IRS Announces Reforms Ahead of 2026 Tax Season

Just days ahead of the 2026 tax filing season, the U.S. Tax Commissioner has unveiled significant reforms aimed at enhancing taxpayer services and modernizing operations within the IRS.

This announcement comes at a crucial time as the agency gears up to handle millions of tax returns while also navigating substantial changes from the tax code revisions introduced in the spending package signed by President Donald Trump last summer. These changes include new tax breaks related to tips and overtime pay, along with credits for eligible older Americans.

In a letter addressed to the agency’s 74,000 employees, CEO Frank Bisignano outlined new priorities and a shakeup in the IRS’s executive leadership.

Among the notable appointments is Gary Shapley, a whistleblower who recently testified regarding the Hunter Biden tax investigation. He has been named deputy director of the Criminal Investigation Division, replacing Guy Ficco, who is set to retire. Jarrod Koopman will take over as the chief tax compliance officer alongside Bisignano.

Joseph Ziegler, another whistleblower in the Hunter Biden investigation, will lead the company’s internal consulting department, as stated in the letter.

Bisignano expressed confidence in the agency’s ability to manage the upcoming tax filing season with these new changes. “With the launch of this new team, I am confident that the IRS is poised to provide Americans with a successful tax filing season,” he remarked.

However, a report from the National Taxpayer Advocate submitted to Congress earlier this year indicated potential challenges, referencing significant staff reductions. “With IRS staff reduced by 26% and major changes to the tax code on the horizon, there are risks for next year’s filing season,” warned Erin M. Collins, who leads the organization focused on taxpayer rights.

Since his appointment in October, Mr. Bisignano has been working on improving customer service, boosting tax collection efficiency, and safeguarding taxpayer privacy as key objectives for 2026.

The IRS forecasts it will process around 164 million individual income tax returns this year, similar to last year’s figures. According to IRS data, the average refund last year was $3,167, and Treasury Secretary Scott Bessent has indicated that refunds could be even larger this coming season due to the Republican tax law changes.