought to reform for several years.
Kies, who is reportedly in his seventies, has not announced a definitive departure date and did not respond to requests for comment. Last month, Trump nominated James Gadwood, a tax lawyer from Miller & Chevalier who has previously represented Trump’s business interests, to become the IRS’s top legal official. The agency remains without a Senate-confirmed commissioner following the dismissal of Trump’s nominee after a brief tenure last year. In the interim, Frank Bisignano serves as IRS chief executive officer while concurrently leading the Social Security Administration.