IRS Restructuring Begins Today
Today is the first workday of the new fiscal year and is the day that the new restructuring plan for the IRS takes effect. The agency’s old structure of dividing taxpayers by geographic boundaries will be replaced with a new, specialized system built around specific divisions meant to deal with taxpayers with common needs.
The new IRS will be made up of the following four divisions:
Wage and Investment (W&I) serves individual taxpayers. The division, headquartered in Atlanta, will serve about 90 million filers with income from wage and investments. In all, this represents 116 million taxpayers. Members of W&I will focus on educating and assisting taxpayers during all interactions with the IRS. W&I is led by Commissioner John Dalrymple and Deputy Commissioner John
Small Business / Self-Employed (SB/SE) is headquartered in New Carrollton, Maryland. This diverse group includes more than 40 million taxpayers that are full or partially self-employed or are small businesses with assets of less than $5 million. Taxpayers in this group face some of the most complex tax law requirements and file twice as many forms and schedules as W&I taxpayers. To help address that, SB/SE will focus on increased education and communication efforts with taxpayers and external stakeholder organizations, such as tax practitioners. Leading SB/SE are Commissioner Joseph Kehoe and Deputy Commissioner Dale Hart.
Large and Mid-Size Business (LMSB) serves 210,000 corporations and partnerships with at least $5 million in assets. LMSB, headquartered in Washington, D.C., will feature an emphasis on helping taxpayers avoid problems before they start and streamlining the tax dispute process to ease burdens on businesses. Commissioner Larry Langdon and Deputy Commissioner Deborah Nolan lead the LMSB team.
Tax-Exempt / Government Entities (TE/GE) is headquartered in Washington, D.C. The division serves three distinct customer segments – Employee Plans, Exempt Organizations and Government Entities – representing 3 million customers. TE/GE is designed to serve the needs of these three diverse customer segments. These groups control $6.7 trillion in assets. TE/GE is led by Commissioner Evelyn Petschek and Deputy Commissioner Darlene Berthod.
For a detailed overview of the restructuring of the IRS, see the US Government's brief called Modernizing America’s Tax Agency.