IRS has lost one-quarter of its IT staff since Trump took office
- Reference: 1753289113
- News link: https://www.theregister.co.uk/2025/07/23/irs_it_staff_down_25_percent/
- Source link:
The Treasury's latest IRS workforce reduction snapshot [1]report indicates that as of May, a full 25 percent (2,163) of the IRS' IT workforce has departed as a result of the [2]deferred resignation program , retirement, layoffs, or other factors. Twenty-three percent of IT management (1,853) have left as well, making them one of the worst hit job functions in the IRS' ranks.
In addition to those layoffs, the report noted that an additional 48 senior IT office employees were placed on administrative leave in March due to reorganization plans, 22 of whom remain on administrative leave as of early June.
[3]
IT got hit hard, but other parts of the tax collection agency got it worse. On a per capita basis, the IRS' HR office and the small business and self employed (SB/SE) taxpayer services divisions were hit harder. By sheer numbers, SB/SE and the taxpayer services units each shedded more than 8,500 people.
[4]
[5]
The IRS's overall general layoff rate has tracked with the IT group's, with a full quarter of staff gone since Trump took office.
A slow moving, noticeable and avoidable disaster
According to the IRS's National Taxpayer Advocate Service (TAS), those workforce reductions - particularly in IT and taxpayer services - could be a disaster for next tax season.
In its 2026 Congressional Objectives [6]Report , published in late June, TAS chief and National Taxpayer Advocate Erin Collins called out staff cuts as a concern.
The IRS typically begins preparation for the coming tax year soon after the prior return window closes, Collins noted in the report. But thanks to workforce reductions, instead of hiring temporary staff and beginning prep work, the IRS hasn't even started the process.
[7]
"As of mid-2025, there are concerns the IRS has not yet performed key preparatory activities, including preparatory activities to hire and train seasonal and permanent filing season employees, thereby raising risks to the integrity and timeliness of the 2026 filing season," Collins wrote.
[8]Dems are upset about DOGE's IRS hackathon, but the IRS says it never happened
[9]IRS has loads of legacy IT, still has no firm plans to replace it
[10]Judge puts two-week pause on Trump's mass government layoffs
[11]The real reason why Trump is killing the Mauna Loa observatory in Hawai'i
"Trained and knowledgeable personnel remain central to this effort. Staffing reductions and the loss of experienced personnel, particularly in mission-critical areas, create vulnerabilities in service delivery, return processing, and taxpayer assistance."
Elsewhere in the report, Collins mentions IT modernization efforts at the IRS, including [12]working with DOGE , are essential to make future tax seasons go smoothly. She's less sure the tech modernization drive is going well, noting that a lack of disclosure about the efforts to the public or Congress means tech modernization projects could stall "or deviate from their intended outcomes."
As the TAS noted in a [13]press release accompanying the report, workforce reduction won't help matters, either, and was blunt about it.
"Without [14]improved technology in place, IRS staffing cuts could jeopardize the success of next year's filing season," TAS said in its statement. "To deliver a successful filing season, the IRS needs a sufficient number of trained employees."
[15]
The TAS report, which contains newer data than the workforce reduction snapshot, indicates the layoffs have continued at the IRS.
As of late June, 27 percent of the IT workforce has been slashed since Trump took office - two percent more than was the case in TIGTA's data from the prior month. The same additional two percent reduction holds for the taxpayer services group, too. ®
Get our [16]Tech Resources
[1] https://www.tigta.gov/reports/inspection-evaluation/snapshot-report-irs-workforce-reductions-may-2025
[2] https://www.theregister.com/2025/01/29/us_government_workers_resign_deal/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aIZNPgjFu5hWFzbG10lXnQAAAA0&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aIZNPgjFu5hWFzbG10lXnQAAAA0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aIZNPgjFu5hWFzbG10lXnQAAAA0&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.taxpayeradvocate.irs.gov/reports/2026-objectives-report-to-congress/
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aIZNPgjFu5hWFzbG10lXnQAAAA0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2025/05/16/congress_question_doge_it_overhaul/
[9] https://www.theregister.com/2024/08/14/irs_legacy_tech/
[10] https://www.theregister.com/2025/05/13/trump_government_layoffs_frozen/
[11] https://www.theregister.com/2025/07/22/trump_shoots_climate_messenger/
[12] https://www.theregister.com/2025/06/17/palantir_questioned_letter_democrats/
[13] https://www.taxpayeradvocate.irs.gov/reports/2026-objectives-report-to-congress/newsroom-26/
[14] https://www.theregister.com/2025/05/08/irs_ai_plans/
[15] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aIZNPgjFu5hWFzbG10lXnQAAAA0&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[16] https://whitepapers.theregister.com/
Re: Don't you just love it ?
Still waiting for part of last year's refund, I was told last month that it would be probably September before it arrives. Not holding my breath.
Re: Don't you just love it ?
They'll just keep the money - how else would they fund the tax cuts for the ultra rich?
Re: Don't you just love it ?
A bit more chaos will help distract from El Cheeto's history on Pedo Island?
> Pedo Island
Epstein's case is the best proof why the super-rich must pay much higher taxes.
The files seem to contain a considerable number of VIPs, thus releasing them would harm USA enormously, being a matter of national security and impacting international relations. The whole country is effectively blackmailed. Simply notе that the new wave of demands to release the files started right after Trump renewed military aid to Ukraine.
History once again proves that super-rich are above the law. Epstein was a scapegoat - a head had to roll to avoid a much larger issue.
Judicial process for such cases is extremely expensive for the taxpayer. And Epstein's island that enabled the crimes was a side-effect of his wealth.
Taxing the super-rich is the way to reduce their influence and corruption potential. Apart from other reasons, mentioned by Garys Economics*, for example.
