The IRS has cut thousands of enforcement workers since President Donald Trump returned to office, and proposed budget plans suggest further reductions|Saturnism|CC BY-SA 2.0

The US administration is reducing tax enforcement staff at the Internal Revenue Service (IRS), leading to fewer audits and weaker collection of unpaid taxes.

The IRS has cut thousands of enforcement workers since President Donald Trump returned to office, and proposed budget plans suggest further reductions. 

The agency workforce fell from 103,000 at the start of 2025 to around 74,000 by year-end, after cuts to newer employees and buyouts.

Falling audits and rising concerns
Officials and tax analysts say reduced staffing has weakened audits, slowed investigations, and encouraged some taxpayers and promoters to take more risks. 

Tax experts report a growing number of filers fudging figures, assuming that the agency’s staffing shortage will make it harder for the IRS to catch them.

Audit rates for high-income individuals and complex business structures have declined.

Audits of those earning $10 million or more fell 9% last year and could drop another 39% this year. Partnership audits have also slipped, rolling back scrutiny of private equity and other complex entities.

Enforcement revenue has also dropped in recent years. The White House has pulled back nearly $54 billion of the $79.4 billion provided by the 2022 Inflation Reduction Act for tax enforcement over the next 10 years.

Critics warn that this could hurt government revenues and widen budget deficits.

The Budget Lab at Yale, a nonpartisan group led by former Biden administration officials, estimates that IRS workforce reductions to date would reduce federal spending by $46 billion over the next decade while cutting revenue collections by $643 billion.

Government focuses on technology
The administration argues it is improving efficiency by using artificial intelligence and digital tools to select cases and improve compliance. It says digital upgrades will help the agency operate more effectively, even with fewer staff.

Lawyers say some cases are still aggressively pursued, but overall, IRS capacity is stretched, and delays are increasing.