IRS Faces Leadership Chaos Amid Trump’s Second Term \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Amid tax season, the IRS faces leadership upheaval, mass retirements, and accusations of political targeting under President Trump. The agency is now entangled in Trump’s immigration and enforcement agenda, prompting concern over the erosion of its independence. Legal challenges and scrutiny continue to mount.
Quick Looks
- Leadership Shakeup: Four acting commissioners in under two months
- Mass Departures: Thousands expected to retire or be laid off
- Political Pressure: Trump targets nonprofits, rewards allies
- Controversial Nominee: Billy Long faces calls for criminal probe
- Whistleblower Fallout: Gary Shapley removed after brief tenure
- Tax Season Stats: 117M+ returns filed, $228B in refunds issued
- Data-Sharing Agreement: IRS to cross-check immigrant info with ICE
- Legal Pushback: Courts weigh privacy rights for immigrant taxpayers
- Staff Morale: Longtime employees exit over ethical, political concerns
- Modernization Promise: New leadership pledges overhaul in two years
Deep Look
The Internal Revenue Service, a historically apolitical institution responsible for the nation’s tax administration, is facing one of its most turbulent periods in decades — all during the height of tax season.
As Americans rushed to meet the April 15 filing deadline, the IRS was grappling with internal chaos: a rapid turnover in leadership, mounting staff losses, and increasing political interference under President Donald Trump’s second term. Once a behind-the-scenes bureaucracy, the IRS is now caught in the spotlight as it becomes a tool for political enforcement, sparking alarm among policy experts and legal scholars.
Revolving Door of IRS Commissioners
In the span of just over a week, the IRS cycled through three acting commissioners, culminating with the appointment of Michael Faulkender, a Trump-aligned economist. The leadership instability has sent shockwaves through the agency’s 70,000-person workforce — already reeling from looming layoffs and retirements under the Department of Government Efficiency (DOGE), a Trump-era initiative to slash federal staffing.
Former acting commissioners Douglas O’Donnell, Melanie Krause, and Gary Shapley each exited under controversy. O’Donnell retired amid revelations that DOGE had gained access to sensitive IRS data. Krause resigned over a controversial data-sharing agreement with the Department of Homeland Security. Shapley, a whistleblower involved in Hunter Biden’s tax probe, was abruptly replaced after just days in the role.
Faulkender, in his first public statement, promised modernization:
“We’re committed to improving the efficiency of the IRS. Under Treasury’s direct leadership, modernization will be done in two years at a fraction of the cost.”
But tax policy experts say the real issue is politicization, not modernization.
Staff Exodus and Institutional Brain Drain
Beyond leadership, the agency is bracing for a mass exodus of experienced civil servants. Many are either being pushed out through layoffs or choosing to retire early due to policy disagreements.
“Leadership sets the tone,” said Janet Holtzblatt of the Urban-Brookings Tax Policy Center. “And what we’re seeing is a tone of fear, mistrust, and political pressure that’s deeply corrosive.”
She warns that delays in processing returns and issuing refunds — already an annual concern — will only worsen in this environment.
Targeting Enemies, Protecting Friends
Trump’s critics say the administration is now using the IRS as a political weapon. Nonprofits linked to Democratic causes, including ActBlue, Indivisible, and watchdog group CREW (Citizens for Responsibility and Ethics in Washington), are reportedly bracing for criminal probes and potential revocation of their tax-exempt status.
At a White House press briefing last week, Trump named several organizations — including Harvard University and environmental advocacy groups — as subjects of scrutiny.
“The only charity [CREW] had is going after Donald Trump,” he said. “So we’re looking at that.”
Legal experts like Jonathan Masur of the University of Chicago warn that such targeting is illegal and unconstitutional.
“The president cannot unilaterally strip tax-exempt status. The courts will block any such move — and quickly,” Masur said.
Nominee Under Fire: Billy Long
Trump’s nominee for permanent IRS commissioner, former Rep. Billy Long, has his own problems. Senate Democrats are urging the Justice Department to open a criminal investigation into Long’s links to fraudulent tax credit schemes, alleging that companies tied to him sold fake tax credits to investors.
Long has declined to comment, and his confirmation remains in limbo.
Politicized Audits Raise Red Flags
The administration’s interest in audits of Trump allies is also drawing scrutiny. Treasury official David Eisner sent an internal email in March raising concern over Mike Lindell, the MyPillow CEO and vocal Trump supporter, receiving a second IRS audit.
“The president is concerned he may have been inappropriately targeted,” Eisner wrote, suggesting the audit could be politically motivated against a Trump ally.
A Treasury spokesperson said Eisner expected the case would be sent to the Inspector General for review.
IRS Now Enmeshed in Immigration Crackdown
A new agreement between the IRS and DHS, signed this month by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem, enables Immigration and Customs Enforcement (ICE) to request tax data from the IRS to identify and track undocumented immigrants.
The administration says the agreement supports the White House’s nationwide immigration crackdown, which includes workplace raids, deportations, and use of the Alien Enemies Act to remove Venezuelan migrants.
However, immigrant rights groups have filed a lawsuit in federal court, arguing that the agreement violates privacy rights of immigrants who pay taxes and undermines trust in the tax system.
U.S. District Judge Dabney Friedrich is expected to rule soon on whether to grant an injunction.
“It’s unclear if this is about law enforcement or political optics,” Holtzblatt added. “The IRS should not be a tool for immigration raids.”
IRS Filing Season Continues Amid Chaos
Despite the political storm, IRS staff processed 117 million returns and issued $228.7 billion in refunds this year — a feat described by observers as remarkable under the circumstances.
Yet the future remains uncertain. Critics warn that unless the IRS regains its independence, the consequences will undermine public trust, depress compliance, and entangle the nation’s tax system in partisan warfare.
IRS Faces Leadership
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