The IRS is facing a major shake-up under President Trump’s strategic workforce reductions, as 31% of its tax auditors have now departed their jobs.
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With 11,000 personnel exiting the agency, and further cuts looming, taxpayers are left questioning the impact on compliance and enforcement.
Over 31% of IRS auditors have left their positions, a significant number from a crucial component of the agency tasked with auditing taxpayers.
These reductions took place shortly after the Department of Government Efficiency (DOGE), spearheaded by Elon Musk, initiated sweeping workforce cuts.
The downsizing affected 3,600 revenue agents, 18% of revenue officers, and 10% of tax examiners.
The majority of these reductions involve probationary employees hired under President Joe Biden after a funding boost.
Many of these newly hired auditors have faced termination, leading to ongoing litigation.
Over 7,300 probationary employees were terminated, while around 4,100 employees accepted the “fork in the road” resignation offer.
In addition, more than 13,100 buyouts are in progress, as some employees see the writing on the wall and seek early exits, Yahoo Finance reports.
Critics argue that these drastic measures could have a ripple effect, leading to increased tax evasion and a deeper revenue loss for the government.
In fiscal year 2023 alone, auditors recommended $32 billion in additional tax assessments. The downsizing not only affects government revenue but might also widen budget deficits in the future.
The National Bureau of Economic Research has found that each dollar spent auditing high-income taxpayers generates six dollars.
With a staggering net revenue loss prediction of $159 billion over ten years by the Yale Budget Lab, this seems to be a risky contraction of the IRS.
High non-compliance could elevate this potential loss to a daunting $1.6 trillion.
The White House’s fiscal 2026 budget reflects this strategy, diverting potential savings of $163 billion primarily towards military spending.
BREAKING: 31% of the IRS's tax auditors quit following DOGE downsizing. pic.twitter.com/SXWp8EGJSg
— Ian Jaeger (@IanJaeger29) May 5, 2025
Despite such budget redirections, potential deficits loom due to the anticipated loss in tax revenue.
Moreover, while 5% of IT staff and 10% of customer service agents have departed, future job cuts in these areas remain a concern.
This systematic plan raises questions about the balance between cutting government inefficiencies and ensuring necessary functions, especially while America’s fiscal health is at stake.
