WASHINGTON D.C. – A dramatic restructuring of the Internal Revenue Service (IRS) is underway, with a recent report from the Treasury Inspector General for Tax Administration (TIGTA) confirming a significant reduction in its workforce. Since the current administration took office in January 2025, the IRS has seen its total number of employees shrink by approximately 25%, with around 26,000 agents and staff departing the agency. This move aligns with the administration’s broader push for federal efficiency and a smaller government footprint, leaving many to ask: “IS THIS WHAT YOU VOTED FOR?”
The mass departures, which began shortly after the new administration took office, have largely occurred through voluntary means, including a “Deferred Resignation Program” (DRP) that offered incentives for employees to leave with pay. This program, alongside Voluntary Early Retirement Authority (VERA) and Voluntary Separation Incentive Payments (VSIP), has been the primary mechanism for the reduction. However, a smaller number of involuntary terminations, or “reductions in force” (RIFs), have also contributed to the decline.
The cuts have disproportionately affected certain divisions within the IRS.1 TIGTA’s report highlights significant reductions among tax examiners (27% gone) and revenue agents (26% gone), who are crucial for reviewing tax returns, conducting audits, and ensuring compliance. Other impacted areas include Taxpayer Services, Human Capital Office, and IT management.2 The report also notes that these separations have “nationwide implications,” affecting every state and territory.3
The Administration’s Rationale
The administration has framed these workforce reductions as a necessary step towards a more efficient and accountable federal government, driven by the newly established Department of Government Efficiency (DOGE). Proponents argue that a leaner IRS will reduce bureaucratic waste and align with the public’s desire for less government intervention. They point to the prior administration’s increased IRS funding, arguing it led to an unnecessary expansion.
However, the administration is now also seeking to reverse some of these cuts, particularly in the customer service division.4 The President’s fiscal 2026 budget proposal requests a 31% funding increase for Taxpayer Services to hire 11,000 new employees, warning that without such an investment, taxpayer service levels could drop drastically. This signals a recognition of potential impacts on everyday Americans trying to navigate the tax system.
Concerns and Consequences
Critics, including former IRS commissioners and tax policy experts, have voiced significant concerns about the long-term implications of such a drastic reduction.5 They argue that a smaller IRS, particularly with fewer auditors, could lead to a substantial increase in the “tax gap” – the difference between taxes owed and taxes collected.6 Experts from institutions like the Center for American Progress estimate that these cuts could cost the government nearly $1 trillion in lost revenue over the next decade, with a disproportionate impact on the ability to audit wealthy individuals and corporations.
Furthermore, concerns have been raised about the impact on taxpayer services.7 Unions representing IRS employees warn of backlogs, slower refunds, and reduced capacity to assist citizens with their tax questions. Some critics also point to reports of a “brain drain” within the agency, as experienced staff take early retirement or separation offers, potentially impacting the agency’s ability to modernize its technology and enforce complex tax laws.8
The question “IS THIS WHAT YOU VOTED FOR?” resonates deeply with a public that may have differing views on the role and size of government. While some may applaud the reduction as a step towards fiscal conservatism, others worry about the potential for increased tax evasion, diminished taxpayer services, and a less equitable tax system.9 As the IRS navigates this unprecedented downsizing, the full scope of its impact on American taxpayers and the nation’s finances will undoubtedly continue to be a subject of intense debate.
