Big Changes at the IRS
What the Workforce Reductions mean for you.
Since January 2025, when the IRS had about 103,000 employees, the agency has been slimming down its workforce in line with the President’s executive orders and guidance from the Office of Personnel Management. Instead of waiting for layoffs, many employees accepted voluntary separation offers or other incentives. By May 2025, roughly 25% of the IRS workforce—nearly 26,000 people—had left their positions.
Who’s Leaving the IRS?
Not every role has been impacted the same way:
Tax Examiners: About 27% separated. These are the folks who review and process tax returns for accuracy and compliance.
Revenue Agents: About 26% separated. These are the auditors who dig into financial records of individuals and businesses.
The impact also varies by IRS business unit:
Small Business/Self-Employed: Down by 35%.
Large Business & International: Down by 19%.
Wage & Investment (the group that handles most individual 1040 returns): No numbers released.
Why This Matters
The National Taxpayer Advocate, who oversees the independent Taxpayer Advocate Service, has raised concerns with Congress: without stronger technology in place, these staffing cuts could spell trouble for the upcoming filing season. Their warning was clear—fewer employees means fewer people available to program systems, issue timely guidance on tax law changes, answer phones, and process mail.
And remember, all this is happening at the same time the IRS is working to implement the massive “One Big Beautiful Bill” tax law. That’s a lot of new rules, forms, and systems to roll out—while running on a leaner staff.
What to Expect Going Forward
The 2026 filing season is shaping up to be… interesting. Longer wait times, slower responses, and more pressure on IRS systems are very likely. But here’s the good news: you don’t have to navigate it alone. My role is to help you stay ahead of any issues, respond promptly to IRS notices, and give you peace of mind in an otherwise uncertain environment.
