In a significant move just days before the commencement of the 2026 tax filing season, the head of the Internal Revenue Service has announced a major organisational shake-up. Frank Bisignano, the IRS Chief Executive Officer, detailed personnel changes and new operational priorities in a letter addressed to the agency's 74,000 employees, stating these measures are designed to enhance taxpayer service and drive modernisation efforts.
Timing Coincides with Critical Implementation Phase
The announcement arrives at a pivotal moment for the federal 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 must implement substantial tax law changes enacted under the tax and spending package signed into law by President Donald Trump last summer. These changes include new tax relief provisions for tips and overtime earnings, alongside fresh deductions for qualifying older Americans.
Leadership and Personnel Changes Detailed
The reorganisation involves several high-profile appointments within the IRS executive leadership. Notably, Gary Shapley, the whistleblower who publicly testified 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.
Furthermore, Guy Ficco, the current head of Criminal Investigation, is set to retire. He will be replaced by Jarod Koopman, who will also assume the role of chief tax compliance officer, working alongside CEO Frank Bisignano. Another whistleblower from the Hunter Biden investigations, Joseph Ziegler, has been appointed chief of internal consulting, according to the letter obtained by The Associated Press.
Confidence Amidst Warnings of a Rocky Season
In his communication, Bisignano expressed strong confidence in the new team, asserting that the IRS is "well-prepared to deliver a successful tax filing season for the American public." However, this optimism contrasts with recent warnings. The June National Taxpayer Advocate report to Congress cautioned that the 2026 filing season could face significant challenges.
Erin M. Collins, who leads the organisation tasked with protecting taxpayers' rights, highlighted specific risks. "With the IRS workforce reduced by 26% and significant tax law changes on the horizon, there are risks to next year's filing season," Collins stated, referencing a series of mass layoffs instigated last year by the Department of Government Efficiency.
Bisignano's Dual Role and Stated Priorities
Frank Bisignano, who was appointed to his position in October, also serves as the Commissioner of the Social Security Administration, holding a unique dual role in federal administration. His outlined main priorities for the IRS in 2026 are threefold: enhancing customer service, improving the efficiency of tax collections, and rigorously safeguarding taxpayer privacy and data.
Financial Context and Refund Expectations
The financial backdrop for the upcoming season is also a point of focus. According to official IRS data, the average tax refund amount last year stood at $3,167. Treasury Secretary Scott Bessent has publicly commented on several occasions that the effects of the recent Republican-led tax law changes are expected to result in larger refunds for many taxpayers in the 2026 filing cycle.
This comprehensive reorganisation represents a strategic attempt by the IRS leadership to stabilise operations and improve public trust during a period of internal transition and external legislative change. The success of these measures will be tested in the coming months as millions of Americans begin submitting their returns.
