IRS Leadership Turmoil Continues With Appointment of Yet Another Acting Chief Counsel While Chief of Appeals Announces Retirement

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The Internal Revenue Service continues to experience significant leadership transition during a period of ongoing internal upheaval and uncertainty.  The latest developments are the appointment of Kenneth Kies as the new acting IRS Chief Counsel and the announced retirement of the Chief of IRS Appeals, moves that come as the agency faces deep workforce reductions, budget cuts, and heightened scrutiny over its direction.

Kenneth Kies Appointed Acting IRS Chief Counsel

The IRS has installed Kenneth Kies as acting IRS Chief Counsel, the agency’s top legal officer.  Kies, who currently serves as Treasury assistant secretary for tax policy, replaces Andrew De Mello in the role and becomes the third acting Chief Counsel in six months under the new administration. 

Tax Notes reports that this personnel move had been announced internally last month by newly-confirmed IRS Commissioner Billy Long.  De Mello had been serving as acting chief counsel since March, when he replaced William M. Paul.  No reason has been publicly stated for De Mello’s removal from this position, but an article published by ProPublica earlier this month reported that De Mello refused to disclose the addresses of 7.3 million taxpayers sought by U.S. Immigration and Customs Enforcement.

President Trump previously nominated Donald Korb, an attorney with Sullivan and Cromwell LLP, to serve as IRS Chief Counsel.  Korb, who is awaiting confirmation, previously served as IRS Chief Counsel under President George W. Bush from 2004 to 2008.

Kies will continue to serve as Treasury assistant secretary for tax policy while also holding the acting IRS Chief Counsel position.  One of his top priorities in this dual role will be implementing the numerous tax provisions in the sprawling reconciliation bill that became law on July 4.

The IRS Chief Counsel serves as the principal legal advisor to the IRS Commissioner, oversees the agency’s legal positions in litigation, and provides guidance on the interpretation and enforcement of federal tax laws.  The IRS Chief Counsel is a presidential appointee, confirmed by the Senate, and plays a key role in shaping IRS policy and operations.

IRS Appeals Chief Announces Retirement1

The IRS Independent Office of Appeals, which plays a critical role in resolving tax disputes without litigation, is also undergoing a leadership transition.  Elizabeth Askey, who had been serving as Chief of Appeals, is retiring on September 1.  No reason for Askey’s departure was provided.  Since the start of the new administration, IRS Appeals has lost 500 employees as part of a large-scale effort to substantially reduce the IRS workforce. According to Tax Notes, Askey recently stated that those cuts would cause disruptions to the office’s workflow, which focuses on resolving tax controversies without litigation.

Askey joined the IRS in 2019 after a long career in the private sector.  She was chosen to lead IRS Appeals in September 2024 by then-Commissioner Daniel Werfel, who stepped down just prior to Inauguration Day. 

An Agency In Turmoil

These latest personnel moves at the IRS are part of a larger pattern of leadership chaos at the agency since the new administration came to power.  The IRS has had four different acting commissioners before the Senate confirmation of Commissioner Billy Long earlier this month.  And, according to Tax Notes, there are currently over 10 acting leaders within the IRS’s main operating divisions, including chief human capital officer, chief risk officer, and chief privacy officer.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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