Key Takeaways
- IRS Leadership Changes
- IRS Funding Woes
- Rebate Checks Need No Congressional Approval?
- Self-Employment Tax Victory?
- “Trump Account” Complications
- Letter Rulings on Spinoffs?
- Worthless Stock Deduction Simplified?
- IRS Internal Controls Found Lacking
- Grandma Day
IRS Leadership Changes
Trump’s IRS chief reorganizes tax agency days before filing season – Jacob Bogage, Washington Post:
The Internal Revenue Service will reorganize its senior ranks days before this year’s tax filing season opens and try to use technology to become more efficient, the Trump administration’s IRS leader Frank Bisignano told The Washington Post on Tuesday.
Administration officials named Bisignano the IRS’s chief executive, a role that does not formally exist in the agency’s governing structure, in October. He also serves as commissioner of the Social Security Administration, which means he manages more than 120,000 employees responsible for collecting roughly $5 trillion in annual revenue and disbursing close to $1.5 trillion in benefits.
Administration officials named Bisignano the IRS’s chief executive, a role that does not formally exist in the agency’s governing structure, in October. He also serves as commissioner of the Social Security Administration, which means he manages more than 120,000 employees responsible for collecting roughly $5 trillion in annual revenue and disbursing close to $1.5 trillion in benefits.
IRS Criminal Chief Retires as Trump Spurs Leadership Shift – Erin Slowey, Bloomberg ($):
IRS CEO Frank Bisignano is putting his stamp on the agency with a slew of exits at the top and new faces friendly to the Trump administration in key roles.
Bisignano, who has a dual position as Social Security Commissioner, is now also co-leading IRS tax compliance, he announced in an organizational overhaul filling many vacant and acting positions at the agency. New leadership includes those with ties to congressional Republicans and Elon Musk’s bid to shrink the federal workforce.
Bisignano, who has a dual position as Social Security Commissioner, is now also co-leading IRS tax compliance, he announced in an organizational overhaul filling many vacant and acting positions at the agency. New leadership includes those with ties to congressional Republicans and Elon Musk’s bid to shrink the federal workforce.
IRS Shakes Up Leadership With Filing Season Looming – Nathan J. Richman & Benjamin Valdez, Tax Notes ($):
Guy Ficco’s retirement as IRS Criminal Investigation division chief is among several notable leadership and executive changes announced days before the beginning of the 2026 filing season.
A January 20 memo from IRS CEO Frank Bisignano noted that acting IRS Chief Tax Compliance Officer Jarod Koopman would take over CI, with Gary Shapley continuing as deputy chief.
A January 20 memo from IRS CEO Frank Bisignano noted that acting IRS Chief Tax Compliance Officer Jarod Koopman would take over CI, with Gary Shapley continuing as deputy chief.
IRS head announces a shake-up on the eve of the 2026 tax season – Fatima Hussein, Associated Press:
Days before the 2026 tax filing season begins, the head of the IRS announced a shake-up Tuesday, saying the personnel and operational changes are intended to improve taxpayer service and modernize the agency.
The timing of the announcement coincides with a critical moment for the agency, as the IRS prepares to process millions of tax returns while simultaneously implementing major tax law changes under the tax and spending package President Donald Trump signed into law last summer. There are new tax relief provisions for tips and overtime, and new deductions for qualifying older Americans.
The timing of the announcement coincides with a critical moment for the agency, as the IRS prepares to process millions of tax returns while simultaneously implementing major tax law changes under the tax and spending package President Donald Trump signed into law last summer. There are new tax relief provisions for tips and overtime, and new deductions for qualifying older Americans.
IRS Funding Woes
IRS Funding Boost Faces $11.7B Cut In Bipartisan Package – Asha Glover, Law 360:
Congress would cut $11.7 billion from the IRS spending boost included in the Inflation Reduction Act under a bipartisan, bicameral spending package released Tuesday by the House and Senate Appropriations committees.
The omnibus package introduced by the committees would authorize an $11.7 billion rescission of Inflation Reduction Act funding. The package includes funding for the U.S. departments of Labor, Health and Human Services, Education, Defense, Homeland Security, Transportation, and Housing and Urban Development for the 2026 fiscal year.
