WASHINGTON D.C. – The Internal Revenue Service (IRS) workforce has seen a significant reduction of approximately 25%, with nearly 26,000 agency members departing since January 2025 under the Trump administration. This move, widely reported by various news outlets including The Washington Times and CPA Practice Advisor, aims to reverse previous expansions at the tax agency and shrink the federal government. The reduction brings the IRS staffing level down from roughly 103,000 employees to approximately 77,000.
The workforce cuts have been implemented through a combination of buyouts, deferred resignation programs (DRP), and some targeted firings, as detailed in reports from Reuters and Federal News Network. This initiative aligns with President Trump's broader agenda to streamline federal agencies, often linked to the newly established Department of Government Efficiency (DOGE). The administration has also proposed further workforce and operational cuts in its fiscal year 2026 spending plan.
The tweet from "The Calvin Coolidge Project" highlighted the scale of this change, stating, "> New: President Trump has removed 25% of the IRS workforce, or 26,000 agency members." This social media announcement underscored a key policy outcome of the current administration. The Washington Post and Fox News corroborated the 25% figure, noting the layoffs began in April 2025.
Concerns have been raised by various stakeholders regarding the potential impact of these reductions on tax compliance and taxpayer services. The National Taxpayer Advocate, Erin Collins, warned in her mid-year report that such significant staffing cuts could lead to challenges during future tax filing seasons, despite a largely successful 2025 season. The cuts affect critical areas, including tax examiners, revenue agents, and the Taxpayer Advocate Service, with some units seeing even higher percentages of staff departures.
Experts and former officials, as noted by the Tax Policy Center and Lawfare Media, suggest these reductions could diminish the IRS's ability to conduct audits, particularly of high-income individuals and complex entities, potentially impacting revenue collection. This downsizing also contrasts with the funding increases initially provided by the Inflation Reduction Act, much of which has reportedly been rescinded or undermined by the current administration's policies.