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Zachary Halaschak, Economics Reporter


NextImg:Biden nominee to oversee massive IRS expansion advances to full Senate vote


The Senate Finance Committee voted on Thursday to advance President Joe Biden’s nominee for IRS commissioner to the entire chamber for a final confirmation vote.

The lawmakers voted 17-9 to approve Biden’s nominee, Danny Werfel. Three Republicans joined with all of the committee Democrats in approving his nomination. Werfel is expected to be approved by the broader Senate, although it isn’t clear how many Republicans will vote to confirm him on the floor.

Daniel Werfel testifies before the Senate Finance Committee during his confirmation hearing to be the Internal Revenue Service Commissioner, Wednesday, Feb. 15, 2023, on Capitol Hill in Washington. Werfel, President Joe Biden's nominee to lead the Internal Revenue Service, says he will commit to not increasing tax audits on businesses and households making less than $400,000 per year.


BIDEN IRS NOMINEE VOWS NO INCREASED AUDITS FOR THOSE EARNING UNDER $400K

The vote comes against the backdrop of new legislation that allocated $80 billion to beefing up the IRS, including a big chunk to bolster enforcement action.

Democrats have argued the agency is underfunded and that added resources will help it raise more tax revenue. But Republicans say that the money will be used to audit working-class families and lead to overreach by the IRS, which has found itself mired in several past scandals.

Adding to the frustrations of Republicans, the IRS blew past a February deadline that Treasury Secretary Janet Yellen set for the agency to produce a detailed report breaking down how it will spend the $80 billion infusion. The IRS produced a statement saying it intended to produce the document “in coming weeks.”

During his confirmation hearing, Werfel was grilled about the IRS’s new funding and asked to assure committee members that the $80 billion won’t result in increased audits for those earning less than $400,000 per year. Werfel assured lawmakers that audits for the middle class would not increase.

Werfel, who served as acting commissioner of the agency in 2013, told lawmakers that taxpayers “rightfully expect a more modern and high-performing IRS” and noted that Yellen has already publicly committed to stopping an influx of audits for small businesses and those earning below $400,000 annually. Werfel said he is “committed to meeting” that directive from Yellen.

“Therefore, if I am fortunate enough to be confirmed, the audit and compliance priorities will be focused on enhancing the IRS’s capabilities to ensure that America’s highest earners comply with applicable tax laws,” Werfel said. “Also front and center will be efforts to modernize and dramatically improve taxpayer service.”

During the Thursday committee meeting on Werfel, Sen. Jon Cornyn (R-TX) bashed the $80 billion “blank check” and voted against Werfel’s nomination. Still, he acknowledged Werfel's willingness to serve and his background of public service.

“The IRS is not meeting its mission,” Cornyn said, noting the recent leak of taxpayer information that further soured Republicans on the agency.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

Meanwhile, Thom Tillis (R-NC) said he planned to vote in favor of Werfel’s nomination but didn't make the vote. He said earlier on Thursday that Werfel “understands there are a lot of structural changes” that need to be made at the IRS.

It is unclear when the official floor vote to confirm Werfel will take place. Werfel’s nomination has been pending since November.