You may have heard that earlier this year, President Trump nominated former Missouri Congressman Billy Long to be IRS Commissioner. Long was finally confirmed by the U.S. Senate on June 12. That was months after his nomination and amidst major IRS leadership and tax reform turmoil.
But recently, Trump reportedly fired Long after just a couple of months on the job. Treasury Secretary Scott Bessent has taken operational control of the IRS and will reportedly lead the agency until a new commissioner is appointed.
This will mark the 7th person in the IRS Commissioner slot since the beginning of 2025.
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Meanwhile, Republicans, who control Congress and the White House, have reshaped tax policy with Trump's so-called "big beautiful bill. (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.
An unconventional IRS Commissioner
For many reasons, Billy Long's appointment 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, 2025, on Trump's inauguration day.)
Since then, the IRS cycled through several acting commissioners and senior leaders, 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, including some reportedly related to data sharing with Trump's Department of Government Efficiency (DOGE), budget cuts, and layoffs.
Meanwhile, Trump initially 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 was supposed to 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.
Additionally, the IRS is currently dealing with significant workforce upheaval:
- Tens of thousands of employees have either taken Trump's federal buyout offers or been laid off.
- (There have also been several rounds of rehires as the agency tries to stabilize operations.)
- Morale has reportedly been impacted, and some critical modernization projects have slowed.
Who is Billy Long? Trump's former IRS Commissioner
Billy Long, a former Republican congressman from Missouri, had been tapped by President-Trump to lead the IRS.
- Long served six terms in the U.S. House of Representatives from 2011 to 2023
- He occasionally used auctioneer bid calling during congressional hearings and, during his tenure, co-sponsored tax-related legislation.
- The former Congressman has also espoused the controversial Employee Retention Tax Credit (ERTC or ERC).
Some praised the former auctioneer’s potential outsider perspective, while others questioned his qualifications for managing a complex federal agency like the IRS.
During a tax summit in July, Long indicated that the 2026 tax filing season might start around President's Day in mid-February, which would be about a three-week delay compared to recent years, where the season starts in late January.
Later, the IRS clarified that no official start date had been determined and that the timing would be announced in due course. While it's unclear why Long was let go, his comments appeared to spark concern about potential tax season delays.
IRS tax overhaul for 2025?
Under former Commissioner Werfel, the IRS underwent a substantial multi-billion-dollar overhaul, primarily due to about $60 billion in Inflation Reduction Act (IRA) funding. As mentioned, those Biden administration changes included improvements to customer service, an increased focus on wealthy “tax cheats,” and a new IRS free filing program, to name a few initiatives.
New leadership at the IRS's helm will steer the agency in a new direction. Already, the pace of modernization has reportedly slowed in some respects, while several IT upgrades and enforcement initiatives have been delayed, paused, or changed.
A new, controversial data-sharing agreement with ICE also seemed to play a role in some resignations among senior staff and raised concerns about taxpayer privacy.
In addition to the commissioner-level upheaval, multiple senior IRS officials have been ousted or resigned, adding to the agency's instability.
Another target is the IRS Direct File program. Republican lawmakers are pushing to end the initiative.
- IRS Direct File is a free online service that allows eligible taxpayers to submit their federal tax returns directly to the IRS.
- The system, criticized by some lawmakers and industry tax prep giants like Intuit TurboTax and H&R Block, eliminates the need for third-party tax software or professional assistance for some filers.
Trump's "One Big, Beautiful Bill"
Meanwhile, in terms of tax policy, Republicans controlling both chambers of Congress and the White House have recently extended much of the 2017 Trump tax cuts.
Lawmakers used the budget reconciliation process, which requires only a simple majority in the U.S. Senate, to pass the massive tax legislation nicknamed by Trump as the "big, beautiful bill." Trump signed it into law on July 4, 2025.
- The IRS now faces the task of implementing the bill's numerous provisions, which include various tax cuts, credits, and regulatory changes impacting individuals and businesses.
- For example, the IRS recently announced it will not be changing the W-2 Form or withholding tables to reflect changes in the law, like the new overtime pay tax deduction.
The agency's ability to execute the necessary changes will directly impact how smoothly tax season operates. So, stay tuned.
For more information, see Trump's 'One Big, Beautiful Bill' With Trillions in Tax Cuts.
Trump IRS commissioner: Bottom line
Now that Long has exited the IRS, the agency faces questions about its future direction, morale, and ability to serve taxpayers effectively.
Will tax reform result in fewer deductions or lower tax refunds for some taxpayers? Could a lack of funding or loss of other resources derail IRS customer service and modernization improvements and slow tax refund processing? Will millions of taxpayers be concerned if a free, government-provided tax filing option, Direct File, is eliminated?
Only time will tell.
Related
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- How Many IRS Commissioners Have We Gone Through This Year?
- Are Employee Retention Credit Refunds at Risk Under Trump's New Tax Bill?
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