WASHINGTON, D.C. – Top Internal Revenue Service (IRS) officials issued illegal gag orders and retaliated against two whistleblowers – IRS Supervisory Special Agent Gary Shapley and IRS Special Agent Joseph Ziegler – by removing them from the Hunter Biden investigation, according to new findings from the U.S. Office of Special Counsel (OSC). These illegal actions were in response to lawful, protected disclosures made by the whistleblowers to the Ways and Means Committee, which exposed the two-tiered system of justice that gave special treatment to members of the Biden family who not only made millions peddling access to the White House but also eventually received blanket presidential pardons as President Biden left office.
OSC’s revelation about IRS actions against the whistleblowers raises concerns about the role of IRS leadership – specifically, why they communicated about the situation with IRS employees without informing them of their constitutional and statutory right to make protected disclosures to Congress.
Ways and Means Chairman Jason Smith (MO-08) issued a statement on news of the OSC’s investigative report:
“The IRS illegally punished two decorated investigators, Mr. Shapley and Mr. Ziegler, for doing their duty and stepping forward with evidence of corruption in the federal government, merely because their efforts implicated President Biden. This directly contradicts then-IRS Commissioner Danny Werfel’s sworn assurances to the Ways and Means Committee in April 2023 that there would be no retaliation.
“The OSC’s findings confirm that the IRS issued illegal gag orders and improperly removed these investigators from an investigation. Yet the whistleblowers have been proven right about every claim that they made to the Committee, from Hunter Biden’s failed sweetheart plea deal to Hunter Biden’s indictment for felony tax crimes. The IRS should be applauding them for their bravery, not retaliating against them because they exposed a politically damaging fact – the federal government shielded the President’s son, Hunter Biden, from justice.
“This new confirmation raises major questions about how deep this corruption goes. Anyone who was involved in this retaliation must face questioning. The Ways and Means Committee will pursue every option.”
Background:
On May 26, 2023, and June 1, 2023, respectively, Gary Shapley and Joseph Ziegler gave transcribed interviews to the Ways and Means Committee where they shared that officials at the IRS and the Department of Justice obstructed, interfered, and prevented a full tax investigation into Hunter Biden.
On April 27, 2023, former Commissioner Daniel Werfel testified in front of the Ways and Committee where he promised that he “can say without any hesitation, there will be no retaliation for anyone making an allegation or called into a whistleblower hotline.”
READ: Five Key Moments from the Ways & Means Hearing on Accountability and Transparency at the IRS
On May 15, 2023—less than three weeks after former Commissioner Werfel committed to not retaliating against the whistleblowers—Gary Shapley was informed by the IRS that he and his entire investigative team, including Joseph Ziegler, were removed from the ongoing investigation into Hunter Biden.
On May 25, 2023, Acting Commissioner Douglas O’Donnell sent an email to IRS employees where he shared concerns related to the lawful reporting of misconduct under 26 U.S.C. § 6103. Despite stating that the “IRS is deeply committed to protecting the role of whistleblowers,” he failed to inform IRS employees of their Constitutional and statutory right to make protected disclosures to Congress.
On July 5, 2023, Chairman Smith and a group of other lawmakers sent a letter to OSC calling for an investigation into allegations of retaliation against Mr. Shapley and Mr. Ziegler. This letter also called on the OSC to seek disciplinary actions against anyone who engaged in unlawful conduct against the whistleblowers.
On October 15, 2024, the IRS issued Mr. Shapley a 15-day notice to either accept a demotion or resign one hour after an investigative journalist released an interview of him and Mr. Ziegler.
On November 2, 2024, Chairman Smith, Committee on Oversight and Accountability Chairman James Comer (KY-01), and Committee on the Judiciary Chairman Jim Jordan (OH-04) requested an update from the OSC on its investigation into the whistleblowers’ allegations that they were threatened with retaliation, and to seek an immediate stay at the U.S. Merit Systems Protection Board to pause the IRS’s latest threatening action.
On December 30, 2024, the Office of Special Counsel found the IRS issued illegal gag orders and improperly removed Mr. Shapley and Mr. Ziegler from the Hunter Biden investigation as reprisal for their protected disclosures.