In a significant development just days ahead of the 2026 tax filing season, the Internal Revenue Service (IRS) has announced a reorganization aimed at enhancing taxpayer service and modernizing its operations. This announcement comes during a crucial period for the agency, as it braces to process millions of tax returns while also navigating notable changes in tax legislation implemented last summer under a package signed by former President Donald Trump. Among these changes are new tax relief provisions focused on tips and overtime, along with fresh deductions for seniors.
The announcement was made by Chief Executive Officer Frank Bisignano in a letter to the IRS’s 74,000 employees, which has been reviewed by the Associated Press. The letter outlined new priorities and a revamped executive leadership structure at the agency.
Among the key appointments is Gary Shapley, a whistleblower known for his testimony regarding investigations into Hunter Biden’s taxes, who will take on the role of deputy chief of the Criminal Investigation division. Shapley’s tenure as IRS Commissioner last year was notably brief, lasting only two days. He will be stepping into his new role as longstanding head of Criminal Investigation, Guy Ficco, prepares for retirement, with Jarod Koopman taking over Ficco’s duties and also serving as chief tax compliance officer.
Another whistleblower associated with the Hunter Biden case, Joseph Ziegler, has been appointed chief of internal consulting, according to the letter from Bisignano. In his communication, Bisignano expressed confidence that the newly formed team would help the IRS navigate the upcoming tax filing season successfully.
However, the road ahead may be fraught with challenges. A June report by the National Taxpayer Advocate, which is tasked with protecting taxpayer rights, issued a warning that the 2026 filing season could encounter significant difficulties. The organization highlighted that the IRS had experienced a workforce reduction of 26% due to mass layoffs linked to restructuring from the Department of Government Efficiency. This reduction, coupled with crucial tax law modifications set to take effect, raises concerns about the agency’s operational capacity.
Bisignano, who was appointed to his position in October and also serves as the commissioner of the Social Security Administration, has outlined enhanced customer service, improved tax collections, and the protection of taxpayer privacy as his primary goals for 2026.
Anticipated figures suggest that the IRS will handle approximately 164 million individual income tax returns in the upcoming season, consistent with the levels seen in the last year. Data from the IRS indicates that the average refund amount last year stood at $3,167. Treasury Secretary Scott Bessent has frequently remarked that the ramifications of the Republican tax law are expected to yield larger refunds for taxpayers in 2026.
