Nominee for Top IRS Lawyer Can’t Explain How Retroactive Tax Breaks for Giant Corporations in Big, Beautiful Bill Help American Families

Nominee for Top IRS Lawyer Can't Explain How Retroactive Tax Breaks for Giant Corporations in Big, Beautiful Bill Help American Families

Warren: "I think it is wrong for the Trump administration to be handing out literally tens of billions of dollars to these giant profitable corporations. And you will be in a position to get them even more."

Video of Exchange (YouTube)

Washington, D.C. - At a hearing of the Senate Finance Committee, U.S. Senator Elizabeth Warren (D-Mass.) questioned Mr. Donald Korb, nominee for Chief Counsel of the Internal Revenue Service (IRS), about his views on the billions of dollars in retroactive tax breaks that Republicans are giving through the "Big, Beautiful Bill" to large corporations for research and development that they've already done.

In response to a letter from Senator Warren, the nonpartisan Joint Committee on Taxation (JCT) revealed in August that President Trump's "Big, Beautiful Bill" will deliver $67 billion in retroactive research and development tax breaks to corporations in 2026.

Senator Warren challenged Mr. Korb to explain how these tax breaks lower costs for American families. Mr. Korb repeatedly dodged the senator's questions, saying that "Congress [] is responsible for enacting the tax law," and that he is "not drilled down on what is in this bill."

Trump's "Big Beautiful Bill" is also massively driving down tax liabilities for large corporations. Senator Warren asked Mr. Korb to commit not to write new rules that let these giant corporations out of paying the corporate alternative minimum tax, which prevents billionaire corporations from reducing their tax liability below 15 percent of their book income. Mr. Korb "commit[ed] to follow the law that you as the Congress enacted in writing the regulations."

"I think it is wrong for the Trump administration to be handing out literally tens of billions of dollars to these giant profitable corporations. And you will be in a position to get them even more…I want to hear that we're going to hold people at least to what the law specifically requires of them, even if they are billionaire corporations," concluded Senator Warren.

Mr. Korb is a former IRS Chief Counsel under President Bush and, up until recently, represented Fortune 500 companies in tax disputes with the IRS. As Chief Counsel, his work could directly affect his former clients' bottom lines. Senator Warren recently urged him to address these ethics conflicts by recusing himself from his former clients' matters, committing to not seek employment with companies that interact with him as IRS Chief Counsel after his government tenure, and agreeing to not serve as a lobbyist for at least four years after his time in government.

Transcript: Hearing to Consider the Nomination of Honorable Donald Korb, of Ohio, to be Chief Counsel for the Internal Revenue Service
Senate Finance Committee
September 10, 2025

Senator Elizabeth Warren: Thank you, Mr. Chairman. Donald Trump's 'Big Beautiful Bill' raises costs for families all across this country while handing out giant tax breaks to billionaire corporations. So, here we have Mark Zuckerberg and Jeff Bezos getting billions of dollars in tax breaks paid for by kicking 15 million Americans off their health care and raising health care costs for millions more.

One of the most ridiculous tax breaks in this bill is called retroactive research and experimentation expensing. Let's use plain English on this: this is money to incentivize research that corporations like Meta and Amazon conducted years ago. We're going to give them a break now to incentivize them for things they did a long time ago. So, because of Trump's horrible bill, the federal government will hand $67 billion in these tax breaks to giant corporations next year.

Now, Mr. Korb, as IRS Chief Counsel, you would be in charge of drafting the guidance and regulations that will determine whether or not these corporate tax breaks stay at $67 billion - or, depending on how you write it, get even more valuable. And given that you have spent the last 15 years and beyond representing Fortune 500 companies in tax disputes with the IRS, your work could directly affect your former clients' bottom lines.

Mr. Korb, help me understand: how does handing out billions of dollars to corporations for research they already did lower costs for American families?

Mr. Donald Korb, Nominee for IRS Chief Counsel: Thank you for that question. And also, I would like to thank you for the meeting yesterday. I will let you know that my granddaughter, Anna, really appreciated your signature. I don't want to take up more of your time, you understand.

Keep in mind that the Chief Counsel is responsible for administering the tax law. It's the U.S. Congress that is responsible for enacting the tax law.

Senator Warren: Okay, so you're saying 'I don't have to answer this question, not my job.' But Mr. Korb, you were IRS Chief Counsel for President Bush. You know that the IRS Chief Counsel has a central role in determining how these laws are implemented through regulations and guidance. This is where the action is.

So, I'm going to ask one more time: how is a tax break for research - that's already been done - anything other than a huge windfall for corporate America?

Mr. Korb: Thank you, Senator, for that question. While I have some experience with what we used to refer to as the R&D tax credit during my many years of practice, I have to admit I am not drilled down on what is in this bill on that point. So I can't give you any view at this point.

Senator Warren: Okay, let me try another then. The tax giveaways in the 'Big, Beautiful Bill' are so large that massive corporations across America will see their tax bills drop dramatically. According to one estimate, Amazon, for example, is set to pocket over $15 billion this year alone. Meta will get $11 billion this year alone.

Now, there is one backstop. And that is: back in 2022, Democrats created a corporate minimum tax that prevents billionaire corporations from paying a tax rate lower than 15%. Already, corporations are trying to wiggle out of it by lobbing the Trump Treasury Department and the IRS to write weaker rules.

Mr. Korb, the corporate minimum tax is the law of the land, just like the 'Big, Beautiful Bill.' When billionaire corporations see their tax rates drop below 15% because Trump and the Republicans gave them all these tax cuts, will you commit that you will not write new rules that let them out of paying the corporate alternative minimum tax?

Mr. Korb: Thank you for that question, Senator. And I do commit to follow the law that you as the Congress enacted in writing the regulations.

Senator Warren: So, let me make sure I understand your answer then, because if anyone should be able to commit to following the law it should be a person in this job.

Does that mean you will commit to implementing and enforcing the corporate minimum tax as required by statute? Or do you believe the corporations are above the law?

Mr. Korb: Again, I have not studied the latest iteration of this. We have been through corporate minimum taxes, alternative minimum taxes, back to the '86 act and beyond. It keeps changing, okay. I do have a day job so I've not studied every element of this bill. I apologize for that. Are there, in that particular statute or provisions, is there authority given to the Treasury to write regulations?

Senator Warren: Yes. That's what I said.

Mr. Korb: Okay. That's what you're talking about. Again, keep in mind tax policy is the job of the Treasury. As Chief Counsel, our lawyers work hand in glove with the Treasury lawyers to do that. And I will be involved in approving regulations. No question about it. And so probably I should not offer a view at this point in time since I am not up to speed yet.

Senator Warren: Well, I just want to say I'm over time so I'm going to quit here. But, I think it is wrong for the Trump administration to be handing out literally tens of billions of dollars to these giant profitable corporations. And you will be in a position to get them even more. And I am uncomfortable with the way I feel like you've dodged the answers to these questions. I want to hear that we're going to hold people at least to what the law specifically requires of them, even if they are billionaire corporations.

Thank you, Mr. Chairman.

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