Senate OKs Biden’s pick of Werfel to run the IRS

WASHINGTON — The Senate confirmed Daniel Werfel to serve as commissioner of the Internal Revenue Service on Thursday.

Werfel, who pledged before senators not to expand tax audits on businesses and households making less than $400,000 per year, will serve a five-year term as leader of the federal tax collection agency.

The 54-42 vote to approve his nomination included six Republicans breaking party ranks to back him and a lone Democrat, West Virginia Sen. Joe Manchin, voting against him.

President Joe Biden nominated Werfel to steer the IRS as it receives nearly $80 billion over the next 10 years through the Inflation Reduction Act, which Congress passed in August along party lines.

Previously a private consultant who led Boston Consulting Group’s global public sector practice, Werfel faced rounds of questions before the Senate Finance Committee in February on how he would spend the agency’s new infusion of money.

Werfel will have to navigate controversy surrounding the new funding, as critics have distorted how the new law would affect the IRS and taxes for the middle class. About $46 billion was allocated for enforcing tax laws and the rest for taxpayer services, operations support and updated business systems.

Republicans have suggested without evidence that the agency would use the money to hire an army of tax agents with weapons.

IRS officials say the new money is already being put to use, announcing Wednesday that the agency has expanded its digital scanning capabilities.

The agency has scanned more than 120,000 paper forms related to unemployment taxes, a twentyfold increase compared with all of 2022.