Earlier this year, The U.S. Department of Treasury announced that IRS Commissioner Charles Rettig would be departing from his role in November 2022. Douglas O’ Donnell has been the acting IRS chief until President Biden appoints a new IRS head. Optima Tax Relief announces the nominee and the process for approval.
President Biden has announced that he intends to nominate Danny Werfel as the new IRS commissioner. Werfel is a former budget official and a leader of Boston Consulting Group’s Public Sector practice, specializing in organizational change. If approved, this won’t be the first time Werfel has served the IRS as he was appointed as the Acting IRS commissioner by President Obama in 2013. Werfel has worked in several areas of the White House’s Office of Management and Budget (OMB) since 1997.
Werfel’s nomination comes at a critical time as the IRS has been preparing for major changes, especially as they are now prepared for expanded funding through the Inflation Reduction Act. The act ensures that the IRS will receive nearly $80 billion over the next decade to help bolster taxpayer services and enforcement action. The agency is also still dealing with a major backlog of millions of unprocessed tax returns.
As of now, there is not a set date for the Senate Finance Committee to review Werfel’s nomination. While it appears the majority of Republicans do not favor Werfel, he will likely have enough votes from Democrats to be confirmed.
