In a significant move ahead of the 2026 tax filing season, the head of the Internal Revenue Service (IRS), Frank Bisignano, announced a major reorganization aimed at improving taxpayer service and modernizing the agency’s operations. This development comes as the IRS braces for an influx of tax returns while implementing substantial changes following the tax and spending legislation approved by President Donald Trump last summer.
The new tax law introduces various relief measures, including provisions for tips and overtime, as well as new deductions aimed at supporting qualifying older Americans. As the IRS prepares to navigate this challenging landscape, Bisignano shared his plans with the agency’s 74,000 employees through a letter that also outlined significant personnel adjustments.
One of the most notable changes is the appointment of Gary Shapley, who gained attention as a whistleblower for his testimony regarding investigations into Hunter Biden’s taxes, to the position of deputy chief of the Criminal Investigation division. Shapley briefly served as IRS Commissioner last year before transitioning to this new role. He will succeed Guy Ficco, who is set to retire, while Jarod Koopman will take over as head of Criminal Investigation and will also assume the role of chief tax compliance officer.
In another development, Joseph Ziegler, another whistleblower involved in the Hunter Biden investigations, has been appointed chief of internal consulting.
In his communication to employees, Bisignano expressed confidence in the new leadership team, asserting that they would effectively navigate the upcoming tax season while ensuring taxpayer satisfaction. Despite these optimistic sentiments, a report from the National Taxpayer Advocate cautioned that the 2026 filing season could face challenges due to recent personnel reductions. The IRS workforce experienced a significant shrinkage of 26% due to mass layoffs linked to efficiency initiatives, raising concerns about operational capacity amidst impending tax law changes.
Erin M. Collins, head of the National Taxpayer Advocate organization, indicated that these changes could pose risks to the efficiency of the upcoming filing season.
Bisignano, who has been at the helm since October and also serves as commissioner of the Social Security Administration, emphasized his primary objectives for the IRS, which include enhancing customer service, improving tax collection processes, and safeguarding taxpayer privacy.
The IRS anticipates receiving approximately 164 million individual income tax returns this season, maintaining levels consistent with the previous year. Last year, taxpayers received an average refund of $3,167, and Treasury Secretary Scott Bessent has indicated that the repercussions of the Republican tax law may result in even larger refunds in 2026.
