(WASHINGTON) — The Trump administration is removing the Internal Revenue Service’s top attorney, according to two sources familiar with the move, amid an internal debate over sharing confidential taxpayer information with other government agencies.
Acting IRS chief counsel William Paul is set to be demoted to his previous role, and replaced by Andrew De Mello, another IRS attorney who was nominated by President Donald Trump to serve as the inspector general of the Department of Education during his first term, the sources said.
Paul was promoted to replace outgoing chief counsel Marjorie Rollinson in January.
His demotion at IRS headquarters comes as representatives of the Department of Government Efficiency have been working to secure agreements with other agencies to use and share taxpayer information across the government, to help with issues including the vetting of federal benefit payments and immigration information.
Section 6103 of the federal tax code requires the IRS keep individual taxpayer information confidential with certain exceptions, and some within the agency have raised privacy concerns about the proposals pushed by DOGE representatives for access to and the sharing of IRS data.
The Treasury Department and a spokesperson for the IRS did not respond to requests for comment.
The IRS is also expected to lose approximately 20% of its workforce — or roughly 18,000 jobs — by May 15 as part of staff cuts directed by the Elon Musk-led Department of Government Efficiency, two sources familiar with the plans told ABC News.
That figure includes the probationary workers already dismissed and IRS workers who accepted the administration’s ‘buyout’ offer over email.
On Thursday, a federal judge ordered the Trump administration to rehire the fired workers at the IRS and five other agencies, though the administration has filed a notice to appeal the ruling.
The agency’s taxpayer services and compliance departments are expected to lose thousands of workers in what could be the first of several waves of firings, one of the sources said.
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