Accounting
Danny Werfel resigns as IRS commissioner
IRS commissioner Danny Werfel said Friday he plans to resign next Monday, Jan. 20, coinciding with Inauguration Day.
President-elect Donald Trump announced plans last month to
“While I had always intended to complete my full term as Commissioner, the President-elect has announced his plan to nominate a new IRS Commissioner,” Werfel said in an email Friday to all IRS employees. “I have been touched by those who have reached out to me to share how they were hopeful that I could remain in seat and continue the important work underway. But as civil servants, we have a job to do, and that job is to now ensure a new Commissioner is set up for success.”
Werfel has been serving as IRS commissioner since March 2023 after previously serving as acting commissioner in 2013, bringing much needed
“After significant introspection and consultation with others, I’ve determined the best way to support a successful transition is to depart the IRS on January 20, 2025,” Werfel wrote. “While leaving a job you love is never easy, I take comfort in knowing that the civil servant leaders and employees at the IRS are the exact right team to effectively steward this organization forward until a new IRS Commissioner is confirmed. I know this because of what I have seen you achieve over the past two years — remarkable work that will serve as a strong foundation for the future.”
Werfel said he has been holding discussions with members of Congress and the presidential transition team to ensure a smooth transition at the IRS as the
“At the IRS, we can’t take any days off in protecting the non-partisan nature of our work,” he wrote. “And this of course includes during a presidential transition. In the past few weeks, I have had discussions with IRS employees, members of Congress, staff on the transition team and other stakeholders on how the IRS can best ensure a successful transition to a new administration. I start each of those conversations with the same key point: As a non-partisan entity, the IRS will work as tirelessly to support the incoming Treasury team’s agenda just as we have for the outgoing Treasury team.”
Werfel was asked during a press conference last week about how long he plans to remain at the IRS and insisted he has remained “laser focused” on his job and preparing for filing season.
“I spend every waking hour during the day and, quite frankly, at night, focused on one thing and one thing only, and that’s getting ready for this filing season,” said Werfel. “That has consumed all of my energy, and that is my sole focus.”
Long has not yet been officially nominated by Trump, and in the meantime, deputy commissioner Douglas O’Donnell will be in charge of the agency.
“Deputy Commissioner Douglas O’Donnell, with his extensive experience and proven leadership, will step in as Acting Commissioner, to ensure a smooth transition and continuity of the agency’s critical work until a new Commissioner is confirmed,” said Werfel on Friday. “Over the next few days, we will provide more specifics on leadership changes. I also want to thank the Treasury Secretary, the Deputy Secretary, and their entire leadership team who have been active champions for all the positive change underway.”
Werfel has been leveraging the funding from the Inflation Reduction Act to improve taxpayer service, technology and enforcement at the IRS, including new digital tools such as the
“We are making major progress toward the same modern experience that taxpayers get with their bank or financial institution,” he wrote. “We launched more digital tools in the last two years than the previous 20, making it easier for taxpayers to access services and manage their accounts. This includes more than two dozen new features and enhancements to Individual and Tax Professional Online Account and the launch of Business Tax Account.”
The IRS has also been ramping up enforcement, doing more audits of large partnerships and corporations and high-income taxpayers, as well as cracking down on abuse of the Employee Retention Credit, imposing a temporary moratorium on processing new ERC claims. The IRS has since lifted the moratorium, but a recent
Werfel highlighted some of his other accomplishments in his email to IRS employees. “We launched new initiatives to ensure tax enforcement is fair by strengthening complex and high-end enforcement,” he wrote. “In just one example, more than $1.4 billion has been recovered from a small number of high-income people who have not paid overdue tax debt or filed tax returns for many years. Lastly, we have made major progress updating foundational technology to process transactions more quickly, transparently and securely. We have turned a corner on modernizing our core processing system, the Individual Master File, and we are now running the new system in parallel with our legacy system, a longstanding goal of the agency. Brick by brick — and online tool by online tool — we are making improvements that will empower IRS to more quickly implement any tax code changes like those that may be enacted in 2025, while reducing the costs of maintaining IRS systems.”
Jody Padar, an author and speaker known as “The Radical CPA,” and Katie Tolin, a growth strategist for CPAs, together launched a training and technology platform called XcelLabs.
XcelLabs provides solutions to help accountants use artificial technology fluently and strategically. The Pennsylvania Institute of CPAs and CPA Crossings joined with Padar and Tolin as strategic partners and investors.
“To reinvent the profession, we must start by training the professional who can then transform their firms,” Padar said in a statement. “By equipping people with data and insights that help them see things differently, they can provide better advice to their clients and firm.”
The platform includes XcelLabs Academy, a series of educational online courses on the basics of AI, being a better advisor, leadership and practice management; Navi, a proprietary tool that uses AI to help accountants turn unstructured data like emails, phone calls and meetings into insights; and training and consulting services. These offerings are currently in beta testing.
“Accountants know they need to be more advisory, but not everyone can figure out how to do it,” Tolin said in a statement. “Couple that with the fact that AI will be doing a lot of the lower-level work accountants do today, and we need to create that next level advisor now. By showing accountants how to unlock patterns in their actions and turn client conversations into emotionally intelligent advice, we can create the accounting professional of the future.”
“AI is transforming how CPAs work, and XcelLabs is focused on helping the profession evolve with it,” PICPA CEO Jennifer Cryder said in a statement. “At PICPA, we’re proud to support a mission that aligns so closely with ours: empowering firms to use AI not just for efficiency, but to drive growth, value and long-term relevance.”
