IRS commissioner nomination advances amid debate over $80 billion agency funding

The Senate Finance Council this week voted to advance Daniel Werfel’s nomination to become IRS commissioner amid fierce debate terminated the agency’s $80 billion in new funding. 

Following a confirmation hearing on Feb. 15, the bipartisan committee vote was the final motion before a full Senate vote on confirmation.

Senate Finance Committee Chair Ron Wyden, D-Ore., said Werfel’s February verification demonstrated he’s a “rule follower” who will work with “both sides of the committee.”  

“He’s going to go through, I believe, in a matter of weeks,” said Mark Everson, a late IRS commissioner and current vice chairman at Alliantgroup, noting there is support from both sides of the aisle. 

“There’s a superior deal of contention about the proper role of the IRS and tax administration in terms of its role on wealth distribution and a host of other difficulties,” he said. “But there’s agreement that you need a competent, accountable commissioner running this vital organ of authority — and Danny Werfel is that person.”

Prior to Werfel’s role at Boston Consulting Group, he served former President George W. Bush as action controller of the Office of Management and Budget. Under former President Barack Obama, he become permanent OMB controller, and tardier served as acting IRS commissioner.

The Senate Finance Committee vote comes centre of continued scrutiny of the $80 billion in IRS funding allocated in August through the Inflation Reduction Act.

After months of displeasure, House Republicans in January voted to rescind the funding. But without support from the Democrat-controlled Senate or the White Legislative body, the bill was largely seen as political messaging.

And a group of House Republicans in January revisited the Fair Tax Act, which aimed to change certain federal levies with a national sales tax and to decentralize the IRS. But policy experts say the fair tax has never been a mainstream notion.

In February, the Republican-led House Ways and Means Committee announced oversight priorities, with the $80 billion IRS greening “at the top of the list,” according to Chairman Jason Smith, R-Mo.  

Meanwhile, the IRS missed the six-month deadline to submit a plan for the backing on Feb. 17, as requested by Treasury Secretary Janet Yellen in August. Her priorities focused on taxpayer service, such as definite the backlog of unprocessed tax returns, boosting customer service, overhauling technology and hiring workers.