House Ways and Means Committee Chairman Richard Neal set the IRS a new deadline of April 23 to hand over President Donald Trump's tax returns before potentially resorting to other legal options.
The response by Rep. Richard Neal, the House Ways and Means Committee chairman, comes after the administration asked for more time to consider his initial request last week.
The Democrat chairman warned that failure to comply, would be interpreted as a "denial" of the request.
The report states that Neal brushed aside comments made by Treasury Secretary Steve Mnuchin that he doesn't have to order the IRS to provide them as lacking "merit".
But Treasury Secretary Steven Mnuchin said on Saturday that Neal was "just picking arbitrary dates" in setting deadlines and said it was more important to get the decision "right" to ensure the IRS would not be "weaponized" in a political dispute.
Despite the law's clarity, Democrats have long acknowledged that the request, if denied, would mean a federal court battle that could ultimately be settled by the U.S. Supreme Court.
Neal said Saturday that the administration has no right "to question or second guess" his motivations.
Mnuchin said the Treasury respects lawmakers' oversight duties and would make sure taxpayer protections would be "scrupulously observed, consistent with my statutory responsibilities" as the department reviews the request.
On Monday, lawmakers in NY proposed a bill that would allow the commissioner of the state's Department of Taxation and Finance to turn over state tax returns if requested by certain congressional committees.
Neal said that the Committee is "considering legislative proposals and conducting oversight related to our Federal tax laws, including, but not limited to, the extent to which the IRS audits and enforces the Federal tax laws against a President".
"They want to investigate how the IRS audits presidents, but some of the info they requested has nothing to do with that". Mnuchin himself has argued that requesting the President's personal tax returns now rises to a level that he needs to be involved.
According to the National Conference of State Legislatures, Illinois is one of 18 states nationwide considering legislation on Trump's tax returns, which also includes New York, Colorado and Washington.