IRS Makes Top Leadership Moves While Federal Government Remains Shuttered

Fox Rothschild LLP
Contact

Fox Rothschild LLP

As the federal government shutdown passes the two-week mark, and as thousands of Internal Revenue Service employees face furloughs and/or firings, the tax agency has announced a series of significant leadership moves.

First, Treasury Secretary and Acting IRS Commissioner Scott Bessent announced the creation of a new leadership position at the IRS:  chief executive officer.  Frank Bisignano, currently serving as Commissioner of the Social Security Administration, was named the first IRS CEO.  Bisignano will report directly to Acting IRS Commissioner Bessent, and his responsibilities will include “managing the organization and overseeing all day-to-day IRS operations.”  Continuing a notable Trump administration trend of top Treasury and IRS officials holding dual roles, Bisignano will continue to serve as Commissioner of the Social Security Administration.  Unlike the position of IRS Commissioner, the new CEO role will not require Senate confirmation

With Bisignano in the CEO role, Treasury Secretary/Acting IRS Commissioner Bessent will presumably have more time to devote to his primary job of running the U.S. Treasury.  However, the creation of the CEO role raises legitimate concerns about the delegation of authority from a post subject to Senate confirmation – Commissioner of Internal Revenue – to a new position that can be filled at will by an administration loyalist not subject to Senate’s constitutional power of advice and consent.  In addition, it is unclear how Bisignano can simultaneously run the Social Security Administration and oversee the day-to-day operations of the IRS.

Prior to leading the Social Security Administration, Bisignano served as Chairman and CEO of Fiserv, a financial services and payment technology company.  Bisignano previously worked at J.P. Morgan Chase, where he was the co-Chief Operating Officer and served as the CEO of its mortgage banking unit.  He previously held several roles at Citigroup, including Chief Administrative Officer and CEO of the company’s Global Transaction Services unit.

The office of IRS Commissioner has been riddled with chaos since Inauguration Day, with no fewer than six individuals serving stints as Commissioner, including Billy Long, who made history for serving the shortest tenure for a Senate-confirmed Commissioner in U.S. history.  The announcement of the newly-created CEO role at the IRS led some to question whether the President would nominate a new IRS Commissioner, but Tax Notes reported recently that the administration still intends to put forth a nominee notwithstanding the creation of the CEO role.

Second, the IRS named Jarod Koopman as Acting Chief Tax Compliance Officer, a role that oversees all of the agency’s tax enforcement activities.  As Acting Chief Tax Compliance Officer, Koopman will oversee the following divisions:  Large Business and International; Small Business/Self Employed; Tax Exempt and Government Entities; IRS-Criminal Investigation Division (CI); Office of Professional Responsibility; Return Preparer Office; and the Whistleblower Office.  For nearly the last decade, Koopman has served as a CI executive, where he led the creation and development of both the Cyber Crimes and Cyber and Forensics Services sections, serving as director of each.  Under his leadership, CI significantly enhanced its capabilities, establishing itself as a global leader in cryptocurrency tracing and dark web investigations.

The position of Chief Tax Compliance Officer was created in December 2023 as part of a new leadership structure announced by then-Commissioner Danny Werfel.  The last permanent Chief Tax Compliance Officer, Heather Maloy, retired in March 2025.  Edward Killen subsequently took over the role in an acting capacity. 

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Fox Rothschild LLP

Written by:

Fox Rothschild LLP
Contact
more
less

What do you want from legal thought leadership?

Please take our short survey – your perspective helps to shape how firms create relevant, useful content that addresses your needs:

Fox Rothschild LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide