RECOMMANDED

You may have heard that earlier this year, President Trump nominated former Missouri Congressman Billy Long to be IRS Commissioner. And, after a remarkably protracted delay, Long was finally confirmed by the U.S. Senate on June 12. That’s months after his nomination and amidst major IRS leadership and tax reform turmoil.

For many reasons, Long’s nomination sparked debate.First, the former congressman’s background as a certified auctioneer with limited tax experience and no college degree distinguished him from typical nominees for IRS commissioner.The nomination was also notable because IRS commissioners have traditionally been allowed to complete five-year terms, regardless of White House administration changes. (IRS Commissioner Danny Werfel, appointed by President Biden, had a term set to run until 2027.)

However, Werfel stepped down on January 20, Trump’s inauguration day.Since then, the IRS cycled through five acting commissioners, including Douglas O’Donnell, Melanie Krause, Gary Shapely, and Michael Faulkender, as the agency struggled with leadership instability.As Kiplinger reported, each transition was marked by internal disagreements and policy controversies, especially related to data sharing with Trump’s Department of Government Efficiency (DOGE), budget cuts, and layoffs.

Meanwhile, Trump praised Long, writing on his social media platform, Truth Social: “Taxpayers and the exceptional staff at the IRS will appreciate having Billy in charge.”Long will now oversee an agency that previously had approximately 85,000 employees (that number has fallen due to layoffs) and an annual budget of over $12 billion. The IRS is grappling with a $20 billion reduction in special funding and a proposed $2.2 billion cut to its annual budget.

The agency had also undergone major modernization and tax compliance efforts targeting wealthy non-filers and complex corporations. Those initiatives, which came alongside a new IRS free tax filing program, Direct File, are now at risk of being eliminated or significantly changed.Meanwhile, Republicans, who control Congress and the White House, are preparing to reshape tax policy before key aspects of the Tax Cuts and Jobs Act (TCJA) expire. (More on that later.)

And Trump has floated the idea of a new External Revenue Service (ERS) to handle tariffs, which he has argued could eventually replace income taxes.

So…how could this leadership shakeup at the IRS impact you? Read on.