Wyden Probes IRS's Failure to Investigate Epstein's Tax Planning Work

Sen. Ron Wyden, the ranking member of the Senate Finance Committee, has launched a probe into the IRS's failure to investigate the highly lucrative tax planning work of convicted sex trafficker Jeffrey Epstein. Wyden's investigation, which is ongoing, has uncovered evidence that Epstein was paid hundreds of millions of dollars for tax and estate planning advice, including by Wall Street titan Leon Black. Despite Epstein's lack of qualifications in accounting or tax law, the IRS failed to audit his transactions, leading Wyden to question whether the case was legitimate tax planning or if Black felt obligated to make payments to Epstein for unstated reasons.

Key Takeaways:

• Senator Wyden's investigation into Jeffrey Epstein's tax planning work has shown that the majority of payments from Leon Black to Epstein, approximately $100 million, were made on an "ad hoc" basis without any form of written contract or business services agreement.
• Epstein's tax planning work was a major source of his income, and he was paid hundreds of millions of dollars for advising ultra-wealthy individuals, including Leon Black.
• The IRS failed to audit Epstein's transactions, despite evidence of misrepresentations of tax laws and substantial payments for tax planning services that were often vetted by other legal and accounting professionals.
• Leon Black's attorneys have minimized Epstein's involvement in a specific tax transaction and claimed that Epstein's advice was not always useful.
• Senator Wyden's letter to IRS Commissioner Billy Long demands information on audits or investigations conducted by the IRS related to transactions involving Jeffrey Epstein and seeks a determination as to whether the IRS has evaluated the full scope of any tax planning provided to wealthy and powerful associates.

Statistics:

• Approximately $100 million in payments from Leon Black to Epstein were made without any form of written contract or business services agreement.
• Epstein was paid hundreds of millions of dollars for tax and estate planning advice, including by ultra-wealthy individuals such as Leon Black.
• The IRS failed to audit transactions amounting to tens of millions of dollars paid to Epstein for tax planning services.
• 8 years' worth of tax planning transactions involving Epstein have not been evaluated by IRS professionals.

Sources:

• Senate Finance Committee Ranking Member Ron Wyden's news release, dated July 31, 2025, available at https://www.finance.senate.gov/ranking-members-news/continuing-epstein-investigation-wyden-probes-irss-failure-to-investigate-sex-traffickers-highly-lucrative-tax-planning-work.