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Benjamin Guggenheim

Yellen names O'Donnell to temporarily steer IRS as it readies for major expansion

Douglas O'Donnell would take charge of the IRS until a permanent replacement for outgoing Commissioner Chuck Rettig is confirmed. | Susan Walsh/AP Photo
UPDATED: 28 OCT 2022 05:56 PM EST

Treasury Secretary Janet Yellen on Friday appointed Douglas O’Donnell as acting head of the IRS during a potentially transformative period for the agency.

O'Donnell, who is currently deputy commissioner for services and enforcement, would take charge of the IRS until a permanent replacement for outgoing Commissioner Chuck Rettig is confirmed. Biden has yet to nominate someone for the post.

It's considered a key appointment after an $80 billion influx of funding by Congress designed to ramp up scrutiny of wealthy people who may be avoiding taxes, reverse a staff shortage and modernize woefully out-of-date technology.

IRS Commissioner Chuck Rettig testifies during a hearing. | Susan Walsh/AP Photo

Republicans have relentlessly attacked the Democratic-crafted funding boost, portraying it as a plan to expand audits of ordinary Americans, and some have vowed to find a way to claw back the money, which would be parceled out over 10 years, if they take control of one or both chambers of Congress in November's midterm elections.

Rettig's term expires Nov. 12. He was a tax attorney, and the administration is said to be looking for a replacement with management experience given the changes expected at the IRS.

"Deputy Commissioner O’Donnell has dedicated his career to serving American taxpayers through every level of the agency," Yellen said in a statement announcing O'Donnell's appointment. "His commitment to improving the experience of the American taxpayer will guide his and the agency’s work as they continue their efforts to propel the IRS forward during a critical period of modernization."

O'Donnell has spent more than 36 years at the agency, having helmed the Large Business and International division for nearly six years prior to becoming deputy commissioner for services and enforcement.

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