Under former President Trump, the IRS lost about 25% of its total staff, roughly 26,000 workers. The number of full-time employees dropped from 103,000 in early 2017 to just over 77,000 in 2025. This was done mostly through buyouts and voluntary exits, but some people were laid off. It’s the biggest staffing cut the agency has seen in decades. The Trump administration pushed these cuts as part of its plan to reduce the size of the federal government.
The staff losses weren’t spread out evenly. The departments that handle audits and technology took the biggest hits. Over 27% of tax examiners and 26% of revenue agents are gone. These are the people responsible for reviewing tax returns, catching fraud, and making sure wealthy individuals and businesses pay what they owe. The IT division, which keeps the IRS’s systems running, also lost about a quarter of its workforce. With fewer experts in these areas, it’s going to be harder for the IRS to enforce tax laws or keep up with technical problems.
Instead of sudden mass firings, most of the job losses happened quietly over time. The IRS offered early retirement packages, incentives to leave, and deferred resignation programs. Only a small number of employees were let go through formal layoffs. This slow rollout kept it from becoming a bigger news story, but the long-term impact is serious. Many of the people who left were experienced, senior employees, and that knowledge is hard to replace.
The IRS got through the 2025 tax season with fewer issues because it was a relatively quiet year no major tax code changes, and the remaining staff could keep things moving. But the agency’s national taxpayer advocate, Erin Collins, warned that 2026 will be different. If new laws or changes hit, the smaller team won’t be able to handle the pressure. There will likely be longer delays, more mistakes, and worse service for regular taxpayers who call in with questions or problems.
Critics argue that the staffing reductions make it easier for the rich to avoid paying taxes. With fewer auditors, the IRS has a harder time reviewing complex returns from high-income earners and corporations. Some lawmakers say this is no accident; they believe these cuts were designed to weaken the IRS’s ability to go after wealthy tax cheats. While supporters of the cuts say the IRS was bloated and inefficient, others worry that these changes help those with the most power and money at the expense of ordinary taxpayers.
Cutting the IRS workforce by a quarter sounds like a win for “smaller government,” but in practice, it mostly helps people who already know how to bend the rules. The IRS isn’t just a tax collector, it’s the referee of the system. If you pull the refs off the field, the players with the most money and the best lawyers will always win. Less enforcement means more unpaid taxes and a bigger burden on the people who play by the rules.
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