Biden announces nominee to helm IRS

President Biden is nominating a top management consultant to be the new IRS commissioner as the agency mulls a strategy to use $80 billion in new funding allocated to the agency in the Inflation Reduction Act to increase revenue.

Biden announced that he wants Boston Consulting Group public sector chief Danny Werfel to be the new permanent head of the IRS, a decision that needs to be approved by Congress.

Werfel already led the IRS as acting commissioner in 2013, following a scandal during the Obama administration that saw the revocation of tax-exempt status for some conservative non-profit organizations.

“Danny Werfel is a public and private sector leader who has served under both Democratic and Republican administrations,” the White House said in a statement. “Across more than 15 years of government service, Werfel served President Barack Obama and President George W. Bush to lead some of the governments’ most complex management challenges as the Internal Revenue Service (IRS) Acting Commissioner and Office of Management and Budget (OMB) Controller.”

If confirmed, Werfel will replace IRS Commissioner Charles Rettig, who the Treasury announced would be leaving the agency in late October.

Treasury Secretary Janet Yellen said that Werfel’s management experience makes him the right person to lead an agency that’s undergoing a significant restructuring.

“His deep management experience, and his work directing significant transformation efforts, make him uniquely qualified to lead the agency at this critical juncture,” Yellen said in a statement.

“After decades of underfunding, the IRS now has the resources it needs to improve services for taxpayers and modernize outdated technology and infrastructure. Danny’s deep commitment to fairness and making sure government works for all will also be invaluable as we improve the taxpayer experience and eliminate a two-tiered tax system.”

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