IRS Faces Auditor Shortage Amidst Layoffs and Buyouts
The Internal Revenue Service (IRS) in the United States is grappling with a significant reduction in its workforce, losing 31% of its auditors due to buyouts and layoffs linked to Elon Musk's Department of Government Efficiency, Doge. This dramatic decrease in personnel poses challenges for the agency in its efforts to combat tax evasion.
Impact of Layoffs on Tax Enforcement
The IRS has been particularly affected by the loss of newly hired probationary auditors, with 3,600 revenue agents, 18% of revenue officers, and 10% of tax examiners also among those laid off. According to a recent report from the Treasury Inspector General for Tax Administration, 10% of tax examiners and 18% of revenue officers, who are crucial in managing complex tax cases, have resigned. The layoffs have been extensive, with over 7,300 probationary staff losing their positions.
Chain Reaction of Departures
The IRS's decision to reduce its workforce was triggered by a series of buyouts and resignations, initially allowing over 13,100 employees to leave, though only 4,100 accepted the buyout offer. The significant cuts in personnel come at a time when former President Joe Biden increased funding for tax enforcement to address the IRS's dwindling capabilities, resulting in a surge of newly recruited probationary auditors.
Challenges Ahead
The disproportionate impact of layoffs on auditing staff raises concerns about the agency's ability to effectively pursue tax evaders and uphold tax compliance. As the IRS faces this workforce crisis, the future of tax enforcement hangs in the balance.
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