IRS head announces a shake-up on the eve of the 2026 tax season

WASHINGTON (AP) — Days before the 2026 tax filing season begins, the head of the IRS announced a shake-up Tuesday, saying the personnel and operational changes are intended to improve taxpayer service and modernize the agency.

The timing of the announcement coincides with a critical moment for the agency, as the IRS prepares to process millions of tax returns while simultaneously implementing major tax law changes under the tax and spending package President Donald Trump signed into law last summer. There are new tax relief provisions for tips and overtime, and new deductions for qualifying older Americans.

In a letter addressed to the agency’s 74,000 employees and viewed by The Associated Press, Chief Executive Officer Frank Bisignano announced new priorities and a reorganization of IRS executive leadership.

Notably, Gary Shapley, the whistleblower who testified publicly about investigations into Hunter Biden’s taxes and served just two days as IRS Commissioner last year, was named deputy chief of the Criminal Investigation division. Guy Ficco, the head of Criminal Investigation, is set to retire and will be replaced by Jarod Koopman, who will also serve as chief tax compliance officer alongside Bisignano.

Joseph Ziegler, another Hunter Biden whistleblower, was named chief of internal consulting, the letter said.

Bisignano said in the letter that he is “confident that with this new team in place, the IRS is well-prepared to deliver a successful tax filing season for the American public.”

The June National Taxpayer Advocate report to Congress warned that the 2026 season could be rocky after a series of mass layoffs last year brought on by the Department of Government Efficiency.

“With the IRS workforce reduced by 26% and significant tax law changes on the horizon, there are risks to next year’s filing season,” said Erin M. Collins, who leads the organization assigned to protect taxpayers’ rights.

Bisignano, who was named to his job in October, also serves as the commissioner of the Social Security Administration.

His main priorities for the IRS in 2026 include enhancing customer service, improving tax collections and safeguarding taxpayer privacy.

The IRS expects to receive roughly 164 million individual income tax returns this year, which is on par with what it received last year.

The average refund amount last year was $3,167, according to IRS data. Treasury Secretary Scott Bessent has said on several occasions that the effects of Republican tax law will result in bigger refunds in 2026.