Treasury Secretary Janet Yellen picked Douglas O’Donnell as the brand new appearing commissioner of the Inner Income Service on Friday.
O’Donnell has been deputy commissioner for providers and enforcement on the company since April 2021 and is succeeding IRS Commissioner Charles Rettig, whose time period ends on Nov. 12.Â
“I need to thank Commissioner Rettig for his tireless service to the American folks throughout two administrations, and his management of the IRS throughout the troublesome and distinctive challenges posed by COVID-19,” Yellen stated in an announcement. “I’m grateful to him for his partnership and efforts to make sure taxpayers had the sources they wanted to make it via the pandemic.”
O’Donnell has spent greater than 36 years on the IRS in a wide range of roles. Earlier than changing into deputy commissioner for providers and enforcement final yr, he served as commissioner of the Massive Enterprise and Worldwide Division for practically six years.
Douglas O’Donnell throughout a New York College tax lecture webcast
“Deputy Commissioner O’Donnell has devoted his profession to serving American taxpayers via each degree of the company,” Yellen added. “His dedication to enhancing the expertise of the American taxpayer will information his and the company’s work as they proceed their efforts to propel the IRS ahead throughout a essential interval of modernization. Now greater than ever, the IRS has the momentum to remodel with service, know-how and workforce enhancements that may make it a world-class company to fulfill the wants of the American folks.”
O’Donnell can be taking the helm of the IRS at a time when the company has been going through criticism over lengthy backlogs of unprocessed tax returns final tax season. The company has confronted staffing shortages and the impression of the pandemic, in addition to new tax legal guidelines and the burden of distributing three rounds of Financial Impression Funds together with month-to-month advance distributions of the improved Baby Tax Credit score final yr.
Nevertheless, earlier this yr, Congress accepted an additional $60 billion in funding over the following 10 years for use for enhancing outdated know-how, enhancing taxpayer service and beefing up audits, particularly of high-income taxpayers and enormous firms. The IRS has additionally been happening a hiring spree, with plans so as to add 10,000 staff because it offers with a wave of retirements from child boomers. On Thursday, the IRS introduced that it has employed 4,000 extra staff as customer support representatives, a lot of whom can be dealing with telephone calls, which steadily go unanswered, particularly throughout tax season.
It’s not clear if O’Donnell or one other official can be named subsequent yr as everlasting commissioner of the IRS because the place requires affirmation by the Senate, and management could shift to Republicans after the midterm elections in November. Whoever the Biden administration nominates for the place may in all probability face a contentious affirmation listening to.
Regardless of the challenges of profitable Senate affirmation, the Biden administration is reportedly trying to find a everlasting IRS commissioner to interchange Rettig, who has confronted criticism from each Republicans and Democrats.
“We’re nearer to the daybreak of a brand new day on the IRS,” stated Home Methods and Means Committee Oversight Subcommittee Chairman Invoice Pascrell, D-New Jersey, in an announcement. “The Biden administration is correct to finish the time period of Donald Trump’s IRS commissioner. Beneath Mr. Rettig’s failed management, the company and its devoted staff have suffered via scandal and incompetence. Individuals are fed up with late refunds, unanswered calls and a two-tier tax system. I want Mr. O’Donnell effectively as appearing commissioner and look ahead to working intently with him on implementation of the Inflation Discount Act. … Many Individuals have misplaced confidence within the IRS. The company should do a greater job with the fundamentals of being conscious of American taxpayers, in addition to extra to crack down on huge enterprise tax cheats and create larger equity for normal Individuals. It is a huge second for tax enforcement in America. I urge the president to expeditiously nominate a brand new commissioner and chief counsel who can be companions for the Biden administration in revitalizing our tax company.”