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IRS Leadership Roles Face Reclassification Under New Executive Order

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Bloomberg reports that the Trump administration’s latest executive order allowing certain federal positions to be reclassified as political appointments could have significant implications for leadership and decision-making at the IRS. 

The order, signed June 4, permits the reclassification of more than a dozen IRS positions, including attorney adviser roles and counselor or adviser positions to the IRS commissioner. Employees in these roles could lose longstanding civil service protections and become easier to remove. 

While the number of positions affected is smaller than many observers expected, several of the targeted roles are considered highly influential within the agency. Many are held by senior career employees who help shape policy, provide legal guidance, and oversee major programs. 

Supporters of the move argue that it will give agency leaders greater flexibility to address poor performance and improve accountability. President Donald Trump has said the reclassification would allow supervisors to remove employees more quickly when necessary. 

Nina Olson, former National Taxpayer Advocate and current executive director of the Center for Taxpayer Rights, said the change “further erodes retention of institutional knowledge and increases the politicization of the agency.” 

Others have raised concerns about the potential impact on taxpayer service and agency operations. Pete Sepp, president of the National Taxpayers Union, noted that the IRS has historically been insulated from political pressures but said Congress should evaluate whether the changes improve customer service, strategic planning and taxpayer protections. 

The National Treasury Employees Union has already challenged the policy in court and indicated it plans to continue its legal fight over the reclassification effort.