Senate Confirms Daniel Werfel To Lead IRS

Taxes

The IRS has a new commissioner. On Thursday, Mar. 9, 2023, the Senate voted to confirm Daniel Werfel to lead the IRS.

The confirmation vote was 54-42, with four Senators not voting, including Dianne Feinstein (D-CA), John Fetterman (D-PA), and Mitch McConnell (R-KY), who were not available due to medical reasons.

Only one Democrat voted against Werfel—Joe Manchin (D-WV). Sen. Manchin explained his vote on Twitter, noting, “While Daniel Werfel is supremely qualified to serve as the IRS Commissioner, I have zero faith he will be given the autonomy to perform the job in accordance with the law, and for that reason, I cannot support his nomination.” The tweet also included Manchin’s displeasure at his perception that the Treasury Department has “pandered to automakers and progressive extremist groups”—thought to be, among other things, a reference to electric vehicle (EV) credits in the Inflation Reduction Act.

Six Republicans crossed over to support Werfel’s nomination: Cassidy (R-IA), Collins (R-ME), Grassley (R-IA), Murkowski (R-AK), Tillis (R-NC), and Young (IN). All three Independents in the Senate supported the nomination.

Hearing

Werfel appeared before the Senate Finance Committee for his confirmation hearing on Feb. 15, 2023, where he was grilled on IRS funding, the tax gap, and Treasury Secretary Janet Yellen’s directive that the IRS will not increase audit rates for small businesses and households making under $400,000.

Background

Werfel previously served as the interim IRS Commissioner for several months in 2013 after Steven T. Miller resigned under pressure during the Lois Lerner scandal. Before that time, he began his career in public service at the Office of Management and Budget (OMB), where he served under nine directors of both political parties.

Werfel has spent most of the last decade in the private sector at Boston Consulting Group. He graduated from Cornell University before earning his law degree from the University of North Carolina, Chapel Hill. He also holds a Master of Public Policy from Duke University.

The last Commissioner, Charles Rettig, departed on Nov. 12, 2022, at the end of his term, which began on Oct. 1, 2018. Doug O’Donnell has been serving as acting Commissioner since that time.

Werfel’s term will expire on Nov. 12, 2027.

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