IRS CEO, Democratic Lawmakers Spar Over Privacy, Union (1)

Democratic lawmakers pressed IRS CEO Frank Bisignano on the agency’s controversial data-sharing agreement and its termination of its union contract during the agency’s first public update amid the 2026 filing season.

The former fintech executive said during a Wednesday House Ways and Means Committee hearing that no IRS employee was fired or disciplined after the agency mistakenly shared too much tax data with the Department of Homeland Security.

Bisignano, who’s managing the IRS in a newly created position, largely declined to comment on the April 2025 agreement, which aimed to use IRS data—subject to privacy laws—to help Immigration and Customs Enforcement with criminal probes into immigrants. That pact resulted in the IRS violating privacy laws 42,695 times, a district judge confirmed after the IRS told the court of the mistake.

“A voluntary tax system depends on trust. And right now, I’m concerned that that trust is collapsing with many Americans,” said Rep. Mike Thompson (D-Calif.).

The IRS has a weekly risk management meeting, and the chief risk and control officer now directly reports to the CEO, Bisignano said.

“We aren’t going to comment on current litigation,” Bisignano said.

Bisignano, also the confirmed commissioner for the Social Security Administration, took over managing the tax agency last fall after the Trump administration’s crusade to downsize the federal government resulted in the IRS losing about a quarter of its workforce.

Union Contract, GOP Law

The IRS also told employees Feb. 27 that it was canceling its collective bargaining agreement with the National Treasury Employees Union, which represents roughly two-thirds of the agency. NTEU said it expects the IRS to continue to uphold its contract.

Ranking member Richard Neal (D-Mass.) questioned Bisignano on the decision to void the contract.

“They are losing nothing,” Bisignano said, adding that federal government workers have many benefits that the private sector doesn’t.

Republicans largely focused questions on the IRS implementation of their hallmark tax-and-spending law passed last July, especially the size and speed of taxpayers receiving refunds.

Bisignano projected refunds would be up an average of $1,000 by the end of the filing season compared to last. Democrats say the benefits of the law largely skew toward wealthier Americans.

As of Feb. 20, the average refund was $3,804, up 10% from the year before, according to the IRS.

“What you’re finding is bigger refunds, quicker refunds,” Bisignano said, adding that direct deposit refunds are taking nine days on average.

Bisignano, in response to questions from Democrats, said that he hasn’t received any requests from the Trump administration to investigate specific tax-exempt groups.

President Donald Trump and his allies have signaled plans to curb nonprofit groups that could be funding political violence, and suggested revoking the tax exempt status of perceived adversaries like Harvard University.