David Kautter becomes interim IRS chief in controversial move

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

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 across site & shared bottom lb ros

More from across our site

New French legislation should create a more consistent legal environment for taxing gains from management packages, say Bruno Knadjian and Sylvain Piémont of Herbert Smith Freehills Kramer
The South Africa vs SC ruling may embolden the tax authority to take a more aggressive approach to TP assessments, an adviser tells ITR
Indirect tax professionals now rate compliance as a bigger obstacle than technology and automation; in other news, Italy approved a VAT cut on art sales
AI-powered tax agents are likely to be the next big development in tax technology, says Russell Gammon of Tax Systems
FTI Consulting’s EMEA head of employment tax and reward tells ITR about celebrating diversity in the profession, his love of musicals, and what makes tax cool
Canadian Prime Minister Mark Carney and US President Donald Trump have agreed that the countries will look to conclude a deal by July 21, 2025
The firm’s lack of transparency regarding its tax leaks scandal should see the ban extended beyond June 30, senators Deborah O’Neill and Barbara Pocock tell ITR
Despite posing significant administrative hurdles, digital services taxes remain ‘the best way forward’ for emerging economies, says Neil Kelley, COO of Ascoria
A ‘joint understanding’ among G7 countries that ‘defends American interests’ is set to be announced, Scott Bessent claimed
The ‘big four’ firm’s inaugural annual report unveiled a sharp drop in profits for 2024; in other news, Baker McKenzie and Perkins Coie expanded their US tax benches
Gift this article