UPDATE 1-House panel chairman: next move on Trump taxes this week

U.S. House Ways and Means Committee Chairman Richard Neal said on Thursday he will decide by week's end how to respond to the administration's refusal to hand over President Donald Trump's tax returns.

"Now we proceed to the limited options that are left on both sides," Neal said, which would be either a subpoena or a court challenge. U.S. Treasury Secretary Steven Mnuchin on Monday denied a leading House Democrat's request for Trump's tax returns, setting the stage for a lengthy court battle between lawmakers and the Trump administration.

In a May 6 letter, Mnuchin told Neal he would not comply with the Democrat's April 3 request, saying it lacks "a legitimate legislative purpose." Neal said he would have a final discussion with House lawyers on how to proceed later on Thursday and "as I’ve noted, by the end of the week, we’ll make a determination." (Reporting by David Morgan; Writing by Doina Chiacu; Editing by Mohammad Zargham and Andrea Ricci)