In a whirlwind of turnover and controversy, the Internal Revenue Service (IRS) has found itself at the center of political drama, privacy debates, and unprecedented operational upheaval as the summer of 2025 draws to a close. The abrupt dismissal of Billy Long, who served as IRS Commissioner for only two months, marks the latest chapter in what many insiders describe as chaos within one of the federal government’s most vital agencies.
Long’s tenure, confirmed by the Senate in June 2025, was the shortest for any IRS Commissioner since the role was established in 1862, according to reporting from The New York Times and CNN. His removal, confirmed by a White House official on August 8, 2025, came with little public explanation. In a social media post, Long announced he had been tapped for a new role, stating, “It is a honor to serve my friend President Trump and I am excited to take on my new role as the ambassador to Iceland. I am thrilled to answer his call to service and deeply committed to advancing his bold agenda. Exciting times ahead!”
Yet behind the scenes, Long’s departure was anything but routine. His brief time at the IRS was marked by clashes with Treasury Secretary Scott Bessent, who will now serve as acting IRS Commissioner. According to The New York Times, the two reportedly disagreed on several fronts, including Long’s public—and incorrect—claim that the 2026 tax season would start late, a statement quickly walked back by officials who clarified the season would begin as scheduled. The confusion only added to a sense of instability that has plagued the agency since President Trump’s second term began.
Long’s unconventional background did little to allay concerns. A former auctioneer and U.S. Representative from Missouri, Long had previously championed bills aimed at eliminating the IRS entirely and had no experience in tax administration. His Senate confirmation, secured by a 53-44 vote, was contentious. Democratic senators objected not only to his lack of relevant experience but also to his involvement with a company that promoted a fraudulent pandemic-era employee retention tax credit, which was discontinued after then-Commissioner Daniel Werfel deemed it fraudulent, as reported by CNN.
Long’s ouster is just the latest episode in a series of leadership changes that have left the IRS reeling. In the months leading up to his appointment, the agency cycled through four acting commissioners. Gary Shapley, one of Long’s predecessors, lasted only days before being replaced, reportedly after Bessent objected to his appointment, which had been influenced by Elon Musk without Bessent’s consultation. Michael Faulkender then served as acting commissioner until Long’s confirmation.
The turbulence at the top comes at a time when the IRS is being asked to do more with less. The agency has lost more than 25,000 employees since January 2025—a staggering quarter of its workforce—according to the Treasury Inspector General for Tax Administration. Most of these departures were attributed to the Department of Government Efficiency’s deferred resignation program, part of the Trump administration’s broader push to downsize the federal bureaucracy. By May 2025, the IRS workforce had shrunk from 103,000 to just 77,000 employees.
Congress, meanwhile, is considering steep budget cuts to the IRS, raising questions about the agency’s ability to implement the sweeping tax cuts passed by Republicans just last month. Terry Lemons, who led the IRS’s communication efforts before retiring earlier this year, told The New York Times, “It has to have some impact on the agency’s ability to deliver this major piece of legislation. The people who are left, are they going to be able to handle this high volume with fewer staff and the potential for more budget cuts hanging over their heads?”
Amid this internal upheaval, the IRS has found itself at the heart of a heated national debate over privacy and immigration enforcement. As first reported by CNN, the IRS began sharing sensitive taxpayer data with immigration authorities in early August 2025, following an agreement signed in April between the Treasury Department and the Department of Homeland Security (DHS). The data includes names, addresses, and tax information for undocumented immigrants facing deportation or under federal criminal investigation.
The move was part of President Trump’s aggressive deportation initiative, with Immigration and Customs Enforcement (ICE) requesting information on 1.23 million suspected undocumented immigrants. Yet, due to data mismatches, less than 5% of the requested records were actually shared. According to a source cited by CNN, “Less than 5% isn’t what they were hoping for.” The White House, dissatisfied with the low volume of data provided, reportedly called the IRS early on August 8 to express its displeasure.
The scale of the request shocked many IRS employees. DHS officials had previously told the IRS they hoped to use the data to locate up to 7 million suspected undocumented immigrants—a figure described as “eye-popping” by staff. The IRS has traditionally safeguarded taxpayer information, only sharing it with law enforcement in limited circumstances. Lawyers representing immigrant groups have argued that the new data-sharing arrangement violates longstanding taxpayer confidentiality protections and could allow federal law enforcement to bypass court orders typically required for such disclosures.
The controversy over data sharing has contributed to a wave of resignations among senior IRS officials, many of whom voiced concerns about the legality of the collaboration. The internal discord, combined with the agency’s shrinking workforce and ongoing leadership churn, has left the IRS struggling to fulfill its core mission while navigating an increasingly politicized landscape.
All the while, the agency remains responsible for implementing complex new tax policies, including rules on who can claim new breaks for tipped income and overtime pay. These are no small tasks, especially with so many experienced hands having departed and with more cuts potentially on the horizon. As one observer quipped on social media, “We’re living through a bad SNL skit.”
In the words of Karoline Leavitt, a Trump administration spokesperson, “Disagreements are a normal part of any healthy policy process, and ultimately everyone knows they serve at the pleasure of President Trump.” That may be true, but for those left at the IRS, the pleasure has come at a high cost. With the agency’s leadership in flux, its workforce depleted, and its mandate expanding, the next chapter for America’s tax collector is anything but certain.
