IRS CEO Frank Bisignano largely declined to answer questions from lawmakers regarding recent unlawful disclosures of taxpayer data to immigration agents during a congressional hearing on Wednesday. He stated that these events transpired before his tenure began, while emphasising his responsibility to address the issues moving forward.
Congressional Scrutiny Over Data Sharing Agreement
Bisignano faced the House Ways and Means Committee to discuss the agency's progress in serving taxpayers as the 2026 tax season is in full swing. This marked his first appearance before lawmakers since being appointed to the newly created CEO position last October. Treasury Secretary Scott Bessent continues to serve as the acting commissioner of the IRS.
In his prepared remarks, Bisignano focused on the Internal Revenue Service's implementation of Republicans' sweeping tax and spending law. This legislation includes eliminating taxes on tips and overtime, exempting certain car loan interest, creating a deduction for older adults, and launching Trump Accounts for children's savings.
Lawmakers Press for Accountability
However, several Democratic lawmakers directed their attention to a federal judge's finding that the IRS broke the law by disclosing confidential taxpayer information "approximately 42,695 times" to Immigration and Customs Enforcement. This was part of an agreement between ICE and the Department of Homeland Security to share information on immigrants for the purpose of identifying and deporting people illegally in the United States. Immigration and border security are a major part of the agenda of President Donald Trump, a Republican.
Representative Mike Thompson, a Democrat from California, pressed Bisignano with pointed questions: "Was anyone fired? Was anyone disciplined? Was anyone held accountable? Was anyone held to account?"
Bisignano cited ongoing litigation and declined to answer questions about the disclosures, adding, "I don't want to debate the numbers."
Judicial Findings and Ongoing Legal Challenges
U.S. District Judge Colleen Kollar-Kotelly found last month that the IRS unlawfully shared the taxpayer information of thousands of people with immigration enforcement. There are several ongoing cases that challenge the IRS-DHS agreement. Two court orders have blocked the agencies from massive transfers of taxpayer information and blocked ICE from acting on any IRS data in its possession. Those preliminary injunctions remain in effect.
Representative Suzan DelBene, a Democrat from Washington, stated, "This is a catastrophic leadership failure and a huge hit on the public's confidence in your integrity."
Bisignano's Response and Broader Context
Bisignano, who also serves as the Social Security Administration's commissioner, responded, "Obviously all these events occurred before my tenure." But he added it was "my responsibility to get it right."
A data-sharing agreement signed last April by Bessent and Homeland Security Secretary Kristi Noem allows ICE to submit names and addresses of immigrants inside the U.S. illegally to the IRS for cross-verification against tax records. The deal led the then-acting commissioner of the IRS to resign.
During the hearing, Democrats also questioned Bisignano on the IRS' recent decision to cut union contracts with its workers. Representative Richard Neal, a Democrat from Massachusetts, contended that "by terminating the union contract it makes it easier to take apart the IRS."
Bisignano, who is the son of a former Treasury Department worker, said, "Federal employees under statute have greater benefits than any union in the world can provide for their people." He asserted, "They're losing nothing."
