The Internal Revenue Service continues its unprecedented leadership tumult with the departure of Commissioner Billy Long after just 53 days on the job—making him the shortest-tenured commissioner in IRS history. Treasury Secretary Scott Bessent now serves as acting commissioner, marking the seventh person to lead the agency since Trump's inauguration in January.
The Revolving Door Continues
Long's dismissal caps a remarkable year of instability. The agency cycled through four acting commissioners before Long's confirmation in June, including Doug O'Donnell, who resigned over policy clashes, and Melanie Krause, who departed after the controversial deal to share taxpayer data with immigration enforcement. Even Gary Shapley, a Trump appointee, lasted only two days before being ousted amid internal conflicts.
For tax professionals, this leadership chaos signals deeper operational challenges ahead. The agency lost 25% of its workforce under Trump amid government cuts and mass buyouts, falling from 103,000 employees in January to just 77,000 by May 2025. The reduction includes nearly a third of IRS auditors, fundamentally altering the compliance landscape.
Immediate Impacts on Practice
Tax professionals should expect continued disruptions to core IRS functions. The 2025 filing season highlighted persistent refund delays for identity theft victims and delays in processing Employee Retention Credit claims, issues that workforce reductions will likely exacerbate.
The agency's modernization efforts under the Inflation Reduction Act face uncertainty with budget cuts totaling $20 billion and a federal hiring freeze. Long had promoted implementing the "One Big Beautiful Bill Act" during his brief tenure, but practitioners should prepare for implementation delays given the leadership vacuum.
Enhanced Security Measures Amid Turmoil
Despite internal chaos, the IRS has strengthened protections for tax professionals. New safeguards for Preparer Tax Identification Numbers (PTIN) and Electronic Filing Identification Numbers (EFIN) are being implemented to prevent unauthorized use. The agency also mandates Written Information Security Plans (WISP) for all tax professionals—a federal requirement that remains in effect regardless of leadership changes.
Looking Forward: What to Expect
With Bessent now overseeing both Treasury and IRS operations, expect decisions to align more closely with broader administration fiscal policy. The proposed "external revenue service" for tariff collection may redirect resources further from traditional tax administration functions.
Tax professionals should monitor several key areas: increased scrutiny of "other withholding" claims on Form 1040, enhanced fuel tax credit verification requirements, and potential delays in customer service improvements. The agency's notice redesign program continues, with 84 new redesigned notices planned for 2025, but implementation timelines remain uncertain.
Bottom Line: While the IRS maintains core filing and processing capabilities, tax professionals should prepare for continued operational volatility. Enhanced client communication about potential delays and robust security protocols will be essential as the agency navigates this unprecedented period of instability. The next permanent commissioner appointment will be crucial for determining the agency's long-term direction and stability.
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
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