Trump picks tax lawyer to head IRS
President Donald Trump intends to nominate tax attorney Charles “Chuck” Rettig to be the next IRS chief, the White House said Thursday, as the agency is in the midst of implementing the massive tax overhaul Congress passed last year and facing numerous other challenges.
Rettig, a specialist in handling tax disputes who is a partner in a Beverly Hills, Calif., law firm, has for more than three decades represented clients before the IRS, the Justice Department, state tax authorities and other jurisdictions. POLITICO first reported in January that he would be Trump’s pick to head the IRS, which has been without a permanent commissioner since November.
Rettig’s nomination has to be confirmed by the Senate. Finance Chairman Orrin Hatch (R-Utah), whose panel will make a recommendation to the full Senate after a confirmation hearing, recently praised Rettig’s qualifications.
“The IRS has been bogged down by scandal and disruption in recent years, losing the trust of the American people,” Hatch said in a statement Thursday, in an apparent reference to a political targeting scandal that rocked the agency. “It’s past time we restore Americans’ faith in this agency. I look forward to learning more about Mr. Rettig and his qualifications to both achieve this goal and ensure an efficient implementation of the biggest tax rewrite in over 30 years.”
Rettig would replace John Koskinen, who stepped down in November at the end of his five-year term. David Kautter, the assistant Treasury secretary for tax policy, has been serving as acting commissioner.
Rettig’s nomination would break 20 years of precedent in which IRS leaders have come to the top job from business and management backgrounds. His knowledge of the nuances of tax law is likely to come into play as the agency issues dozens of rules to guide corporations and individuals navigating the tax overhaul that took effect Jan. 1. The agency must implement deep tax cuts as well as numerous far-reaching changes to the tax code.
But the IRS is saddled with outdated technology that could make that job more difficult. Its budget has been cut repeatedly in recent years by Republicans still angered by the agency’s previous targeting of conservative political groups for extra scrutiny when they applied for tax-exempt status.
The agency is also fighting an onslaught of tax-return fraud related to identity theft.
Congress is expected to provide more funding for the IRS this year and next, though how much is uncertain. The agency asked for a $397 million funding boost over two years.
It’s unclear how Rettig came to the Trump administration’s attention, though he is well-known at the IRS from his involvement in litigation with the agency and chairing its Advisory Council.