IRS ANNOUNCES NEW LEADERSHIP STRUCTURE:

Internal Revenue Service Commissioner Danny Werfel has announced plans for a new leadership structure at the agency, a step designed to reflect new transformation goals and update the top of the organization chart for the first time in two decades.

The new organizational structure will feature a single deputy IRS Commissioner, instead of two. And four new IRS chief positions will oversee taxpayer service, tax compliance, information technology and operations. The changes will streamline operational efficiencies and align with major transformation work underway at the agency through the Inflation Reduction Act funding.

"With transformation work continuing to accelerate at the IRS, this is the right time to make these organizational adjustments that will support the agency's improvements for taxpayers and provide the flexibility needed to add efficiency and expand collaboration across the agency," Werfel said. "Many foundational changes in tax administration have occurred since the last major IRS organizational change, and this new alignment will help us in our ongoing transformation work to modernize the nation's tax system. This will improve our leadership model and streamline our internal processes for the benefit of taxpayers, the tax community, our employees and ultimately the nation."

The new organizational structure reflects years of effort at the IRS. The roots of this change date to the Taxpayer First Act Report to Congress in January 2021 and are contained in the new IRS Strategic Operating Plan released this April. Werfel noted this change is a logical step for the agency given recent history and the rapid pace of Inflation Reduction Act work.

"Our transformation work and previous reviews highlight how the current structure limits our ability to operate as an integrated organization with shared goals," Werfel said. "The entire landscape around tax administration – including the economy, tax laws and technology -- have undergone major changes since the last IRS reorganization. The new structure will help the top leadership to work together to drive faster and more effective progress. It's critical we deliver for taxpayers and the nation as we work to make important improvements at the IRS."

IRS moves to single Deputy IRS Commissioner model. The new IRS deputy commissioner role will be filled by Doug O'Donnell, currently the deputy commissioner for Services and Enforcement. O'Donnell, who served as acting IRS Commissioner from November 2022 through March 2023, has spent more than 37 years at the IRS in a variety of roles. Prior to becoming Deputy Commissioner for Services and Enforcement in 2021, Doug served as the commissioner of the IRS Large Business and International (LB&I) Division for nearly six years. He joined the IRS in 1986.

Reporting to O'Donnell will be four new IRS chief positions and IRS Online Services. O'Donnell and the four chief positions will work closely with Werfel:

• Chief, Taxpayer Service: Ken Corbin, the current IRS Wage and Investment (W&I) commissioner, will lead this group. The new Taxpayer Service area will include many of the major taxpayer functions currently handled by Corbin's W&I organization, including handling the filing season work and taxpayer-facing operations including toll-free operations, tax return processing centers, Taxpayer Assistance Centers and tax forms, taxpayer correspondence and publication development.
• Chief Taxpayer Compliance Officer: Heather Maloy, currently the IRS chief of staff, will serve in this new role overseeing IRS compliance work. In this position, Maloy will oversee IRS compliance operations including in LBI, the Small Business/Self Employed division, the Tax Exempt and Government Entities division, IRS Criminal Investigation, the Office of Professional Responsibility, the Return Preparer Office and the Whistleblower Office.
• Chief Information Officer:  Rajiv Uppal will serve in this role when he joins the IRS in 2024. The IRS announced his selection in November. He currently serves as the Director of the Office of Information Technology and Chief Information Officer for the Centers for Medicare and Medicaid Services (CMS), part of the U.S. Department of Health and Human Services (HHS). He brings more than 25 years of information technology expertise to the IRS from both the public and private sectors.
• Chief Operating Officer: Melanie Krause will serve in this new position. Krause joined the IRS in October 2021 in her current role as the Chief Data & Analytics Officer where she also leads Research, Applied Analytics and Statistics (RAAS). Krause serves as co-lead of the Data and Analytics Strategic Integration Board, where she works to advance areas of strategic importance to the agency, including using AI and other advanced analytics. Krause also served as Acting Deputy Commissioner for Services and Enforcement from November 2022 to March 2023 and has worked at the Government Accountability Office and the Department of Veterans Affairs Office of Inspector General.

Read the full scope of the planned changes here.