The Senate confirms Charles Rettig as IRS Commissioner



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WASHINGTON – The Senate has confirmed that Charles Rettig will lead the Internal Revenue Service, giving the veteran California taxman one of the toughest and most ungrateful jobs the federal government has.

Mr. Rettig, who has spent his career representing wealthy taxpayers and businesses in complex disputes with the government, has a mandate until November 2022. He will replace David Kautter, the Treasury's senior tax officer. . .

The Senate voted 64 to 33 in favor of Mr. Rettig's confirmation. All Republicans present joined the 15 Democrats to support the nomination.

Mr. Rettig will lead an agency struggling with stagnant or shrinking budgets, aging computer systems and increased congressional demands. Last year, the IRS audited 0.62% of personal income tax returns, the lowest rate since 2002. In 2017, the agency accounted for 19% less than the average taxpayer. in 2010.

"It's a dream job for problem-solvers, because the problems just sit all day," said Mark Matthews, former IRS Assistant Commissioner. "You do not get as much credit for the good things that happen, but you are surely pilloried when something is wrong."

The agency is implementing the 2017 tax law and is preparing for the beginning of 2019, the first tax reporting season under the new law. This can lead to confusion and taxpayer phone calls that adapt to new forms, rules and changes to the withholding tax.

Mr. Rettig faces potential conflicts with the president who appointed him. President Trump, who refused to release his tax returns, complained that the IRS has unfairly audited him for years.

During Mr. Rettig's confirmation hearing, he committed to being independent. IRS commissioners are generally not involved in the taxpayers' situation, but they establish broader policies.

The Republicans emphasized Mr. Rettig's confirmation as an opportunity to restore the agency's relationship with Congress and the public.

"Recent memories remind us of how important it is that all Americans get a fair response from the agency that oversees the tax code," said Senate Majority Leader Mitch McConnell. R., Ky.).

Republicans have led the campaign to punish the agency after 2013, when the IRS said it was giving additional scrutiny to some conservative groups demanding tax-exempt status. Republicans have claimed partisan motives; independent and bipartite analyzes focused on mismanagement.

The agency's executives have resigned and the IRS has revamped some of its nonprofit processing policies. However, bitterness and congressional investigations persisted throughout John Koskinen's term, President Obama's choice to rebuild the IRS.

"We hope that Congress will not feel some of the negative feelings they may have had with the previous commissioner," said Tony Reardon, president of the Union of Treasury Employees, who represents IRS employees. "The number one problem at the IRS is funding."

Unlike other recent commissioners, Mr. Rettig lacks experience in managing large and complex organizations. But he has extensive experience in the tax code, long service in professional groups and respect for tax professionals.

Mr. Rettig's courtesy and experience on the other side of the tax code should allow him to quickly gain credibility with the IRS, tax and congressional staff, "said Matthews, Solicitor tax consultant at Caplin & Drysdale.

"It's good to think of having a steward who has stepped into our shoes and experienced the IRS personally, for better and for worse," he said.

Democrats have few objections to Mr. Rettig himself. They used the debate on his appointment to highlight concerns over the 2017 tax law and the IRS's decision to let some non-profit groups involved in the policy submit less information about their donors .

Write to Richard Rubin at [email protected]

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