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IRS Has Shed More Than 11% Of Its Workforce With Thousands More Cuts On The Way

  • The IRS has cut over 11% of its workforce, terminating more than 11,400 employees as of March 2025, and plans further layoffs after this year's tax season.
  • These reductions follow directives from President Trump's executive orders aiming to shrink federal agencies, though reports differ on the timing and scale of job cuts.
  • Significant staff losses include 31% of revenue agents and 18% of revenue officers, roles critical for auditing and collecting delinquent taxes, while some employees received deferred resignation offers.
  • Treasury Secretary Scott Bessent told a House committee that reductions in IRS staffing would not negatively impact tax revenue, attributing this to efficiency gains from cutting unnecessary IT contracts and leveraging advancements in artificial intelligence to maintain strong collection performance.
  • The ongoing workforce shrinkage and integration of AI suggest the IRS expects to maintain robust collections but face challenges from reduced experienced staff and legal disputes over terminations.
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Forbes broke the news in United States on Monday, May 5, 2025.
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