Holly Paz, a former top tax compliance leader at the IRS, reached an agreement with the agency this week after she sued over the leak of her employment data to media outlets.
Paz is no longer employed by the IRS, according to a person familiar with the situation. She filed a voluntary dismissal of the case with prejudice in US District Court for the District of Columbia earlier this week.
“A mutually satisfactory arrangement was reached between Ms. Paz and the IRS,” said Paz’s lawyer Mark Zaid, partner of Mark S. Zaid, P.C.
As the former commissioner of the Large Business and International division at the IRS, Paz was one of two leaders the Trump administration put on administrative leave on July 29. Paz and Elizabeth Kastenberg, who oversaw the Office of Professional Responsibility, both worked for Lois Lerner, the central figure of the 2013 tax-exempt controversy.
Paz subsequently filed a complaint in the US District Court for the District of Columbia Sept. 18 against the agencies, alleging they leaked her employment data and violated the Privacy Act.
Over a decade ago, the IRS inspector general found the IRS’s tax-exempt division flagged conservative-leaning nonprofit applications for additional scrutiny, spurring investigations and a round of congressional hearings. It was later found that the IRS was also flagging progressive groups.
More recently, Republican lawmakers and right-wing advocacy groups have targeted officials who worked at the tax-exempt unit during that era and called for their removal.
The Large Business and International division is currently being led in an acting capacity by Mabeline Baldwin.
The IRS didn’t immediately respond to a request for comment.
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