Last Tax Man Standing? Bessent Takes on IRS Job Few Seem to Want

Treasury Secretary Scott Bessent is about to take on a job nobody in Washington seems to want.

The former hedge fund executive will soon become the seventh acting IRS commissioner this year, after President Donald Trump’s unexpected move to oust Billy Long.

He’ll be juggling oversight of the IRS as it implements Trump’s marquee tax legislation and prepares for next tax season while he pushes Trump’s aggressive tariff agenda. The decision to make the secretary the head of IRS is unusual, tax professionals said, considering the full plate he already has.

“You need someone who is close to the president and understands where the administration wants to go,” said Dave Kautter, a partner at RSM US LLP and former assistant secretary for tax policy at the Treasury Department.

In his short time at the agency, Long sent unconventional messages to employees, including notices to leave early on Fridays and referring to himself as “Big Beautiful Bill(y),” a nod to the GOP tax law’s name.

He will be nominated to become the ambassador to Iceland, he said in a Friday social media post. “I am thrilled to answer his call to service and deeply committed to advancing his bold agenda. Exciting times ahead!”

Bessent will step in as House Republicans look to cut the agency’s funding by more than 20% to $9.5 billion, an even bigger cut than the White House proposal.

Agency in Turmoil

Long’s ousting is the most recent change in an agency rocked by the Trump administration. The commissioner is a key figure in guiding tax administration, especially when it comes to filing season and enforcement priorities.

“IRS employees are highly resilient but confirmed leadership is necessary to appropriately represent the IRS-related issues facing every American going forward,” Chuck Rettig, former IRS commissioner appointed during Trump’s first term, said in an email.

Multiple senior leaders have left or were replaced because of disagreements with the administration’s policies.

Most recently, the IRS placed longtime Holly Paz and Elizabeth Kastenberg on administrative leave for their alleged conduct toward Republicans. Both had connections to a decade-old controversy involving flagging of conservative-leaning nonprofit applications.

Trump has also threatened Harvard University’s tax-exempt status amid a feud about the school’s policies. The moves worry tax professionals, who say it could indicate more politicization at an agency that’s intended to be nonpartisan.

More than half of the agency’s top officials are serving in an acting capacity.

Although Bessent will wear more than one hat, he isn’t the only administration official to do so. For example, Secretary of State Marco Rubio is also leading other sub-agencies.

Commissioner Headed Out

Long was already an unusual choice for commissioner. The former congressman had no tax or management experience. Trump nominated him during the middle of former IRS Commissioner Danny Werfel’s term, a break from tradition.

After he left Congress in 2023, Long promoted employee retention credits, a tax break that the IRS said was flooded with improper claims. He also has ties to so-called sovereign tribal tax credits, which Treasury and IRS have said don’t exist.

Long spent some of his less than two months in the role visiting IRS offices and meeting with employees.