The top attorney at the Internal Revenue Service (IRS) in the Trump administration is being replaced, as revealed by two sources familiar with the situation. The move comes amidst an internal debate regarding the sharing of confidential taxpayer information with other government agencies.
William Paul, the acting IRS chief counsel, is set to be demoted back to his previous position. He will be succeeded by Andrew De Mello, another IRS attorney who was previously nominated by President Donald Trump for the role of inspector general at the Department of Education during his first term.
The demotion of Paul is occurring as part of efforts by the Department of Government Efficiency to establish agreements with various agencies for the sharing and utilization of taxpayer information across the government. Some individuals within the IRS have expressed privacy concerns over these proposals, as outlined in Section 6103 of the federal tax code which mandates the confidentiality of individual taxpayer information with specific exceptions.
Approximately 18,000 jobs, representing around 20% of the IRS workforce, are expected to be lost by May 15 as part of staff reductions directed by the Department of Government Efficiency led by Elon Musk. These cuts include both probationary employees already let go and IRS staff who accepted the administration’s voluntary buyout offer via email.
A federal judge has ordered the Trump administration to rehire the dismissed workers at the IRS and five other agencies, following which the administration has filed a notice to appeal the ruling. Significant layoffs are anticipated in the IRS taxpayer services and compliance departments in what may be the first of several rounds of workforce reductions.
