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Friday, December 5, 2025

IRS turmoil: Leadership churn, worker exodus and threats to groups’ tax-exempt status roil agency

IRS turmoil: Leadership churn, worker exodus and threats to groups’ tax-exempt status roil agency

The height of tax season was the height of turmoil at the IRS.

The agency shuffled through three acting directors over the course of a week. It’s preparing to lose tens of thousands of workers to layoffs and voluntary retirements. And President Donald Trump is weighing in on which nonprofits should lose their tax-exempt status, an incursion into the agency’s typically apolitical stance that threatens to further erode trust in federal institutions and weaponize enforcement efforts.

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