https://x.com/rooseveltinst/status/1920212794248499332
The Internal Revenue Service (IRS) has experienced significant workforce cuts, losing over 11,000 employees, which represents an 11% reduction, according to a Treasury Inspector General for Tax Administration (TIGTA) report. The impact was more pronounced among “revenue agents,” the auditors responsible for tax compliance, where the agency saw a 31% drop, equating to 3,623 lost positions. U.S. Treasury Secretary Scott Bessent stated that “collections” remain a priority for the IRS during a House of Representatives Appropriations subcommittee hearing.
https://x.com/RichardRubinDC/status/1919409691345428688
The TIGTA report coincided with President Biden’s fiscal 2026 budget proposal, which advocates for a nearly $2.5 billion reduction in the IRS budget to address concerns over the “weaponization of IRS enforcement.”
https://x.com/davidsirota/status/1919812537056424372
Over 130 House Democrats warned that further reductions in compliance staff could hinder the agency’s capabilities to improve collections and combat tax avoidance and evasion by high-income taxpayers and large corporations. Research from various institutions indicated that audits of the wealthiest 0.1% of taxpayers yield significant returns for every dollar spent on enforcement resources. Bessent anticipates meeting revenue goals through advancements in information technology and artificial intelligence, rather than relying solely on traditional collection methods.
“I would expect the collection to continue to be very robust,” he affirmed.
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The reduction in IRS staff has raised concerns that the agency’s weakened ability to monitor and enforce tax laws could benefit wealthy tax dodgers. The IRS processed a higher number of tax filings during the 2025 season than the previous year, according to agency data.
The IRS has reduced its workforce by more than 20% since President Donald Trump took office, effectively undoing the hiring gains championed by the Biden administration. These reductions have not yet included the extensive layoffs anticipated to bring the workforce down to levels not seen in over 45 years. Under the Biden administration, the IRS launched a significant hiring effort with congressional funding from the Inflation Reduction Act aimed at closing the tax gap, modernizing technology, and enhancing customer service.
Irs sees significant staffing reduction
However, under new leadership, approximately the same number of employees have left the IRS, most of them voluntarily through the Deferred Resignation Program (DRP). Over 20,000 IRS employees have been approved for the DRP, allowing them to take paid leave through September before officially leaving the government.
Additionally, 1,600 employees have accepted early retirement or buyout incentives. The IRS has also attempted to dismiss 7,300 probationary employees, who are currently back at the agency under a now-defunct court order. Pending DRP applications and the removal of probationary employees could reduce the IRS workforce to around 66,000 employees, with further reductions potentially bringing it below 60,000 workers.
The staffing cuts have affected various roles unevenly, with revenue agents decreasing by about 31% and revenue officers by 18%. The IRS has already begun implementing layoffs on a smaller scale. In March, 48 IT employees were placed on administrative leave, followed by reductions in force across several offices in April.
Treasury Secretary Bessent has emphasized that smarter technology and artificial intelligence can enhance the agency’s future collection activities. The IRS has experienced substantial leadership changes since January, amid controversies such as sharing taxpayer data with immigration enforcement officials. Former IRS commissioner Danny Werfel highlighted the effectiveness of the hires made under the Biden administration, noting their resilience during the successful 2025 filing season.
The IRS will continue to navigate staffing reductions and operational changes as it aims to balance efficiency with providing necessary services to taxpayers. The rapid downsizing and subsequent legal battles highlight the ongoing turbulence at the IRS and raise questions about the future capability of the agency to manage its critical functions efficiently.