*https://www.youtube.com/@garyseconomics/videos
Re: Don't you just love it ?
> Is that in The Art Of The Deal ?
Trump doesn't know. You'll need to ask his ghost-writer.
I'll always remember fondly the storyline of Strike Commander, in which the IRS had become a terrorist organization using the threat of violence (including in particular aerial strikes) to force people to pay taxes to the US government.
That said, in the real world, I'm surprised to see republican politicians directly calling for smaller budgets for the IRS in order to protect honest tax evaders from nasty bureaucrats.
"That said, in the real world, I'm surprised to see republican politicians directly calling for smaller budgets for the IRS in order to protect honest tax evaders from nasty bureaucrats."
New to the US, eh? The IRS has been dysfunctional for years due to the Republicans' hate of the rich paying taxes. There is a reason the only have the resources to audit the poors.
Tax are for the poor, there is more of them and they can not afford to pay a good accountant to minimise their taxes, what a wonderful world we live in /s
How to Shrink the IRS
Reducing staff with the same messy tax laws will only make it easier for the wealthy to cheat. If Congress simplified the tax laws, we wouldn't need as many people to collect taxes. We'd also get rid of a lot of people at accounting firms and put them into potentially more useful roles.
A.
Re: How to Shrink the IRS
That's intentional. They were going to simplify them once - either a free website and/or I think switching to PAYE - but they were lobbied by the people who profit from software and services designed to help people file them.
[1]https://en.wikipedia.org/wiki/Pay-as-you-earn_tax#United_Kingdom
[2]https://www.gov.uk/paye-online/desktop-viewer
[3]https://techcrunch.com/2013/03/27/turbotax-maker-funnels-millions-to-lobby-against-easier-tax-returns/
[1] https://en.wikipedia.org/wiki/Pay-as-you-earn_tax#United_Kingdom
[2] https://www.gov.uk/paye-online/desktop-viewer
[3] https://techcrunch.com/2013/03/27/turbotax-maker-funnels-millions-to-lobby-against-easier-tax-returns/
its a good start.
Who even pays tax?
DJT
The IRS has (had) eight thousand IT managers? Golly. That was one manager for each staff member.
Hmm
Does this undo the massive increase in IRS personnel under Biden? This is where I side more with Rand Paul than others, simplify the tax system.
Re: Hmm
That were having a material impact on increasing tax take - not more taxes … just stopping Constitution loving American’s who forgot. Commonly known as Tax Cheats.
https://www.govexec.com/management/2024/02/irs-says-its-hiring-surge-and-funding-boost-could-generate-560b-more-it-thought/393966/#:~:text=A%20funding%20and%20staffing%20surge,drivers%20of%20improved%20tax%20collection.
In principle I agree however abolish the stupid deductions scam and several tax rates like any other sensible country.
No tax if you son’t earn enough
Single rate to $100K
Higher rate to $250K
Full rate to $1m
Surcharge for the rich.over $1m annual income.
Re: Hmm
@AC
"That were having a material impact on increasing tax take"
Maybe I am missing something in your link but its a lot of projections, maybe's, could and from the Biden administration that is trying to justify dumping all this money and increasing the numbers. I dont see where the material impact is in that article.
Re: Hmm
https://betterirs.org/wp-content/uploads/sites/283/2023.10-Research-TaxGap-1.pdf
Unless you. A provide evidence they made no difference ….and the ITS. And unction better with less tax inspectors.
Re: Hmm
@UnknownUnknown
"Unless you. A provide evidence they made no difference ….and the ITS. And unction better with less tax inspectors."
I think you were typing too fast so I hope I read your comment correctly. Your link is to a site that proudly says this- "Modernizing the IRS so it can build a more inclusive tax filing system, eliminate racial disparities in audit rates, and stop wealthy tax cheats.". So we can reject that as bollox.
The AC provided the link and the link seemed absolutely clear that there was no hard factual numbers, all projections, could and maybe. Cutting them absolutely and without question removes the wage problem of these agents. They are a cost, so is there anything to suggest they were worth it?
Which brings me back to my comment where simplifying the tax system would seem to be a better place to start instead of compensating for the overly complex. The AC made some suggestions in that direction too.
Re: Hmm
Agree in principle, but tie the brackets to the cost of living, otherwise you'll have day laborers paying the "over $1M" rate in 10 years, due to inflation.
Also, for public (i.e.: listed on the stock exchange) corporations, executive salaries may not exceed 10x the average employee salary.
Re: Hmm
"simplify the tax system."
Exactly right, Madam!
It is very heartwarming to see someone of your station in life argue for lower taxation.
The less tax we pay up here at the high table the more crumbs and scraps there will be for you down there in the cheap seats. I pray we continue to profit from those such as yourself who know their place.
How awful /s
> IRS has lost one-quarter of its IT staff since Trump took office
Personal income tax was introduced as a temporary wartime measure to pay for the Napoleonic wars. curiously enough the government forgot to rescind it /s
Re: How awful /s
Funny … I don’t remember the USA fighting in the Napoleonic Wars, though advantage was taken of France with the distressed Louisiana Purchase scheme.
Go see the 16th amendment for a clarify on income tax from 1913.
There is always too many government workers
Probably most of them either had pointy hair or were named Wally.
Re: There is always too many government workers
What a stupid generalization. I have worked with many many many state and federal workers over my career. The majority have been hard working and dedicated to their jobs. You've apparently had zero actual experience dealing with any government workers.
Just Getting Started !!
This is a great start to totally abolishing the IRS and replacing it with the ERS !!!!!!!!!!!!!!!!
Make America Great Again !!
Don't you just love it ?
There's too many administrative personnel.
Let's start by cutting down the personnel that ensures government has revenue.
Is that in The Art Of The Deal ?