00:00Thank you, Mr. Chairman. Now, if you're confirmed, Mr. Morrissey, you would be one of the top lawyers in government, the top lawyer at Treasury.
00:11So, I want to go through some of the priorities I have, and particularly, people often say they think it's derogatory, they say, I'm a privacy hawk.
00:21I think it's an honor to be called a privacy hawk, and I want to walk you through some of the realities of privacy policy today.
00:30And, in particular, DOGE stomping all over taxpayer privacy.
00:36The Center for Taxpayer Rights and others have sued the administration, arguing it broke the law by allowing DOGE and DHS to access tax return information.
00:45At risk, then, was the most private, personal, and financial data of virtually everybody in the United States.
00:53Home addresses, bank accounts, income levels, Social Security numbers, and much more.
00:59We had the acting IRS commissioner and chief privacy officer resigning, or they were pushed out over this.
01:06So, my first question to you is, what would you do if, on day one, you walked in to a massive violation of privacy rights affecting millions of taxpayers?
01:20Well, thank you, Senator Wyden, very much for the question, and for the time you and your staff took to meet with me to discuss this and other issues.
01:28I appreciated that opportunity.
01:31Senator, I think, you know, maintaining the privacy protections for taxpayer information is one of the most important responsibilities the Treasury and the IRS have.
01:39I think Treasury has an obligation as a steward of taxpayer funds to look for ways to be more efficient, to look for ways to modernize systems.
01:47But whenever that's done, I'm committed to making sure that it's done in a way that complies with 6103 and all the other statutory protections for taxpayer information.
01:56So, you told me that you're familiar with taxpayer privacy law, and what else would you do besides what you just said?
02:09Because to tell me that you'll comply with a law isn't a whole lot for somebody who's got real expertise by their admission in privacy law.
02:20I was pleased when you said privacy law was important.
02:22I'd just like to figure out what in heck you'd do.
02:25Well, Senator, I think it would depend, of course, on whatever the particular program is that's being raised.
02:31But any time we're discussing how the IRS or Treasury is maintaining taxpayer information,
02:37it's important that we are fulfilling statutory responsibilities for the privacy protections for that information and also the data integrity responsibilities that go along with that.
02:47Does a lawyer have an obligation to stop representing a client who's breaking the law?
02:55Senator, my job as general counsel, if confirmed, is to work with all policy components at Treasury to make sure they are fulfilling the statutory mission of the department in a lawful and appropriate way.
03:05And that's what I'll be confirmed, that's what I'll be committed to do if confirmed.
03:09So, are you telling me a lawyer doesn't have an obligation to stop representing a client who's breaking the law?
03:15Because that's a very real-world question, given what's going on with Doge.
03:22Senator, my obligation is to work with all of our policy components to make sure they understand the legal obligations that this Congress has put upon their component.
03:31We've gone past that.
03:32I want to know what you would do.
03:34I am committed to making sure that those components follow the law, and I know that's what the Secretary is expecting out of me and out of the legal division if I'm confirmed.
03:42I'll just tell you again, for somebody who's really worked in the privacy space, I expect more.
03:49As I indicated in the office, I think you've got the expertise.
03:53I think you've got the track record.
03:55But you're walking into an awfully corrupt situation, and that's why I asked you about a very real example with respect to Doge.
04:03Let me ask you about one other matter, and that's staffing at the IRS.
04:07Twenty state attorneys general and others argued the administration illegally fired probationary employees and then lied again to cover it up by saying they were fired for poor performance.
04:18Two district courts agreed and temporarily ordered the employees to be rehired.
04:23So what would you do, if confirmed, to deal with this kind of illegal and deceptive activity and to make sure that it doesn't continue?
04:32Thank you, Senator.
04:34Thank you, Senator.
04:35It's important for Treasury working with the IRS to make sure that the IRS is working appropriately.
04:40If there are operational or personnel changes that are designed to enhance collections or enhance customer service, that we're doing those in compliance with all laws.
04:49And that would include personnel laws, and if performance reviews are part of that, it's appropriate and important for the personnel reviews to reflect the facts.
04:58Are you concerned, Mr. Morrissey, that with all these firings, taxpayers wouldn't get refunds next year?
05:05Again, I'm looking for some of the real-world consequences rather than because you're a real lawyer unlike me.
05:13I'd like to know what you'd do to deal with the refund issue, for example.
05:18Senator, I think that it's important that the IRS be focused on modernization efforts and improving and enhancing its operational capabilities,
05:26but I'm committed, if confirmed, to making sure that in doing that, the IRS is fulfilling all of its statutory responsibilities,
05:33and that includes responsibilities related to refunds.
