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 The nominee to head the Internal Revenue Service, Democrat John
Koskinen, is a 74-year-old lawyer with little tax experience who
stepped in to run mortgage finance giant Freddie Mac five years ago
when it was engulfed by the credit crisis.
Koskinen draws praise from Republicans and Democrats alike, but
confrontation awaits him in the Senate Finance Committee, given this
year's IRS tax-exemption scandal involving conservative political
groups and the role the agency will play implementing Obamacare.
The committee hearing begins at 10 a.m. (1500 GMT).
If Koskinen wins confirmation in the committee, as expected, his
nomination will likely breeze through the full Senate, thanks to the
chamber's new policy on procedural roadblocks known as filibusters,
tax lobbyists said.
In November, the Democratic-led Senate voted for a rule change that
strips Republicans of their ability to block Obama's judicial and
executive branch nominees.
No committee vote has been scheduled yet on Koskinen's nomination, a
staffer said.
Senator Charles Grassley of Iowa, the No. 2 Republican on the
committee, said he was impressed by Koskinen's background, and they
had a "favorable" meeting and that he believed other committee
Republicans viewed Koskinen favorably.
Mark Everson, who served as IRS commissioner from 2003 to 2007 under
Republican President George W. Bush, said: "He will be confirmed."
TAX EXEMPTION SCANDAL SPARKS TRUST ISSUE
With the 2014 tax filing season due to begin in late January or
early February, Congress will be eager not to delay the
confirmation, especially because acting commissioners have been
running the IRS for the last 13 months.
It is the longest the IRS has gone without a confirmed commissioner
since at least the 1950s. Koskinen would replace acting chief Danny
Werfel, a White House budget official. Koskinen's term would be for
five years.
The IRS came under scrutiny this year when lawmakers with ties to
the conservative Tea Party movement accused the agency of unfairly
subjecting conservative groups that had sought tax-exemptions to
extra time-consuming scrutiny.
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A two-month political uproar ensued, leading to the resignation of
one acting IRS commissioner, the appointment of another,
embarrassment for the White House and damage to the agency's
politically neutral image. The matter is still under FBI and
congressional investigation.
Tuesday's confirmation hearing gives Republicans an opportunity to
revive the scandal.
"Koskinen must explain how he will lead this agency out of its
recent turmoil and regain the public's trust," Senator Orrin Hatch
of Utah, the committee's top Republican, said in a statement.
Grassley said, "The big thing is the intimidation of the IRS. We
need to make sure our IRS is non-ideological."
THE IRS AND OBAMACARE
Both Grassley and Hatch said Koskinen must answer questions about
how he would handle the IRS's role in the 2010 Affordable Care Act,
otherwise known as Obamacare.
Beginning in January 2014, a tax credit will be available to low-
and middle-income individuals to help pay for health insurance.
Earlier this month, the IRS's inspector general said the agency
needs tighter fraud filters to prevent the tax credits from being
issued erroneously.
Grassley has previously raised concerns about Koskinen's campaign
contributions. Koskinen has contributed about $80,000 to Democratic
candidates dating back to 1989, public campaign records show,
including two $2,500 donations last year to Obama.
Senator Max Baucus, a Montana Democrat and the committee's chairman,
endorsed Koskinen on Friday.
"He is the right person to take on this challenge, and with filing
season approaching, the IRS needs its leader in place," Baucus said
in a statement.
(Reporting by Patrick Temple-West; editing by Howard Goller and
Leslie Adler)
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