No One Is Legally Running the IRS? | The COVID "Matrix of Capriciousness" | Live

Why It Matters

The potential dismantling of the IRS’s enforcement framework could reshape tax compliance, exposing practitioners and taxpayers to heightened legal risk and altering the flow of refunds and penalties.

Key Takeaways

• IRS operates without a legally appointed commissioner, undermining authority
• Gundy and Corner Post cases could dismantle core IRS powers
• COVID‑era 7508‑AD guidance deemed opinion, not enforceable law
• Delegation orders and Chevron doctrine face renewed challenges to limit executive rulemaking
• Tax advisors confront unpredictable IRS actions, affecting refunds and fees

Summary

The live session hosted by Anthony Parent of IRS Medic examined the legal vacuum surrounding the Internal Revenue Service, highlighting that the agency currently operates without a formally appointed commissioner and questioning the legitimacy of its pandemic‑era actions.

Participants referenced two pivotal cases—Gundy and Corner Post—that could strip the IRS of longstanding enforcement powers. They also dissected the role of delegation orders, the Chevron/Loper Bright doctrines, and the controversial 7508‑AD guidance issued during COVID, arguing it functions as an agency opinion rather than binding law.

As Parent put it, “There is no commissioner, so enforcement is fatal,” and later warned, “The IRS’s interpretation of 7508‑AD is not law.” The discussion also cited David’s point about the need to examine delegation orders and the broader trend of executive overreach in tax administration.

If courts curtail the IRS’s authority, tax practitioners will face a dramatically altered landscape, with increased uncertainty over refunds, penalties, and fee structures. The conversation underscores the urgency for professionals to monitor litigation and adapt compliance strategies before a potential restructuring of the tax‑collection apparatus.

Original Description

I was wrong about the Commissioner — and being wrong led me to something far more important. Join me LIVE Friday, June 5 at 9:00 AM EDT.

The IRS has had no Senate-confirmed Commissioner since August 2025. The Treasury Secretary testified on June 3 that he's "performing the duties" of Commissioner while admitting his Vacancies Act authority expired. A "CEO" — a position that doesn't exist in the Internal Revenue Code — now runs the agency day to day. And in January, that CEO installed a new Chief of the Independent Office of Appeals, even though the statute (26 U.S.C. § 7803(e)(2)(B)) says the Chief of Appeals is appointed by the Commissioner.

In this session I cover:

1. What I got wrong about the "no Commissioner" argument — and why the delegation orders survive

2. What I got more right: the whole arrangement as an end-run around the Federal Vacancies Reform Act and the Appointments Clause

3. The two new cases that matter — Giraud (3d Cir.) and Widakuswara v. Lake (D.D.C.) — and why "you can't rebuild a Senate-confirmed office by delegation" is now the live question

4. The June 16 cliff: when the Acting Chief Counsel's authority expires, who is authorized to represent the IRS in Tax Court?

5. How all of it connects to Trump v. Slaughter at the Supreme Court — and the prediction I made back in November 2024

6. The COVID Disaster Matrix of Capriciousness: how the IRS treated a mandatory refund statute (§7508A(d)) as optional, ran collections and audits on zero-legal-force press releases, and what you may still be able to claim before the July 10 deadline

This is analysis and opinion from a practicing tax attorney, not legal advice for your specific situation — if you've got a matter, talk to counsel.

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