President Donald Trump has directed a sweeping overhaul of the Internal Revenue Service (IRS), with interim IRS Commissioner Scott Bessent and senior advisor Gary Shapley spearheading a restructuring effort that includes new investigative priorities and leadership changes.

The move comes as the agency operates with reduced staff due to the ongoing government shutdown and follows the removal of former Commissioner Billy Long in August after a policy dispute over taxpayer data.

According to officials familiar with the matter, Shapley has been tasked with identifying individuals and entities who may face criminal scrutiny over potential political and financial misconduct.

Among those reportedly reviewed is billionaire Democratic donor George Soros, whose Open Society Foundation remains one of the world’s largest funders of progressive causes.

Soros’ Fund for Policy Reform, largely run by his son Alex, donated $60 million to Democrats in 2024, ranking as the 12th largest contributor nationally and second among exclusively liberal givers.

The overhaul has coincided with a broader push from the administration and Republican leaders to examine political funding sources tied to recent anti-Trump demonstrations.

Senator Ted Cruz introduced legislation this week to enable the Department of Justice to use the Racketeer Influenced and Corrupt Organizations (RICO) Act to investigate financial backers of the “No Kings” protests held over the weekend.

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“Follow the money. Cut off the money,” Cruz told Fox News host Sean Hannity on Wednesday.

“You look at this No Kings rally — there’s considerable evidence that George Soros and his network is behind funding these rallies which may well turn into riots.”

Cruz added, “I’ve introduced legislation that would allow DOJ to use RICO to prosecute the money that is funding these No Kings protests.”

President Trump has previously said that Attorney General Pam Bondi should use RICO statutes to address funding networks behind political violence.

“They should be put in jail,” Trump said, according to CNN, referencing protesters who targeted him at a Washington, D.C., restaurant in September.

The President has instructed Bessent to identify financiers believed to be contributing to political unrest.

“Scott will do that. That’s easy for Scott,” Trump said during a recent cabinet meeting.

Soros’ Open Society Foundation denied any involvement in political violence and reiterated its opposition to unlawful conduct.

The administration’s IRS restructuring follows the dismissal of Commissioner Billy Long after only two months in the role.

Sources told The Washington Post and CNN that the decision came amid tensions over whether the IRS should provide taxpayer data to immigration authorities.

According to those reports, the Department of Homeland Security (DHS) had requested confirmation of addresses for more than 40,000 individuals using tax records — part of a larger effort under an April agreement between DHS and the Treasury Department.

Long refused, citing taxpayer privacy protections. He was replaced the following day.

A DHS spokesperson said the cooperation framework was designed “to ensure that sensitive taxpayer information is protected, while allowing law enforcement to effectively pursue criminal violations.”

The White House called claims of internal disagreement “false and totally fake news,” and said Long’s reassignment had been planned.

Long was later nominated by President Trump to serve as U.S. Ambassador to Iceland.

“It is an honor to serve my friend President Trump and I am excited to take on my new role as the ambassador to Iceland,” Long wrote on X.

“I am thrilled to answer his call to service and deeply committed to advancing his bold agenda.”

Meanwhile, the IRS is operating at roughly half capacity under a revised contingency plan posted to its website, with only about 53 percent of employees — roughly 39,870 workers — remaining on duty. The shutdown has halted most IRS operations as it draws on remaining funds from the Inflation Reduction Act.

Earlier this year, the Department of Government Efficiency (DOGE), led by Elon Musk, oversaw a separate round of staff reductions that reduced the IRS workforce from approximately 100,000 at the end of 2024 to around 75,000.

Shapley’s ongoing plan reportedly includes replacing key personnel, including Guy Ficco, who currently leads the agency’s investigative division.

The White House has not commented on specific personnel changes but has stated that the reorganization is intended to improve accountability and modernize operations.

When reached by The Wall Street Journal, Shapley declined to discuss specific individuals under review.

“I’m grateful to continue in my role in reforming the IRS,” he said.

A Treasury Department spokesperson added that the team’s focus “remains collections, privacy, and customer service.”

The IRS restructuring represents one of the most significant administrative shakeups since the shutdown began and marks the latest in a series of moves by President Trump to redirect federal agencies toward new enforcement and accountability priorities.