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Looming Leadership Void at I.R.S. Raises Concerns Over $80 Billion Overhaul Looming Leadership Void at I.R.S. Raises Concerns Over $80 Billion Overhaul
(about 1 hour later)
WASHINGTON — A group of former Internal Revenue Service commissioners is raising concerns over the fact that the White House has yet to nominate a replacement for Charles P. Rettig, whose term as I.R.S. commissioner is scheduled to expire next month, warning that the looming vacancy could stall the Biden administration’s planned $80 billion overhaul of the agency.WASHINGTON — A group of former Internal Revenue Service commissioners is raising concerns over the fact that the White House has yet to nominate a replacement for Charles P. Rettig, whose term as I.R.S. commissioner is scheduled to expire next month, warning that the looming vacancy could stall the Biden administration’s planned $80 billion overhaul of the agency.
The additional funds are expected to help the beleaguered I.R.S. crack down on tax cheats, improve customer service and update antiquated technology. The funds, which were included in a bill that Democrats passed, are a central part of the Biden administration’s plans to raise more than $120 billion in additional tax revenue over the next decade.The additional funds are expected to help the beleaguered I.R.S. crack down on tax cheats, improve customer service and update antiquated technology. The funds, which were included in a bill that Democrats passed, are a central part of the Biden administration’s plans to raise more than $120 billion in additional tax revenue over the next decade.
Overseeing that transition will be a significant undertaking, and several former I.R.S. leaders are warning that the lack of a new leader could hamper the transformation of the agency.Overseeing that transition will be a significant undertaking, and several former I.R.S. leaders are warning that the lack of a new leader could hamper the transformation of the agency.
The term of Mr. Rettig, who was appointed by President Donald J. Trump, will end on Nov. 12.The term of Mr. Rettig, who was appointed by President Donald J. Trump, will end on Nov. 12.
The former commissioners, who served under Democratic and Republican presidents, are Fred Goldberg, Charles Rossotti, Mark Everson and John Koskinen. They were joined in their statement by Nina Olson, a former national taxpayer advocate.The former commissioners, who served under Democratic and Republican presidents, are Fred Goldberg, Charles Rossotti, Mark Everson and John Koskinen. They were joined in their statement by Nina Olson, a former national taxpayer advocate.
“A prompt appointment of the next commissioner is essential,” they wrote in the statement, which was reviewed by The New York Times. “Until that position is filled, essential improvements to the I.R.S. are at serious risk of delay, if not failure.”“A prompt appointment of the next commissioner is essential,” they wrote in the statement, which was reviewed by The New York Times. “Until that position is filled, essential improvements to the I.R.S. are at serious risk of delay, if not failure.”
They added: “Only a confirmed commissioner can build external and internal support for such a big and complex transformation of an agency.”They added: “Only a confirmed commissioner can build external and internal support for such a big and complex transformation of an agency.”
It is not unusual for an agency such as the I.R.S. to have an interim leader during a period of transition. However, the nomination delay is surprising considering that Democrats have long wanted to bolster the resources of the agency.It is not unusual for an agency such as the I.R.S. to have an interim leader during a period of transition. However, the nomination delay is surprising considering that Democrats have long wanted to bolster the resources of the agency.
The deployment of the additional resources is also the subject of intense political focus, with Republicans warning that the 87,000 planned new hires will become a shadow army intended to target conservatives.The deployment of the additional resources is also the subject of intense political focus, with Republicans warning that the 87,000 planned new hires will become a shadow army intended to target conservatives.
Treasury Secretary Janet L. Yellen sent Mr. Rettig a memo in August outlining her top priorities, including clearing a backlog of unprocessed tax returns, improving taxpayer services, revamping antiquated technology and hiring thousands of new employees. She directed the agency to draft the plans within six months, and she tapped her deputy, Wally Adeyemo, to work with Mr. Rettig to develop the new initiatives and timelines.Treasury Secretary Janet L. Yellen sent Mr. Rettig a memo in August outlining her top priorities, including clearing a backlog of unprocessed tax returns, improving taxpayer services, revamping antiquated technology and hiring thousands of new employees. She directed the agency to draft the plans within six months, and she tapped her deputy, Wally Adeyemo, to work with Mr. Rettig to develop the new initiatives and timelines.
The role of the I.R.S. commissioner can be a difficult one to fill because of the scrutiny that the position attracts.The role of the I.R.S. commissioner can be a difficult one to fill because of the scrutiny that the position attracts.
The Treasury Department did not immediately respond to a request for comment about Mr. Rettig’s replacement. Julia Krieger, a Treasury spokeswoman, said in a statement that “the administration is committed to ensuring the agency has the tools it needs to best serve the American people, and collect taxes from wealthy evaders who today do not pay what they owe.” She added that “Treasury and the I.R.S. are hard at work and taxpayers will start to see initial service improvements next filing season.”
Karine Jean-Pierre, the White House press secretary, said on Monday that she did not have anything to preview in terms of a future nominee but that the timeline would not affect the transformation of the I.R.S.Karine Jean-Pierre, the White House press secretary, said on Monday that she did not have anything to preview in terms of a future nominee but that the timeline would not affect the transformation of the I.R.S.
“It’s not going to slow down the overhaul of the agency,” Ms. Jean-Pierre said. “We take this very seriously.”“It’s not going to slow down the overhaul of the agency,” Ms. Jean-Pierre said. “We take this very seriously.”
But the former commissioners are not convinced.But the former commissioners are not convinced.
Mr. Rossotti said in an interview that money alone would not modernize the I.R.S. and that the Biden administration should prioritize putting someone in place to put its imprint on the agency.Mr. Rossotti said in an interview that money alone would not modernize the I.R.S. and that the Biden administration should prioritize putting someone in place to put its imprint on the agency.
“If you have a situation where you’ve created expectations, but there’s no progress because there’s not a leader, that’s not a good situation,” Mr. Rossotti said.“If you have a situation where you’ve created expectations, but there’s no progress because there’s not a leader, that’s not a good situation,” Mr. Rossotti said.