IRS Chief Announces Major Reorganisation Ahead of 2026 Tax Filing Season
The head of the United States tax agency has announced a significant organisational shake-up, just days before the commencement of the critical 2026 tax filing season. Internal Revenue Service (IRS) chief executive officer Frank Bisignano detailed the personnel and operational changes on Tuesday, stating they are designed to improve taxpayer service and modernise the institution.
Critical Timing for Agency Overhaul
This announcement comes at a pivotal moment for the agency, which is preparing to process millions of tax returns while simultaneously implementing major tax law changes from a spending package signed into law last summer by President Donald Trump. These legislative changes include new tax relief provisions for tips and overtime earnings, alongside deductions for qualifying older Americans.
In a letter addressed to the agency's 74,000 employees and viewed by The Associated Press, CEO Frank Bisignano outlined new priorities and a reorganisation of IRS executive leadership. The most notable appointment sees Gary Shapley, the whistleblower who testified publicly about investigations into Hunter Biden's taxes and served just two days as IRS Commissioner last year, named deputy chief of the Criminal Investigation division.
Leadership Changes and New Appointments
The leadership reshuffle includes several key changes:
- Guy Ficco, the current head of Criminal Investigation, is set to retire and will be replaced by Jarod Koopman, who will also serve as chief tax compliance officer alongside Bisignano.
- Joseph Ziegler, another Hunter Biden whistleblower, was named chief of internal consulting, according to the letter.
- Bisignano, who was appointed to his role in October and also serves as commissioner of the Social Security Administration, emphasised his confidence in the new team's ability to deliver a successful tax filing season for the American public.
Challenges Ahead for 2026 Tax Season
The June National Taxpayer Advocate report to Congress warned that the 2026 season could face significant challenges following a series of mass layoffs last year initiated by the Department of Government Efficiency. "With the IRS workforce reduced by 26% and significant tax law changes on the horizon, there are risks to next year's filing season," said Erin M. Collins, who leads the organisation assigned to protect taxpayers' rights.
Bisignano's main priorities for the IRS in 2026 include enhancing customer service, improving tax collections, and safeguarding taxpayer privacy. The agency expects to receive approximately 164 million individual income tax returns this year, a figure consistent with last year's volume.
Financial Implications for Taxpayers
According to IRS data, the average refund amount last year was $3,167. Treasury Secretary Scott Bessent has indicated on several occasions that the effects of Republican tax law changes are expected to result in larger refunds for many taxpayers in 2026. This potential increase comes amid the agency's restructuring efforts and the implementation of new tax provisions.
The combination of leadership changes, workforce reductions, and significant legislative alterations creates a complex landscape for the upcoming tax season, with the IRS aiming to balance modernisation efforts with efficient service delivery to millions of American taxpayers.