The accountant the world urgently needs has evolved far beyond the traditional role we recognized just a few years ago.
The transformation of the accounting profession is not merely an anticipated change; it is a pressing reality that is currently shaping business decisions, academic programs and the expected contributions of professionals. Yet, in many areas, accounting education stubbornly clings to outdated, overly technical models that fail to connect with the actual demands of the market. We must confront a critical question: If we continue to train accountants solely to file tax reports, are we truly equipping them for the challenges of today’s world?
This shift in mindset extends beyond individual countries or educational systems; it is a global movement. The recent announcement of the
The CIMA/CGMA proposal for 2026 is not just a curriculum update; it is a powerful manifesto. This new program positions analytical thinking, strategic business partnering and technology application at the core of accounting education. It unequivocally highlights sustainability, aligning with IFRS S1 and S2, and expands the accountant’s responsibilities beyond mere numbers to encompass conscious leadership, environmental impact and corporate governance.
The current changes in the accounting profession underscore an urgent shift in expectations from both educators and employers. Today, companies of all sizes and industries demand accountants who can do far more than interpret balance sheets. They expect professionals who grasp the deeper context behind the numbers, identify inconsistencies, anticipate potential issues before they escalate into losses, and act decisively as a bridge between data and decision making.
To meet these expectations, a radical mindset shift is essential. There are firms still operating on autopilot, mindlessly repeating tasks with minimal critical analysis. Likewise, many academic programs continue to treat accounting as purely a technical discipline, disregarding the vital elements of reflection, strategy and behavioral insight. This outdated approach creates a significant mismatch. While the world forges ahead, parts of the accounting profession remain stuck in the past.
The consequences of this shift are already becoming evident. The demand for compliance, transparency and sustainability now applies not only to large corporations but also to small and mid-sized businesses. Many of these organizations rely on professionals ill-equipped to drive the necessary changes, putting both business performance and the reputation of the profession at risk.
The positive news is that accountants who are ready to thrive in this new era do not necessarily need additional degrees. What they truly need is a commitment to awareness, a dedication to continuous learning, and the courage to step beyond their comfort zones. The future of accounting is here, and it is firmly rooted in analytical, strategic and human-oriented perspectives. The 2026 curriculum is a clear indication of the changes underway. Those who fail to think critically and holistically will be left behind.
In contrast, accountants who see the big picture, understand the ripple effects of their decisions, and actively contribute to the financial and ethical health of organizations will undeniably remain indispensable, anywhere in the world.
Congressional Republicans are siding with Donald Trump in the messy divorce between the president and Elon Musk, an optimistic sign for eventual passage of a tax cut bill at the root of the two billionaires’ public feud.
Lawmakers are largely taking their cues from Trump and sticking by the $3 trillion bill at the center of the White House’s economic agenda. Musk, the biggest political donor of the 2024 cycle, has threatened to help primary anyone who votes for the legislation, but lawmakers are betting that staying in the president’s good graces is the safer path to political survival.
“The tax bill is not in jeopardy. We are going to deliver on that,” House Speaker Mike Johnson told reporters on Friday.
“I’ll tell you what — do not doubt, don’t second guess and do not challenge the President of the United States Donald Trump,” he added. “He is the leader of the party. He’s the most consequential political figure of our time.”
A fight between Trump and Musk exploded into public view this week. The sparring started with the tech titan calling the president’s tax bill a “disgusting abomination,” but quickly escalated to more personal attacks and Trump threatening to cancel all federal contracts and subsidies to Musk’s companies, such as Tesla Inc. and SpaceX which have benefitted from government ties.
Republicans on Capitol Hill, who had — until recently — publicly embraced Musk, said they weren’t swayed by the billionaire’s criticism that the bill cost too much. Lawmakers have refuted official estimates of the package, saying that the tax cuts for households, small businesses and politically important groups — including hospitality and hourly workers — will generate enough economic growth to offset the price tag.
“I don’t tell my friend Elon, I don’t argue with him about how to build rockets, and I wish he wouldn’t argue with me about how to craft legislation and pass it,” Johnson told CNBC earlier Friday.
House Budget Committee Chair Jodey Arrington told reporters that House lawmakers are focused on working with the Senate as it revises the bill to make sure the legislation has the political support in both chambers to make it to Trump’s desk for his signature.
“We move past the drama and we get the substance of what is needed to make the modest improvements that can be made,” he said.
House fiscal hawks said that they hadn’t changed their prior positions on the legislation based on Musk’s statements. They also said they agree with GOP leaders that there will be other chances to make further spending cuts outside the tax bill.
Representative Tom McClintock, a fiscal conservative, said “the bill will pass because it has to pass,” adding that both Musk and Trump needed to calm down. “They both need to take a nap,” he said.
Even some of the House bill’s most vociferous critics appeared resigned to its passage. Kentucky Representative Thomas Massie, who voted against the House version, predicted that despite Musk’s objections, the Senate will make only small changes.
“The speaker is right about one thing. This barely passed the House. If they muck with it too much in the Senate, it may not pass the House again,” he said.
Trump is pressuring lawmakers to move at breakneck speed to pass the tax-cut bill, demanding they vote on the bill before the July 4 holiday. The president has been quick to blast critics of the bill — including calling Senator Rand Paul
As the legislation worked its way through the House last month, Trump took to social media to criticize holdouts and invited undecided members to the White House to compel them to support the package. It passed by one vote.
Senate Majority Leader John Thune — who is planning to unveil his chamber’s version of the bill as soon as next week — said his timeline is unmoved by Musk.
“We are already pretty far down the trail,” he said.
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