State tax return case

House Democrats appealing court decision in Trump state tax return case

By BRIAN FALER

House Democrats said Tuesday they are appealing a district judge’s order requiring them to alert President Donald Trump if they seek his state tax returns under a recently passed New York law.

Lawyers for the House said in a court filing they would ask the U.S. Court of Appeals for the D.C. Circuit to hear a challenge to Judge Carl Nichols’ decision last month.

The dispute focuses on a New York law approved by Democrats in July that would grant House Ways and Means Chairman Richard Neal (D-Mass.) access to the president’s state returns upon request.

Neal, who is separately suing Trump for his federal returns, has shown little interest in the New York law. But Trump’s lawyers worry that could quickly change, especially if Democrats' other court fights for Trump’s financial records are unsuccessful.

Trump lawyer William Consovoy wants to challenge any request by Neal in court but worries Democrats could get the tax returns without notice, which would make a challenge moot.

Nichols last month ordered Democrats to notify Trump contemporaneously of any request and barred them from receiving the documents for two weeks after that so a court has a chance to consider the issue.

Democrats have argued the court doesn’t have the power to bind the tax committee because lawmakers’ legislative powers are protected under the Constitution.