IRS Leadership Shake-Up: Acting Chief Counsel Removed Amidst Agency Downsizing

Introduction

In a significant development within the Internal Revenue Service (IRS), William Paul, the acting chief counsel, has been ousted from his position. His tenure in this role was marked by conflicts with the Department of Government Efficiency (DOGE), which is spearheaded by Elon Musk. Andrew De Mello, an attorney within the chief counsel’s office who is seen as supportive of DOGE’s agenda, has taken over as Paul’s replacement. This leadership change unfolds against the backdrop of substantial workforce reductions at the IRS, part of President Donald Trump’s broader effort to streamline the federal government.

Background on William Paul

William Paul had a distinguished career at the IRS, serving in various capacities since the late 1980s. His appointment as acting chief counsel in January replaced Marjorie A. Rollinson. Paul’s dismissal reportedly stemmed from clashes with DOGE over the sharing of tax information across multiple agencies. This decision reflects a growing trend within the administration to align agency leadership with its policy objectives, even if it means replacing experienced officials.

IRS Workforce Reductions

The IRS is currently drafting plans to drastically reduce its workforce by as much as 50%, through a combination of layoffs, attrition, and incentivized buyouts. This initiative is part of President Trump’s mandate to shrink the federal workforce. Approximately 7,000 probationary employees with less than a year of service were laid off in February. This downsizing effort is not limited to the IRS; other federal agencies are also undergoing similar reductions, with many probationary employees being let go and buyouts being offered to long-term staff.

Broader Context: Government Officials Resisting DOGE

Paul is not an isolated case of a government official facing consequences for opposing DOGE’s access to sensitive data. Across agencies such as the Treasury Department and the Social Security Administration (SSA), there has been a surge in resignations, retirements, and demotions among officials who have voiced concerns about DOGE’s access to taxpayer information and systems. For instance, Michelle King, the SSA’s acting commissioner, stepped down after 30 years of service rather than comply with DOGE’s request for Social Security recipient data.

Historical Precedent and Implications

This wave of resistance within the federal bureaucracy draws parallels to past administrations, notably during the Nixon era, where officials pushed back against attempts to politicize taxpayer data. Chye-Ching Huang, executive director of the Tax Law Center at New York University School of Law, underscores the significance of these actions, highlighting the long-standing tradition of public servants prioritizing legal integrity over personal career security.

Conclusion

The removal of William Paul and the broader workforce reductions at the IRS are indicative of a significant shift in how the federal government is being managed under the current administration. As agencies navigate these changes, the balance between efficient governance and the protection of sensitive information remains a critical concern. The actions of officials like Paul and King illustrate the ongoing tension between adherence to legal standards and compliance with administration directives.