IRS Names New Director of Taxpayer First Act Office

The Internal Revenue Service has named Heather C. Maloy to the position of director, Taxpayer First Act Office. She will report directly to the IRS Commissioner in her new role.

The IRS continues work on the Taxpayer First Act, part of legislation passed in July 2019. The IRS delivered the Taxpayer First Act Report to Congress earlier this year, providing a comprehensive set of recommendations that will reshape the taxpayer experience, enhance employee training and restructure the organization to increase collaboration and innovation.

“I’m truly pleased to welcome Heather back to the IRS and into this critical role,” said IRS Commissioner Chuck Rettig. “Given Heather’s vast knowledge and leadership experience from both inside and outside the IRS, she will be an important asset to both the IRS and the nation’s taxpayers going forward as we strategically implement the Taxpayer First Act report’s recommendations.”

Maloy replaces Lia Colbert, who will continue in her current role as Deputy Chief of the Independent Office of Appeals. Colbert is a long-time IRS executive who formerly served as both TFA lead and Chief of Staff before moving to Appeals in October 2020.

In her new position, Maloy will provide advice and assistance to the Commissioner in areas such as implementation strategy, management and organizational issues and equitable treatment of taxpayers. She will help set the strategic direction of IRS programs with a focus on a comprehensive taxpayer experience strategy, a holistic training strategy and a modernized IRS organizational structure.

Maloy recently retired from her position as a Principal at Ernst & Young, LLP, where she led a national practice group of specialized tax professionals in serving large, multinational corporations, partnerships, tax-exempt organizations and individuals navigating IRS tax controversies.

In her previous roles at IRS, Maloy served as the Commissioner, Large Business and International Division (LB&I), where she led over 5,000 employees and oversaw tax compliance programs for corporations, subchapter S corporations and partnerships with assets greater than $10 million and incorporated international tax compliance operations into the division. During her tenure, she oversaw the successful expansion of the Compliance Assurance Process, championed the development of new audit procedures to increase transparency and discipline in the LB&I audit process, including the Information Document Request (IDR) procedures and oversaw the issuance and implementation of the Uncertain Tax Position reporting requirements. She also acted as the Deputy Commissioner for Services and Enforcement.

Prior to her selection as the LB&I Commissioner, Maloy held several other prominent IRS positions, including Associate Chief Counsel for both the Income Tax & Accounting and Passthroughs & Special Industries Divisions and Assistant to the Commissioner.

From 2006-2009, she was Counsel at Skadden, Arps, Slate, Meagher & Flom’s Tax Group. Maloy graduated from Emory University, received her law degree from Cornell Law School and an LL.M. in Taxation from the University of Florida School of Law.