Bessent to remain IRS chief, names Frank Bisignano as new CEO

Treasury Secretary Scott Bessent is set to retain his role as commissioner of the Internal Revenue Service. The agency will also announce a new deputy commissioner at a later date.

Bessent began his role at the IRS in August, following the removal of Billy Long from the post by President Donald Trump just two months after his confirmation. Long has since taken over as the U.S. ambassador to Iceland. 

IRS appoints Frank Bisignano as its CEO 

There has never been a scenario where a previous Treasury secretary has led the tax collection service, which raises questions about the politicization of the agency. CNBC reported that sources familiar with the matter revealed that the situation for Bessent was supposed to be temporary and that Trump wants him to keep control of the agency.

Bessent announced on Monday that the IRS has appointed Frank Bisignano, Commissioner of the Social Security Administration, as the agency’s Chief Executive Officer (CEO).

Bisignano will report directly to Bessent, while managing the organization and overseeing all day-to-day IRS operations. The new IRS CEO will also retain his role as commissioner of the Social Security Administration.

He has previously served as chairman and CEO of the world’s largest financial services and payment tech firm, Fiserv. He also served as the co-chief operating officer and CEO at J.P. Morgan Chase’s Mortgage Banking Unit. The executive has also held positions at Citigroup, serving as Chief Administrative Officer and CEO of the company’s Global Transaction Services unit. 

Bessent is also working to find a replacement for Federal Reserve Chair Jerome Powell when his term expires as central bank chair in May 2026. He previously mentioned that 11 candidates have already been interviewed, with the central bank expected to pare down the group as soon as this week. Bessent also revealed that a group of three to five candidates will go to Trump.

IRS warns it could offload workers amid government shutdown

Despite the new appointments, the IRS warned that it could lay off a number of employees if the current government shutdown continues for longer than five business days. The agency said it plans to furlough approximately 35,000 workers.

The IRS will remain with about 40,000 employees out of the agency’s workforce of roughly 75,000 if lawmakers are unable to hammer out a deal to fund the government by the middle of this week. Bloomberg Tax reported that the agency will remain with employees working on filing season activities, implementing legislation, and IT modernization.

The IRS also released a similar contingency plan during the 2018 and 2019 shutdowns, in which the agency called for 46,000 of the 80,000 workers to continue working. The agency had also previously planned to have its normal operations for the first five days using funds from the 2022 tax-and-climate law. 

The IRS is still working to implement President Donald Trump’s multitrillion-dollar tax and spending package, following the October 15 deadline for individuals and companies to file taxes with extensions. The American Institute of CPAs urged the agency to retain its entire workforce during the entire shutdown.

Melanie Lauridsen, vice president of tax policy and advocacy, said earlier on Friday that it was already stressful enough, as taxpayers, C-corporations, and tax advisors are working to meet the tax filing deadline. She argued that an extended government shutdown, together with the filing deadline, would compound the anxiety if the IRS is not fully staffed.

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