IRS Commissioner Resigns Ahead Of Trump Inauguration

IRS Commissioner Daniel Werfel announces resignation as Trump administration prepares to take office, paving the way for new leadership at the tax agency.

At a Glance

  • Daniel Werfel, IRS Commissioner, to step down as Trump takes office
  • Trump nominates former Republican congressman Billy Long as new IRS Chief
  • Werfel’s early departure breaks tradition of nonpartisan IRS leadership
  • Republicans aim to cancel Democrat-approved IRS funding increases
  • Douglas O’Donnell to serve as Acting Commissioner during transition

Werfel’s Departure Marks Shift in IRS Leadership

IRS Commissioner Daniel Werfel has announced his resignation effective January 20, 2025, coinciding with President-elect Donald J. Trump’s inauguration.

Which means Trump will have no problem replacing him with somebody more interested in growing the economy and taxing external sources than targeting small businesses all over America.

Werfel’s decision to step down before the end of his term, which was set to expire in November 2027, marks a departure from the traditionally nonpartisan nature of the IRS commissioner role.

The IRS, responsible for collecting nearly $5 trillion in tax revenue last fiscal year, is set to undergo a leadership transition that could significantly impact its operations and priorities. President-elect Trump has nominated Billy Long, a former Republican Congressman, to take the helm of the agency.

Trump’s Pick Signals Potential Policy Shift

The nomination of Billy Long as the new IRS commissioner suggests a potential shift in the agency’s direction. Long’s experience with tax matters is limited, primarily involving a pandemic-era tax credit. This choice aligns with Republican criticism of the IRS as a political tool for Democrats and may indicate a desire to reshape the agency’s focus and operations.

Republicans have already taken steps to reduce the IRS’s expanded budget, canceling $20 billion of the $80 billion funding initially planned by Democrats and freezing an additional $20 billion. This action underscores the ongoing debate over the role and resources of the tax collection agency.

As the IRS prepares for new leadership, questions remain about the future direction of the agency. The incoming administration’s approach to tax policy and enforcement will likely shape the IRS’s priorities in the coming years. Douglas O’Donnell, the current Deputy Commissioner, will serve as Acting Commissioner during the transition period.

As the IRS enters this new chapter, taxpayers and policymakers alike will be watching closely to see how the agency balances its core mission of tax collection with potential new directives from the incoming administration.