WASHINGTON — Kenneth Kies, the Treasury Department’s top tax policy official and acting chief counsel of the Internal Revenue Service, is set to leave his posts in the coming weeks following reported clashes with White House officials over potential violations of federal law.

Kies, who holds the positions of assistant Treasury secretary for tax policy and acting chief counsel at the IRS, raised concerns about a possible White House request that, he argued, could violate Section 7217 of the Internal Revenue Code. This statute bars the president, vice president, White House staff, and certain agency heads from directly or indirectly requesting IRS audits or investigations of specific taxpayers. Violations carry criminal penalties of up to five years in prison and fines up to $5,000. The law is designed to prevent political interference in IRS enforcement, a safeguard underscored by past abuses during the Nixon administration.

Sources familiar with the matter said Kies confronted White House officials during a recent meeting over the potential breach. However, specific details about the nature of the White House inquiry Kies objected to or whether the administration intends to pursue it after his departure were not available. The taxpayers involved could include individuals, corporations, or nonprofit groups.

Kies, who previously represented former President Donald Trump in private practice before joining the administration last year, has remained recused from matters involving the former president. Despite this, he reportedly faced increasing frustration from Trump and some aides throughout his tenure. Officials cited disagreements over a range of issues, including policies related to the taxation of fantasy sports, where Kies often invoked IRS audit rules, even in cases not tied to specific taxpayers.

While Kies declined to comment, several administration officials and Trump allies privately criticized him after inquiries were made. Longtime Trump adviser Stephen Moore described Kies as difficult to collaborate with and accused him of insufficient support for advancing the president’s agenda. Some Treasury officials expressed displeasure with how Kies managed efforts to reverse Biden-era regulations on partnership taxation. Although Kies oversaw the rollback of many such rules, not all were rescinded.

Kies is a veteran tax-policy expert with decades of experience in Republican circles. He contributed to the 1986 tax reform as a senior House Republican staffer and served as chief of staff for the Joint Committee on Taxation in the 1990s. Prior to joining the Trump administration, Kies operated a tax lobbying firm representing clients including Microsoft and other major corporations. He was confirmed by the Senate on a party-line vote in June 2025, shortly before Congress enacted a major tax law extending expiring cuts and incorporating several Trump priorities.

In his Treasury role, Kies positioned himself as a pro-taxpayer regulator advocating for lighter rules in many cases. Concurrently serving as IRS chief counsel, he wielded broad influence over tax enforcement, overseeing litigation in the U.S. Tax Court and advising IRS auditors. His tenure included involvement in a contentious decision to share certain tax data with immigration authorities and the Justice Department’s move to end audits of Trump, his family, and associated businesses.

Kies also addressed issues related to conservation easements—tax-advantaged land transactions sometimes exploited by promoters. He promoted a settlement initiative offering reduced penalties while cautioning that taxpayers rejecting the government’s offer faced ongoing litigation losses and higher costs.

His departure marks a significant transition in the Treasury’s tax policy leadership amid ongoing tensions between the administration and the IRS on enforcement and regulatory matters.