Gehlbach

Iowa’s business owners are the heart of our state’s economy. From world-class agricultural enterprises to family-owned operations, these businesses drive innovation and fuel the economic engine of our communities. Yet, thanks to policy enacted under the Biden administration, Iowa business and farm partnerships are facing unjust scrutiny from the IRS – an agency meant to serve as a neutral enforcer of tax laws, not one labeling lawful taxpayers as “evil.”

In the final months of President Biden’s term, the IRS launched a new “special pass-throughs” investigation unit tasked with increasing audits of businesses operating as partnerships. Funded by $80 billion from the Inflation Reduction Act, the unit imposes unnecessary reporting requirements and scrutinizes “basis-shifting” transactions – a routine and legal practice that’s been part of the U.S. tax code for decades. In January, the IRS went even further by enacting a rule to create brand new reporting requirements. Under Biden’s IRS, businesses would be required to maintain records dating back years, report to parallel enforcement units within the IRS, and try to interpret subjective IRS interpretations of these new rules. All under the threat of severe penalties.

As a small business owner and former auditor, I understand firsthand the chilling effect of penalties associated with unclear IRS guidance and how they can stifle the deployment of capital. Strong partnerships enable companies to grow and innovate, making them especially vital here in Iowa, where industries like agriculture rely on flexible business structures to stay competitive. This onerous new rule and investigatory unit are exactly the type of weaponization, and waste of government resources being reviewed by the Department of Government Efficiency (DOGE).

Senator Chuck Grassley, a longtime advocate for calling out weaponization by the government, has said, “Government, especially when it comes to the treatment of taxpayers, needs to be accountable and transparent to the American people.” Thankfully we also have Rep. Randy Feenstra in our corner as someone fighting on behalf of business owners to “make the IRS more responsive and accountable to the American people.” Iowans couldn’t agree more.

Business owners are counting on Senator Grassley and Representative Feenstra to continue to work with President Donald Trump to prioritize hardworking Americans and correct the bad policy holdovers from the Biden Administration. President Trump needs to disband this investigatory unit and rescind all regulations that threaten efforts by Iowans to create jobs and expand our economic power. We must eliminate these burdens and restore the freedom for our businesses to thrive.

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Dan Gehlbach, a Republican from Urbandale, represents District 46 in the Iowa House.