The IRS lost more of its senior leadership team as questions continue to arise about the efficacy of the remaining compliance workforce and as two of the agency's officials were placed on administrative leave, according to Bloomberg Tax. The personnel shakeup comes at at time when  the tax agency has slashed its workforce significantly.

The latest absences will most probably raise concerns among IRS employees who are already worried about the staff cuts and buyouts. These are also expected to serve as obstacles in performing the functions of the compliance divisions just as new IRS Commissioner Billy Long takes over, tax professionals stated, according to Bloomberg Tax.

In another article, Bloomberg Tax reports that a couple of  highly placed IRS leaders were put on administrative leave on Jul. 29, citing an individual familiar with the matter.

Holly Paz, the commissioner of Large Business and International (LB&I) Division, as well as Elizabeth Kastenberg, acting director of the Office of Professional Responsibility, were placed on leave. The tax agency is currently investigating their conduct against Republicans, the source stated. The source added that the leave does not mean they are fired nor has there been a decision regarding their replacement, the source said.

According to Bloomberg Tax, the decision comes weeks after Long became commissioner. More than half of the tax agency's leadership has left in 2025 and a quarter of the agency’s staff of 100,000 is gone following President Donald Trump’s efforts to shrink the federal government's workforce.

As the leader of LB&I, Paz was tasked with overseeing the tax enforcement of the biggest firms and partnerships. Meanwhile,  Kastenberg led the office that performed oversight over tax practitioners, tax preparers, and other third parties who practice before the IRS, Bloomberg Tax reports.