Trump eyes overhaul of federal tax agency; George Soros, Left-leaning groups could face scrutiny: Report

US billionaire investor and philanthropist George Soros

A reshuffle is said reportedly underway by US President Donald Trump’s administration in its Internal Revenue Service (IRS), to bring about changes that would allow the agency to pursue criminal cases against progressive groups more aggressively, according to a Wall Street Journal report citing people familiar with the discussions.

Driving this effort is Gary Shapley, an aide to Treasury Secretary Scott Bessent. He has reportedly drawn up a roster of organisations and donors aligned with the political left that he believes IRS investigators should examine.

Among those listed is George Soros, the Hungarian-American financier, along with entities linked to him, according to a senior IRS source quoted by the report. The basis for initiating scrutiny, however, “could not be determined,” the report said.

These developments come as the administration has amplified criticism of groups it claims are fueling unrest. Trump has repeatedly connected certain donors to political turmoil, describing them as part of a network behind protests in major cities. In one interview, he bluntly said George Soros “should be in jail,” without elaborating further.

A Truth Social post from the Trump on August 25 had said: “George Soros, and his wonderful Radical Left son, should be charged with RICO because of their support of Violent Protests, and much more, all throughout the United States of America. We’re not going to allow these lunatics to rip apart America any more, never giving it so much as a chance to ‘BREATHE,’ and be FREE. Soros, and his group of psychopaths, have caused great damage to our Country! That includes his Crazy, West Coast friends. Be careful, we’re watching you! Thank you for your attention to this matter!”

The restructuring plan described in the report would place allies of the US President inside the IRS Criminal Investigation division (IRS-CI), tightening White House influence while diminishing the role of IRS attorneys in criminal matters. The report also indicated that Guy Ficco, the chief of the investigative unit, is expected to be replaced.

Under the blueprint being discussed, IRS investigators would be given a list of liberal-leaning organizations and donors flagged for inquiry. The report said that many major Democratic donors are on a list. Bessent, who is simultaneously the acting IRS Commissioner, has already been directed by the US President to identify financial networks he claims are behind political violence.

It is reported that these moves risk transforming the federal tax agency into a tool for political retaliation.