Biden to nominate Danny Werfel as next IRS commissioner

The White House announced this week that President Biden intends to nominate Danny Werfel to succeed outgoing IRS Commissioner Charles Rettig, whose five-year statutory term ends November 12.

Werfel, who is currently the global leader of Boston Consulting Group’s Public Sector practice, has over 15 years of experience in the federal government, including stints as acting IRS commissioner and as controller of the White House Office of Management and Budget during the Obama administration. He holds a Bachelor of Science degree in Industrial and Labor Relations from Cornell University, a Juris Doctor degree from the University of North Carolina, Chapel Hill, and a Master of Public Policy degree from Duke University.

Once he is formally nominated by the White House, Werfel will have to be vetted by the Senate Finance Committee and confirmed by the full Senate. There has been talk that the administration and Senate Democratic leaders would like to complete that process during the post-election lame duck congressional session, which begins November 14 and is slated to run through mid-December. Although that might be an ambitious timeline, Senate Majority Leader Charles Schumer, D-N.Y., may wish to expedite the confirmation process for Werfel (and White House nominees for other positions) in the closing days of the 117th Congress while the chamber is guaranteed to be under Democratic control.

In the wake of this week’s midterm congressional elections, three Senate races remain undecided and neither Democrats nor Republicans have yet secured a majority of seats in that chamber for the 118th Congress. If the balance of power ultimately tips to the GOP once the undecided races are resolved, then Republican leaders will control the nominations process when the 118th Congress convenes next January. (See separate coverage in this issue for more details on the election results and the agenda for the lame duck congressional session.)

If he is confirmed by the Senate, Werfel would be stepping into the role of IRS commissioner at a time when the agency is set to receive some $80 billion (over 10 years) in new mandatory funding authorized under the Inflation Reduction Act to beef up its enforcement programs, modernize its information technology systems, and improve its customer service operations.

The Treasury Department announced October 28 that Doug O’Donnell, who is currently the IRS Deputy commissioner for services and enforcement, will serve as acting IRS commissioner once Rettig steps down and will continue in that role until a new commissioner is confirmed.

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