All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

David Kautter becomes interim IRS chief in controversial move

People Move thumbnail

In a divisive move, the Trump administration has appointed former EY executive David Kautter as the interim head of the Internal Revenue Service (IRS) in place of outgoing commissioner John Koskinen.



Kautter will undertake his new role while also serving as the assistant secretary of the Treasury for tax policy at the same time.

He was appointed after the Republicans could not settle on who would take over from Koskinen.

As IRS commissioner, Koskinen faced intense opposition from the Republican Party. This went as far as an attempt to impeach Koskinen in 2015. Eventually the impeachment effort was dropped and Koskinen served the remainder of his term.

Before putting on two hats at the IRS, Kautter was a partner at RSM US for two years and served as managing director of the tax centre at the Kogod School of Business for four years. This was after more than 35 years at EY and its predecessor Arthur Young. Kautter has experience advising a senator on tax affairs, securities and banking regulation.

However, Kautter’s appointment has not been uncontroversial. During Kautter’s time as EY’s national director, four professionals at the Big 4 firm faced allegations of running an illegal tax shelter scheme for around 200 clients. While four of the practitioners were convicted in 2010, two of the sentences were overturned. EY paid the IRS $123 million in a settlement. It should be noted that Kautter was never charged, but his appointment could raise concerns at a time of heightened scrutiny over politicians and their affairs.

The US Treasury Department picked David Kautter to be acting director until the next candidate for commissioner can be nominated and face congressional scrutiny. The interim period could last for 120 to 190 days before a new appointment is made.



More from across our site

The state secretary told the French press that the country continues to oppose pillar two’s global minimum tax rate following an Ecofin meeting last week.
This week the Biden administration has run into opposition over a proposal for a federal gas tax holiday, while the European Parliament has approved a plan for an EU carbon border mechanism.
Businesses need to improve on data management to ensure tax departments become much more integrated, according to Microsoft’s chief digital officer at a KPMG event.
Businesses must ensure any alternative benchmark rate is included in their TP studies and approved by tax authorities, as Libor for the US ends in exactly a year.
Tax directors warn that a lack of adequate planning for VAT rule changes could leave businesses exposed to regulatory errors and costly fines.
Tax professionals have urged suppliers of goods from Great Britain to Northern Ireland to pause any plans to restructure their supply chains following the NI Protocol Bill.
Tax leaders say communication with peers is important for risk management, especially on how to approach regional authorities.
Advances in compliance tools in international markets and the digitalisation of global tax administrations are increasing in-house demand for technologists.
The US fast-food company has agreed to pay €1.25 billion to settle the French investigation into its transfer pricing arrangements over allegations of tax evasion.
HM Revenue and Customs said the UK pillar two legislation will be delayed until at least December 2023, while ITR reported on a secret Netflix settlement and an IMF study on VAT cuts.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree