WASHINGTON (JN) – The head of the U.S. Internal Revenue Service has announced a reorganization of senior leadership just days before the start of the 2026 tax filing season, a period expected to test the agency as it faces staffing constraints and sweeping changes to the tax code.
The shake-up, outlined in a letter to employees, comes as the IRS prepares to process millions of returns while implementing new tax provisions enacted under a sweeping tax and spending law signed by President Donald Trump last summer. Officials say the changes are intended to strengthen taxpayer service, modernize operations, and stabilize leadership during a demanding filing season.
The announcement, first reported by The Associated Press, lands at a sensitive moment for the agency, which has warned Congress that reduced staffing levels could complicate the rollout of new tax benefits and slow response times for taxpayers.
Leadership changes at the top
In a letter addressed to the IRS’s roughly 74,000 employees, Chief Executive Officer Frank Bisignano said the agency is realigning leadership roles and setting new priorities for the year ahead. Bisignano, who took the role in October, also serves as commissioner of the Social Security Administration.
Among the most notable appointments, Gary Shapley was named deputy chief of the IRS Criminal Investigation division. Shapley previously testified publicly as a whistleblower regarding the agency’s investigation into the tax affairs of Hunter Biden and briefly served as acting IRS commissioner for two days last year.
The current head of Criminal Investigation, Guy Ficco, is scheduled to retire. He will be replaced by Jarod Koopman, who will also assume the role of chief tax compliance officer, reporting directly to Bisignano.
Joseph Ziegler, another whistleblower connected to the Hunter Biden tax investigation, was appointed chief of internal consulting, according to the letter.
Bisignano told employees he is confident the new leadership team will position the IRS to manage the upcoming filing season effectively. “With this new team in place, the IRS is well-prepared to deliver a successful tax filing season for the American public,” he wrote.
Tax law changes raise operational stakes
The leadership overhaul coincides with the first filing season to fully reflect major tax changes approved by Congress last year. The legislation introduced new tax relief for tipped income and overtime pay, along with expanded deductions for qualifying older Americans.
These changes are expected to affect a wide range of taxpayers and add complexity to return processing, customer support, and compliance oversight. Treasury officials have said the new provisions are designed to reduce tax burdens for working families and retirees, but implementation places additional demands on IRS systems and staff.
The IRS expects to receive approximately 164 million individual income tax returns during the 2026 season, a figure broadly in line with last year’s volume. Even so, internal and external watchdogs have cautioned that the agency may struggle to maintain service levels following significant workforce reductions.
Staffing cuts and warnings from advocates
Concerns about the IRS’s readiness were underscored in a June report to Congress by the National Taxpayer Advocate, an independent office within the agency charged with protecting taxpayer rights.
The report warned that the 2026 filing season could be “rocky” after mass layoffs last year linked to the Department of Government Efficiency, which reduced the IRS workforce by about 26%.
“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, the national taxpayer advocate, in the report.
The IRS has acknowledged the strain caused by staffing losses, particularly in customer service and enforcement, areas that had seen improvements in recent years following earlier funding boosts.
Agency priorities for 2026
Bisignano said the agency’s primary goals for 2026 include improving customer service, strengthening tax collection efforts, and safeguarding taxpayer data and privacy. Modernization of technology systems remains a central focus, as the IRS continues efforts to replace aging infrastructure and expand digital services.
Last year, the average tax refund issued by the IRS was $3,167, according to agency data. Treasury Secretary Scott Bessent has said repeatedly that the latest Republican-backed tax law is expected to result in larger refunds for many taxpayers in 2026, though the final impact will vary depending on individual circumstances.
As the filing season begins, the leadership changes signal an effort by the administration to project stability and readiness at an agency that sits at the center of federal revenue collection and public trust. Whether the reorganization will translate into smoother service amid fewer staff and more complex rules will become clearer in the months ahead.
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