WASHINGTON — On the cusp of the 2026 tax season, the Internal Revenue Service (IRS) announced a strategic reorganization of its leadership and operations, seeking to improve taxpayer service delivery and to modernize agency functions for an upcoming period marked by significant tax legislation changes.
Set to process approximately 164 million individual income tax returns in the upcoming year, consistent with recent filing volumes, the IRS faces the dual challenge of managing this workload while adapting to major tax provisions introduced under legislation signed into law by President Donald Trump last summer. These include new deductions aimed at older Americans, additional relief on overtime pay, and tax benefits related to tips.
In a communication addressed to the IRS's 74,000-strong workforce, Chief Executive Officer Frank Bisignano outlined the agency's new strategic priorities and announced a reshuffling within the IRS’s executive leadership team. A significant development within this shift is the appointment of Gary Shapley, known for his whistleblower testimony concerning investigations into Hunter Biden’s taxes, who will now serve as deputy chief of the Criminal Investigation division.
With the retirement of Guy Ficco, head of the Criminal Investigation unit, Jarod Koopman will assume leadership of that division. In addition, Koopman will take on the role of chief tax compliance officer concurrently with Bisignano. Further internal restructuring includes the appointment of Joseph Ziegler, another whistleblower associated with Hunter Biden inquiries, as chief of internal consulting.
Bisignano, who joined the IRS leadership in October and concurrently holds the position of Social Security Administration commissioner, emphasized the agency’s preparedness in his letter, expressing confidence that the newly configured team is equipped to ensure a successful filing season for taxpayers across the United States.
However, challenges loom as highlighted in the June National Taxpayer Advocate report to Congress, which raised concerns regarding the IRS’s reduced workforce following significant layoffs resulting from the Department of Government Efficiency’s mandates. The IRS labor force has contracted by 26%, while complex tax law changes approach, introducing potential risks to the upcoming filing cycle.
Key priorities for 2026 under Bisignano’s leadership include enhancing customer service quality, refining tax collection processes, and strengthening privacy protections for taxpayer information. These aims come at a time when the average tax refund remains significant – $3,167 last year per IRS data. Treasury Secretary Scott Bessent has indicated that due to Republican-led tax reforms, refunds are expected to increase in 2026.