After firing the most senior tax official in the US, the head of Internal Revenue Service (IRS) Steven Miller, over the firm’s special scrutiny of conservative groups, President Barack Obama has appointed a White House budget official, Danny Werfel, to lead the IRS for the time being.
Werfel, controller of the Office of Management and Budget, will take charge of the IRS on May 22.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
After forcing Miller to resign, Obama, who has insisted on being unaware of the behaviour of the IRS staff at a Cincinnati, Ohio, office, vowed to ensure that the tax-collection agency will not single out any more groups based on their political beliefs.
A critical report from the inspector general had found that ineffective management at the IRS allowed agents to target conservative groups inappropriately for over 18 months, with certain groups being picked out by officials and subjected to requests for tax-exempt status to extra scrutiny.
As acting commissioner, Werfel will lead efforts to ensure the IRS "implements new safeguards to restore public trust and administers the tax code with fairness and integrity", according to a White House statement.
Obama said in a statement: "Danny has proven an effective leader who serves with professionalism, integrity and skill. The American people deserve to have the utmost confidence and trust in their government, and as we work to get to the bottom of what happened at the IRS. Danny has the experience and management ability necessary to lead the agency at this important time."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataOn the other hand, Joseph Grant, the commissioner of the tax exempt and government entities unit that was at the heart of the tax-scandal, has announced his retirement.
Miller is due to appear before a congressional hearing on 17 May, where he is expected to be questioned about the actions of two staff in the Cincinnati office of the IRS, among other things.
