1. Home
  2. |Insights
  3. |IRS Commissioner Nominee Daniel Werfel Testifies Before Senate Finance Committee

IRS Commissioner Nominee Daniel Werfel Testifies Before Senate Finance Committee

Client Alert | 1 min read | 02.24.23

On February 15th, Daniel Werfel, the nominee for IRS Commissioner, testified before the Senate Finance Committee during his nomination hearing. As expected, Werfel faced tough questioning about how he would oversee the use of $80 billion in new funding coming to the IRS over the next decade. The Inflation Reduction Act, which passed late last year, appropriated the additional funding for the IRS to increase compliance and provide better customer service to taxpayers. 

Republicans have criticized the additional funding, citing fears that the investment in the IRS will increase audits of individual and small business taxpayers. Treasury Secretary Janet Yellen addressed this concern, stating that the new funding will not be used to increase the audit rate for households making under $400,000 a year. Werfel committed during his nomination hearing to following Secretary Yellen’s directive.

Werfel testified that, if confirmed, “the audit and compliance priorities will be focused on enhancing the IRS’ capabilities to ensure that America’s highest earners comply with applicable tax laws.” As a result, we expect to see more coordinated and potentially more aggressive audits of high-earning individuals and corporations.

Werfel also testified that, if confirmed, he would focus on modernizing the IRS, improving taxpayer service, overhauling the agency’s technology systems, and adding additional IRS employees in customer service roles and with expertise in complex tax matters. The tax community has lamented the IRS’s customer service capabilities and outdated systems for years and these proposed modernization efforts are a welcome, much needed change.

We will continue to follow the IRS’s enforcement efforts as they develop and provide updates.

Insights

Client Alert | 2 min read | 11.14.24

SEC ESG Enforcement Is Still Alive

On November 8, 2024 the SEC announced a settled enforcement action against Invesco Advisers, Inc. for making misleading statements about its integration of environmental, social, and governance (ESG) factors into the firm’s investment decisions. Invesco agreed to pay a $17.5 million civil penalty to settle the matter. This enforcement action makes it clear that, even though the SEC dissolved its ESG Task Force, the Commission continues to monitor firms’ statements and representations for misleading statements about ESG....