Just a few short days after the United States senate confirmed him, Daniel Werfel reported to IRS headquarters to get down to business. He was approved sometime last week by a relatively thin margin of 52-42. Part of the job of the IRS commissioner is dealing with scrutiny from politicians on both sides of the aisle, so only time will tell how Werfel does under pressure.
Background
In the year 2013 during the Obama administration, Werfel did serve as the acting IRS commissioner after the IRS and other top officials were forced to resign after facing intense scrutiny by Republican politicians. These top officials were under serious pressure after it was alleged they interfered with the process of certain political groups receiving their tax-exempt status.
Along with serving as acting commissioner for about a year, Werfel was also the head controller of the White House Office of Management and Budget. His tenure with them also took place under the Obama administration. Werfel eventually decided to take his expertise to the private sector where he worked for Boston Consulting Group before his nomination for IRS commissioner.
Current Issues
Despite it being a very mild tax season so far with little to no problems, there are still some issues on the horizon that could have a direct effect on Werfel’s performance. Something, in particular, to look out for are republican politicians calling for the $80 billion in funding the IRS is set to receive over the next decade to be rescinded. This is not an immediate threat because the IRS has already begun receiving this funding under the Inflation Reduction Act. However, if that funding were to stop, Werfel’s job would alter dramatically.
Something else that many politicians expect Werfel to explain is how the IRS will avoid targeting middle-class American citizens with increased audits. Many politicians are concerned that the IRS will use the funding they have received from the Biden administration to ramp up auditing, so Werfel will have to do some convincing on why that will not happen.
Sworn in
On Monday morning of last week, former acting IRS commissioner Doug O’Donnell swore Werfel in. Doug O’Donnell has been acting commissioner ever since former commissioner Chuck Rettig’s term ended in November of 2021.
“After taking the oath of office a short time ago, I feel incredibly grateful and humbled to have the chance to lead such an amazing group of dedicated public servants at a pivotal moment in IRS history,” Werfel told IRS employees. “This role culminates a lifetime of commitment to public service for me.”
Wrap Up
It is going to be interesting to see how the IRS adapts to these massive changes the agency has gone through. With the Inflation Reduction Act giving the IRS the funds needed to improve the taxpayer experience, we will see if Daniel Werfel is the man that should be holding the reins.