Trump Advisor's Controversial Hire Raises Concerns over GSA's Leadership
Washington D.C., Wednesday, 19 February 2025.
Frank Schuler, known for promoting a significant IRS-deemed tax scam, now serves as a senior adviser to the GSA.
The Controversial Appointment
The General Services Administration (GSA) has drawn scrutiny for appointing Frank Schuler IV as senior adviser to acting administrator Stephen Ehikian [1]. Schuler’s appointment is particularly controversial given his background as co-founder of Ornstein-Schuler, a firm that specialized in tax transactions labeled as ‘abusive’ by the IRS and heavily criticized by a bipartisan Senate committee [1]. Currently, Schuler is embroiled in legal battles with the IRS over $4 billion in disallowed deductions for his clients [1].
The Tax Scheme in Question
At the heart of the controversy are ‘syndicated conservation easements,’ which Schuler’s firm actively promoted [1]. While conservation easements are legitimate tools when used properly, Ornstein-Schuler’s implementation raised serious concerns. In one notable case from 2024, a tax court disallowed approximately $180 million of claims out of $187 million sought, revealing that the firm had claimed deductions of up to $50,000 per acre for land purchased at just $2,200 per acre less than a year earlier [1].
Legislative and Legal Implications
Despite legislation passed in late 2022 aimed at curbing these practices, these schemes remain on the IRS’s ‘Dirty Dozen’ list of bogus tax avoidance strategies [1]. Senator Ron Wyden expressed strong criticism of the appointment, stating, ‘This is someone who made his money by ripping off American taxpayers and who shouldn’t come anywhere near a position of authority over tax dollars’ [1]. The situation is further complicated by Ornstein-Schuler’s ongoing federal class-action suit in Georgia, where they face allegations of fraudulent schemes tied to invalid easement deductions [1].
Current Developments and Future Implications
As of December 2023, Ornstein-Schuler has taken action against the IRS by filing a lawsuit over the agency’s failure to respond to a FOIA request regarding conservation easement documents [1]. Meanwhile, negotiations are underway for a potential global settlement with the IRS, which could result in the collection of $1.5 billion in taxes and potentially cost Schuler and his partner an estimated $150 million in additional taxes, interest, and penalties [1]. This appointment raises significant questions about the vetting process for senior government positions and the commitment to fiscal responsibility within federal agencies [GPT].