Obama Names Daniel Werfel Acting IRS Commissioner
by Terri Eyden on
By Jason Bramwell
The current controller of the US Office of Management and Budget has been appointed by President Obama as the new acting commissioner of the IRS, effective May 22.
Daniel Werfel, forty-two, will take over the position vacated by Steven Miller, who resigned on May 15. Werfel will lead the effort to fix the reputation of the IRS, which has been under fire since May 10 when the agency admitted to improperly scrutinizing the federal tax-exempt status of conservative groups.
In a written statement, Obama said Werfel 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 and restore confidence in the IRS, Danny has the experience and management ability necessary to lead the agency at this important time," the president said.
Tea Party Scandal
Follow AccountingWEB's coverage of the Tea Party scandal here.
Werfel has agreed to serve in this position through the end of the fiscal year, according to the statement.
The IRS apologized on May 10 for what it calls "inappropriate" targeting of groups that had conservative titles, such as "tea party" or "patriot," in their names to see if they were violating their tax-exempt status.
According to a report released on May 14 by the Treasury Inspector General for Tax Administration (TIGTA), inappropriate criteria that was developed and implemented by the IRS Determinations Unit in Cincinnati remained in place for more than eighteen months in part due to insufficient oversight provided by management. This resulted in substantial delays in processing certain applications and allowed unnecessary information requests to be issued.
The Determinations Unit is responsible for reviewing applications as they are received to determine whether an organization qualifies for tax-exempt status.
During a joint press conference at the White House on May 16 with Turkish Prime Minister Recep Erdogan, Obama stressed that he didn't know anything about the TIGTA report before it was leaked through the press.
"Typically, the IG reports are not supposed to be widely distributed or shared. They tend to be a process that everybody is trying to protect the integrity of," the president said. "But what I'm absolutely certain of is that the actions that were described in that IG report are unacceptable."
Obama said his main concern is fixing the IRS, and that process began yesterday by asking and accepting the resignation of the acting commissioner.
"We will be putting in new leadership that will be able to make sure that – following up on the IG audit – we gather up all the facts and we hold accountable those who have taken these outrageous actions," he said.
- IRS Acting Commissioner Steven Miller Resigns Over Scandal
- Justice Department Investigating IRS' Targeting of Conservative Groups
You may like these other stories...
IRS chief: New rule on the way for tax-exempt groupsIRS Commissioner John Koskinen told the USA Today on Monday that the agency will likely rewrite a proposed rule regulating the political activities of nonprofit groups to...
With tomorrow being Tax Day, you might see some procrastinators at your office filling out forms, printing out paperwork, or getting last-minute tax advice from their accountant so they can meet the IRS’s filing...
The IRS has launched 295 new identity theft and refund fraud investigations during this tax-filing season, bringing the number of active cases to nearly 1,900, the agency announced last week.The coast-to-coast enforcement...
Upcoming CPE Webinars
In this exciting presentation Excel expert David H. Ringstrom, CPA shares tricks that you can use with pivot tables every day. Remember, either you work Excel, or it works you!
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.