In a strategic move to address mounting pressures on the Internal Revenue Service, CEO Frank Bisignano revealed a comprehensive shake-up of the agency’s leadership on Tuesday. This announcement comes mere days before the opening of the 2026 tax filing season, which is set to begin January 26. The adjustments aim to fortify the IRS amid considerable staff decreases and the implementation of new, intricate tax regulations.
According to a communication distributed to the IRS's approximately 74,000 employees, Bisignano detailed a reorganization plan that elevates several figures with notable profiles into senior leadership roles within the agency. This reshuffle reflects an effort to stabilize operations and enhance responsiveness ahead of the anticipated surge in tax processing demands.
Among the notable appointments, whistleblower Gary Shapley will assume the role of deputy chief within the Criminal Investigation division. Additionally, Jarod Koopman is positioned to succeed the retiring Guy Ficco as chief of Criminal Investigation while also taking on responsibilities as chief tax compliance officer. Joseph Ziegler, another individual known for whistleblowing activities related to Hunter Biden, has been assigned to lead internal consulting efforts within the IRS. Bisignano expressed confidence that this restructured team equips the agency to successfully navigate the upcoming tax season on behalf of the American public.
The timing of this leadership adjustment is critical as the IRS anticipates processing roughly 164 million individual income tax returns, consistent with figures from the previous year. The agency’s Fiscal Year 2024 Data Book provides context on workload magnitude, reporting the handling of over 266 million returns and related documents, including around 161 million individual tax filings. During this period, the IRS issued approximately 117.6 million refunds, totaling nearly $491 billion. The average refund amount last year was $3,167. Treasury Secretary Scott Bessent has indicated that legislative tax modifications enacted by Republicans may result in larger refunds in 2026.
These legislative changes stem from a tax-and-spending package endorsed by former President Trump and enacted last summer. The new provisions introduce additional relief measures for tipped income earners and overtime pay, alongside newly qualified deductions for certain older taxpayers. The implementation of these alterations necessitates revisions of IRS forms and systems, requiring expedited adaptations during the tax filing period.
Complicating the agency’s operational landscape are significant workforce reductions. Driven by buyouts and layoffs facilitated through the Department of Government Efficiency, IRS staffing levels have declined from over 102,000 to roughly 75,700 employees—a drop approximating 26%. This contraction poses challenges in managing the volume of tax filings while maintaining service standards.
National Taxpayer Advocate Erin Collins issued warnings to Congress emphasizing the risks associated with decreased staffing and the complexities introduced by upcoming tax law changes. She underscored that a 26% workforce reduction combined with significant regulatory shifts could impede the agency's capacity to meet the demands of the next filing season.
At the helm since October and also serving as Social Security commissioner, Bisignano has outlined three primary objectives for 2026: enhancing customer service, reinforcing tax collection efforts, and strengthening the protection of taxpayer data. These priorities reflect the agency’s dual focus on operational efficiency and security in an increasingly digital environment.
Supporting these aims, an IRS report for fiscal year 2024 highlighted recent improvements in telephone and in-person assistance. Moreover, the agency has launched a "Digital First" initiative that has facilitated over two billion online assistance transactions, signaling a transition toward greater reliance on digital platforms. Despite these advancements, the report cautions that ongoing funding and adequate staffing are essential to sustain progress and service quality.
As the IRS confronts the intertwined challenges of personnel reductions, evolving tax legislation, and increasing taxpayer needs, the leadership changes and strategic priorities communicated by Bisignano underscore the agency’s commitment to navigating these complexities ahead of the critical tax season.