Douglas O’Donnell, who served two separate stints as acting commissioner of the IRS before leaving the agency at the end of February, has joined KPMG as a senior managing director within its Washington National Tax practice, the Big Four accounting firm said on July 28.
Adding O’Donnell “comes at a critical time as multinational taxpayers face an unprecedented increase in cross-border tax disputes and enhanced enforcement efforts from tax administrations worldwide,” KPMG said in a media release on Monday.
In his new role, O’Donnell will co-lead the Tax Controversy and Dispute Resolution (TCDR) group within Washington National Tax, where he will help clients navigate complex tax issues with the IRS and foreign tax authorities. He will also assist clients with developing dispute prevention strategies to minimize tax controversy exposure.
“I’m excited to join the leading Washington National Tax practice at KPMG and contribute to the firm’s exceptional brand,” O’Donnell said in a statement on Monday. “The commitment of KPMG to delivering unparalleled value to clients during this dynamic period in tax administration aligns perfectly with my passion for helping organizations navigate complex challenges.”
O’Donnell brings nearly four decades of leadership from the IRS, where he held the agency’s most senior roles, including acting commissioner, deputy commissioner, and commissioner of the Large Business and International Division. As acting commissioner and deputy commissioner, he oversaw approximately 100,000 employees while leading strategic planning and organizational transformation efforts across the agency during a period of significant modernization.
“Doug’s unparalleled leadership and deep understanding of the tax landscape will be invaluable to our clients as they navigate an increasingly complex regulatory environment,” said Rema Serafi, vice chair of tax at KPMG. “Doug strengthens our ability to deliver the highest level of tax expertise and regulatory insight our clients need to manage these challenges effectively.”
Throughout his IRS tenure, O’Donnell played a pivotal role in dispute prevention and resolution matters, including through his role in developing and overseeing such programs as the IRS Compliance Assurance Process and the OECD International Compliance Assurance Programme. He also served as the U.S. competent authority, overseeing the IRS’s Advance Pricing and Mutual Agreement program that administers the U.S. tax treaty network. His experience extends to technology modernization and process improvement initiatives that helped to improve the efficiency of agency operations, thanks to funding the IRS received from the Inflation Reduction Act.
“Doug’s extensive experience with foreign tax administrations, particularly through his participation in the OECD Forum on Tax Administration, makes him an ideal addition to our Washington National Tax practice,” said Danielle Rolfes, partner in charge of KPMG Washington National Tax. “As tax authorities around the world intensify enforcement, Doug’s expertise in global tax issues and dispute resolution will provide our clients with even deeper insights and strategic guidance.”
During his career at the IRS, O’Donnell served as acting commissioner twice. The first time he served in that role was from late November 2022 until March 2023—the period after Charles Rettig, who was IRS chief during Donald Trump’s first term in the White House, stepped down and until Danny Werfel took over as the tax agency’s commissioner during the Biden administration. Most recently, O’Donnell served as acting chief after Werfel resigned as IRS commissioner on Jan. 20, the day of Trump’s second presidential inauguration.
- Related article: Douglas O’Donnell Named Acting IRS Chief
- Related article: IRS Chief Danny Werfel to Resign on Jan. 20
O’Donnell ended his second go-round as acting commissioner in February amid turmoil at the agency as the Department of Government Efficiency, then led by Elon Musk, sought access to taxpayer data at the IRS and as the Trump administration implemented plans to slash the federal workforce. O’Donnell retired on Feb. 28, with IRS chief operating officer Melanie Krause succeeding him as acting chief. Krause left the agency in protest in April after the Treasury Department agreed to provide taxpayer data to help Immigration and Customs Enforcement facilitate deportation efforts, despite longstanding privacy rules.
- Related article: Melanie Krause Named IRS Acting Commissioner as Douglas O’Donnell is Set to Retire
- Related article: Acting IRS Chief to Leave After Agency Makes Immigrant Tax Data-Sharing Deal with DHS
O’Donnell earned his B.S. in Accounting from the University of Maryland and completed advanced executive education programs, including the Internal Revenue Service Executive Development program and the Harvard Kennedy School of Public Policy Comparative Tax Policy and Administration program.
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