Judge gives Democrats one week for next move in Trump tax return case | TheHill – The Hill

A federal judge on Thursday gave House Democrats one week to figure out how they want to move forward in their lawsuit to obtain President TrumpDonald John TrumpAs Biden surges, GOP Ukraine probe moves to the forefront Republicans, rooting for Sanders, see Biden wins as setback Trump says Biden Ukraine dealings will be a 'major' campaign issue MOREs tax returns from the administration.

Judge Trevor McFadden, a federal district court judge in Washington, D.C., appointed by Trump, held a hearing in the tax return case following a ruling in another major case that touched on some of the same legal questions.

McFadden's hearing came less than one week after a three-judge panel at the U.S. Court of Appeals for the D.C. Circuit in a separate lawsuit ruled that House Democrats cannot sue to enforce a subpoena of former White House Counsel Don McGahn. The ruling said federal courts cant resolve disputes between the executive and legislative branches.

McFadden had put the tax return case on hold until a ruling was issued in the McGahn case.

House Democrats are seeking Trump's returns both under a subpoena from House Ways and Means Committee Chairman Richard NealRichard Edmund NealTrump officials pressed on economic response to coronavirus Mnuchin: Trump to prioritize infrastructure in any coronavirus stimulus package Seniors, businesses grapple with landmark retirement law MORE (D-Mass.) and through a provision under the federal tax code.

During Thursdays hearing, the Houses lawyers argued that the D.C. Circuit ruled incorrectly in the McGahn case and that they are planning to ask the full D.C. Circuit to rehear that case.

House lawyersalso said that, at a minimum, thepart of their lawsuit relying on the tax code provision could proceed.

McFadden said hes not inclined to handle the case on a piecemeal basis, and said that it would be of interest to him if the House wanted to file an amended complaint that just includes the claims relating to the tax-code provision.

The Houses lawyers said they need time to confer with their client about how they wanted to proceed on their subpoena-enforcement claim.

In the tax return case, the Trump administration is arguing the case should be dismissed because the federal courts cant take a side in the dispute.Lawyers for the administration argued the ruling in the McGahn case requires McFadden to dismiss the entirely of the Houses tax return lawsuit. The administration also argued that if the tax return case is put on hold while the full D.C. Circuit reviews the case, it should be stayed until the Supreme Court rules.

McFadden asked the Houses lawyers and the Trump administrations lawyers to submit a joint status report in one week.

The Ways and Means Committee had filed the tax return lawsuit against the Treasury Department and IRS in July, after the agencies rejected Neals requests and subpoenas for six years of Trumps federal tax filings and related IRS audit papers. In September, the administration and Trumps personal lawyers filed a motion to dismiss the case, arguing that the House lacks standing to sue.

Democrats have said that the law is clear that they can obtain Trumps tax returns, because a section of the federal tax code states that the Treasury secretary shall furnish tax returns requested by the chairs of Congresss tax committees. They have said they want to see Trumps tax returns because they are considering legislative proposals and conducting oversight about how the IRS audits presidents.

But the administration argues that Democrats lack a legitimate legislative purpose for the tax returns. They argue that Democrats stated purpose for the documents is pretextual and their real reason for wanting the documents is to expose the tax information of a political rival.

Trump is the first president in decades who hasnt made any of his tax returns public. He has said he wont release them while hes under audit, but the IRS has said that audits dont prevent people from making public their own tax information.

House Democrats lawsuit against the administration is one of several lawsuits related to Trumps financial records. Later this month, the Supreme Court will hear oral arguments in cases in which Trumps personal lawyers have sued to block subpoenas for the presidents financial records that were issued by House Democrats and the Manhattan District Attorneys office to Trumps accounting firm and banks.

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Judge gives Democrats one week for next move in Trump tax return case | TheHill - The Hill