Who’s Actually Running the IRS?

Short answer: …we’re not entirely sure either.

The IRS used to run like a well-oiled (if not a slow-moving) machine. The structure was predictable:

• Commissioner of Internal Revenue – Presidential appointee, Senate-confirmed for a 5-year term.

• Two Deputies: one for Services & Enforcement, one for Operations Support.

• Under them, the familiar operating divisions: LB&I, SB/SE, TE/GE, CI, and (formerly) W&I.

That framework worked. Every major function had an accountable head, and leadership teams coordinated strategy directly with Treasury. I agree the functionality seemed suspect, at times, but the wheel would turn. Now.... who knows.

The Great Morph: From Deputies to Chiefs

Then came modernization. The two-deputy system was condensed into one Deputy Commissioner with a handful of new “Chiefs”:

• Chief Tax Compliance Officer (CTCO)

• Chief Operating Officer

• Chief Information Officer

• Chief, Taxpayer Services

The idea was good—streamline, integrate, and finally make compliance coordination less like a three-legged race.

Enter Heather C. Maloy, the first Chief Tax Compliance Officer, meant to synchronize service-wide priorities across divisions. That role became the IRS’s internal traffic cop for enforcement, audit, and case selection.

But when Heather Maloy exited in early 2025, things got messy. Her replacement? Depends which PDF you open. Reports have cited Jarod Koopman, Amalia “Lia” Colbert, or “Vacant.” Confidence-inspiring, right? I'm openly praying it ends up being Lia! She has the grit, experience, and demeanor for that thankless role.

Meanwhile, in the Leadership Shuffle...

2025 brought a game of musical chairs so wild even the music quit.

• Billy Long, confirmed as IRS Commissioner in June 2025, was removed by August.

• Scott Bessent, the Treasury Secretary, became Acting IRS Commissioner.

• And in a plot twist nobody had on their bingo card, Frank Bisignano, the Commissioner of the Social Security Administration, was appointed as CEO of the IRS—a newly created position with no Senate confirmation.

That’s right: the head of Social Security is now also the CEO of the IRS. The Commissioner’s office is technically still there—but “acting.” Treasury says the CEO handles day-to-day operations. Congress? Silent. Probably blinking in disbelief. Oh wait - they're in recess pointing fingers while abdocating their responsibilities... and getting paid.

So… Who’s Running the Joint?

Legally, the IRS still falls under the Commissioner of Internal Revenue, confirmed by the Senate under 26 USC §7803. Functionally, though?

• Scott Bessent is Acting Commissioner (and also Treasury Secretary).

• Frank Bisignano is “IRS CEO,” a role that didn’t exist six weeks ago.

• The CTCO seat is spinning faster than an audit printer in April.

• Division heads are a rotating cast of “Acting,” “Interim,” and “To Be Determined.”

It’s not so much an org chart as it is a conspiracy board with string and pushpins. I can imagine all the executives sitting in the conference room at 1111 just saying, "no, not me", "not it", "wait I thought it was you", "well shit - who is it?!."

Imagine all the frontline employees with those silly directives to have certain things reach approval at that level - what's happening with those high-profile decisions. . . asking for a friend.

The Impact of Chaos: Chaos.

When leadership churns, taxpayers pay the price—literally.

• Enforcement priorities shift mid-stream.

• Guidance gets delayed.

• Appeals cases stall.

• Systems upgrades freeze while signatures are “pending approval.”

Every day of indecision in D.C. ripples down to call center hold times, refund delays, and compliance uncertainty for small businesses just trying to stay straight.

Side note: I believe I warned in earlier blogs, and for those who've engaged me in conversation, I have stated - you will not feel an issue with the 2024 filing season during 2025 calendar year. Baby, you will see a huge problem in the 2025 tax year in calendar year 2026. Buckle up - don't plan for a big refund, calculate how much you'll get back and start hitting those W-4s people!

Where’s Congress’s Advice and Consent?

Great question. The Commissioner is a statutory position requiring Senate confirmation. The IRS CEO is…not. It’s a Treasury invention.So when two massive federal agencies now share one executive—and the top tax administrator isn’t confirmed by Congress—oversight gets murky. The IRS was designed to be independent from political interference. This, however, feels like a “choose your own accountability” adventure.

The Bottom Line

Who’s running the IRS? Larry, Moe, or Curly?!

• Title of record: Acting Commissioner Scott Bessent.

• Operator in chief: IRS CEO Frank Bisignano (also running Social Security).

• Compliance nerve center: Whoever’s still holding the CTCO badge this week.

It’s a mess. And the impact of chaos is—surprise—chaos for taxpayers. When the people steering the tax system can’t decide who’s in charge, you need someone who actually knows how it’s supposed to work.

Come to ExFed Tax.We spent decades inside the IRS.Now we use that knowledge to protect you from the fallout when the system forgets how to steer.