President Trump is once again shaking up Washington’s corridors of power, with over 11,000 IRS employees, including 31% of the total number of auditors, being shown the door.
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The move, overseen by Elon Musk’s Department of Government Efficiency (DOGE), primarily hits auditors, triggering both celebration and criticism.
Under President Trump’s directive, a sweeping reduction of IRS personnel has left the agency with 31% fewer auditors.
More than 7,300 probationary employees now find themselves unemployed, a direct repercussion of the DOGE’s downsizing directive.
Meanwhile, 4,100 IRS staff have taken the “fork in the road” resignation program.
This restructuring echoes the conservative sentiment for limiting bureaucratic bloat and focusing resources on more pressing national priorities.
The mass exodus doesn’t stop there. Another 13,125 employees have been approved for buyouts, signaling further reductions in IRS staffing.
The changes have predominantly affected newer auditors hired during Joe Biden’s presidency, highlighting an ideological shift towards a more sustainably-sized IRS.
However, such cuts have sparked litigation, drawing attention to the legality of mass terminations and potential impact on federal revenues.
This downsizing raises significant concerns regarding fiscal repercussions.
The IRS reported that audits generated substantial financial return, once recommending an additional $32 billion in tax assessments during fiscal 2023.
Critics predict that fewer auditors could lead to escalated tax evasion, with Yale Budget Lab forecasting a staggering $159 billion net revenue loss over a decade.
Such losses could skyrocket to $1.6 trillion amidst non-compliance.
Meanwhile, on the financial front, The White House’s fiscal 2026 budget aims for $163 billion savings through DOGE, redirecting much-needed funds toward military spending.
Herein lies the crux of Trump’s strategy—conservative values prioritize national defense and a streamlined government.
But the report warns of a potential net budget deficit due to tax revenue drops, an inevitable byproduct of lost IRS oversight.
This broader picture is part of a calculated effort to rebalance federal spending.
While the workforce slims, only 5% of IT staff and 10% of customer service agents have departed.
However, insider reports point to future cuts targeting these sectors.
As the IRS assesses its next steps, it remains caught in a tug-of-war between leaner governance and nurturing essential revenue collection functions.
While many cheer trimming excessive governmental fat, others caution against neglecting the IRS’s essential role.
A tighter, efficient IRS must balance conservative economic ideals without jeopardizing fiscal stability.
The Trump administration's plan to trim the IRS workforce has resulted in almost one-third of its tax auditors leaving the agency through March, according to a report from the U.S. Treasury Department's watchdog. https://t.co/VIdrrGDCIy
— CBS News (@CBSNews) May 6, 2025
