Commissioner of Internal Revenue

Commissioner of Internal Revenue. The Commissioner of Internal Revenue is the head of the Internal Revenue Service (IRS), the revenue service of the United States federal government. Appointed by the President of the United States with the advice and consent of the United States Senate, the commissioner oversees the administration and enforcement of the nation's internal revenue laws. The position was established in 1862 to administer the new internal revenue system created to fund the American Civil War.

History

The office was created by the Revenue Act of 1862 during the American Civil War under President Abraham Lincoln to manage the nation's first income tax. The first commissioner, George S. Boutwell, who later served as Secretary of the Treasury and Governor of Massachusetts, organized the Bureau of Internal Revenue. The agency's powers expanded significantly with the ratification of the Sixteenth Amendment in 1913, which established Congress's right to levy a federal income tax. Major restructuring occurred in the 1950s following the Truman administration's investigation into corruption, leading to its reorganization and renaming as the Internal Revenue Service in 1953. Key historical events involving the office include its role in enforcing tax laws during Prohibition and investigating figures like Al Capone.

Appointment and tenure

The commissioner is nominated by the President of the United States and must be confirmed by the United States Senate through its Committee on Finance. Unlike some federal agency heads, the position has no fixed term, serving at the pleasure of the president, though commissioners typically resign at the beginning of a new administration. The commissioner reports directly to the Secretary of the Treasury and is a key advisor on federal tax policy. Notable confirmations have involved significant political scrutiny, such as that of Douglas H. Shulman under President George W. Bush and John Koskinen under President Barack Obama.

Duties and responsibilities

The commissioner's primary duty is to administer and enforce the Internal Revenue Code as the chief executive of the Internal Revenue Service. This involves overseeing the collection of over $3 trillion in tax revenue annually, managing a workforce of approximately 80,000 employees, and operating programs like the Earned Income Tax Credit. The commissioner issues formal guidance through Treasury Regulations and Revenue Rulings, directs criminal investigations through the IRS Criminal Investigation Division, and implements major legislative changes such as those from the Tax Cuts and Jobs Act of 2017. The office also testifies before Congress, notably the House Ways and Means Committee and the Senate Finance Committee, on tax administration and policy.

List of commissioners

Since 1862, over 50 individuals have served, with tenures varying from a few months to several years. The first commissioner was George S. Boutwell (1862-1863). Notable 20th-century commissioners include Joseph D. Nunan Jr. who served under President Harry S. Truman, and Sheldon S. Cohen, appointed by President Lyndon B. Johnson. In recent decades, appointees have included Margaret Milner Richardson under President Bill Clinton, Mark W. Everson under President George W. Bush, and Charles P. Rettig under President Donald Trump. The current commissioner is appointed by President Joe Biden.

Controversies and notable cases

The office has been central to several political and administrative controversies. During the Watergate scandal, the IRS under Commissioner Donald C. Alexander was alleged to have been used for political audits against enemies of President Richard Nixon. In the 1990s, hearings chaired by Senator William V. Roth Jr. investigated claims of taxpayer abuse, leading to the Internal Revenue Service Restructuring and Reform Act of 1998. More recently, the IRS targeting controversy involved scrutiny of applications for tax-exempt status from groups like the Tea Party movement during the tenure of commissioners Douglas H. Shulman and Steven T. Miller. High-profile enforcement cases overseen by commissioners include the criminal tax conviction of Al Capone and the civil case against Pete Rose.

Category:Internal Revenue Service Category:United States federal commissioners