While much of Washington has been focused on budget talks and government shutdowns, President Donald Trump is reportedly planning a dramatic shake-up at the IRS. Sources say the revamp could target wealthy Democratic donors whom the White House believes are backing politically charged activities.
The plan comes as Trump’s allies in Congress, including Senator Ted Cruz, are pushing legislation that would allow the Justice Department to use the RICO Act to go after financial backers of anti-Trump protests, such as the weekend’s “No Kings” marches.
Key Figures and Potential Targets
Scott Bessent, the interim IRS Commissioner, has brought on advisor Gary Shapley to compile a list of potential subjects for investigation.
Billionaire donor George Soros reportedly tops that list. Shapley’s efforts aim to identify financiers allegedly provoking political unrest, though no formal charges have been filed.
Senator Cruz told Sean Hannity, “Follow the money.
Cut off the money,” suggesting Soros and his network may have played a role in funding protests that could escalate into violence.
Soros’ Open Society Foundation has denied any wrongdoing and condemned violence.
Trump’s Previous Criticism of Liberal Billionaires
Trump has a history of publicly criticizing prominent liberal donors, including Soros, Tom Steyer, and Michael Bloomberg. He has previously called for RICO investigations into protesters who voiced opposition to him, as well as Soros himself.
The RICO Act, historically used against organized crime, allows authorities to pursue criminal networks, including funding sources for riots—a provision Trump appears to be leaning on to expand his reach.
IRS Leadership Shake-Up
The political maneuvering at the IRS has been accompanied by internal upheaval.
Earlier this year, Trump fired Commissioner Billy Long after just two months on the job, appointing Treasury Secretary Scott Bessent as interim head.
Long’s removal reportedly stemmed from a dispute over whether the IRS should provide taxpayer data to the Department of Homeland Security to locate undocumented immigrants—a move privacy lawyers opposed.
Gary Shapley is also expected to make significant staffing changes, including removing Guy Ficco, who oversees the investigative division, and potentially reorganizing how the IRS decides which taxpayers to examine.
Government Shutdown and Staffing Challenges
The IRS has faced additional strain from the ongoing government shutdown, furloughing nearly half of its workforce.
The contingency plan shows that only 39,870 employees—just over half of the agency—remain on duty.
Earlier mass layoffs, attributed to Elon Musk’s Department of Government Efficiency (DOGE), reduced staff from roughly 100,000 at the end of 2024 to around 75,000 today.
White House and IRS Statements
The Treasury Department insists the focus of Shapley’s team remains on collections, privacy, and customer service.
“I’m grateful to continue in my role in reforming the IRS,” Shapley said, declining to comment on political targeting allegations.
The White House maintains that all moves are aligned with the agency’s mission, dismissing claims of politicization as “fake news.”
Long’s Departure and New Role
After his abrupt exit, former commissioner Billy Long announced that Trump has nominated him as U.S. Ambassador to Iceland.
In typical Trump-era humor, Long joked about confusing ICE (Immigration and Customs Enforcement) with Iceland.
Despite the levity, the IRS is clearly in a period of significant transition, marking the seventh leadership change since Trump took office in January 2025.