WASHINGTON, D.C. — In a striking move that has captured the attention of tax professionals and policymakers alike, the Internal Revenue Service (IRS) announced a significant reorganization of its leadership structure just days ahead of the opening of the 2026 tax filing season. The shake-up, unveiled on January 20, 2026, comes as the agency prepares to process millions of returns under new tax law changes enacted last year.
Thank you for reading this post, don't forget to subscribe!Frank Bisignano, the IRS’s chief executive officer—a role he holds in addition to leading the Social Security Administration—outlined the changes in a letter to the agency’s roughly 74,000 employees. The leadership reshuffle is intended to modernize operations, improve taxpayer service, and adapt to newly signed tax provisions while confronting persistent staffing and operational challenges.
What’s Changing at the IRS?
At the heart of the reorganization are several high-profile leadership appointments and strategic shifts intended to reinforce the agency’s capacity ahead of a busy filing season:
- Gary Shapley has been named deputy chief of the Criminal Investigation division, a role that positions him at the forefront of enforcement and compliance efforts.
- Jarod Koopman will take over as head of Criminal Investigation from the retiring Guy Ficco, and will also serve as the IRS’s chief tax compliance officer.
- Joseph Ziegler has been appointed chief of internal consulting, enhancing internal coordination and oversight.
Bisignano expressed confidence that the newly configured team will be capable of guiding the IRS through this year’s filing season with greater efficiency and adaptability.
A Challenging Backdrop for Reform
The reorganization unfolds against a backdrop of serious operational challenges. Over the past year, the IRS workforce has declined sharply—by about 26%—following a series of layoffs and restructurings under the Department of Government Efficiency. A June report from the National Taxpayer Advocate warned that such deep cuts could strain the agency’s ability to process returns, detect fraud, and respond promptly to taxpayer inquiries.
At the same time, the IRS must adapt its systems and procedures to reflect significant changes introduced by 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 income, as well as expanded deductions for older Americans, pressing the agency to overhaul forms, instructions, and compliance protocols.
Balancing Technology and Service Expectations
Beyond personnel changes, the reorganization signals a broader strategic shift. Bisignano has emphasized modernizing the IRS with advanced digital tools, aiming to make tax processing faster and more responsive. Observers note that this “digital-first” approach will rely on upgrading internal systems and streamlining service channels, though it also raises concerns about cybersecurity and data privacy as the agency engages more with external technology partners.
Despite these ambitions, critics remain cautious. Some experts warn that rapid changes—especially when paired with staffing reductions and increased outsourcing to contractors—could heighten the risk of identity theft or system vulnerabilities unless proper safeguards are implemented.
What This Means for Taxpayers
For American taxpayers gearing up to file returns, the leadership overhaul and modernization efforts aim to reduce delays and improve responsiveness during one of the busiest periods of the year. The IRS expects to handle roughly 164 million individual income tax returns in 2026, a volume comparable to last year’s filing season.
With average refunds predicted to rise—thanks in part to recent tax law changes—the pressure on the agency to deliver smooth and timely service is especially high. Treasury officials and IRS leadership alike stress that the reforms are designed to meet these heightened expectations.
