The Trump administration is pursuing a massive overhaul of the Internal Revenue Service (IRS), with a new focus on investigating wealthy Democratic donors who the White House claims are funding “nefarious political activities” and civil unrest.
The initiative, spearheaded by interim IRS Commissioner Scott Bessent (Treasury Secretary) and his advisor Gary Shapley, has already placed billionaire George Soros on a list of potential targets for criminal inquiry.
The move marks a dramatic shift in the agency’s enforcement priorities and comes as the IRS faces significant disruption, including mass layoffs driven by the Department of Government Efficiency (DOGE) and a partial government shutdown that has furloughed nearly half its remaining workforce.
Soros Named as Potential Target
The effort began following the abrupt firing of former IRS Commissioner Billy Long in August. Treasury Secretary Scott Bessent, appointed as the interim IRS Commissioner, has tasked advisor Gary Shapley with assembling a list of high-net-worth individuals and organizations to face potential criminal investigation.
At the top of that list is George Soros, the long-time Democratic megadonor whose Open Society Foundation is the world’s largest funder of left-wing causes. Soros and his son Alex, who runs the Fund for Policy Reform—a political entity that donated a reported $60 million to Democrats in 2024—have long been a target of conservative ire.
While Shapley stated, “I’m grateful to continue in my role in reforming the IRS,” and a Treasury spokesperson maintained the team’s focus remains on “collections, privacy, and customer service,” the White House has publicly signaled its intent to use the retooled IRS for political ends. President Trump, who recently said Bessent would handle the investigation of financiers “easily,” has previously called for Soros and his son to be charged under the Racketeer Influenced and Corrupt Organizations (RICO) Act, a law primarily used against organized crime.
Soros’ Open Society Foundation has “denied any wrongdoing and denounced violence.”
Congressional Support for RICO Crackdown
The administration’s efforts are being bolstered by a simultaneous push in Congress. Senator Ted Cruz (R-TX) has introduced legislation intended to allow the Department of Justice (DOJ) to use the full suite of RICO tools against the funders of what he calls violent political protests, including this past weekend’s anti-Trump “No Kings” demonstrations.
“Follow the money. Cut off the money,” Senator Cruz stated 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’s proposed legislation would add “rioting” as a predicate offense for RICO charges, thereby giving the DOJ new latitude to prosecute organizations and individuals believed to be orchestrating and financing civil unrest. The current RICO law’s application to rioting, already under discussion, gives the administration another path to target demonstrators and their financial backers.
Leadership Purge and Agency Turmoil
The dramatic change in direction follows a tense period for the nation’s tax agency. Former Commissioner Billy Long was reportedly pushed out following an internal dispute over a request from the Department of Homeland Security to hand over confidential taxpayer data to help locate undocumented immigrants—a request Long’s privacy lawyers had opposed. The White House, however, insists Long’s ouster had long been planned.
Shapley’s agenda reportedly includes placing more presidential allies in charge of the IRS’ investigative division. This includes the potential firing of Guy Ficco, a longtime fixture who runs the investigative unit, as part of an attempt to revamp who and what the agency probes.
Amid the political infighting, the IRS itself is facing a crisis of capacity. Following mass layoffs driven by DOGE earlier this year, the agency’s workforce is down to roughly 75,000 workers. The government shutdown has now forced the furlough of nearly half of the remaining employees, leaving most IRS operations closed. The agency initially planned to stay open using funds from the Democrats’ Inflation Reduction Act but has since reversed course.
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