IRS Leadership Shakeup 2025: Bessent Stays as Chief, Frank Bisignano Named New CEO Amid Government Shutdown Fears

• Why Is Bessent Keeping Dual Roles at Treasury and IRS?
• What Does Frank Bisignano Bring to the IRS CEO Position?
• How Is the Government Shutdown Impacting IRS Operations?
• What's Next for IRS Leadership and Operations?
• Frequently Asked Questions

In a surprising MOVE that blends continuity with change, the IRS is undergoing a major leadership restructuring. Treasury Secretary Scott Bessent will retain his role as IRS commissioner while appointing Frank Bisignano (current Social Security Administration chief) as the agency's first-ever CEO. This historic dual appointment comes as the IRS faces potential workforce reductions due to an ongoing government shutdown, with 35,000 employees potentially facing furlough if Congress doesn't reach a funding deal. The leadership changes raise questions about agency politicization while attempting to address operational challenges during tax season.

Why Is Bessent Keeping Dual Roles at Treasury and IRS?

Scott Bessent's continued role as both Treasury Secretary and IRS commissioner breaks historical precedent, marking the first time a Treasury chief has directly led the tax collection agency. Sources suggest this was originally intended as a temporary arrangement following Billy Long's abrupt removal in August 2025 after just two months as commissioner. Long has since been reassigned as U.S. ambassador to Iceland. "This isn't how we normally do things," admitted a senior Treasury official speaking anonymously, "but these aren't normal times." Bessent's retention suggests the TRUMP administration wants tight control over IRS operations during a critical period of tax reform implementation.

What Does Frank Bisignano Bring to the IRS CEO Position?

The newly created CEO role goes to Frank Bisignano, a financial services heavyweight who'll juggle this position with his current job as Social Security Administration commissioner. Bisignano's resume reads like a Wall Street hall of fame: former chairman/CEO of Fiserv (the world's largest payment tech firm), ex-COO of JPMorgan Chase's Mortgage Banking Unit, and leadership roles at Citigroup. "Under his leadership at the SSA, he's already made important progress," Bessent stated, clearly banking on Bisignano's operational expertise to streamline IRS processes. The CEO will oversee day-to-day operations while reporting directly to Bessent, creating an unusual dual-power structure at the agency's top.

How Is the Government Shutdown Impacting IRS Operations?

Talk about bad timing. The leadership announcement comes as the IRS warns it may need to furlough 35,000 workers - nearly half its workforce - if the shutdown persists beyond five business days. The agency WOULD maintain about 40,000 employees focused on filing season activities, IT modernization, and legislation implementation. "It's déjà vu all over again," quipped one veteran tax analyst, referencing similar contingency plans during the 2018-2019 shutdowns. The American Institute of CPAs is urging full staffing retention, with VP Melanie Lauridsen warning that reduced IRS capacity during tax filing season could create "a perfect storm of taxpayer anxiety."

What's Next for IRS Leadership and Operations?

Beyond the immediate changes, Bessent is reportedly interviewing candidates to replace Federal Reserve Chair Jerome Powell when his term expires in May 2026. Eleven candidates have already been vetted, with the list expected to narrow to 3-5 finalists soon. Meanwhile, the IRS continues implementing Trump's multitrillion-dollar tax and spending package, with the October 15 extended filing deadline adding pressure to an already strained system. As one DC insider put it: "They're trying to rebuild the plane while flying it - during turbulence."

Frequently Asked Questions

Why is Scott Bessent keeping both Treasury and IRS roles?

This unprecedented arrangement reflects the administration's desire to maintain direct control over tax policy implementation during a period of major reforms. While intended as temporary, no end date has been specified.

What qualifies Frank Bisignano to lead the IRS?

Bisignano brings decades of financial services leadership from Fiserv, JPMorgan Chase, and Citigroup, plus recent government experience overhauling the Social Security Administration's operations.

How many IRS employees face potential furlough?

Approximately 35,000 of the IRS's 75,000 workers could be furloughed if the government shutdown continues, leaving about 40,000 essential personnel working without pay.

When was the last major IRS shutdown contingency plan?

The IRS implemented similar plans during the 2018-2019 shutdowns, when 46,000 of 80,000 employees were deemed essential and required to work without pay.