The omnibus package introduced by the committees would authorize an $11.7 billion rescission of Inflation Reduction Act funding. The package includes funding for the U.S. departments of Labor, Health and Human Services, Education, Defense, Homeland Security, Transportation, and Housing and Urban Development for the 2026 fiscal year.
Added IRS Funding Would Keep Dwindling Under Spending Agreement – Cady Stanton, Tax Notes ($):
A suite of fiscal 2026 bipartisan government funding bills is set to claw back more than half of the IRS’s remaining boosted funding in addition to the cuts already proposed for the agency’s annual budget.
A bipartisan minibus package released by congressional appropriators January 20 would include an $11.7 billion cut to additional operations support funding for the IRS from the Inflation Reduction Act. The clawback would leave just $10 billion in boosted funding for the agency out of nearly $80 billion originally.
A bipartisan minibus package released by congressional appropriators January 20 would include an $11.7 billion cut to additional operations support funding for the IRS from the Inflation Reduction Act. The clawback would leave just $10 billion in boosted funding for the agency out of nearly $80 billion originally.
IRS Funds Would Be Clawed Back in Appropriations Bill: BGOV Tax – Naomi Jagoda, Bloomberg ($):
The IRS’s Biden-era supplemental funding is poised to take another hit, after lawmakers released a bipartisan spending plan early Tuesday.
A bill to fund the Labor and the Health and Human Services departments would in fiscal 2026 rescind $11.66 billion in funds from Democrats’ 2022 tax-and-climate law. The proposed rescission to multiyear funds would be in addition to the cut to the IRS’s annual appropriations that was floated in a separate spending bill the House passed last week.
A bill to fund the Labor and the Health and Human Services departments would in fiscal 2026 rescind $11.66 billion in funds from Democrats’ 2022 tax-and-climate law. The proposed rescission to multiyear funds would be in addition to the cut to the IRS’s annual appropriations that was floated in a separate spending bill the House passed last week.
Rebate Checks Need No Congressional Approval?
Trump Plans on Sending $2,000 Rebate Checks Without Congress – Lillianna Byington, Bloomberg ($):
President Donald Trump said he doesn’t need Congress to send $2,000 rebate checks to Americans because he plans to use money he’s collecting through tariffs.
“We have so much money coming in from tariffs that we’ll be able to issue at least a $2,000 dividend and also pay down debt,” Trump told reporters at a White House press briefing on Tuesday. “I believe we can do that without Congress.”
Trump has teased the idea of these rebate checks for months. Checks like those typically require legislation from Congress, similar to payments that went out during the pandemic.
“We have so much money coming in from tariffs that we’ll be able to issue at least a $2,000 dividend and also pay down debt,” Trump told reporters at a White House press briefing on Tuesday. “I believe we can do that without Congress.”
Trump has teased the idea of these rebate checks for months. Checks like those typically require legislation from Congress, similar to payments that went out during the pandemic.
Self-Employment Tax Victory?
Limited Partners Win Self-Employment Tax Battle, War Continues – Michael Rapoport, Bloomberg ($):
Partners in investment funds and other partnerships have won a key court victory over whether they must pay Social Security and Medicare taxes. But the fight is far from over.
A federal appeals court’s ruling late last week makes it easier for limited partners—including many partners in hedge funds, private-equity firms, and professional-services businesses—to be exempt from paying self-employment taxes that help fund Social Security and Medicare. The US Fifth Circuit Court of Appeals ruled in favor of Sirius Solutions LLLP, a Houston consulting firm, and threw out a US Tax Court ruling that had sided with the IRS and its narrower view of when limited partners can be exempt.
A federal appeals court’s ruling late last week makes it easier for limited partners—including many partners in hedge funds, private-equity firms, and professional-services businesses—to be exempt from paying self-employment taxes that help fund Social Security and Medicare. The US Fifth Circuit Court of Appeals ruled in favor of Sirius Solutions LLLP, a Houston consulting firm, and threw out a US Tax Court ruling that had sided with the IRS and its narrower view of when limited partners can be exempt.
