As a proud business owner in Idaho, I’ve always believed in pulling my weight, paying my fair share, and playing by the rules. That’s what we do here in the Gem State. Whether you run a farm near Twin Falls, manage a construction firm in Coeur d’Alene, or operate a family-owned store in Idaho Falls, you understand the value of hard work, honesty, and accountability.

But lately, playing by the rules doesn’t seem to matter to the IRS.

Despite recently backing down from a set of flawed tax rules after public backlash, the IRS is still going after law-abiding businesses using a backdoor policy known as Revenue Ruling 2024-14. And I can tell you: it’s already putting a chill on business investment across Idaho.

This so-called Revenue Ruling gives IRS auditors sweeping power to second-guess ordinary, legal business decisions. It’s based on the same flawed thinking that got their previous rules scrapped. These bureaucrats, working under a little-known IRS task force called the “pass-through audit unit,” are now enforcing the policy aggressively across the country. This task force was created under the Biden Administration.

This pass-through audit unit claims that they’re cracking down on “basis-shifting” in partnerships, which is a completely legal, well-established part of how businesses handle assets, value, and distributions. These are normal accounting practices used every day in Idaho by manufacturers, real estate partnerships, and family farms. But instead of respecting the law, the IRS is now using vague legal theories to claim these transactions might be abusive — even when there’s no proof.

Here’s the kicker: they’re relying on something called the “economic substance doctrine,” a fuzzy legal concept that allows them to ignore the tax code if they think a business didn’t have the “right” intent. Think about that. Businesses are now expected to read the mind of the IRS. Even if we follow the law to the letter, they can still come after us just because they don’t like how we did it.

That’s not how the law is supposed to work. That’s not how America is supposed to work.

Idaho has always prided itself on being a state where small businesses thrive. From Boise’s tech startups to the agriculture backbone of the Magic Valley, we fuel economic growth and provide jobs. But with this kind of uncertainty hanging over our heads, it’s getting harder to justify taking risks, hiring new workers, or expanding operations.

And here’s the truth most people won’t say out loud: a lot of us are afraid. The IRS’s pass-through unit has a reputation for targeting taxpayers aggressively and without transparency. Speaking out could make you a target. That’s not paranoia, it’s a reality too many business owners have already faced.

Enough is enough. This isn’t tax enforcement. It’s intimidation.

Refreshingly, President Trump signed an Executive Order early in his administration seeking to eliminate the overreaching and unduly burdensome administrative state. This is exactly what Idaho businesses want to hear. Now we need more than Executive Orders; we need action. If the Trump Administration truly wants to promote economic growth and fairness, here’s what needs to happen immediately:

• The Treasury Department must withdraw Revenue Ruling 2024-14. It’s vague, dangerous and gives IRS agents far too much power to override settled tax law.
• The IRS must pause all enforcement activity by the passthrough audit unit. Until there is real oversight and a clear, legal framework, this group has no business policing law-abiding taxpayers.

Idaho’s economy doesn’t grow because of Washington; it grows in spite of it. But if we don’t stop this overreach now, our business community will pay the price for years to come.

We need our leaders in Congress, like Senator Mike Crapo, to stand up and demand accountability. We’re not asking for special treatment. We’re asking for fairness, clarity, and the freedom to build our businesses without fear.