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Senior budget official picked to run troubled IRS

By Stephen Ohlemacher

Associated Press

Published: Thursday, May 16 2013 10:35 p.m. MDT

WASHINGTON — President Barack Obama picked a senior White House budget official to become the acting head of the Internal Revenue Service on Thursday, the same day another top official announced plans to leave the agency amid the controversy over agents targeting tea party groups.

Obama named longtime civil servant Daniel Werfel as the acting IRS commissioner. Werfel, 42, currently serves as controller of the Office of Management and Budget, making him a key player in implementing recent automatic spending cuts known as the sequester.

"Throughout his career working in both Democratic and Republican administrations, Danny has proven an effective leader who serves with professionalism, integrity and skill," Obama said in a statement. "The American people deserve to have the utmost confidence and trust in their government, and as we work to get to the bottom of what happened and restore confidence in the IRS, Danny has the experience and management ability necessary to lead the agency at this important time."

Werfel replaces Steven Miller as acting IRS commissioner. Miller was forced to resign Wednesday amid the growing scandal, though he is still scheduled to testify Friday at a congressional hearing.

Also Thursday, Joseph Grant, one of Miller's top deputies, announced plans to retire June 3, according to an internal IRS memo. Grant is commissioner of the agency's tax exempt and government entities division, which includes the agents that targeted tea party groups for additional scrutiny when they applied for tax-exempt status.

Grant joined the IRS in 2005. Before that he was a top official at the Pension Benefit Guaranty Corporation. It was not immediately clear whether Grant's retirement was related to the controversy over tea party targeting by the IRS.

Werfel agreed to head the IRS through the end of September, the White House said. Presumably, Obama will nominate a new commissioner by then.

IRS commissioners serve five-year terms and must be confirmed by the Senate. Werfel won't need Senate approval because he is a temporary appointment. The Senate, however, confirmed Werfel for his current position without opposition in 2009.

Werfel has had several jobs at the Office of Management and Budget and worked there during President George W. Bush's administration.

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