Unexpected IRS Shakeups: What’s Disrupting This Year’s Tax Season?

IRS official gesturing, with documents and pen.

The Internal Revenue Service finds itself at a critical juncture, facing leadership changes and employee resignations, which together are disrupting essential services during a busy tax season.

Quick Takes

The IRS experienced three acting directors in one week, along with impending layoffs and retirements.
President Donald Trump’s involvement raises concerns over politicizing the IRS.
IRS processed over 117 million returns this tax season, issuing $228.7 billion in refunds.
The agency is facing staff losses due to policy disagreements and cuts from the Department of Government Efficiency.

Leadership Shifts at the IRS

Recent weeks have seen a dramatic leadership shuffle at the IRS, with three acting directors appointed within a single week. This frequent turnover is leading to instability in an agency that is already burdened with heavy responsibilities. The leadership turbulence comes at a crucial time when consistent guidance and oversight are needed most.

Employee resignations accompany these changes, compounding the IRS’s challenges during tax season. The exodus of experienced personnel threatens the agency’s capacity to deliver timely and efficient services. As processing times extend, both public patience and trust wear thin.

Political Influences and Concerns

Under the current administration, the IRS faces accusations of politicization. President Trump has reportedly shown interest in influencing which groups retain or lose tax-exempt status, sparking debate over the impartiality of the IRS. Legal experts assert that this potential use of the IRS for political ends could be unlawful.

The President’s nominee for IRS commissioner, Billy Long, faces scrutiny over alleged connections with loopholes in tax credits. Concerns persist that federal tax enforcement might be skewed to target political opponents, thus undermining the agency’s traditionally nonpartisan stance.

Impacts on IRS Service Delivery

Service delivery at the IRS is on shaky ground owing to layoff announcements, leadership transitions, and employee dissatisfaction. Currently, taxpayers endure extended wait times for service, and service channels struggle with unprecedented demand. Michael Faulkender, the newly appointed acting commissioner, is initiating modernization efforts to restore efficiency at the IRS.

The acting IRS chief and other senior officials are leaving, extending a period of turmoil at the tax agency https://t.co/l6fiMJJRV9

— The Wall Street Journal (@WSJ) April 9, 2025

Significant concerns linger that the political milieu, combined with leadership upheavals, could degrade public trust. Despite successfully processing millions of returns and issuing billions in refunds, such issues might impede future operations. Expert opinion stresses the foundational role IRS stability plays in ensuring robust government revenue collection.