IRS CEO Frank Bisignano faced questioning from lawmakers at a House Ways and Means Committee hearing on Wednesday regarding recent unlawful disclosures of taxpayer data. Bisignano largely declined to answer questions, stating that the events occurred before his tenure began last October.
Key Takeaways
IRS CEO Frank Bisignano faced questions in a House hearing about unlawful disclosures of taxpayer data to ICE but declined to answer, citing ongoing litigation and events occurring before his tenure. Democrats criticized the lack of accountability, while Republicans praised recent tax law changes that increased refunds.
- IRS chief declines to discuss unauthorized taxpayer data sharing with ICE
- Federal judge found 42,695 unlawful disclosures of taxpayer information
- Two court orders block further data transfers and use by ICE
- Democrats criticize leadership failure and lack of accountability
- Republicans highlight increased tax refunds under new law
The hearing focused on the IRS's progress in serving taxpayers as the 2026 tax season is underway. In prepared remarks, Bisignano highlighted the implementation of Republicans' sweeping tax and spending law, which includes eliminating taxes on tips and overtime, exempting certain car loan interest, creating a deduction for older adults, and launching Trump Accounts for children's savings.
Democratic lawmakers zeroed in on a federal judge's finding that the IRS broke the law by disclosing confidential taxpayer information approximately 42,695 times to Immigration and Customs Enforcement (ICE). This disclosure was part of an agreement between ICE and the Department of Homeland Security to share information on immigrants for deportation purposes.
Rep. Mike Thompson (D-Calif.) questioned Bisignano about accountability, asking if anyone had been fired or disciplined. Bisignano cited ongoing litigation and declined to answer, adding that he did not want to debate the numbers. According to apnews.com, Bisignano stated no employee was fired or disciplined for the disclosures.
U.S. District Judge Colleen Kollar-Kotelly found last month that the IRS unlawfully shared the taxpayer information of thousands of people with immigration enforcement. Two court orders have blocked the agencies from massive transfers of taxpayer information and prevented ICE from acting on any IRS data in its possession.
Rep. Suzan DelBene (D-Wash.) criticized the situation as a 'catastrophic leadership failure' that has damaged public confidence. Bisignano acknowledged that the events occurred before his tenure but stated it was his responsibility to address them.
A data-sharing agreement signed last April by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem allows ICE to submit names and addresses of immigrants inside the U.S. illegally to the IRS for cross-verification against tax records. The deal led to the resignation of the then-acting commissioner of the IRS.
During the hearing, Republican lawmakers praised the Trump administration for signing the Republican tax measure into law. Committee Chairman Jason Smith (R-Mo.) noted that under the new law, Americans are receiving bigger refunds, with an average increase of roughly 10%. The White House has projected refunds to be up by $1,000 on average.
Democrats also questioned Bisignano about the IRS's recent decision to cut union contracts with its workers. Rep. Richard Neal (D-Mass.) contended that terminating the union contract makes it easier to dismantle the IRS. Bisignano responded that federal employees under statute have greater benefits than any union in the world can provide, stating they are 'losing nothing.'
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