WASHINGTON — The Internal Revenue Service (IRS) has seen a significant shift in leadership as Andrew De Mello replaces William Paul as the acting chief counsel. William Paul, who previously held the role, has now been removed from his position. De Mello, an attorney within the chief counsel’s office, has been identified as supportive of the Department of Government Efficiency, headed by Elon Musk. The change was shared by two individuals familiar with the situation, though they were not authorized to discuss it publicly.
Paul’s demotion is believed to stem from tensions with the Department of Government Efficiency (DOGE), especially concerning its potential initiative to exchange tax information across different governmental entities. This move coincides with the IRS’s impending plans for substantial workforce reductions. The agency is preparing strategies to downsize its staff by half by incorporating layoffs, workforce attrition, and incentivized buyouts. These measures fall in line with President Donald Trump’s goal to reduce the federal workforce’s overall size.
The push for a leaner government is further evidenced by the proposed closures of certain agencies, letting go of probationary employees lacking civil service protection, and providing buyout offers to nearly all federal employees through a “deferred resignation program.” As part of these efforts, around 7,000 IRS staff members who were on probation with less than a year of service were laid off in February.
William Paul, who began serving as acting chief counsel to the IRS in January, took over from Marjorie A. Rollinson. He has held various positions within the IRS since the late 1980s. He is not alone in experiencing reassignment due to hesitation about sharing access to sensitive databases and taxpayer information.
Within the broader government, officials from key departments such as the Treasury and the Social Security Administration have encountered retirements, resignations, and demotions after expressing concerns about DOGE’s reach into crucial systems and sensitive data. A notable example includes Michelle King, the Social Security Administration’s former acting commissioner. After 30 years of service, she resigned in February following her refusal to grant DOGE access to information regarding Social Security recipients.
Chye-Ching Huang, executive director of the Tax Law Center at New York University School of Law, remarked on the current wave of officials prioritizing law over job security. These officials continue a legacy dating back to the Nixon era, opposing elected officials’ alleged attempts to misuse taxpayer data and systems.