“Trump Account” Complications
Treasury Officials Warn Of Hurdles In 'Trump Account' Rollout – Stephen K. Cooper, Law 360 ($):
The U.S. Department of the Treasury is racing to open a new retirement savings program for children known as Trump Accounts by early July, and officials are warning that the effort will require a massive undertaking to deliver seed payments and build nationwide systems to track eligibility and contributions.
Treasury and Internal Revenue Service officials, during a panel discussion at the American Bar Association tax section's midyear meeting last week in San Diego, described the initiative as operationally unprecedented despite the similarities between this new type of tax-advantaged brokerage accounts for children and traditional individual retirement accounts.
Treasury and Internal Revenue Service officials, during a panel discussion at the American Bar Association tax section's midyear meeting last week in San Diego, described the initiative as operationally unprecedented despite the similarities between this new type of tax-advantaged brokerage accounts for children and traditional individual retirement accounts.
Letter Rulings on Spinoffs?
IRS Open to Addressing Spinoff Questions Through Letter Rulings – Trevor Sikes, Tax Notes ($):
The IRS is willing to field questions on a variety of issues concerning spinoff transactions through its letter ruling program following the withdrawal of its 2024 guidance, according to an IRS official.
The agency has received requests and comments about restoring the issue ruling program for section 355 spinoff transactions, Jonathan Neuville of the IRS Office of Associate Chief Counsel (Corporate) said January 17 at a conference sponsored by the American Bar Association Section of Taxation. “We are considering those seriously and that is under study,” he added.
The agency has received requests and comments about restoring the issue ruling program for section 355 spinoff transactions, Jonathan Neuville of the IRS Office of Associate Chief Counsel (Corporate) said January 17 at a conference sponsored by the American Bar Association Section of Taxation. “We are considering those seriously and that is under study,” he added.
Worthless Stock Deduction Simplified?
Prefiling Program Touted for Worthless Stock Deduction Claimants – Wesley Elmore, Tax Notes ($):
Recent changes to the IRS prefiling agreement (PFA) program were intended to simplify the process for taxpayers taking worthless stock deductions, but it’s too soon to say what the turnaround time will be for participants, an agency official said.
Speaking January 16 at the American Bar Association Section of Taxation meeting, John Lovelace of the IRS Office of Associate Chief Counsel (Corporate) said that “things are in a state of flux” at the agency because of staffing issues, and that will affect how long it takes for taxpayers in the PFA program to get a response.
Speaking January 16 at the American Bar Association Section of Taxation meeting, John Lovelace of the IRS Office of Associate Chief Counsel (Corporate) said that “things are in a state of flux” at the agency because of staffing issues, and that will affect how long it takes for taxpayers in the PFA program to get a response.
Related: Eide Bailly IRS Dispute Resolution and Collections Services.
IRS Internal Controls Found Lacking
IRS Internal Controls Need Improvement, Watchdog Says – Tyrah Burris, Tax Notes ($):
The IRS collected trillions of dollars in revenue and improved taxpayers’ experience during fiscal 2025 but had deficiencies in accounting for unpaid tax assessments, according to the Government Accountability Office.
In its 2025 agency financial report, released January 20, the GAO found that the IRS collected more than $5.3 trillion in taxes, processed more than 271 million tax returns and forms, and issued 113 million refunds totaling $358 billion in fiscal 2025.
In its 2025 agency financial report, released January 20, the GAO found that the IRS collected more than $5.3 trillion in taxes, processed more than 271 million tax returns and forms, and issued 113 million refunds totaling $358 billion in fiscal 2025.
Beneficial Ownership Data Request
Business Groups Ask Treasury to Purge Beneficial Ownership Data – Caleb Harshberger, Bloomberg ($):
More than 100 trade associations are calling for the Treasury Department to purge the Corporate Transparency Act database of beneficial ownership information submitted by US businesses and business owners that are no longer required to file.
The Main Street Employers Coalition said in a letter Tuesday that sensitive information still remains in the database on beneficial owners, “exposing them to ongoing cybersecurity and unauthorized disclosure risks.”
The Main Street Employers Coalition said in a letter Tuesday that sensitive information still remains in the database on beneficial owners, “exposing them to ongoing cybersecurity and unauthorized disclosure risks.”
What Day is it?
It’s Grandma Day! Wishes for a great day to all the grandmas out there! Special shout out to my Grandma Pat!
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