The head of the United States Internal Revenue Service (IRS) has unveiled a substantial organisational shake-up, with the announcement coming mere days before the commencement of the critical 2026 tax filing season. In a move designed to enhance taxpayer service and drive institutional modernisation, IRS Chief Executive Officer Frank Bisignano detailed sweeping personnel and operational changes in a letter to the agency's 74,000 employees.
Leadership Reshuffle at a Critical Juncture
This significant restructuring coincides with a pivotal moment for the tax authority. The IRS is preparing to process an anticipated 164 million individual income tax returns this year, a volume consistent with the previous year. Simultaneously, the agency faces the complex task of implementing major tax law changes enacted last summer under President Donald Trump's spending package. These reforms include new tax relief provisions for tips and overtime earnings, alongside deductions for qualifying older Americans.
Key Appointments and Retirements
In the letter, obtained by The Associated Press, Bisignano confirmed several high-profile appointments. Most notably, Gary Shapley, the whistleblower who provided public testimony regarding investigations into Hunter Biden's taxes and served a brief two-day tenure as IRS Commissioner last year, has been named deputy chief of the Criminal Investigation division.
This appointment forms part of a broader leadership transition. Guy Ficco, the current head of Criminal Investigation, is set to retire. He will be succeeded by Jarod Koopman, who will also assume the role of chief tax compliance officer, working alongside CEO Bisignano. Furthermore, Joseph Ziegler, another whistleblower connected to the Hunter Biden investigations, has been appointed as chief of internal consulting.
Confidence Amidst Warnings
Bisignano expressed strong confidence in the new leadership team, stating in his communication that he is “confident that with this new team in place, the IRS is well-prepared to deliver a successful tax filing season for the American public.”
However, this optimism is tempered by recent warnings. The June National Taxpayer Advocate report to Congress cautioned that the 2026 filing season could encounter significant challenges. These concerns stem from a series of mass layoffs last year, instigated by the Department of Government Efficiency, which reduced the IRS workforce by 26%. Erin M. Collins, who leads the taxpayer advocacy organisation, highlighted the risks, noting, “With the IRS workforce reduced by 26% and significant tax law changes on the horizon, there are risks to next year’s filing season.”
Strategic Priorities for 2026
Bisignano, who was appointed to his dual role as IRS CEO and Commissioner of the Social Security Administration in October, outlined his core priorities for the tax agency in the coming year. These central goals focus on three key areas:
- Enhancing Customer Service: Improving the experience and support for taxpayers.
- Improving Tax Collections: Strengthening the efficiency and effectiveness of revenue collection processes.
- Safeguarding Taxpayer Privacy: Ensuring robust protection of sensitive personal and financial data.
Amidst these operational changes, there is anticipation regarding potential financial outcomes for taxpayers. The average tax refund last year stood at $3,167, according to official IRS data. Treasury Secretary Scott Bessent has indicated on multiple occasions that the effects of recent Republican-led tax legislation could result in larger refunds for many Americans in 2026.
