Attorneys skeptical about Treasury hires

The government shutdown has extended beyond contingency plans as the Internal Revenue Service is reported to be sending out mass furlough notices while news of leadership hires is landing flat with bond lawyers dealing with unresolved tax issues. 

“I am not optimistic that the appointment of a chief executive officer at the IRS changes anything for the better,” said Ed Oswald, partner at Orrick’s Washington D.C. office.   

On Monday, the Treasury announced that Frank Bisignano will serve as chief executive officer of the IRS while also continuing to serve as the commissioner of the Social Security Administration. 

“The IRS is a complex organization; it’s not clear to me how the commissioner of the Social Security Administration can also be an effective CEO of the IRS at the same time,” said Oswald. 

Scott Bessent, Treasury secretary and acting commissioner of the IRS, sees things differently. 

“The IRS and SSA – two of the most public-facing and broadly impactful federal agencies – also share many of the same technological and customer service goals,” said Bessent. “This makes Mr. Bisignano a natural choice for this role.” 

Bisignano’s background is in the private sector where he held CEO positions at Fiserv, a multinational fintech firm and First Data Corporation, a financial services company based in Atlanta.  

He was nominated to head up the SSA by President Trump in December 2024 before Trump withdrew the nomination in January 2025 but then restored it.  

Bisignano is on the record for admitting to Googling the duties of the Social Security Commissioner and has a reputation for terminating employees. 

Tax attorneys are also skeptical about the new hire having any meaningful impact on the intricate workings of the tax-exempt municipal bond market. 

“I had discussions with an IRS agent just yesterday on an ongoing audit so, at least for now, the IRS appears to be handling business in the ordinary course,” said Rich Moore, a partner in Orrick’s San Francisco office. 

Counting Bessent there have been six acting IRS commissioners since the start of the Trump administration. The agency’s budget was boosted during the Biden administration then cut via a continuing resolution. It’s a favorite target of efforts to shrink the federal workforce. 

“The IRS continues to be adversely impacted by DOGE enforced retirements and a lack of funding under the Trump Administration,” said Oswald.  

“For a country with $37 trillion of national debt, one would think that the primary revenue collection agency of the United States would not be undermined in the way that the IRS has been this year.”

On Tuesday, the Treasury announced that Derek Theurer is taking over as the new deputy secretary. Theurer has been with the agency since January and was serving as a policy advisor for House Speaker Mike Johnson. 

Theurer was nominated by President Trump in March and previously served as senior tax counsel for Johnson. Earlier in his career he played a key role in crafting the Tax Cuts and Jobs Act of 2017.